IBM suspended from federal government contracts

IBM is added to list of "excluded" contractors after Environmental Protection Agency alleges serious wrongdoing; it's unclear whether the company has been given a chance to respond to the charges.

IBM has been indefinitely barred from entering into new contracts with the U.S. federal government.

The General Services Administration's Web site shows that IBM was added to a database of "excluded" contractors and subcontractors on March 27 by the Environmental Protection Agency. Under reciprocity rules, other agencies honor the exclusion.

The Professional Services Council, a trade association that counts IBM as a member, has charged that the suspension was taken place before the company had a chance to respond to the EPA's concerns.

The GSA's database says IBM was listed "based on an indictment or other adequate evidence (a) to suspect the commission of an offense that is a cause for debarment or (b) that other causes for debarment under the agency regulations may exist."

IBM does about $1.43 billion in business a year with the federal government.

In a statement, IBM said:

The notice of temporary suspension was issued by the Environmental Protection Agency (EPA) and relates to an investigation by the EPA of possible violations of the Procurement Integrity provisions of the Office of Federal Procurement Policy Act regarding a bid for business with the EPA originally submitted in March 2006... IBM may continue awards in existence as of the date of this suspension, unless a particular agency directs otherwise. In addition, the U.S. Attorney's Office for the Eastern District of Virginia has served IBM and certain employees with grand jury subpoenas requesting testimony and documents regarding interactions between employees of the EPA and certain IBM employees.

IBM has served the Federal agency community for many decades as a vendor in good standing and is committed to the highest standards of business ethics. IBM provides training on its Business Conduct Guidelines to all employees, with specialized training to those employees working on matters with the Federal government, to ensure compliance with all applicable Federal requirements.

 

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