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Acquisition Heads Up!

What's Changed?

GTSI Suspension Lifted

Subject to the contractor’s compliance with the attached Administrative Agreement, the Small Business Administration (SBA) has lifted the suspension of GTSI (DUNS 107939357) effective October 19, 2010.  The Government’s investigation of GTSI continues and the suspension could be re-imposed, or debarment proceedings initiated, with little if any advance notice.  GTSI’s President and Chief Executive Officer and its Senior Vice President and General Counsel will be required to resign.  Three other senior employees are suspended during the term of the Agreement.

Contracting officers should carefully review Section 8, LIMITATION ON NEW CONTRACTS AND TASK ORDERS in the Agreement’s terms and conditions prior to including GTSI in future solicitations, awarding new contract actions, issuing task/delivery orders, consenting to subcontracts, or exercising options under existing contracts.  The Agreement imposes significant limitations on GTSI’s business activities with respect to programs that are intended to benefit small business.  GTSI is generally free to compete for procurements conducted under full and open competition and in which it does not represent itself as a small business.  In other cases related to small business programs, GTSI must provide advance notice of its activities to SBA.

Section 17 of the Agreement explains that costs related to legal and other proceedings may be unallowable in accordance with FAR 31.201-6.  Please see FAR 31.102 and 31.205-47 for additional information.  By entering into the Agreement, SBA is not determining that GTSI is presently responsible for any specific Government contract.  Contracting officers still must determine contractor responsibility in accordance with FAR 9.104-1 and 9.105-2.

Please forward as appropriate and direct your questions or concerns to Mitchell Gasbarra, Senior Procurement Analyst, 202-461-0628 or