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IBM Blackball Lifted; Investigations Continue

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IBM Blackball Lifted; Investigations Continue

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IBM said this morning that it has struck an agreement with the Environment Protection Agency to lift the suspension order that has prevented the company from bidding on any new federal business since last Thursday.

The company said it was cooperating with the EPA’s ongoing investigation into possible violations of the Procurement Integrity provisions of the Office of Federal Procurement Policy Act and with a related investigation by the US Attorney’s Office for the Eastern District of Virginia, which served IBM and IBM personnel with grand jury subpoenas.

A week ago the EPA, reportedly without informing the company that there were any difficulties, put IBM on the government’s Excluded Parties List, freezing it out of any new business with the whole of the federal government.

The blackball stemmed from information that IBM got from an EPA employee connected with a contract to modernize the EPA’s financial system,

That 10-year $84 million contract was awarded last year to CGI, the big Canadian integrator, an award that IBM protested.

As of Tuesday IBM was still saying that it was trying to find out what had happened after multiple meetings with the EPA and the US Attorney’s Office.


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