SBA lifts GTSI ban; Friedlander, general counsel resign

Company can resume fed sales but with restrictions

The Small Business Administration has lifted the temporary federal contracting suspension it imposed on GTSI Corp. on October 1, the company announced today.

The move allows GTSI to immediately resume all business with most of its existing clients and to pursue new contracts with the federal government, the statement said.

In the wake of the suspension and ongoing SBA investigation, Scott Friedlander, chief executive officer, president and a director of GTSI, and Charles DeLeon, senior VP and general counsel, have resigned effective Oct. 26.


RELATED STORIES

What's next for GTSI?

Can GTSI stay in business?


“The lifting of the suspension gives GTSI, its vendors and clients the ability to move forward,” said John Toups, chairman of GTSI’s board of directors, in the announcement.

Under an agreement with the SBA, Toups said GTSI has agreed to immediately cease working with small businesses serving as prime contractors.

GTSI also has agreed to stop participating in the SBA's mentor-protege program and in joint ventures with small businesses, he added.

The SBA agreement will end whenever the earliest of three things occurs: one, 90th day after completion of the investigation, two, Oct. 19, 2013, or three, notification date of a proposed debarment, the statement said.

GTSI's compliance with the agreement and applicable government contracting laws and regulations will be overseen by an SBA-approved monitor who will report to the agency.

“The cloud of uncertainty that was hanging over our employees, creditors, shareholders and partners has been removed, and we can get back to the business of serving our government clients,” he said.

GTSI, of Herndon, Va., ranks No. 59 on Washington Technology’s 2010 Top 100 list of the largest federal government contractors.

About the Author

David Hubler is the former print managing editor for GCN and senior editor for Washington Technology. He is freelance writer living in Annandale, Va.

Featured

  • Cybersecurity
    Shutterstock photo id 669226093 By Gorodenkoff

    The disinformation game

    The federal government is poised to bring new tools and strategies to bear in the fight against foreign-backed online disinformation campaigns, but how and when they choose to act could have ramifications on the U.S. political ecosystem.

  • FCW PERSPECTIVES
    sensor network (agsandrew/Shutterstock.com)

    Are agencies really ready for EIS?

    The telecom contract has the potential to reinvent IT infrastructure, but finding the bandwidth to take full advantage could prove difficult.

  • People
    Dave Powner, GAO

    Dave Powner audits the state of federal IT

    The GAO director of information technology issues is leaving government after 16 years. On his way out the door, Dave Powner details how far govtech has come in the past two decades and flags the most critical issues he sees facing federal IT leaders.

Stay Connected

FCW Update

Sign up for our newsletter.

I agree to this site's Privacy Policy.