Office Depot Contract Pricing

1

Office Depot Contract Pricing

• January 27, 2011
• Bill.Perrone_at_iad.sccgov.org
• 408-299-6830

2
Background

• Other jurisdictions found pricing errors.
• Contract based on US Communities Contract.
• Includes paper and toner.
• Based on Los Angles contract.
• Excluded paper and toner
• Pricing began April 1, 2007.
• Core prices are fixed. (Minor timing differences,
  1M/yr)
• Non-core based on formula and adjust
  periodically. (3M/yr)

3
Non-Core

• Based on Formulas in Exhibit B
• Does not identify which formula.(5 of 6 have
  multiple formulas)
• Does not identify if highest or lowest.
• Multiple catalogs.
• Did necessarily use as had to call on paper.
• Formula is illogical. (Cost plus 17 GM)
• No procedure of approving price increases.
• Based on cost
• Does not identify how verify cost.
• Only received computer printouts.
• No initial or follow-up analysis on cost or
  budget impact to County.
• Other comments
• Salesperson was contact person.
• Had to sign a confidentiality agreement
• Told that lower prices at other counties was not
  applicable.