OMB Guidance regarding IBM suspension

From: CIO-COUNCIL [mailto:CIO-COUNCIL@LISTSERV.GSA.GOV] 
       On Behalf Of ciocouncil.support@GSA.GOV
Sent: Wednesday, April 02, 2008 7:20 AM
To: CIO-COUNCIL@LISTSERV.GSA.GOV
Subject: [CIO-COUNCIL] IBM Suspension - GSA Guidance


The following guidance is sent on behalf of Karen Evans, Administrator, 
Office of E-Gov & IT, OMB, for David Drabkin, Acting CAO, GSA. 

===================== 

On Thursday, March 27, 2008, the Environmental Protection Agency (EPA) suspended IBM.  
IBM is listed in the Excluded Parties List System ( EPLS - http://www.epls.gov/ ) 

The suspension of IBM has the immediate effect of precluding the following actions 
until further notice. 

Contracting activities shall not: 
- Solicit offers from IBM
- Award new contracts to IBM
- Place new task, delivery, or purchase orders with IBM
- Consent to subcontracts with IBM
- Evaluate pending proposals, quotations, or offers from IBM.  
  (Bids received in response to an Invitation for Bids must be rejected.)
- Add new work, exercise options, or extend the duration of current contracts or orders. 
- Use the Purchase Card to acquire goods or services from IBM. 
- Modify existing contracts with IBM. 

If there are compelling reasons for doing business with IBM, requests for determinations 
from the Administrator pursuant to Federal Acquisition Regulation (FAR) §§ 9.405 and 9.405-1(b) 
shall be sent to the SPE for review and submission to the Administrator for approval. 

This means that no new orders may be placed against schedule contracts, against GWACs or 
other IDIQ contracts held by IBM by GSA or other Federal agency users without first 
complying with FAR § 9.405-1(b).  GSA's Administrator can only approve requests under 
FAR § 9.405-1(b) for GSA contracting activities.  Other agencies will have to get written 
determinations from their own agency heads. 

Existing contracts and task orders may remain in effect unless the Administrator 
directs otherwise. Therefore, do not terminate these contracts and task orders without 
first consulting with the SPE and General Counsel. 
    
Full details concerning suspension are set forth in Subpart 9.4 of the FAR: 

  - Section 9.405 describes the effects of a suspension;
  - Section 9.405-1 addresses the continuation of current contracts; and
  - Section 9.405-2 covers restrictions on subcontracting. 

Questions concerning this matter should be referred to Edward Loeb at (202) 501-0650. 

Please give this guidance widest dissemination and ensure that all purchase card 
holders in your organization are made aware of it. 

David A. Drabkin
Acting Chief Acquisition Officer &
Senior Procurement Executive
US General Services Administration