The public school system's contract with Xerox to provide photocopiers, scanners, printers, fax machines, software and support should and must be terminated, according to the Office of Public Accountability.
The accountability agency yesterday concluded that the procurement process was violated.
Xerox provided more equipment than the schools had asked for, but school officials, including the deputy superintendent of finance, "blindly" signed off on the company's purchase order, assuming the amounts were correct, according to the findings released yesterday by the accountability office.
The problem was caused by the school system's "negligence and lack of oversight," the document states, and not because of fraud or bad faith by Xerox.
"However, the evidence strongly suggests that Xerox took advantage of DOE's negligence," the report states, adding the company would have made more profits as a result.
The accountability office also stated that the high-price agreement should have been finalized through a contract but was instead finalized through a purchase order which the school superintendent never approved. Monthly copying costs, especially the cost of color copies, "skyrocketed with little to no control," the findings state, citing changes made in one of the purchase orders.
Losing bidder Island Business Systems & Supplies filed the procurement appeal in January 2011. But the accountability office yesterday stated the company is not entitled to be reimbursed for the cost of its successful appeal because it was the second lowest bidder and it "was not reasonably likely" that it would have been awarded the contract.
Xerox won the contract in 2010 with a bid of $67,228.50 a month to provide machines and 100 sets of software. Island Business Systems bid $75,663.64 a month.
Island Business Systems had argued, among other things, that if the school system wanted more equipment than originally requested, other companies could have bid lower, bulk prices.
The accountability office yesterday ordered the termination of two of Xerox's purchase orders with DOE, stating XEROX shall be paid actual expenses, plus a reasonable profit, prior to termination.
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