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Office Depot Contract Pricing

Office Depot Contract Pricing. January 27, 2011 Bill.Perrone@iad.sccgov.org 408-299-6830. 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

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Office Depot Contract Pricing

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  1. Office Depot Contract Pricing January 27, 2011 Bill.Perrone@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.

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