SBA lifts GTSI ban; Friedlander, general counsel resign

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.

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“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.