The new partnership between IBM and virtual-world-builder Forterra Systems Inc. won't be affected by IBM's suspension from federal contracting, according to Forterra's Vice President for Marketing, Chris Badger.

"Nothing has changed with Forterra's plan to partner with IBM around the Babel Bridge program," he said April 1 via email. "This program starts development this quarter with two releases planned for this year- one later this summer and the second one by end of year. I am sure that IBM will have cleared up the temporary debarment for federal contracts by the time our releases are available later this year."

The plan is for IBM to incorporate Forterra in its Unified Communications and Collaboration platform to help solve the problems created by interoperability among intelligence agency communications systems. The enhanced product will meld Forterra’s On-Line Interactive Virtual Environment 3-D platform with IBM’s Lotus Notes calendar Sametime.

Babel Bridge will allow agencies to instantly share information and interact in a synthetic world to plan operations and take real-time action in the real world, according to the companies.

Badger said the project has been going great guns since it was announced March 20. "We have received very strong interest outside the government market, particularly in the corporate and healthcare markets," he said. "This broader interest beyond the government markets is actually reinforcing the need to invest in near term, robust product development and marketing plans."

IBM is a leading large-industry player in virtual worlds, as well. The company was represented at last year's inaugural conference of the Federal Consortium for Virtual Worlds. It's unclear whether or how the suspension would affect and fledgling agency efforts in virtual world Second Life or elsewhere in the metaverse.

The following are quotes from experts in the federal information technology community about the suspension of International Business Machines Corp. from any new federal contract.

"You don't see this very often, particularly for large companies. This happens with small companies more frequently. But IBM -- wow."
Ray Bjorklund, senior vice president and chief knowledge officer for FedSources, quoted by Nextgov.

"We are going to cooperate with investigators but we are also going to take all appropriate actions to challenge the scope of this action."
Fred McNeese, IBM spokesman, in a telephone interview with Reuters.

"It is rare for entire companies to be suspended. Suspending operating units of large companies is less rare and for smaller companies where all operations in one place we see an entire company suspended more often. I am hoping there was a lot of communication between EPA and IBM. I have the impression that there was not which would be unusual."
Alan Chvotkin, executive vice president and general counsel for the Professional Services Council, quoted by Federal News Radio.

"A suspension is normally not assessed unless there is a very serious infraction that has been not only alleged but documented. The EPA move is "very unusual" and "it has enormous ramifications."
Stan Soloway, who heads the Professional Services Council, a trade group representing IBM and other government contractors, quoted by the Associated Press.

"The U.S. government contributes only 2 percent of IBM’s total revenue, roughly half of which comes from existing multi-year contracts that are not expected to be affected by the suspension, according to Citigroup analyst Richard Gardner."
FP Trading Post article.

"Just 0.2 percent [of the companies debarred from government contracting] share IBM's 'Suspension by any federal agency pursuant to Executive Order 12549 and the agency implementing regulations 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.'"
Melissa Smith, INPUT blog

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.'"