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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Small Business Pro-
curement Integrity Act of 2010’’. 
SEC. 2. IN GENERAL. 
Section 16 of the Small Business Act (15 U.S.C. 645) 
is amended as follows: 
(1) SMALL BUSINESS PROCUREMENT FRAUD.— 
In subsection (d)(1)— 
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(A) by inserting after ‘‘a ‘small business 
concern owned and controlled by socially and 
economically disadvantaged individuals’,’’ the 
following: ‘‘a ‘small business concern owned and 
controlled by service-disabled veterans’,’’; and 
(B) by striking subparagraphs (A) through 
(D) and inserting the following: 
‘‘(A) prime contract, subcontract, grant, or 
cooperative agreement to be awarded pursuant 
to section 8(a), 8(m), 9, 15, 31, or 36; 
‘‘(B) subcontract that is to be included as 
part or all of a goal contained in a subcon-
tracting plan required pursuant to section 8(d); 
or 
‘‘(C) prime contract or subcontract to be 
awarded as a result, or in furtherance, of any 
other provision of Federal law that specifically 
references section 8(d) for a definition of pro-
gram eligibility; 
shall be subject to the penalties and remedies de-
scribed in paragraph (2).’’. 
(2) FALSE CLAIMS ACT APPLICATION.—In sub-
section (d)(2)— 
(A) in subparagraph (C), by striking the 
‘‘and’’ at the end; 
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(B) in subparagraph (D), by striking the 
period at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(E) be subject to penalties and remedies 
imposed pursuant to sections 3729 through 
3733 of title 31, United States Code.’’. 
(3) MISREPRESENTATION OF STATUS.—In sub-
section (e)— 
(A) by inserting after ‘‘ ‘small business 
concern owned and controlled by socially and 
economically disadvantaged individuals’,’’ the 
following: ‘‘a ‘small business concern owned and 
controlled by service-disabled veterans’,’’; 
(B) by inserting ‘‘grant, cooperative agree-
ment,’’ before ‘‘prime contract’’; and 
(C) by inserting a comma after ‘‘prime 
contract’’. 
(4) USE OF INELIGIBLE BUSINESSES; DETER-
MINATION OF LOSSES.—By adding at the end the 
following: 
‘‘(g) USE OF INELIGIBLE BUSINESSES.— 
‘‘(1) IN
GENERAL.—Whoever knowingly uses 
the services of another business to perform a greater 
percentage of work under a contract than is per-
mitted by such regulations issued by the Administra-
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tion, or attempts or conspires to do so, shall be sub-
ject to the penalties and remedies described in sub-
section (d)(2). 
‘‘(2) CERTIFICATION DEEMED.—By submitting 
a request for payment on a contract that is awarded 
pursuant to section 8(a), 8(m), 15, 31, or 36, a con-
tractor shall be deemed to certify that it has com-
plied with regulations issued by the Administration 
governing the percentage of work that the contractor 
must perform on such contract unless the contractor 
affirmatively states in writing that it did not comply 
with the percentage of work requirement. 
‘‘(h) DETERMINATION OF LOSSES.—For purposes of 
subsection (d)(2)(E), the loss to the Government and the 
damages sustained by the Government, shall be deemed 
to be the amount of money that the Government has paid 
to the party that received the prime contract, subcontract, 
grant, or cooperative agreement enumerated in subsection 
(d), or the portion of the Government’s payments under 
such a prime contract that were directed towards such a 
subcontract. No credit for the fair market value of the 
property or services provided to the Government shall be 
applied against such loss or damages.’’. 
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SEC. 3. CERTIFICATION OF STATUS. 
Section 3(q)(1) of the Small Business Act (15 U.S.C. 
632(q)(1)) is amended by inserting before the period at 
the end the following: ‘‘and who possesses a disability rat-
ing letter issued by the Department of Veteran Affairs, 
establishing a service connected rating between 0 and 100 
percent, a disability determination from the Department 
of Defense, or such other documentation as the Adminis-
trator shall by rule require to establish proof of such dis-
ability’’. 
Æ 
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