GTSI sues IntelliSys over PC-3 recruiting

Government Technology Services Inc. last week filed suit in Fairfax County (Va.) Circuit Court against IntelliSys Technology Corp. and two former GTSI employees who are now with IntelliSys, claiming theft of trade secrets, tortious interference, breach of confidentiality and nondisclosure agreement

Government Technology Services Inc. last week filed suit in Fairfax County (Va.) Circuit Court against IntelliSys Technology Corp. and two former GTSI employees who are now with IntelliSys, claiming theft of trade secrets, tortious interference, breach of confidentiality and nondisclosure agreements, and civil conspiracy.

The two firms in February won the Army's $300 million Personal Computer-3 pact, the follow-on to the Army's PC-2 pact, held by GTSI and Inacom Government Systems. PC-2 will expire May 12.

The suit claims that during the proposal period for the PC-3 contract, IntelliSys recruited Marlene Harold, GTSI's PC-2 - and likely PC-3 - senior program manager and Allison McIntosh, the deputy program manager. According to the suit, both then planned to move to IntelliSys and take confidential information about GTSI's contract with them. Subsequently, two other members of the team were recruited and left GTSI for IntelliSys, the suit claims.

"ITC has been stealing our employees. They are aggressively targeting GTSI employees. They took the whole PC-3 team," GTSI president Dendy Young said. "We invested heavily in those individuals. They know our strategy, our marketing plans and our pricing position."

Because of these actions, "GTSI has suffered damage...including costs incurred in hiring new employees, disruption to GTSI's business operations [and] impairment of GTSI's ability to perform under the PC-3 contract," according to the suit.

IntelliSys president Steve Baldwin did not return phone requests for comment.

The Army has received assurance from both companies that this suit will not affect the contract in any way, said Linda Cook, the PC-3 product leader.

"What they do among themselves is their own business as long as it does not negatively impact their performance," she said. "I have spoken with them and told them both that I expect nothing other than complete professionalism, and they have assured me that is what we will get."

But the dispute has caused comment throughout the industry about recruiting and proprietary information, analysts said.

"That kind of behavior is inexcusable," said Mark Amtower, president of market consulting firm Amtower & Co. "Leaving with proprietary data should not be permitted in this market or any other."

"There are not any trade secrets in this industry," said one company executive, who asked not to be identified because he works with both companies. "They are bidding commodities. Anyone could find out the price for those boxes. As for people, it's a small industry. People do this all the time. If people want to leave, they will leave. The whole thing is silly and could jeopardize both firms' position on Portable-3, which the Army is evaluating now."

"If any of this is true, the potential is very alarming," said Larry Allen, executive director of the Coalition for Government Procurement.

There is no question that GTSI will be affected, Allen said, but whether the recruiting becomes significant depends a lot on whether the former GTSI employees use the information they know about the company's business. "The question is how much did those employees know and how much are they telling their new employer," he said.

"You can't target a whole group of people," Young said. "You can steal one person, or maybe even four people over a period of time, but you can't go after a whole group in this fashion."

NEXT STORY: FCC urged to push 'user policies'

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.