Conference heron::euro_swas_ai

156.0. "IBM to be banned from Navy contracts?" by HERON::ROACH (TANSTAAFL !) Thu Dec 21 1989 10:46

Printed by: Pat Roach                                    Document Number: 009693
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                  I N T E R O F F I C E   M E M O R A N D U M

                                        Date:     21-Dec-1989 09:49am CET
                                        From:     bertrand
                                                  bertrand@UNIRIV@MRGATE@STATOS@VBO
                                        Dept:      
                                        Tel No:    

TO: See Below

Subject: IBM to be banned from Navy contracts?


------- Forwarded Message

Return-Path: xirtlu::[email protected]
Date: Thu, 21 Dec 89 00:12:02 +0100
From: xirtlu::[email protected]
To: xirtlu::partners
Subject: FYI, IBM being banned from Navy RFPs and IBM RISC stuff

                         **************************

                 NAVY EXPECTED TO BAN IBM BIDS ON CONTRACTS

THE NAVY DEPARTMENT IS TAKING STEPS TO SUSPEND IBM FROM BIDDING FOR NAVY 
CONTRACTS, A GOVERNMENT SOURCE SAID THURSDAY, REPRESENTING THE FIRST TIME IN 
THE COMPANY'S 75-YEAR HISTORY THAT IT HAS BEEN BANNED FROM BIDDING BY A 
CLIENT.

TERMS OF IBM'S SUSPENSION WERE BEING WORKED OUT AT THE NAVY DEPARTMENT, THE 
SOURCE SAID.  A NAVY SPOKESMAN DID NOT RETURN CALLS THURSDAY.  AN IBM 
SPOKESMAN SAID THE COMPANY HAD NOT BEEN ADVISED OF THE PENDING SUSPENSION.

IBM ADMITTED THURSDAY TO DEFRAUDING THE GOVERNMENT BY SELLING USED COMPUTER 
EQUIPMENT LABELED AS NEW, A FEDERAL OFFENSE.  IBM ALSO ADMITTED TO VIOLATING 
THE "BUY AMERICAN ACT" THAT REQUIRES COMPANIES TO CERTIFY THE GOODS THEY SELL 
TO THE GOVERNMENT ARE MOSTLY AMERICAN MADE.

THE SUSPENSION FOLLOWS A NINE-MONTH INVESTIGATION BY THE HOUSE GOVERNMENT 
OPERATIONS COMMITTEE INTO ALLEGATIONS THAT THE NAVY IMPROPERLY FAVORS IBM FOR 
COMPUTER CONTRACTS. INVESTIGATORS FROM THE GENERAL ACCOUNTING OFFICE, THE 
GENERAL SERVICES ADMINISTRATION, THE SMALL BUSINESS ADMINISTRATION AND THE 
DEFENSE DEPARTMENT HAVE ALSO FOCUSED ON IBM'S MARKETING PRACTICES.

THE FRUITS OF THE HOUSE INVESTIGATION-EVIDENCE OF SYSTEMIC PROCUREMENT 
PROBLEMS AT THE NAVY AND QUESTIONABLE MARKETING PRACTICES BY IBM-HAVE BEEN 
DISCLOSED AT HEARINGS DURING THE PAST TWO WEEKS.

EDWARD HEFFERON, ASSISTANT INSPECTOR GENERAL FOR AUDITING FOR THE GENERAL 
SERVICES ADMINISTRATION, TOLD THE OPERATIONS COMMITTEE'S SUBCOMMITTEE ON 
LEGISLATION AND NATIONAL SECURITY THAT IT WAS INVESTIGATING IBM FOR SELLING 
USED COMPUTER EQUIPMENT TO THE FEDERAL GOVERNMENT AS NEW - THE CHARGE IBM HAS 
NOW ADMITTED.

HE ALSO SAID IBM HAD ADMITTED TO VIOLATING THE "BUY AMERICA ACT" WHICH 
REQUIRES COMPANIES TO CERTIFY THEIR EQUIPMENT IS COMPOSED MOSTLY OF DOMESTIC 
PRODUCTS, ANOTHER FEDERAL VIOLATION THAT ALSO CARRIES CRIMINAL AND CIVIL 
SANCTIONS.

IN BOTH CASES, THE PROBLEMS WERE BROUGHT TO THE ATTENTION OF THE GOVERNMENT 
BY IBM, WHICH SAID THE VIOLATIONS WERE UNINTENTIONAL.

THAT VIEW, HOWEVER, IS NOT WHOLLY SHARED BY THE GENERAL SERVICES 
ADMINISTRATION, WHICH HAS SINCE EXPANDED ITS INVESTIGATION TO COVER IBM 
CONTRACTS FOR HARDWARE AND SOFTWARE AS FAR BACK AS THE EARLY 1970'S, SOURCES 
SAID THURSDAY.  THE DEPARTMENT OF JUSTICE IS BEING CONSULTED AS PART OF THAT 
INVESTIGATION, THEY SAID.




                         **************************
			 RISC stuff



>From csteam::lowber Fri Dec 15 08:39:56 1989
Date: Fri, 15 Dec 89 08:39:53 PST
From: csteam::lowber
To: aps
Subject: Latest word on IBM's RISC announcement
Status: RO


                  I N T E R O F F I C E   M E M O R A N D U M

                                        Date:     15-Dec-1989 11:24am EST
                                        From:     Peter Lowber
                                                  LOWBER.PETER
                                        Dept:     US Sales Support
                                        Tel No:   297-6341
                                        Doc No:   013272

TO: See Below

Subject: Latest word on IBM's RISC announcement

    It now looks like the IBM RISC/AIX aoouncement will be the first 
    or second Tuesday in February.  Gartner Group, Meta Group, and ITG 
    have all expressed this opinion to me this week.
    
    Meta Group believes that the PS/2 (single 486 Desktop; dual-486 to 
    follow in March) announcement will be rolled in with the RISC 
    announcement.  The 486 Desktop (for OS/2 and AIX) will be the 
    entry-level dekstop/workstation for the RISC platform.
    
    There is growing concern from ISV's that applications will not be 
    available at Feb announcement.  IBM is a big risK here.  It may be 
    that only the major CAD applications are available (CADAM, COTIA, 
    and CAEDS, and CASE).
    
    While all the benchmarking for the System has been completed 
    (because the Fortran parallel code works well), the Fortran 
    compiling and recompiling code is not working well.  This is the 
    problem holding up the ISV's.
    
    The IBM internal positioning work apparently has not been done 
    yet, and there is fierce infighting ongoing.  Steve Schwartz is 
    "livid" at Austin's internal competitive intentions!
    
    
    				Peter


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