GE Capital details closing of federal business

GE Capital details closing of federal business

By Patricia Daukantas

GCN Staff

APRIL 4—GE Capital Information Technology Solutions today detailed its plans to shutter its federal systems division, which had provided the government with PC-related products and services.

As of Monday, the company had withdrawn its General Services Administration Multiple Award Schedule contract, according to Gilbert Gautereaux, vice president of federal systems for the Newport, Ky., firm. The contract had been scheduled to run through March 31, 2002.

GE Capital IT Solutions also ended its federal agency blanket purchasing agreements, the largest of which was with the Space and Naval Warfare Systems Command.

The parent company is reorganizing itself into three lines of business—networking, managed services and IT products-geared toward customers in small and mid-sized firms, Gautereaux said.

"The federal systems business did not align with those specific target markets for those three businesses," he said.

For 60 days, the GE Capital IT Solutions Federal Systems office in Gaithersburg, Md., will have staff available to fulfill open orders, Gautereaux said. Customer service staff will field questions for nine months and will fulfill warranties for up to three years.

Although GE Capital IT Solutions will no longer sell to the federal government, other divisions of GE Capital will continue to do so, Gautereaux said. GE Capital, with headquarters in Stamford, Conn., is part of the General Electric Co.

The closing of federal operations will not affect GE Capital IT Solutions' ongoing sales efforts with state and local governments, Gautereaux added.

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