Feds Lifts Ban On IBM

By Joseph F. Kovar, CRN
April 04, 2008 4:37 PM ET

IBM can once again participate in new Federal government business.

IBM, of Armonk, N.Y., said in a statement on Friday that it has an agreement with the U.S. Environmental Protection Agency which terminates the temporary suspension order that barred IBM from signing new contracts with the Federal government.

IBM had said on Monday that the ban was put in place on March 27 because of an investigation by the EPA of possible violations of the Procurement Integrity provisions of the office of Federal Procurement Policy Act in regards to a bid submitted to the EPA in March of 2006.

IBM and certain employees were also served with grand jury subpoenas by the U.S. Attorney's Office for the Eastern District of Virginia regarding interactions between certain EPA and IBM employees.

In announcing the lifting of the ban on signing new Federal contracts, IBM said in a statement, "IBM will continue to cooperate with the EPA's ongoing investigation of possible violations of the Procurement Integrity provisions of the Office of Federal Procurement Policy Act regarding a bid for business with the EPA, and with a related investigation by the U.S. Attorney's Office for the Eastern District of Virginia."

An IBM spokesperson declined to answer questions about whether IBM had lost any Federal business as a result of the ban or whether the ban affected the business of any of IBM's solution providers.

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