Did IBM and the Federal Aviation Administration play fair when the company won a $3.6 billion contract to upgrade the computers in the U.S. air-traffic- control system? No way, according to losing bidder Hughes Aircraft, which last week persuaded the General Services Administration to suspend the contract pending an investigation.
Hughes, a subsidiary of General Motors, contends that its proposal was technically superior but that it lost out because the FAA gave IBM "preferential treatment" that helped the firm submit an unfair lower bid. For one thing, Hughes says, it was not informed by the agency of changes in specifications that...
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