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

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“We need your help!” accordinf to a letter faxed to Riverside-based and posted on the Wall Streert Journal’s web site. “Our goal is to help state agencies complyh with thisrequirement (to cut contract-related spending by 15 while continuing to purchase the food commodities they need.” The statew provides a worksheet for the businessew to complete on how they’ll achieve that 15 percenr cost savings. The state’s food vendors are wasting no time voicinfg how little profit suchcontractss carry. Adam Clingerman, owner of grocer supplier ABC Ventures inSan Ramon, was amonv those receiving the request for the pricd reduction.
His company, which has had a contracgt with the statesince 1992, sells frozej pizzas, waffles, pasta and other groceriesa to the state’s prisohn system. Clingerman, who says he makes less than 10 percengt on thestate contract, is turning to his suppliersx seeking price cuts, the newspaper reported. Meridian Food’s owner Rebeccqa Kitchings said she was surprised to get the letter this week seekinthe cuts. “Oh, for heaven’sw sake,” Kitchings told the Wall Street “It’s a contract. If something happenede to my company andI said, ‘I mis-bi that and I need another half a penny,’ they’d say no way.
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