Competition for Contract Called Unfair: The Navy...

Competition for Contract Called Unfair: The Navy improperly restricted competition on a $30-million computer contract by setting specifications that only allowed International Business Machines to bid, says a congressional watchdog agency. The General Accounting Office found that the service, in a rush to meet a December, 1988, deadline, violated federal regulations when it specified IBM hardware and related equipment in soliciting for a payroll computer system. The GAO also found that the Navy received a system design that did not meet its payroll needs. The agency recommended that the service cancel the contract with IBM, rewrite the specifications and allow rebidding on the contract.