IBM Challenge to Supply Chain Modernization Procurement Fails

IBM Corp. failed to show in its protest that the US Department of Veterans Affairs’ $5 billion procurement for supply chain modernization services is unduly restrictive of competition.

IBM argued that the VA’s liquidity and solvency tests for bidders produce meaningless results and narrowly evaluate a bidder’s financial health at a particular point in time.

The VA showed that these tests for long-term financial health are reasonable because a contract would be performed over a 10-year period, the Government Accountability Office said in a decision released Thursday.

Evaluation criteria are unobjectionable where they are reasonably related to an agency’s ...