The Department of Agriculture's Allegation Concerning the General Services Administration's Mandatory Requirements Contract for ITEL Disk Drives

A dispute among the Department of Agriculture, the General Services Administration (GSA), and the ITEL Data Products Corporation concerned an allegation by the Department that disk drives acquired from ITEL through a GSA mandatory requirements contract were causing degradation of service. The Department replaced IBM disk drives with the ITEL disk drives in response to previous GAO recommendations. After testing revealed problems of degradation, the Department curtailed further installation claiming that a breach of contract existed, and provided ITEL with a study supporting its claim. After the issue was brought to the attention of GSA, the contracting officer concluded that ITEL was not in breach of the contract and that the Department's refusal to replace the disk drives was a breach of contract and in violation of regulations.