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    Federal Contract Ban Stalls IBM Channel

    Written by

    Sara Driscoll
    Published April 2, 2008
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      Partners are likely to feel a significant impact from IBM’s suspension from seeking new federal contracts, according to government analysts and the General Services Administration.

      IBM was banned by the Environmental Protection Agency from completing or signing any new or pending federal contacts. However, any ongoing contracts or contracts that have already been signed will remain intact.

      The GSA confirmed that the suspension applied to all new indirect and direct sales by IBM. A GSA spokesperson said that the government cannot buy IBM products, regardless of source, unless there is a compelling need.

      Ray Bjorklund, senior vice president and chief knowledge officer with FedSources, a government market intelligence firm, said that “compelling need” referred to a situation where a vendor had proprietary knowledge of a product or a service. He added that these situations most often applied in instances of national security.

      “This is going to have a massive impact on IBM’s partners, who will also face the ban,” said Melissa Smith, director of research at Input. “Although in some cases partners may have relationships with more than one prime [vendor], it’s likely that some will just be with IBM.”

      To read the full article on The Channel Insider, click here.

      Sara Driscoll
      Sara Driscoll
      Sara Driscoll has over a decade of experience in journalism, starting at 16 with The Watford Observer. After earning a Journalism degree from Bournemouth University, she worked across major publishing houses, covering industry news, market trends, and in-depth analysis. She progressed rapidly, leading editorial teams and expanding publications across digital platforms, live events, and multimedia. With years spent shaping content strategies and providing expert commentary, she has built a career at the intersection of journalism, business insights, and media innovation.

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