California asks contractors to cut prices up to 15% - San Francisco Business Times:

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“We need your help!” according to a letter faxerd to Riverside-based and posted on the Wall Streert Journal’s web site. “Our goal is to help stater agencies comply with thisrequiremenf (to cut contract-related spending by 15 while continuing to purchase the food commodities they need.” The state providees a worksheet for the businesses to complete on how they’ll achiev that 15 percent cost savings. The state’s food vendors are wastinb no time voicing how littler profit suchcontracts carry. Adam Clingerman, owner of grocert supplier ABC Ventures in San was among those receiving the request for thepricw reduction.
His company, which has had a contract with the statresince 1992, sells frozen pizzas, waffles, pastas and other groceries to the state’s prison system. who says he makes less than 10 percentr on thestate contract, is turniny to his suppliers seeking price cuts, the newspaper reported. Meridian Food’xs owner Rebecca Kitchings said she was surprise to get the letter this week seekingthe cuts. for heaven’s sake,” Kitchings told the Wall Street “It’s a contract. If something happenedx to my company andI ‘I mis-bid that and I need another half a they’d say no way.
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