SBA lifts GTSI suspension; two executives to resign
- October 19, 2010
The Small Business Administration has lifted its suspension of Herndon-based GTSI, allowing the company to pursue new contracts with the federal government. But the company’s agreement with the SBA required the resignation of its CEO and general counsel.
The resignations of Scott W. Friedlander, GTSI’s president and CEO, and Charles E. DeLeon, senior vice president and general counsel, will take effect on Oct. 26.
GTSI Senior Vice President Sandra Gillespie and CFO Peter Whitfield will run the company until a new CEO is hired.
The SBA suspended GTSI from federal contracts on Oct. 1 while the agency investigated the company’s involvement in a Department of Homeland Security contract intended for small businesses.
As part of the its agreement with the SBA, GTSI will cease working with small businesses that serve as prime contractors and will stop participating in SBA’s mentor-protégé program.
SBA’s suspension scuttled a proposed $67 million takeover proposal by Eyak Technologies LLC.