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IBM took a big hit from the U.S. government yesterday with the announcement that the vendor is temporarily suspended from participating in new business with federal agencies.
The notice of temporary suspension was issued by the Environmental Protection Agency (EPA), according to a statement released last night by IBM. The EPA is currently investigating possible violations of the Office of Federal Procurement Act regarding a bid submitted by IBM in March 2006.
The U.S. Attorney's Office for the Eastern District of Virginia has already served IBM and some of its employees with grand jury subpoenas and requested testimony and documents regarding their interactions with the EPA.
While IBM's suspension may be good news to rival vendors such as EMC and NetApp, the dispute could limit the storage options for many users in the federal sector, which relies heavily on IBM gear.
In its statement, IBM confirmed that it is cooperating with both the EPA and the U.S. Attorney's investigation, although the vendor is also planning to defend its corner.
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