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The U.S. Department of the Interior notified Kforce Inc. (NASD: KFRC) that its Kforce Government Solutions division was suspended from taking part in new or renewed federal contracts, the company reported Friday.
Kforce has 30 days to respond to the department's notice, and the company said it plans to address the agency's concerns.
Kforce Government Solutions may still perform work under existing contracts, according to the company.
The agency's concerns relate to Kforce Government Solutions' involvement in helping draft requirements for a statement of work for a project that it was later awarded.
The suspension does not apply to other Kforce divisions including Kforce Inc., Kforce Clinical Research Inc. and Kforce Healthcare Inc.
Kforce is a Tampa FL-based professional staffing firm. It ranked No. 18 on Staffing Industry Analysts' list of largest U.S. staffing firms.