Fastenal Pays $6.2M To Settle Government Complaint
WASHINGTON (AP) -- Minnesota-based Fastenal Co. has agreed to pay the U.S. government $6.25 million to settle a claim it overcharged the government for hardware.
Fastenal had a contract with the General Services Administration beginning in 2000 to sell hardware to government customers. The Winona company says it discontinued the contract in 2005.
After a GSA audit, the government alleged Fastenal knowingly overcharged the government by failing to provide discounts offered to other customers. The case was turned over to the Justice Department, which threatened to sue the company.
The GSA says the settlement resolves the case, and that Fastenal agreed to comply with the price reduction clause of its contract.
Fastenal says it believes the company compiled with its GSA contract requirements, but continuing the dispute was "not the best use" of its resources.
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