Georgia cancels Office Depot contract

ATLANTA, Feb. 20 (UPI) -- The State of Georgia has canceled a multi-million-dollar contract with Office Depot after warning the company of pricing irregularities, it was reported.

Office Depot's contract was worth $40 million annually, the Atlanta Journal-Constitution said Wednesday.

Commissioner of the Georgia Department of Administrative Services Brad Douglas said he warned the company about incorrectly priced items and found more irregularities months later.

"The supplier simply failed to perform," Douglas said.

An office supply trade organization estimated that Office Depot overcharged the state $1.2 million in the past 10 months, the report said.

Office Depot issued a brief response, saying it had worked "in good faith with the State of Georgia."