A bill to amend the Service Contract of 1965 to provide for a fact-finding panel to determine the cause of work stoppages, to provide that the Federal Government may in certain cases, terminate contracts with contractors who are at fault in causing such work stoppages.

Requires that every contract within the scope of the Service Contract Act of 1965 shall contain a provision requiring that in the case of a work stoppage which is directly related to a labor dispute between the contractor and the employees carrying out the contract, the contractor and the collective bargaining representative shall immediately notify the Federal Mediation and Conciliation Service that the work stoppage has occured.

Directs the Federal Mediation and Conciliation Service to appoint a fact finding panel within two days after receiving such notice.

Requires the panel to publish, within five days, its findings on whether the work stoppage is beyond the control of the contractor and was caused without his fault.

States that if the panel finds the contractor at fault, the head of the Federal agency which is a party to the contract involved may not make further progress payments on the contract, or exercise any option which would have the effect of increasing the amount payable to the contractor, or the amount of service to be acquired from the contractor, until the dispute is settled.

Permits termination of the contract if no collective bargaining agreement is signed within 45 days following the work stoppage.