IBM is under investigation in the US by the Environmental Protection Agency (EPA) and as such has been temporarily suspended from participating in new business with US federal government agencies.

The notice of temporary suspension from the EPA relates to an investigation by the agency of possible violations of the Procurement Integrity provisions of the Office of Federal Procurement Policy Act regarding an IBM bid for EPA business originally submitted in March 2006.

At the time of writing, the EPA had not yet issued a press statement detailing its investigation. IBM did not disclose details on the now two-year-old bid in its statement, released at the start of the week.

The procurement integrity portion of the Office of Federal Procurement Policy Act became effective in 1990 and establishes requirements to ensure "procurement integrity" in federal government contract actions.

According to this law, when a company such as IBM is in the process of making a proposal for or obtaining a federal contract, it and its employees are prohibited from making or discussing an offer of employment or business opportunity with a contracting official of the agency; offering money, gratuities, or anything of value to a contracting official; or soliciting or obtaining proprietary or source selection material about the contract from an officer or employee of the agency before the award is made.

IBM's temporary suspension applies to all federal agencies and IBM business units; however, IBM may continue awards already in existence, unless a particular agency directs otherwise.

In addition, the US Attorney's Office for the Eastern District of Virginia has served IBM and certain employees with grand jury subpoenas requesting testimony and documents regarding interactions between employees of the EPA and certain IBM employees.

"IBM has 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, with specialized training to those employees working on matters with the federal government, to ensure compliance with all applicable federal requirements," IBM said in its statement.

IBM said that prior to learning of the temporary suspension on Friday, March 28, it was not aware that the EPA or US Attorney's Office were considering any action against the company.

Under federal procurement procedures, IBM has 30 days to contest the scope of the suspension, which can continue for an initial period of up to one year pending the completion of the investigation. IBM said that while it is it is cooperating with the investigations, it intends to take all appropriate actions to challenge the suspension and limit its scope.

By Suzanne Deffree, Managing Editor, News - Electronic News

See also: Electronics Weekly's WEEE Directive In Full Force, a roundup of content related to the Waste Electrical and Electronic Equipment regulations, and a RoHS special, on the European Directive regarding 'Restriction of Hazardous Substances'.