A new allegation that IBM supplied refubished computer equipment as new on a US government contract was made yesterday when the Baltimore Sun reported that a subcontract on a $544m US Navy pact awarded to Electronic Data Systems Corp was under investigation. IBM hardware and software accounted for about $134m of the value of the bid, and unnamed sources quoted by the Sun say the Navy contacted the Federal Bureau of Investigation after discovering the IBM equipment was used and not new as required by the contract. The newspaper said the FBI is investigating to determine whether the mix-up was intentional and whether the blame should placed at the door of EDS, IBM or the Navy.
