Just prior to the Labor Day weekend, the Department of General Services (DGS) of the state of California issued its long-awaited audit report regarding the compliance of Office Depot with the state office supplies contract. The report also evaluated the compliance of Office Depot and the small business consortium established to participate in the contract with California's law requiring that state government contractors and subcontractors perform commercially useful functions (CUF). The National Office Products Alliance (NOPA), which represents independent office product dealers and their key business partners in California and nationwide, stated that the California state audit again highlights the major deficiencies of sole-source contracts. This is especially true in industries, such as office products, that sell tens of thousands of distinct products to hundreds, or even thousands, of state government end users under a single contract award.
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