7/24/2010
NEWS BRIEFS
Feds Accuse Fastenal of GSA Overcharges Amid Multi-Million Dollar Settlement Offer
A federal audit claims Fastenal may have overcharged government customers millions of dollars.
The Winona, MN-based fastener supplier reportedly received a letter from the Civil Division of the Department of Justice advising that DOJ were preparing to commence litigation involving a contract between Fastenal and the U.S. General Services Administration between 2000 and 2005.
“The letter is related to an (GSA) audit… that suggested we had not complied with certain pricing and product requirement provisions, and had potentially overcharged government customers under the contract,” Fastenal stated.
DOJ subpoenaed Fastenal on March 25, 2010, regarding the matter.
“We have communicated our disagreement with the audit report, and have participated in several meetings and discussions with the OIG and DOJ on these disputed issues during the past several years,” the company said, adding that negotiations were “ongoing.”
DOJ has offered to resolve this matter for a payment of $9.5 million. Fastenal has counter-offered $750,000.
“We continue to believe that we have complied with our obligations under the GSA contract in all material respects,” Fastenal stated.
The incident comes two months after a self-sealing fastener manufacturer sued Fastenal for $180 million over allegations that Fastenal violated its exclusivity agreement with the supplier.
Fastenal contends such an agreement with Santa-Barbara, CA-based B&B Hardware never existed. ©2010 GlobalFastenerNews.com
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