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

    DHS floats 'collective defense' model for cybersecurity

    Homeland Security Secretary Kirstjen Nielsen wants her department to have a more direct role in defending the private sector and critical infrastructure entities from cyberthreats.

  • Defense
    Defense Secretary James Mattis testifies at an April 12 hearing of the House Armed Services Committee.

    Mattis: Cloud deal not tailored for Amazon

    On Capitol Hill, Defense Secretary Jim Mattis sought to quell "rumors" that the Pentagon's planned single-award cloud acquisition was designed with Amazon Web Services in mind.

  • Census
    shutterstock image

    2020 Census to include citizenship question

    The Department of Commerce is breaking with recent practice and restoring a question about respondent citizenship last used in 1950, despite being urged not to by former Census directors and outside experts.

Stay Connected

FCW Update

Sign up for our newsletter.

I agree to this site's Privacy Policy.