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IBM Suspension Linked to Financial Management Contract
By Allan Holmes  |  Tuesday, April 1, 2008 |  11:06 AM

More details are coming out on the suspension of International Business Machines Corp. from receiving new federal contract. Reuters reports that the contract in question involves the modernization of the Environmental Protection Agency's financial management system. In 2006, IBM bid $80 million on the contract, which EPA has yet to award.

Reuters reports: "'What we are saying is that the case stems from information provided by an EPA employee to IBM employees,' [IBM spokesman Fred] McNeese said. 'Prior to Friday, there was not a hint that there were any type of issues with this contract.'"

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Allan,

Your statement - "yet to award", is incorrect. EPA did award contract EP-W-07-024 to CGI Federal Inc for $84 million, in February of 2007, based on the EPA website. It appears IBM protested the award, and that is still under consideration by GAO. As debarred, that may allow EPA to proceed with the contract since IBM is now ineligible.

RD  | Thursday, April 3, 2008 |  9:51 AM