EPA suspends IBM from doing business with federal agencies

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Posted at 2008/03/31/1637 by fumf
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RTFA: http://federaltimes.com/index.php?S=3453925

IBM and several of its employees have been subpoenaed to testify before a grand jury on interactions between Environmental Protection Agency and IBM employees, a company spokesman said today.
The subpoenas, which were issued March 28 by the U.S. Attorney’s Office for the Eastern District of Virginia, stem from an EPA investigation into allegations IBM improperly obtained information about a contract it was bidding on from EPA employees, said Fred McNeese, an IBM spokesman.
Earlier in the day Federal Times learned the EPA indefinitely suspended IBM from doing business with federal agencies. The suspension was posted on March 27 on a GSA Web site that lists companies barred from receiving federal contracts…

IBM, based in Armonk, N.Y., did $1.4 billion in government sales last year. Its biggest customers were the Homeland Security Department, Army, Centers for Medicare and Medicaid Services, National Oceanic and Atmospheric Administration and Defense Information Systems Agency

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  • This is sure to put a TON of pressure on IBM. In the style of Vonnegut's Ilium, I think our society will crumble if we have to go cold-turkey from our mainframe overlords.

    Part of IBM's deal is that they make it possible to outsource hardware management of computing resources. IBM can do things like watch your hardware for a failure, and then send out a tech to replace the component within the hour. It's expensive, but it obviously makes sense sometimes.
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