Big Blue a Little Bluer

The EPA is allowing IBM to do business with the Feds after a week suspension. While I opined a short suspension; the allegations against IBM employees appear serious. In an interim agreement between IBM and the EPA that paved the way for lifting the suspension, IBM acknowledged:

Information available to IBM indicates that one or more IBM employees appear to have obtained and used source selection information in apparent violation of the Procurement Integrity Act

The evidence of foul play must be strong since IBM agreed to suspend five employees pending investigations by the Government and IBM. Big Blue also agreed to forgo its protest of the award and pay the Government's investigation costs - included those incurred by the General Accounting Office investigating IBM's protest.

Interestingly, despite having inside information, IBM still lost the original award. On one hand the competitor could have had an unbeatable award, on the other hand the EPA itself may have been biased towards the competitor. Unfortunately, the reported year long GAO investigation tends to imply EPA bias. A meritless protest usually is wrapped up in a hundred days. The EPA may have dodged a bullet due to IBM malfeasance.

No word on the fate of the EPA employee who provided the illegal information to IBM.

Originally posted in UNCoRRELATED Apr 8, 2008