by Ben Vernia | October 2nd, 2010
For the past week, the Washington Post has run a series of articles on the unusual contracting advantages given to Alaska Native Corporations (ANCs), including the ability to obtain contracts of any size without bidding. According to the paper, ANCs typically subcontract out most, if not all of the actual work under the contracts they obtain to non-ANC firms.
On Saturday, October 2, the Post reported that the Small Business Administration had taken the highly unusual step of suspending Virginia-based GTSI (a subcontractor to ANCs):
“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,” an SBA official wrote in a letter to GTSI’s chief executive, Scott W. Friedlander. “The 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.”
In an “open letter” to employees, customers, partners and investors Friday night, Friedlander said, “Until tonight, no government agency had made an allegation that GTSI had violated any law or regulations regarding this matter.” He said that the company looks forward “to providing you with a report on our activities as the situation warrants” and that “we appreciate your support during this time.” He added: “Please be assured that we will fight to restore our good name.
It is good to hear that Scott Friendlander is now gone. He did a real poor job. Over the years, Scott and his buddies took a comany with almost a Billion Dollar of revenue and made it a half a billion dollar company in just 5 years. Yet Scott kept getting promosions for his failed business policies. It is certainly a welcome news for GTSI share holders that Scott is now gone! Good days are ahead for GTSI!