Home Depot Is Declining Business with the U.S. Federal Government-Truth! But Decision Reversed!

Home Depot Is Declining Business with the U.S. Federal Government-Previously Truth! Decision Reversed!

Summary of the eRumor
The message is in the form of a series of emails from people who say they've had personal contact with Home Depot stores that are refusing purchases by anyone from government offices or with government contracts. Some of the reports claim they've been told it is because of opposition to U.S. policy regarding Iraq.

The Truth
This is a puzzling story. Home Depot confirmed at the beginning of June, 2002 that it was not doing business with the U.S. government or any government contractors, but denied it had anything to do with Iraq.

A statement on the Home Depot website said "Since we have never been a federally approved contractor, our intent was to re-state our existing policy for our stores and associates and remind them of their responsibilities in complying with related rules." Whatever that meant.

Then later in June, 2002, Home Depot issued a statement saying it was going to pursue government business. The statement said the change in position was based on "feedback
from its associates, customers and a further evaluation of the systems and administrative requirements necessary to become a federal contractor."

The National Electrical Contractors Association (NECA) tried to make sense of it too. They said that Home Depot had said it was actually not a new policy but that letters to stores about the decision had been sent only in the weeks before it became a public controversy. The NECA said that commercial credit card customers were receiving notices with their June bills asking that they not make purchases that would make Home Depot compliant with three Federal laws. The first was an Executive Order from the era of President Johnson in 1965 that prohibited government contractors from discriminating in employment applications on the basis of race, color, religion, sex, or national origin. The second was a section of the Rehabilitation Act of 1973 that said that federal contractors and subcontractors with government contracts in excess of $10,000 were required to take affirmative action to "employ and advance in employment qualified individuals with disabilities." The third was the Veterans´ Readjustment Assistance Act (1974) that said that contractors and subcontractors with contracts of $25,000 or more must "provide equal opportunity and affirmative action for Vietnam era veterans, special disabled veterans, and veterans who served on active duty during a war or in a campaign or expedition for which a campaign badge has been authorized."

The NECA said that government employees and contractors who had previously done business with Home Depot were finding themselves turned away.

In 2003 Home Depot released details of what the company had done to be supportive of the troops in Iraq. That included extending leaves of absence for 1,800 employees who have been deployed, assuring them of jobs when they return home, equalizing their pay differential, and keeping health benefits in force for their families. Home Depot said that in 2004 it also donated $1 million in tools and materials to support the U.S. military efforts in Iraq, in 2003-2004 donated 1 million hours of volunteer service along with another $1 million to help military families with home repairs, and in 2005 donated $250,000 to help refurbish 10 USO centers in the United States.

Last updated 3/4/06

A real example of the eRumor as it has appeared on the Internet:

Do you support Home Depot? They don't like our U.S. policy towards Iraq.
They should be horse whipped for certain, if they don't love this country
let them go else where ((LB))

Subject: HOME DEPOT
HOME DEPOT REFUSES TO SELL TO THE FEDERAL GOVERNMENT OR SUB-CONTRACTORS
DOING BUSINESS WITH THE FEDERAL GOVERNMENT!

The information below has been documented via phone call to the HOME DEPOT
PUBLIC RELATIONS office. Mr. Don Harrison with the HOME DEPOT PUBLIC
RELATIONS OFFICE, at (770) 384-5821 or (770) 384-3305 verified their policy.
HOME DEPOT has a four page memorandum called "THE HOME DEPOT FEDERAL
CONTRACTING POLICY", which I have attached.

I visited with the store manager in Edmond, OK and he was not aware of the
policy. He was pretty adamant the policy did not exist, and wanted the name
of the person we talked to. I had to return to my office to get the name.
When I called back, the manager wasn't in and the assistant manager wasn't
interested in hearing what I had to say. Evidently the Pony Express hasn't
reached Edmond, OK yet, but as I said the policy has been verified.
I have purged the names of the individuals in the three e-mails below,
because they have high security clearances with the government. They are
federal employees who were involved in the initial situation.

Each of us has his or her opinion of the HOME DEPOT policy, as for myself, I will never
step into another HOME DEPOT.

