US Government bars IBM

Stephen Withers
Tuesday, 01 April 2008 07:15

IT Industry - Strategy

No, it's not an April Fool's gag - IBM announced yesterday that it has been temporarily suspended from participating in new business with US Federal government agencies.

According to a company statement, the suspension notice was issued by the Environmental Protection Agency (EPA) and concerns possible breaches of procurement integrity provision in connection with a bid submitted two years ago.

Such notices prevent a company gaining any new business with all Federal agencies. Existing contracts may be fulfilled unless the agency concerned chooses otherwise.

"Prior to learning of the temporary suspension on March 28, 2008, IBM was not aware that the EPA or US Attorney's office were considering any action against IBM," company officials said in the statement.

"IBM intends to take all appropriate actions to challenge the suspension and limit its scope."

While the statement said the company is "committed to the highest standards of business ethics" and provides training "to ensure compliance with all applicable Federal requirements", it neither confirmed nor denied any breach alleged by the EPA.

The temporary suspension could remain in force for up to 12 months.