INDUSTRY WATCH

DOJ Withdraws GTSI Probe

The Justice Department has withdrawn its Civil Investigative Demand (CID), which sought information relating to Government Technology Services Inc.'s sales on the General Services Administration schedule dating back to 1988.

Now GTSI is working with GSA to provide the information the agency's auditors seek to completely settle the matter, said Peter Janke, GTSI's executive vice president and chief financial officer.

DOJ decided to drop its investigation because it believed that GTSI was cooperating with GSA in good faith, Janke said. "The main reason is that they were impressed with the energy we were expending to cooperate," Janke said. "Given that level of cooperation, they decided it would be in everybody's best interest to withdraw the CID."

DOJ declined to comment on the situation and refused to even acknowledge that it had issued a CID.

Now that the ball is in GSA's court, "there can be a wide variety of outcomes," Janke said. "Our hope is for a benign outcome," he said.

IBM Builds Government IT Unit

IBM Corp. last week announced a worldwide government industry unit to develop and market information technology solutions.

Kenneth R. Thornton has been named IBM Worldwide Government Industry general manager. His management team includes John R. Cherbini, vice president of worldwide consulting services; Hans-Joerg Dennhardt, director of operations/business development; Todd Ramsey, vice president of worldwide solutions; and Robert H. Samson, general manager, government industry, North America. IBM Federal will now report to Samson.

Address Correction

The incorrect Internet address for Microsoft Corp.'s imaging software was published in FCW's Jan. 22 issue. The correct address is http://www.microsoft.com/windows.

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