GE Capital IT Solutions shutters federal business, rescinds contract

GE Capital IT Solutions shutters federal business, rescinds contract

By Patricia Daukantas

GCN Staff

GE Capital Information Technology Solutions is bowing out of the federal systems business.

After reorganizing its internal lines of business, the Newport, Ky., company will no longer provide federal agencies with PC products and services.

As of April 3, GE Capital IT Solutions withdrew its General Services Administration Multiple-Award Schedule contract, said Gilbert Gautereaux, vice president of federal systems.

The contract was scheduled to run through March 31, 2002.

By pulling its schedule contract, GE Capital IT Solutions also effectively ended its blanket purchasing agreements. The largest of its BPAs was with the Space and Naval Warfare Systems Command for Hewlett-Packard Vectra VE/350 systems.

The parent company is reorganizing into three lines of business'networking, managed services and IT products'for small and midsize companies, Gautereaux said.

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

Standing by

For 30 days, the GE Capital IT Solutions federal systems office in Gaithersburg, Md., will have a staff on hand to fulfill open orders, Gautereaux said. Customer service staff members 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, Gautereaux said. GE Capital, headquartered in Stamford, Conn., is part of General Electric Co.

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

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