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 user 2008-02-12 at 4:07:00 pm Views: 36
  • #20950

    state of Georgia tosses office Depot contract
    The state of Georgia is seemingly preparing to terminate its $60 million office supplies contract with Office Depot.
    to industry sources who have been actively lobbying Georgia state
    purchasing officials over alleged irregularities and mismanagement by
    Office Depot and its consultants, in an unprecedented move the state’s
    attorney is preparing a termination letter that would end Office
    Depot’s participation in the state office supply
    contract.Representatives from Georgia independent dealers were
    apparently due to meet with state officials today (11 February) at 9am
    EST to present evidence that Office Depot had overcharged the state by
    $1.2 million, but were informed on Friday 8 February that the meeting
    had been cancelled and that the state was preparing to end Depot’s

    Below is Commissioner Douglas’ statement:
    “The state
    had been working diligently with Office Depot to correct performance
    issues related to the contract, including incorrect pricing being
    charged with both overcharges and undercharges on numerous products.
    There were also some service issues as well as well as a lack of
    responsiveness to the State Purchasing Division. Due to the many hours
    expended to put this contract in place, the state gave Office Depot
    every opportunity to solve the performance issues, as we had hoped to
    salvage the extensive procurement effort behind this contract.

    the state’s standard contract language, a ‘cure letter’ was generated
    to Office Depot late last year demanding performance improvements.
    While some improvements were made and many of the overcharges were
    credited back to various state agencies and refunds for undercharges
    were not requested by Office Depot, as of last week, numerous issues
    remained with specific regard to incorrect pricing being featured on
    Office Depot’s statewide ordering portal. Accordingly, the state
    decided to terminate and place Office Depot on suspension for the next
    120 days.

    “In the interim, the state will not have a statewide
    contract for office products. We have instructed state buyers to
    purchase office supplies from any source they choose, including Office
    Depot. However, state contract pricing is no longer available as the
    contract has been terminated. The suspension placed on Office Depot
    does not preclude state agencies from purchasing from Office Depot
    during this interim period. It merely precludes Office Depot from
    participating in the next procurement cycle which we plan to implement
    within the 120-day timeframe.”there was no comment from Office Depot 
    regarding this issue.