Sen. Seeks Crackdown On Subcontractor Fraud

Law360, New York (February 17, 2011, 1:17 PM EST) -- Sen. Bob Casey, D-Pa., has proposed legislation to keep large companies from fraudulently adding women- and minority-owned businesses to contract bids in order to receive preferential treatment.

S. 370, introduced in the Senate on Wednesday, is designed to address what Casey called the growing problem of large contractors listing women- and minority-owned businesses on bid proposals as intended subcontractors without fully intending to pass along any work to those businesses.

According to Casey, prime contractors often use companies to leverage women- and minority-owned business preferences without...
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