IBM withdraws from giant telecom bid, leaving one bidder

ATLANTA - International Business Machines has withdrawn from the bidding on a $1.8 billion contract to privatize state government&#39;s telecommunications, putting the state&#39;s largest-ever contract on hold again. <br> <br> IBM, which was one of just two bidders, said in a letter Friday to the Georgia Technology Authority that it was pulling out because of ``changes in the state&#39;s landscape&#39;&#39; and an uncertain economy. <br> <br> That leaves ConnectGA - a consortium composed of BellSouth, AT&T and information technology firm EDS - as the only bidder. <br> <br> The plan would put functions ranging from Internet connections in schools to state employees&#39; wireless phones under a private contractor. <br> <br> ``The whole thing has been put on hold,&#39;&#39; said Erin O&#39;Brien, spokeswoman for the Gov.-elect Sonny Perdue, who takes office Monday. <br> <br> The state stopped the bidding process in July after throwing out an offer from WorldCom. Officials said they couldn&#39;t rely on financial information submitted by WorldCom, which acknowledged billions of dollars in faulty accounting. <br> <br> After restarting the bidding process, Gov. Roy Barnes said he would not award the contract if there were only one bidder. <br> <br> The Georgia Technology Authority has spent two years and more than $4.2 million organizing the telecom contract, which would put up to 500 state employees to work for the winning bidder. <br> <br> Larry Singer unveiled the plan in January 2001, six months after he was named executive director of the newly created Georgia Technology Authority. <br> <br> Initially, 10 bidders vied to be part of the deal. The state turned half of them away, saying they didn&#39;t meet the criteria. <br> <br> Some lawmakers, state employees and directors of various agencies opposed the plan. The agency heads were particularly skeptical and claimed Singer was treading on their turf. <br> <br> Gov. Roy Barnes, who pushed lawmakers to create the technology authority, had hand-picked Singer to lead it. <br> <br> At the first meeting of the authority&#39;s board after Barnes lost to Perdue in November&#39;s election, the telecom contract was described less as a means for modernizing state government and more as a way to get advanced telecommunication services to all Georgians. <br> <br> Perdue, who is from a small town in middle Georgia, campaigned on issues such as creating a technology link between rural residents and big-city jobs. Much of his support came from voters outside metro Atlanta. <br> <br> IBM withdrew from the bidding in large part because of the continuing changes in contract requirements, IBM spokesman Andy Kendzie said. <br> <br> Dana Bolden, a spokesman for the surviving bidder, said the group ``stands ready to serve the state.&#39;&#39; <br> <br> ``ConnectGA has invested significant engineering expertise to design the network of Georgia&#39;s future and stands ready to deliver,&#39;&#39; Bolden said.