Three states have accused the office supply company, Office Depot, of overcharging on contracted orders and making costly pricing errors on its monthly billings.

According to a report published in the Lincoln Journal Star, state audits of Nebraska, California and North Carolina contracts with the company accuse Office Depot of increasing and substituting prices without prior authorization. Georgia terminated its estimated $40 million contract with Office Depot after less than a year for similar reasons.

Nebraska state officials believe the different interpretations of the contract are at the root of the issue. Carlos Castillo, director of the state Department of Administrative Services, says their contract is vague in some areas and needs to be re-written. According to the Nebraska state auditor, Mike Foley, Office Depot is at fault. There was supposed to be solid pricing the first year and any pricing adjustments were to be submitted in writing with the state having the right to object. Foley states the company raised prices without state approval.

Foley questions why the state has only one office supplier and not several. Georgia also had a sole-supplier contract with Office Depot. Foley believes the theory is that if all the state’s business went to just one vendor, then the volume would result in tremendous savings.

The company recently credited North Carolina almost $41,000 for overcharges after the state purchase and contract division were faulted for not following up on pricing errors. California also was reported to have overpaid more than $1 million for office supplies through a contract with the company. In addition, the University of Nebraska-Lincoln also hired a consultant to examine its contract with Office Depot.

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