SBA suspends contractor GTSI from federal work

The Small Business Administration on Friday suspended GTSI, a major federal contractor, from doing business with agencies amidst allegations it manipulated small business set-aside rules to win federal contracting dollars.

According to a report in the Washington Post, an SBA official wrote to GTSI's chief executive, Scott W. Friedlander, saying, "There is evidence that GTSI's prime contractors had little to no involvement in the performance of contracts, in direct contravention of all applicable laws and regulations regarding the award of small business contracts. The evidence shows that GTSI was an active participant in a scheme that resulted in contracts set-aside for small businesses being awarded to ineligible contractors."

SBA's action came after the Post reported Friday on GTSI's relationship with Eyak Corp., an Alaska native corporation, to win about $1 billion in information technology contracts. The article also detailed GTSI's relationships with other small firms to compete for contracts.

Suspensions of contractors of GTSI's size are rare in the federal procurement world.

In a posting on GTSI's website Friday, Friedlander said that SBA issued the suspension "without prior discussion or notice to GTSI. Until tonight, no government agency had made an allegation that GTSI had violated any law or regulations regarding this matter. We appreciate your support during this time and look forward to providing you with a report on our activities as the situation warrants. Please be assured that we will fight to restore our good name."

On Government Executive's ranking of the top federal contractors for fiscal 2009, GTSI ranked 106, with nearly $540 million in prime contract awards.

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
FROM OUR SPONSORS
JOIN THE DISCUSSION
Close [ x ] More from GovExec
 
 

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Going Agile:Revolutionizing Federal Digital Services Delivery

    Here’s one indication that times have changed: Harriet Tubman is going to be the next face of the twenty dollar bill. Another sign of change? The way in which the federal government arrived at that decision.

    Download
  • Cyber Risk Report: Cybercrime Trends from 2016

    In our first half 2016 cyber trends report, SurfWatch Labs threat intelligence analysts noted one key theme – the interconnected nature of cybercrime – and the second half of the year saw organizations continuing to struggle with that reality. The number of potential cyber threats, the pool of already compromised information, and the ease of finding increasingly sophisticated cybercriminal tools continued to snowball throughout the year.

    Download
  • Featured Content from RSA Conference: Dissed by NIST

    Learn more about the latest draft of the U.S. National Institute of Standards and Technology guidance document on authentication and lifecycle management.

    Download
  • GBC Issue Brief: The Future of 9-1-1

    A Look Into the Next Generation of Emergency Services

    Download
  • GBC Survey Report: Securing the Perimeters

    A candid survey on cybersecurity in state and local governments

    Download
  • The New IP: Moving Government Agencies Toward the Network of The Future

    Federal IT managers are looking to modernize legacy network infrastructures that are taxed by growing demands from mobile devices, video, vast amounts of data, and more. This issue brief discusses the federal government network landscape, as well as market, financial force drivers for network modernization.

    Download
  • eBook: State & Local Cybersecurity

    CenturyLink is committed to helping state and local governments meet their cybersecurity challenges. Towards that end, CenturyLink commissioned a study from the Government Business Council that looked at the perceptions, attitudes and experiences of state and local leaders around the cybersecurity issue. The results were surprising in a number of ways. Learn more about their findings and the ways in which state and local governments can combat cybersecurity threats with this eBook.

    Download

When you download a report, your information may be shared with the underwriters of that document.