Quincy Massachusetts Granite City Electric Supply Co. of Quincy will pay $2.3 million to settle allegations that it overbilled hundreds of state entities for supplies it sold them under a five-year contract with the Executive Office for Administration and Finance’s Operational Services Division, The Attorney General’s Office announced Monday. An agreement filed in Suffolk Superior Court resolves allegations that Granite City Electric Supply Co. violated the Massachusetts False Claims Act and Consumer Protection Act by failing to price goods as required in its contracts with 285 public entities, including public school districts, towns and cities, state agencies and housing authorities.
The company will refund $1.18 million in overcharges and $1.18 million to the Attorney General’s Office. Granite City also agreed not to participate in public contracts for one year and to change its business practices, including training and compliance reviews. The refunds will be made within 30 days.Granite City was a vendor on a statewide contract administered that cities and towns, school districts and libraries, hospitals and other agencies to buy maintenance, repair and operations supplies and equipment at discounted rates.
The investigation began when the Inspector General identified problems with the company’s pricing and billing on state contracts.