I.B.M. admits U.S. contract violations

Article Abstract:

IBM admits to wrongdoing in its handling of government contracts after the General Services Administration (GSA) announces at a Congressional committee meeting - the House Committee on Government Operations - that IBM is under investigation. GSA claims IBM sold the government used equipment that was supposed to be new and that it failed to disclose parts that are made abroad. IBM says the violations are minor and procedures are in place to make sure they do not happen again, and IBM offers to pay the GSA $1.5 million. The GSA refuses to take money until an investigation is complete. If IBM willfully committed the wrongdoing, the company could face criminal and civil penalties. These investigations are different from ones that have been the focus of much recent recent attention, involving IBM contracts awarded by the Navy.

General government, not elsewhere classified, NATIONAL SECURITY AND INTL. AFFAIRS, Fraud, Public contracts, Government contracts, United States. General Services Administration

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I.B.M.-Navy briefing is seen as unethical

Article Abstract:

The Department of Defense believes that the Navy and IBM acted unethically when they discussed government procurement procedures prior to submission of a contract bid. The Office of the Inspector General notes that the Navy should not train personnel who will prepare contract bids. Deputy Inspector General Derek Vander Schaaf calls the meeting 'crossing the line,' testifying before the House Committee on Government Operations, although he admits that the action might not have been illegal. Vander Schaaf's investigation was limited to one Navy-IBM contract. This investigation stems from a complaint lodged by six competitors who claim the Defense Department and other government agencies are biased toward IBM.

Ethics, Business ethics, Government purchasing, Legal Issues, United States. Office of the Inspector General

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Navy finds no wrongdoing by I.B.M. in procurements

Article Abstract:

The US Navy concluded that IBM was not guilty of any wrongdoing in its procurement contracts with the Navy. The computer maker has dominated the government's big-computer purchases and has prompted an investigation into whether or not there is fair competition in federal purchasing of mainframe computers. The investigation was prompted by smaller companies claiming that the US Navy was biased toward IBM. Responding to charges that Navy officials asked IBM's assistance in drafting a solicitation for computer equipment, the Navy indicated that it was unfortunate that a Navy official had asked for guidance from IBM, but the ill-advised action was not illegal.

Military aspects, Mainframe computers, Defense contracts, Mainframe Computer, Competition, Investigation

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