The DOD is now watching Rackable's acquisition bid closely. Both SGI and Rackable "tell us they are committed to maintaining the systems we purchased in prior years and are committed to delivering systems we ordered for delivery this year."

Delivery of its first system is due this month.

Rackable and SGI hope to close the by the end of May, if the deal meets court approval. A case has been filed in U.S. Bankruptcy Court in New York. "There will be significant uncertainty through May," Henry, said, while the companies and courts sort it out. "But to date the active participants have committed to support our needs and they are demonstrating that commitment through active and ongoing production and delivery of systems and services," he said.