This kind of contract kick back is becomming common in both government and private industry and is pedaled as a way to pay for “administrative expenses”. Another good idea cooked up by fiscal bean counters on both sides of purchasing contracts.

A very good example is the “mandatory” purchasing contract with Grainger’s and Fastenal for all State of Idaho purchases of equipment, maintenence and fasteners. It is now mandatory for any State of Idaho employee to purchase the products they need from these two international corporations regardless of price up to $10,000.00.

If your local dealer, member of BUY IDAHO, can sell you the same product, and provide service etc. cheaper than Graingers, it is still forbidden to make the purchase.

The Idaho Dept. of Adminstration, under the mandatory purchasing contracts, gets 1.2% kick-back in cash from all state sales. The Dept. of Administration also sweetend the deal by raising the no bid purchasing allowance from $5k to $10k.
This is all public infromation and you can view it on the Idaho Dept. of Administration Purchasing website. (until they take it down)
This is a great example of giant corporations making it their way or the highway.

Thanks to the Idaho Legislature, and the “free market” Republicans that own this state with Mr.”BUY IDAHO” Butch” Otter at the helm.