The state's recent Office Depot Inc. audit, covered in this story by The Bee, is, we think, a shot across the bow to private sector vendors by Chief Purchasing Officer Jim Butler. His message: We're watching you.
The 84-page report lays out how Office Depot overcharged the State of California for supplies to the tune of $2.5 million. You can read the audit here. Click here to read Butler's response.
There are a lot of reasons that it happened: Office Depot sold stuff to the state that wasn't allowed under the contract, it mispriced some items, it failed to update catalog prices and products and its online purchasing system's search function de-emphasized or excluded some of the cheapest products.
Of course, one of the oddest -- yet legal -- practices discussed by the audit involves how Office Depot subcontracts to small companies, The companies bought goods from Office Depot and then sold the products to the state. In some cases the small businesses never even took possession of the products: Office Depot processed the order and shipped the item for them. State attorneys told the auditors that the practice is legal.
So that's our quick take on the audit. What did we miss?
Image: makezine.com
The Author
About Comments
Reader comments on Sacbee.com are the opinions of the writer, not The Sacramento Bee. If you see an objectionable comment, click the "report abuse" button below it. We will delete comments containing inappropriate links, obscenities, hate speech, and personal attacks. Flagrant or repeat violators will be banned. See more about comments here.