Winona, Minn.-based fastener distributor, Fastenal, announced it has sighed a settlement agreement in a case filed against it by the United States General Services Administration (GSA).
Under terms of the agreement, Fastenal will make an immediate one-time payment of $6.25 million.
According to the release, the company had a contract with GSA between 2000 and 2005. After conducting an audit in 2006, the GSA alleged Fastenal had not complied with certain pricing and product requirement provisions, and had potentially overcharged government customers under the contract.
Fastenal continues to believe they complied with their obligation under the contract, but felt a continuation of the dispute was not the best use of resources.