IBM Hit With Temporary Contract Ban
Oops.
From Yahoo Finance:
IBM Corp. has been temporarily banned from new federal contracts as prosecutors examine interactions between employees of the company and the Environmental Protection Agency.
The suspension went into effect last Thursday “while the agency reviews concerns raised about potential activities involving an EPA procurement,” the agency said Monday in an e-mailed statement. Under a reciprocal agreement among federal agencies, when one issues a ban, the others follow it.
EPA said it will not comment further on the matter.
IBM said it was cooperating with the U.S. Attorney’s Office for the Eastern District of Virginia, which served grand jury subpoenas seeking documents and testimony relating to the EPA contract.
This will most likely get worked out in short order. Bad press though. Ouch.
Posted by Dave Lewis
on April 1, 2008. Filed under Legal Aspects,Vendor News.
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2 Responses to IBM Hit With Temporary Contract Ban
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Matt
April 2, 2008 at 9:38 pm
Yea it sucks. I work at the Internet Security Systems, acquired by IBM, and there’s been a lot of chatter in meetings about how this could hurt us. Pretty bad from what we’re told. We had a lot of govt. contracts being worked out but put on hold. ouch.
Dave Lewis
April 2, 2008 at 9:49 pm
@Matt
I’m hopeful that the ship can be righted in short order. I know quite a few folks at
ISSIBM and I hope this won’t affect you guys for the long term.Best of luck Matt!