In 2009, an audit by the city controller found that Office Depot had failed to provide San Francisco with about $5.75 million in discounts mandated in its five-year, $18 million contract, according to the mayor’s office.
Office Depot was the city’s contractor for office supplies from January 2005 through the end of November 2009.
The company initially disputed the claim, but settled in December 2009 with City Attorney Dennis Herrera.
The settlement includes a $3.75 million payment and a $500,000 purchasing credit with Office Depot, according to the mayor’s office.
The settlement had to first be approved by the Board of Supervisors, whose resolution in favor of the agreement was what Lee signed today.
“I am pleased that this matter is behind us, and thank Office Depot for settling this overcharge dispute without costly litigation,” Lee said in a statement.
A spokesman for Office Depot wasn’t immediately available for comment this afternoon.
Dan McMenamin, Bay City News