IBM Says Ban Lifted on New U.S. Govt Contracts

By Reuters -  |  Posted 2008-04-04 Print this article Print

IBM is back on Federal contracts.

NEW YORK, April 4 (Reuters) - International Business Machines Corp (IBM.N: Quote, Profile, Research) said on Friday the U.S. Environmental Protection Agency has agreed to lift a temporary order that had barred the company from seeking new government contracts.

IBM, the world's largest provider of computer services, said in a statement it can immediately resume participating in new contracts with all federal agencies, ending a suspension that began on Mar. 27.

The EPA is investigating whether IBM violated ethical bidding provisions when it made an $80 million bid in March 2006 to modernize the agency's financial systems. An IBM spokesman said on Monday the case stemmed from information provided by an EPA employee to IBM employees.

The U.S. Attorney's Office for the Eastern District of Virginia has also served IBM with grand jury subpoenas requesting testimony and documents on interactions between the EPA and IBM employees.

IBM said it will continue to cooperate with the ongoing probe. (Reporting by Tiffany Wu, editing by Dave Zimmerman)


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