IBM suspended from new federal contracts

IBM and its subsidiaries are suspended from receiving new federal contracts, certain subcontracts and some types of federal assistance and benefits, due to an action taken by the Environmental Protection Agency that extends governmentwide, according to federal documents.

According to the Excluded Parties List System, maintained by the General Services Administration, the EPA took action against IBM on March 27, pursuant to Executive Order 12549, created in 1986 to curb fraud, waste and abuse in federal programs.

The list is an online database for agencies that identifies parties excluded from receiving federal contracts, some subcontracts and certain types of federal financial and nonfinancial assistance and benefits. The government can take such action for violations of the Federal Acquisition Regulation, specific agency regulations, the Governmentwide Nonprocurement Suspension and Debarment Common Rule, and other federal standards.

The specifics of IBM's suspension have not been released. IBM did not respond to requests for comment.

"The [EPA] temporarily suspended IBM from receiving new federal contracts or assistance," said Jonathan Shradar, EPA press secretary. "The action was taken by the EPA suspending official as a temporary measure while the agency reviews concerns raised about potential activities involving an EPA procurement. As the matter is currently pending before the suspending official, the agency will have no further comment at this time." Shradar confirmed that the suspension is governmentwide, as dictated by the associated executive order.

The Homeland Security Department sent a notice to its acquisition community directing its Office of Procurement Operation not to award any of the following new procurement actions to IBM or its subsidiaries:

  • Contracts
  • Delivery/task orders
  • Purchase orders
  • Purchase card transactions
  • Modifications to existing contracts
  • Interagency agreements with servicing agencies that will use IBM or its subsidiaries as the vendor
IBM earned $1.5 billion in revenue from federal prime contracts in fiscal 2007, according to McLean, Va., consulting firm FedSources.

"You don't see this very often, particularly for large companies," said Ray Bjorklund, senior vice president and chief knowledge officer for FedSources. He notes MCI among the exceptions. After filing for bankruptcy, MCI received a suspension from U.S. government contracts that lasted from August 2003 to January 2004. "This happens with small companies more frequently," Bjorkland said. "But IBM -- wow."

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
FROM OUR SPONSORS
JOIN THE DISCUSSION
Close [ x ] More from GovExec
 
 

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Forecasting Cloud's Future

    Conversations with Federal, State, and Local Technology Leaders on Cloud-Driven Digital Transformation

    Download
  • The Big Data Campaign Trail

    With everyone so focused on security following recent breaches at federal, state and local government and education institutions, there has been little emphasis on the need for better operations. This report breaks down some of the biggest operational challenges in IT management and provides insight into how agencies and leaders can successfully solve some of the biggest lingering government IT issues.

    Download
  • Communicating Innovation in Federal Government

    Federal Government spending on ‘obsolete technology’ continues to increase. Supporting the twin pillars of improved digital service delivery for citizens on the one hand, and the increasingly optimized and flexible working practices for federal employees on the other, are neither easy nor inexpensive tasks. This whitepaper explores how federal agencies can leverage the value of existing agency technology assets while offering IT leaders the ability to implement the kind of employee productivity, citizen service improvements and security demanded by federal oversight.

    Download
  • IT Transformation Trends: Flash Storage as a Strategic IT Asset

    MIT Technology Review: Flash Storage As a Strategic IT Asset For the first time in decades, IT leaders now consider all-flash storage as a strategic IT asset. IT has become a new operating model that enables self-service with high performance, density and resiliency. It also offers the self-service agility of the public cloud combined with the security, performance, and cost-effectiveness of a private cloud. Download this MIT Technology Review paper to learn more about how all-flash storage is transforming the data center.

    Download
  • Ongoing Efforts in Veterans Health Care Modernization

    This report discusses the current state of veterans health care

    Download

When you download a report, your information may be shared with the underwriters of that document.