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IBM Banned From U.S. Government Contracts

by Terrence O'Brien on April 1, 2008 at 06:09 PM

IBM Banned From U.S. Government ContractsIt happened pretty suddenly, and without explanation -- in fact, we almost lost it among all the April-Fool's-Day jokes. But it appears that, at least temporarily, IBM is banned from obtaining new Federal contracts with the U.S. government. The reason for the ban is unclear at this time, but we do know that it involves IBM's relationship with the EPA.

In addition to the ban, several employees at 'Big Blue' have been issued grand jury subpoenas requesting documents and testimony. An EPA spokesperson offered only the following clarification, "What we are saying is that the case stems from information provided by an EPA employee to IBM employees."

The ban does not affect current government contracts, but the temporary ban does prevent any business group or subsidiary of IBM of negotiating a contract with any government agency, unless it is determined that only IBM can fill the need.

The ban could last up to a year as the government completes its investigation and IBM stands to lose hundreds of millions, possibly billions, of dollars in contracts to market rivals.

From Slashdot

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Tags: business, government, IBM

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