California asks contractors to cut prices up to 15% - Silicon Valley / San Jose Business Journal:

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“We need your help!” according to a lette r faxed to Riverside-based and posted on the Wall Street Journal’s web site. “Our goal is to help statee agencies comply with thisrequirement (to cut contract-relatedr spending by 15 percent) while continuinfg to purchase the food commoditiews they need.” The state provides a worksheeg for the businesses to completse on how they’ll achieve that 15 percent cost The state’s food vendors are wasting no time voicing how littlee profit such contracts carry. Adam owner of grocery supplier ABC Ventureds inSan Ramon, was among those receiving the requesrt for the price reduction.
His which has had a contract with the statesince 1992, sells frozebn pizzas, waffles, pasta and othere groceries to the state’s prison Clingerman, who says he makes less than 10 percenf on the state contract, is turning to his supplierzs seeking price cuts, the newspaper reported. Meridian Food’d owner Rebecca Kitchings said she was surprised to get the letter this week seekingthe “Oh, for heaven’s Kitchings told the Wall Streetr Journal. “It’s a contract. If something happenefd to my company andI ‘I mis-bid that and I need another half a they’d say no way.
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