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IBM temporarily banned from federal contracts

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On April 1, 2008, 8:24 PM

The U.S. Environmental Protection Agency has issued a ban that prohibits awarding new governmental contracts to IBM while investigations are on-going after losing a $84 million contract last year. Although the contracts IBM hold with the EPA are quite small when compared with other contracts the company has with other federal agencies, it is common courtesy between agencies that if one issues a ban the rest will follow.

As far as IBM is concerned the company asserts they haven’t breached any contracts, and are protesting the decision. This could have some repercussions for IBM, considering the U.S. government awarded them $1.3 billion in contracts just last year.

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