Feds Ban Giant Contractor From Gov’t Work

The Small Business Administration banned GTSI from getting government work on Friday, saying the massive contractor inappropriately used smaller companies to get its hands on contracts meant for smaller firms. The decision puts GTSI in jeopardy, as it gets 98 percent of its sales from the federal government. The SBA says in some cases small companies were the government’s primary contractors, but the companies then subcontracted the work to GTSI. The move was “in direct contravention of all applicable laws and regulations regarding the award of small business contracts,” an SBA official said, concluding that evidence indicated that GTSI was “an active participant in a scheme” that gave contracts to companies who weren’t supposed to get them. This is the first time in decades that a major, top-tier contractor has been totally suspended by the government, an analyst said.