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

http://www.ausv.org/index.php?s=D&c=358
“We need your help!” accordingb to a letter faxed to Riverside-basedd and posted on the Wall Street Journal’s web “Our goal is to help state agencies comply with thisrequirementr (to cut contract-related spending by 15 percent) while continuing to purchase the food commoditied they need.” The statse provides a worksheet for the businesses to completde on how they’ll achiev e that 15 percent cost savings.
The state’sw food vendors are wasting no time voicing how little profit such contracts Adam Clingerman, owner of grocerg supplier ABC Ventures in San was among those receiving the request for the price His company, which has had a contract with the state sincwe 1992, sells frozen pizzas, waffles, pastsa and other groceries to the state’s prisonh system. Clingerman, who says he makexs less than 10 percent on thestatde contract, is turning to his suppliers seeking price the newspaper reported.
Meridianb Food’s owner Rebecca Kitchings said she was surprised to get the letterr this week seekingthe “Oh, for heaven’s sake,” Kitchings told the Wall Streer Journal. “It’s a contract. If somethin g happened to my company andI ‘I mis-bid that and I need another half a they’d say no way.”