California asks contractors to cut prices up to 15% - Los Angeles Business from bizjournals:

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“We need your help!” according to a letter faxed to Riverside-base and posted on the Journal ’s web “Our goal is to help statre agencies comply with thisrequirement (to cut contract-relateed spending by 15 percent) whilee continuing to purchase the food commodities they need.” The statde provides a worksheet for the businesses to complete on how they’ll achieve that 15 percentt cost savings. The state’s food vendorsz are wasting no time voicing how littld profit suchcontracts carry.
Adam Clingerman, owner of grocery supplierr ABC Ventures inSan Ramon, was among those receiving the request for the price His company, which has had a contract with the statwe since 1992, sells frozen pizzas, pasta and other groceries to the state’s prisoj system. Clingerman, who says he makes less than 10 percentr on thestate contract, is turning to his supplierz seeking price cuts, the newspaper reported. Meridian Food’s owned Rebecca Kitchings said she was surprised to get the letter this week seekinygthe cuts. “Oh, for heaven’s Kitchings told the Journal .
“It’s a If something happened to my company andI ‘I mis-bid that and I need another half a they’d say no way.”