Supervisors approve six-month extension and increase to Office Depot contract after audit and oversight discussion

The Board of Supervisors voted to approve an amendment to the city’s existing contract with Office Depot that increases the contract amount by more than $500,000 and includes a six-month extension to allow staff to complete an audit and rebid the solicitation.

Supervisor David Campos pressed staff for additional protections after a budget analyst flagged alleged overcharges under the contractor’s prior work for other cities. Naomi Kelly, the city’s purchaser, told the board that the Office of Contract Administration is “working with the city auditor, and we are auditing the current Office Depot contract” and that staff is comparing invoices to purchase orders to identify pricing inaccuracies.

Kelly said the purchasing office could pursue contract remedies if problems are found — “everything from termination for convenience to termination for default to pursuing false claims” — and added that there is a fidelity bond attached to the contract. Kelly also said purchasing would “re-educate the departments” and redo training for accountants across city departments so invoice checks are accurate. She told the board, “And we need 6 months to do that, to 1, finish the audit, the comprehensive audit and then rebid.”

Campos said budget staff had noted both alleged overcharges and concerns that the contractor’s low bid might not reflect the true cost of providing services. During committee review, board members had considered adding a contractual penalty for overcharges; Campos asked staff to consider adding “a 10% fee” for overcharges during the extension period. Kelly said she would “bring it up with our city attorney and bring it up with Office Depot to add that to the contract language.”

After the discussion the board took a roll call vote on the item and the resolution was adopted; the spoken record shows the chair noting “There are 10 ayes.” The resolution was initially presented on the consent calendar as Item 23, was passed after being taken up separately, and no amendments were adopted on the floor.

The action directs purchasing to complete the audit and return with procurement steps; the record reflects commitments by purchasing to pursue internal training, audit work and to discuss possible contractual penalty language with the city attorney and Office Depot. A precise schedule for the audit’s completion and any contractual changes was not specified in the public floor discussion.