I 111th CONGRESS 2d Session H. R. 6370 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.

Short title

This Act may be cited as the Small Business Procurement Integrity Act of 2010.

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)— (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 subcontracting 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 program eligibility; shall be subject to the penalties and remedies described in paragraph (2).. (2)

False Claims Act application

In subsection (d)(2)— (A)in subparagraph (C), by striking the and at the end; (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 subsection (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 agreement, before prime contract; and (C)by inserting a comma after prime contract. (4)

Use of ineligible businesses; determination 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 permitted by such regulations issued by the Administration, or attempts or conspires to do so, shall be subject to the penalties and remedies described in subsection (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 contractor shall be deemed to certify that it has complied 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. .

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 rating 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 Administrator shall by rule require to establish proof of such disability.