The Environmental Protection Agency has come to an agreement with IBM to terminate the temporary suspension barring the vendor from participating in new federal government business, both parties confirmed this morning.

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On March 28, EPA placed IBM on the Excluded Parties List System, which GSA maintains to track reprimands issued to federal contractors for violations. The suspension, which was initiated by EPA and extended governmentwide, barred the company from receiving new federal contracts or modifications to new contracts. The move surprised many in the contracting community.

“We have been advised by EPA that the suspension of IBM has been lifted,” said a GSA spokesman. “This means that effective immediately we may resume doing business with IBM.”

According to IBM’s released statement, the company will continue to cooperate with the EPA's ongoing investigation of possible violations of the Procurement Integrity provisions of the Office of Federal Procurement Policy Act regarding a bid for business with EPA, and with a related investigation by the U.S. Attorney’s Office for the Eastern District of Virginia.

The contract in question involved the modernization of EPA's financial management system. IBM and federal contractor CGI submitted bids for the contract in 2006, and EPA awarded the $84 million contract to CGI. IBM protested the decision, which the Government Accountability Office sustained. The contract remains stalled until the investigation is resolved.