P.S. PRIOR TO SENDING THIS, I RECEIVED A PHONE CALL FROM SOMEONE WHO
CONTACTED HOME DEPOT. THEY TOSSED OUT THIS HYPOTHETICAL SITUATION; WOULD
HOME DEPOT SELL AN AMERICAN FLAG TO A UNITED STATES COAST GUARD FACILITY,
USING A COAST GUARD CREDIT CARD? THE ANSWER - NO!
BOYD BARCLAY

When I went to the Depot with xxxxxx I spoke with the store manager on duty
at the time. His name is Kevin Longwell. I asked if it was true that they
would not sell to the US government. He said that their corporate office
sent a letter that day stating that they could not sell to any Federal
Government agency or contractors that were doing business with the US Gov. I
asked if I could see the letter that Home Depot corporate sent. He showed it
to me but would not give me a copy. I asked him to call HD's corporate
office for permission. He declined. I told him I would not leave without a
copy of the letter. He called. After he talked he gave me the phone I spoke
to their public affairs office. She confirmed that they would not sell to
us, would not give a reason, but said it had nothing to do with Iraq. I
asked if she realized what an impact this decision would have on their
business and she stated that any loss of business they would suffer as a
result of this policy was worth it. I then asked her to tell Kevin to give
me a copy of the letter and she did. He made a copy for me and asked for my
name but I referred him to you. As I left I told him he should be ashamed to
work at that store and that they should quit selling the US flag or any item
that had the flag on it.

I received a call from Lowes today, I do not know who gave them my number,
and they said they'd be proud to be our supplier of choice.
I hope this helps. Please keep me informed.
PS I'm out of the office till next Tuesday.
_____
Yesterday one of my employees xxxxxx needed supplies to get one of our big
presses running, went across the street to HOME DEPOT to purchase them with
Gov. credit card. He was refused service. After talking to several employees
and supervisors, atempting to get what he needed he was informed that they
have a policy in effect not to sell to any Government agency or contractors
Supporting Government agencies. He asked why they had such a policy and was
told by one of their employees that it was because of " the Governments
unfair and aggressive policy towards Iraq ".

As a retired Government employee (here he describes his background, which I
have deleted). During a time of unprecedented Patriotism, I am angered by
this situation and hope you will run this up whatever flagpole and provide
for them the worst possible publicity. I would at least hope that all (xxxx)
employees are informed of this situation as to know where not to shop.
I have their Policy letter that I will fax to you that does not mention IRAQ
but clearly states their position not to sell to the Government.
Thanks
xxxxxxxxxxx
_____
Good Morning, xxx
This is what happened at home depot when I went to buy some caulking. When I
had picked out what caulking I wanted to purchase went to a check out line
the lady that was working there told me I would need to go to a different
check out she could not make phone call out at her resister. I went in the
direction she pointed for me to go. When I got to the next resister the lady
told me the same thing she could not call out on her phone and that they
could help me at the pros check out counter. I went over and the man behind
the counter ask how he could help me I told him that I needed to purchase
this caulking. He said ok. I told him that I would need to call (xxxx) at
second street for the credit card #. Then he said that his corporate office
had told them they could not sell to any government people or any contractor
that was doing business with the government. I told him I would need a
reason why. He said that his corporate office did not support the action
against Iraq. Then he called his manager and told him I was wanting a reason
why he could not sell to the government. It was a short call I did not get
to talk to him. Then the man at the counter handed me the phone to call
(xxxx). I called and was talking to her and he went over and was talking to
some one on another phone. I had (xxxx) on the phone when he came back so I
handed him the phone to talk to (xxxx) and he told her the same thing about
the store policy. That they did not support action against Iraq and he could
not sell anything to the government or any contractor doing work for the
government. After he had finished with his phone call with (xxxx) he handed
me back the phone I told (xxxx) I could not believe what he had said. I left
the store and went back to work. I passed on the information to my
supervisor (xxxxxxx).
Later in the day (xxxxx) came down from (xxxxx) and he was told of what had
happened. (xxx) and I went back over to the Home Depot and asked for the
manager He came out and we had a conversation about the policy. (xxx) asked
him for a copy he said he could not give us a copy. He would let us read it
but we could not take it out of store. Then (xxx) asked to speak to the
corporate office after some discussion the store manager call his corporate
office and let (xxx) talk to someone at there corporate office and they told
the store manager to let us have a copy of the policy. Now I know in the
store policy it does not say anything about Iraq but I was told that from
one home depot associates. The store Manager brought up what had happened
early I told him what his associate had told me and he said that was that
associates opinion.
This is a summery of what happened if you need to talk to me please call.
(xxxx)