ARMONK, NY - IBM is under investigation by the Environmental Protection Agency (EPA) and has been temporarily barred from participating in any new business with the federal government.

The notice of suspension relates to an investigation by the EPA for possible violations regarding an IBM bid for EPA business submitted in March 2006.

The investigation stems from IBM's alleged violation of rules under the procurement integrity portion of the Office of Federal Procurement Policy Act, which establishes requirements regarding vendor integrity in federal government contracts. The law governs vendor behavior when dealing with a contracting official of the agency, including making offers of employment or business opportunities, offering money, gratuities, or soliciting or obtaining confidential information about a contract before an award is made.

In addition, the US Attorney’s Office for the Eastern District of Virginia has served some IBM employees with grand jury subpoenas regarding interactions between IBM employees and the EPA.

IBM released a statement saying that the company had "served the federal agency community for many decades as a vendor in good standing and is committed to the highest standards of business ethics. IBM provides training on its business conduct guidelines to all employees... to ensure compliance with all applicable federal requirements.”

IBM also said that prior to learning of the suspension, it was not aware that the EPA or US Attorney’s Office were considering any action against the company.

IBM has 30 days to contest the suspension, which can continue for up to one year pending the completion of the investigation. IBM said that while it will cooperate with the investigation, it will take all appropriate action to challenge the suspension.

• Prev
• Next