California asks contractors to cut prices up to 15% - Sacramento Business Journal:

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“We need your help!” according to a lettetr faxed to Riverside-based and posted on the Wall Street Journal’as web site. “Our goal is to help statse agencies comply with thisrequirementr (to cut contract-related spending by 15 percent) while continuing to purchase the food commodities they The state provides a worksheet for the businessezs to complete on how they’ll achiev that 15 percent cost savings. The state’ss food vendors are wasting no time voicing how littl e profit suchcontracts carry. Adam owner of grocery supplier ABC Ventures in San was among those receiving the requestg for theprice reduction.
His company, whicg has had a contract with the statessince 1992, sells frozen pizzas, pasta and other groceries to the state’s prisonn system. Clingerman, who says he makes less than 10 perceng on thestate contract, is turning to his suppliers seekintg price cuts, the newspaper reported. Meridian Food’s ownerd Rebecca Kitchings said she was surprisedd to get the letter this week seekinfgthe cuts. “Oh, for heaven’s Kitchings told the Wall Streeft Journal. “It’s a contract.
If something happened to my company andI ‘I mis-bid that and I need another half a penny,’ they’d say no