IBM withdraws from giant telecom bid, leaving one bidder

Posted 7:39AM on Wednesday 8th January 2003 ( 22 years ago )

ATLANTA - International Business Machines has withdrawn from the bidding on a $1.8 billion contract to privatize state government's telecommunications, putting the state's largest-ever contract on hold again. 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's landscape'' and an uncertain economy. That leaves ConnectGA - a consortium composed of BellSouth, AT&T and information technology firm EDS - as the only bidder. The plan would put functions ranging from Internet connections in schools to state employees' wireless phones under a private contractor. ``The whole thing has been put on hold,'' said Erin O'Brien, spokeswoman for the Gov.-elect Sonny Perdue, who takes office Monday. The state stopped the bidding process in July after throwing out an offer from WorldCom. Officials said they couldn't rely on financial information submitted by WorldCom, which acknowledged billions of dollars in faulty accounting. After restarting the bidding process, Gov. Roy Barnes said he would not award the contract if there were only one bidder. 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. Larry Singer unveiled the plan in January 2001, six months after he was named executive director of the newly created Georgia Technology Authority. Initially, 10 bidders vied to be part of the deal. The state turned half of them away, saying they didn't meet the criteria. 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. Gov. Roy Barnes, who pushed lawmakers to create the technology authority, had hand-picked Singer to lead it. At the first meeting of the authority's board after Barnes lost to Perdue in November'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. 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. IBM withdrew from the bidding in large part because of the continuing changes in contract requirements, IBM spokesman Andy Kendzie said. Dana Bolden, a spokesman for the surviving bidder, said the group ``stands ready to serve the state.'' ``ConnectGA has invested significant engineering expertise to design the network of Georgia's future and stands ready to deliver,'' Bolden said.

http://accesswdun.com/article/2003/1/185838