State To Seek New Office-Supply Contract

State administration Secretary Britt Cobb on Tuesday terminated a more-than $100 million office-supply contract with Office Depot and said he will solicit bids for a new one.

The decision comes in response to a lawsuit and a ruling by an administrative law judge that recommended the state make changes to the six-year contract.

Corporate Express is suing North Carolina claiming that the Department of Administration unfairly awarded the office-supply contract to Office Depot and cited conflict of interest.

After a thorough review of the evidence, Cobb cited an ambiguity regarding the e-procurement terms in the Request for Proposals to procure office supplies for state agencies.

"Due to the technical error, we are required to take this action," Cobb said. "More importantly, it is the right thing to do. We will rebid the contract with the goal of having a new one in place by Dec. 1, 2006."