State officials recently terminated a multimillion-dollar contract with Office Depot after the company repeatedly overcharged and mispriced items for state employees, the head of purchasing confirmed Tuesday.

The company does about $40 million a year with the state and had been Georgia's sole office supplier since March. Employees at the state's 129 agencies used purchasing cards to buy everything from printers to desks on the company's state of Georgia Web site.

Brad Douglas, commissioner of the Department of Administrative Services, said he found mismarked items on the site months after the company was notified there were problems.

"This supplier simply failed to perform," he said.

Officials at Office Depot refused to answer questions, instead providing a brief statement saying the company has "worked continuously, and in good faith, with the State of Georgia."

A trade organization representing independent office product dealers said Office Depot overcharged the state by $1.2 million in the past 10 months.

Douglas said auditors believe the amount is far lower and state officials will not pursue the matter.

Douglas' office sent a letter to state employees Feb. 8 notifying them that the contract had been terminated. It likely will be several months before the state finds a new supplier, officials said.

"While some progress has been noted, the errors committed by Office Depot have simply occurred for too long with too much effort being expended by the state to assist them in delivering the level of service and pricing outlined in our state contract," the letter read.