WASHINGTON – United States Senate Committee on Small Business and Entrepreneurship Chair Mary L. Landrieu, D-La., and Ranking Member Olympia J. Snowe, R-Maine, today, spoke about the need for swift passage of bipartisan legislation to combat Federal contracting fraud.

“Just yesterday, law enforcement agencies arrested two employees of the U.S. Army Corps of Engineers and two other people for bribery and kickbacks involving millions in Federal contracting,” Senator Landrieu said. “Our justice system will decide if they are guilty, but even the possibility underscores the need for legislation to combat all types of fraud and abuse in the Federal contracting system. I urge my colleagues in the House to bring up and quickly pass this necessary legislation that will give the SBA and the Inspector General the necessary tools to combat fraud.”

“In light of what has been called ‘one of the most brazen federal contracting scandals in our nation’s history,’ it is imperative that the House of Representatives pass the critical contracting fraud prevention legislation that the Senate agreed to unanimously at the end of last month,” said Senator Snowe. “In testimony before our Committee, SBA Inspector General Peg Gustafson has noted that our bill ‘will greatly assist [her] office’s efforts in deterring, detecting, and prosecuting false statements made to obtain…contracts.’ I hope that the House will swiftly pass our legislation to ensure that the SBA’s IG and other Federal agencies have the resources and tools necessary to investigate and combat future allegations of fraud.”

More specifically, the Small Business Contracting Fraud Prevention Act (S. 633) would provide a comprehensive oversight framework within the SBA to execute effective certification, surveillance and monitoring, and robust enforcement of its entire contracting portfolio. The bill would also increase criminal penalties for businesses awarded contracts through fraudulent means.

Cosponsors of the bill include: Senators Scott P. Brown (R-Massachusetts), Michael B. Enzi (R-Wyoming), Jeff Merkley (D-Oregon), Kay Hagan (D- North Carolina), Claire McCaskill (D-Missouri), Chuck Grassley (R-Iowa), Kelly Ayotte (R-New Hampshire), Pat Toomey (R-Pennsylvania), Susan Collins (R-Maine), Joe Manchin (D-West Virginia), Maria Cantwell (D-Washington), and John Hoeven (R-North Dakota).