IBM suspended from federal government contracts

by Declan McCullagh March 31, 2008

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.

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