GTSI Corp. IT Contractor Vows to Fight SBA Suspension

Wall Street Journal


GTSI Corp., one of the government’s largest IT contractors, is vowing to fight a small business contracting suspension that could cost it hundreds of millions in lost business.

“We will fight to restore our good name,” GTSI Corp. President and Chief Executive Officer Scott Friedlander said in a statement late Friday.

In his statement, Mr. Friedlander confirmed the IT infrastructure company has been notified by the Small Business Administration that the agency would suspend it from future federal contract awards.

“Until tonight, no government agency had made an allegation that GTSI had violated any law or regulations regarding this matter,” Mr. Friedlander said.

Mr. Friedlander promised to provide investors, employees, customers and business partners with “a report on our activities as the situation warrants.”

The Small Business Administration earlier Friday notified Mr. Friedlander of the company’s contracting suspension, writing that “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 SBA letter said “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.”

GTSI represented itself as a prime contractor to third parties while concealing the extent of its involvement as a subcontractor, the SBA said in its letter.

The SBA has in the past 18 months boosted efforts to ensure only eligible companies participate in SBA business development and contracting programs.

“The Small Business Administration has no tolerance for fraud, waste and abuse in any of our programs,” SBA Administrator Karen Mills said in a statement.

Write to Meena Thiruvengadam at

Leave a Reply

Please log in using one of these methods to post your comment: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: