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NOPA Welcomes News of Tentative San Francisco Settlement with Office Depot

16 Dec, 2010

NOPA Welcomes News of Tentative San Francisco Settlement with Office Depot

Alexandria, VA (December 16, 2010) - The National Office Products Alliance (NOPA) today welcomed news that the San Francisco City Attorney, Dennis Herrera, has reached a tentative settlement agreement with Office Depot that secures $4.25 million in payments and purchase credits for the City for alleged overcharges under a City office supplies contract, and related audit and legal costs. The settlement is pending approval by the City’s Board of Supervisors.

NOPA President Chris Bates highlighted the large size and significance of the proposed San Francisco City settlement, which provides "another clear reminder to all government buyers of office products of the importance of maintaining ongoing competition among qualified suppliers – small and large – through use of multiple-award contracts and appropriate oversight. This is the best way to ensure consistent delivery of best value to all government customers." Bates applauded Herrera, San Francisco Controller Ben Rosenfield and other City officials for their commitment to reaching an appropriate settlement. 
Office Depot has faced similar local and state government contract disputes recently, several of which have resulted in settlements with the affected governments. For example, in April 2010, the company agreed to pay $320,000 in restitution to local governments and non-profit organizations in Missouri for alleged failure to provide proper contract discounts, and $120,000 to reimburse that State for the cost of its investigation and enforcing the Missouri Merchandising Practice Act.

In June 2010, the company agreed to a $4.5 million settlement with the State of Florida to resolve contract disputes involving office supply purchases by government agencies and certain local public entities in that State. Office Depot similarly agreed to reimburse $2.5 million to the State of California in August 2008 for alleged overcharges that occurred over a two-year period, according to the California Department of General Affairs.

Several large federal agencies, with Justice Department coordination, and several state attorneys general are continuing their separate investigations into allegations of improper pricing under contracts with Office Depot. 
About NOPA The National Office Products Alliance (NOPA) is the trade Association for independent office products dealers and their trading partners. Information is available at www.nopanet.org

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