Eyak pulls back takeover bid for GTSI
Eyak Corp., an Alaska Native corporation, has dropped its bid to buy one of the largest government contractors after the Small Business Administration suspended new work to the firm.

EyakTek, an Eyak subsidiary, planned to purchase GTSI Corp., a top-50 contractor. But the deal went sour amid an investigation by The Washington Post and the SBA's decision.

According to the SBA, GTSI partnered with Eyak in order to secure contracts that it was not qualified to receive. Eyak defended its work in a press release today.

"Our subsidiary, EyakTek, is an excellent example of the successful execution of what Congress envisioned when it passed [the Alaska Native Claims Settlement Act ]," Eyak CEO Rod Worl said in the press release. "Its creation has enabled us to benefit the Eyak and other Alaska Native people of Cordova, Alaska. EyakTek has garnered numerous awards for excellence in federal contracting and for high levels of service to our customers while utilizing the advantages provided by and following all the guidelines of ANCSA and the Small Business Administration's mentor-protege program."

The Post investigation quoted e-mails in which GTSI executives said they would handle most or all of the work under a contract that was supposed to benefit the Alaska Native corporation.

Get the Story:
Eyak withdraws offer to buy GTSI (AP 10/4)
Alaska-connected GTSI cut off from new federal contracts (The Washington Post 10/2)

Also Today:
Letters: Behind the troubles in Alaska (The Washington Post 10/4)

Related Stories:
WaPo: Alaska Native shareholders unhappy with corporate deal (10/1)
WaPo: Alaska Native shareholders not reaping contract benefits (9/30)