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Hillsborough Auditors To Scrutinize Supply Prices

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By MIKE SALINERO

msalinero@tampatrib.com

Published: December 3, 2008

TAMPA - Hillsborough County auditors are recommending a full-scale investigation into county contracts with Office Depot to see whether the office supply company is misleading county purchasers to make excessive profit.

Commissioner Kevin White asked the county Office of Internal Performance Auditor to look at Office Depot contracts after White heard the company had been accused of overpricing and questionable business practices in Florida and other states.

The auditor's office learned the Florida Attorney General's Office is investigating Office Depot's contracts with several local governments in the state. Auditors in Lee County say Office Depot overcharged the county $60,000.

Other states have concluded investigations and accused the office supply company of overcharging, the Hillsborough auditor said. Office Depot was forced to repay California $2.5 million for overcharges.

Office Depot's communication office for Florida could not be reached late Tuesday afternoon for comment.

The attorney general's investigation is based, in part, on allegations made by a former Office Depot employee who handled the company's government contracts for 11 years.

The core complaint being investigated by the attorney general is "bait and switch" tactics: setting low fixed prices for core items, then luring purchasing officers through publishing catalogue and Web site information to higher-priced, alternative items.

The auditor's office said it didn't have time to complete a full investigation of all county Office Depot contracts, but recommended that such a probe go forward.

"Based on the experience of other jurisdictions with Office Depot, we believe it is in the county's best interest that further investigation be conducted into Office Depot contracts and prices charged for items purchased under contract," Jim Barnes, the director of the auditor's office wrote.

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