Office Depot won't renew government contract

Boca Raton, Fla. Office Depot said Friday it will not seek to renew its contract with Los Angeles County, according to a report by the South Florida Business Journal.

Los Angeles County serves as the lead agency contract for office supplies under the U.S. Communities Government Purchasing Alliance.

The current contract, which represents about $515 million in projected annual sales, expires at the end of the year, the company said.

“The company believes that the RFP contains terms that could not only negatively impact its profitability, but also the means to provide cost effective alternatives to public sector customers that buy through the U.S. Communities program,” Office Depot said in a statement.

On June 16, the Better Business Bureau of Southeast Florida revoked Office Depot’s membership after the company settled a pricing dispute with the state of Florida.

Last month, Office Depot agreed to pay about $4.5 million in refunds to eligible customers in negotiating a settlement with Florida Attorney General Bill McCollum.

An investigation determined the company allegedly switched certain local government agencies and private nonprofit organizations in Florida “from one pricing plan to another without their full understanding or knowledge, potentially resulting in higher prices for those customers,” according to a news release from McCollum’s office.