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About POGO's Federal Contractor Misconduct Database (FCMD)
The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »
Ranking: 125
GTSI Corporation
GTSI Corp. sells information technology products and services primarily to federal government clients. The company, headquartered outside of Washington, D.C., also conducts business with state and local governments and prime contractors. GTSI employs over 700 people worldwide and brings in nearly $1 billion in annual revenue. In May 2012, GTSI was acquired by an affiliate of UNICOM Systems, Inc., a global information technology company, which in 2013 changed GTSI's name to UNICOM Government, Inc.
Federal Contract $: $ 239.0m
Total Number of Instances: 2
Total Misconduct dollar amount: $ 0.4m
Instances of Misconduct
1. Government Overbilling
In October 1997, GTSI agreed to pay the United States $400,000 to settle allegations it overcharged the government for automated data processing equipment and software. The complaint, filed under the False Claims Act in 1992, alleged GTSI failed to fully inform GSA contract negotiators that GTSI received rebates from the manufacturers of the products GTSI sold to the government, even though they were required by the contract and federal law to provide accurate information to government negotiators.... more»
2. SBA Suspension
In October 2010, the U.S. Small Business Administration (SBA) notified GTSI Corporation that it was suspending the company from any future federal contracts based on “adequate evidence indicating a lack of business integrity or business honesty that seriously or directly affects the present responsibility of a government contractor.” Specifically, SBA alleges “There is evidence that GTSI's prime contractors had little to no involvement in the performance of [Department of Homeland Security] contracts, in direct contravention of all applicable laws and regulations regarding the award of small business contracts. 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, and with contracts not being performed in accordance with applicable law, regulations and contract terms.” SBA lifted the suspension 18 days later after GTSI agreed to implement various business ethics reforms, restrict its activities vis-à-vis the small business contracting program, and fire two of its top executives.... more»
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