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.
Close [ x ] More from GovExec

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

  • Forecasting Cloud's Future

    Conversations with Federal, State, and Local Technology Leaders on Cloud-Driven Digital Transformation

  • The Big Data Campaign Trail

    With everyone so focused on security following recent breaches at federal, state and local government and education institutions, there has been little emphasis on the need for better operations. This report breaks down some of the biggest operational challenges in IT management and provides insight into how agencies and leaders can successfully solve some of the biggest lingering government IT issues.

  • Communicating Innovation in Federal Government

    Federal Government spending on ‘obsolete technology’ continues to increase. Supporting the twin pillars of improved digital service delivery for citizens on the one hand, and the increasingly optimized and flexible working practices for federal employees on the other, are neither easy nor inexpensive tasks. This whitepaper explores how federal agencies can leverage the value of existing agency technology assets while offering IT leaders the ability to implement the kind of employee productivity, citizen service improvements and security demanded by federal oversight.

  • IT Transformation Trends: Flash Storage as a Strategic IT Asset

    MIT Technology Review: Flash Storage As a Strategic IT Asset For the first time in decades, IT leaders now consider all-flash storage as a strategic IT asset. IT has become a new operating model that enables self-service with high performance, density and resiliency. It also offers the self-service agility of the public cloud combined with the security, performance, and cost-effectiveness of a private cloud. Download this MIT Technology Review paper to learn more about how all-flash storage is transforming the data center.

  • Ongoing Efforts in Veterans Health Care Modernization

    This report discusses the current state of veterans health care


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