I 

111TH CONGRESS 

2D SESSION H. R. 6370 

To amend the Small Business Act to prevent fraud in transactions involving 

certain small business concerns. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 29, 2010 

Mr. NYE introduced the following bill; which was referred to the Committee 

on Small Business 

A BILL 

To amend the Small Business Act to prevent fraud in 

transactions involving certain small business concerns. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Small Business Pro5 curement Integrity Act of 2010’’. 

6 SEC. 2. IN GENERAL. 

7 Section 16 of the Small Business Act (15 U.S.C. 645) 

8 is amended as follows: 

9 (1) SMALL BUSINESS PROCUREMENT FRAUD.— 

10 In subsection (d)(1)— 


tjames on DSKG8SOYB1PROD with BILLS
2 

•HR 6370 IH

1 (A) by inserting after ‘‘a ‘small business 

2 concern owned and controlled by socially and 

3 economically disadvantaged individuals’,’’ the 

4 following: ‘‘a ‘small business concern owned and 

5 controlled by service-disabled veterans’,’’; and 

6 (B) by striking subparagraphs (A) through 

7 (D) and inserting the following: 

8 ‘‘(A) prime contract, subcontract, grant, or 

9 cooperative agreement to be awarded pursuant 

10 to section 8(a), 8(m), 9, 15, 31, or 36; 

11 ‘‘(B) subcontract that is to be included as 

12 part or all of a goal contained in a subcon13 tracting plan required pursuant to section 8(d); 

14 or 

15 ‘‘(C) prime contract or subcontract to be 

16 awarded as a result, or in furtherance, of any 

17 other provision of Federal law that specifically 

18 references section 8(d) for a definition of pro19 gram eligibility; 

20 shall be subject to the penalties and remedies de21 scribed in paragraph (2).’’. 

22 (2) FALSE CLAIMS ACT APPLICATION.—In sub23 section (d)(2)— 

24 (A) in subparagraph (C), by striking the 

25 ‘‘and’’ at the end; 


tjames on DSKG8SOYB1PROD with BILLS
3 

•HR 6370 IH

1 (B) in subparagraph (D), by striking the 

2 period at the end and inserting ‘‘; and’’; and 

3 (C) by adding at the end the following: 

4 ‘‘(E) be subject to penalties and remedies 

5 imposed pursuant to sections 3729 through 

6 3733 of title 31, United States Code.’’. 

7 (3) MISREPRESENTATION OF STATUS.—In sub8 section (e)— 

9 (A) by inserting after ‘‘ ‘small business 

10 concern owned and controlled by socially and 

11 economically disadvantaged individuals’,’’ the 

12 following: ‘‘a ‘small business concern owned and 

13 controlled by service-disabled veterans’,’’; 

14 (B) by inserting ‘‘grant, cooperative agree15 ment,’’ before ‘‘prime contract’’; and 

16 (C) by inserting a comma after ‘‘prime 

17 contract’’. 

18 (4) USE OF INELIGIBLE BUSINESSES; DETER19 MINATION OF LOSSES.—By adding at the end the 

20 following: 

21 ‘‘(g) USE OF INELIGIBLE BUSINESSES.— 

22 ‘‘(1) IN GENERAL.—Whoever knowingly uses 

23 the services of another business to perform a greater 

24 percentage of work under a contract than is per25 mitted by such regulations issued by the AdministraVerDate Mar 15 2010 03:01 Oct 14, 2010 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H6370.IH H6370

tjames on DSKG8SOYB1PROD with BILLS
4 

•HR 6370 IH

1 tion, or attempts or conspires to do so, shall be sub2 ject to the penalties and remedies described in sub3 section (d)(2). 

4 ‘‘(2) CERTIFICATION DEEMED.—By submitting 

5 a request for payment on a contract that is awarded 

6 pursuant to section 8(a), 8(m), 15, 31, or 36, a con7 tractor shall be deemed to certify that it has com8 plied with regulations issued by the Administration 

9 governing the percentage of work that the contractor 

10 must perform on such contract unless the contractor 

11 affirmatively states in writing that it did not comply 

12 with the percentage of work requirement. 

13 ‘‘(h) DETERMINATION OF LOSSES.—For purposes of 

14 subsection (d)(2)(E), the loss to the Government and the 

15 damages sustained by the Government, shall be deemed 

16 to be the amount of money that the Government has paid 

17 to the party that received the prime contract, subcontract, 

18 grant, or cooperative agreement enumerated in subsection 

19 (d), or the portion of the Government’s payments under 

20 such a prime contract that were directed towards such a 

21 subcontract. No credit for the fair market value of the 

22 property or services provided to the Government shall be 

23 applied against such loss or damages.’’. 


tjames on DSKG8SOYB1PROD with BILLS
5 

•HR 6370 IH

1 SEC. 3. CERTIFICATION OF STATUS. 

2 Section 3(q)(1) of the Small Business Act (15 U.S.C. 

3 632(q)(1)) is amended by inserting before the period at 

4 the end the following: ‘‘and who possesses a disability rat5 ing letter issued by the Department of Veteran Affairs, 

6 establishing a service connected rating between 0 and 100 

7 percent, a disability determination from the Department 

8 of Defense, or such other documentation as the Adminis9 trator shall by rule require to establish proof of such dis10 ability’’. 

Æ 


tjames on DSKG8SOYB1PROD with BILLS