US Environmental Protection Agency lifts ban on IBM

Mumbai: IBM, which had been banned from seeking any future contract from any federal agency, can now heave a sigh of relief as the Environmental Protection Agency (EPA) has lifted that ban. IBM can now once again seek new contracts.

The Environmental Protection Agency agreed to lift a ban (See: IBM suspended from US federal contracts), which prevented IBM from bidding on new projects with any federal agency.

The ban stem from a $80-million bid IBM had made in March, 2006 to modernise EPA financial systems, and during which it had possibly violated ethical bidding provisions. The contract was finally cancelled after questions rose over IBM's bid. IBM had filed a protest at the contact being awarded to a Canadian competitor, which gave it another chance at the contract, but once the justice department began an investigation into whether IBM employees received inside information about competitors' bids, IBM decided to forgo the deal.

IBM is now working with the EPA and the Justice Department in a dual investigation about of information shared with IBM by agency employees,  prior to the awarding of the contract to the Canadian company, CGI. It has sent five employees, associated with the investigation, on leave, according to reports.

IBM's revenue from the US government rang its cash registers by around $1.3 billion last year. Though that is lower than two per cent of the company's total sales, a prolonged ban from federal projects could have adversely impacted the company's private-sector work on account of reputation.