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OMB says the exemption was included in draft regulations because they were based on a decades-old Defense Department rule.
Federal contractors can continue to sell IBM products under their own contracts.
Army vice chief of staff nominee says a maximum of 12 months is the goal.
Suspended Defense contractor was designated as small and disadvantaged, but federal officials say it was never officially classified as such.
Officials also tell Senate panel that they don't believe any terrorist organization has developed a nuclear device yet.
House Appropriations Committee has worked to double the agency's budget since 2001.