House panel to examine how Pentagon handled computer contracts with IBM

Article Abstract:

The House Government Operations Committee is investigating lax management, favoritism and petty corruption that may have tainted hundreds of millions of dollars of Navy computer contracts since the mid-1980s. IBM, in particular, is embarrassed. For one thing, investigators say that free training provided to Navy data managers by IBM amounted to an illegal gratuity. In other instances, investigators say that Navy officials communicated inside contracting information to IBM marketing teams and even got IBM to help draft requirements for contracts. IBM strongly denies any wrongdoing. Rear Adm Paul Tobin, who heads the Navy's computer purchasing operations, says mistakes have been made, but he says anticompetitive tactics are now strictly forbidden and there is close monitoring to ensure compliance.

Legislative bodies, NATIONAL SECURITY AND INTL. AFFAIRS, Testimony, United States. Navy, Defense contracts, Purchasing Systems, Defense Contract, United States. Congress. House. Committee on Government Operations, Tobin, Paul, United States. Congress. House. Committee on Government Reform

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U.S. discloses sweeping probe into IBM jobs

Article Abstract:

The General Services Administration (GAO) is investigating IBM for violations of 'buy-American' rules and for selling used equipment as new when handling government contracts. IBM admits the wrongdoings took place, but IBM says problems were caused by 'administrative error' rather than intentional deception. IBM says the problems were 'minor.' These investigations will involve over $3 billion in government computer contracts, which go back as far as 1980. IBM offers to pay $1.5 million to settle civil claims related to the irregularities, but the GSA says it will not accept monetary settlements until all records requested from IBM are received and analyzed. If the investigation discovers intentional deception, IBM faces possible criminal and civil lawsuits.

General government, not elsewhere classified, United States. General Services Administration

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Unisys agrees to settlement in Ill Wind case

Article Abstract:

Unisys Corp has decided to settle to the tune of $190 million, for its role in the bribery and influence peddling scandal that rocked the Pentagon's weapons purchasing programs during the 1980's. Unisys intends to plead guilty to multiple felony charges including the corruption of certain officials and middlemen and the use of non-existent consulting agreements used to obtain lucrative defense contracts. The Navy's former top purchasing official, Melvyn Paisley, is at the center of a planned indictment charging him with a number of felonies, including bribery and conspiracy, stemming from his relationship with a number of Unisys executives in the mid-1980's.

National security, Cases, Finance, Discipline, Unisys Corp., UIS, United States. Department of Defense, Government Agency, Legal Issues, Court Cases, Paisley, Melvyn

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