Thursday, November 15, 2012

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 letter faxed to Riverside-based and posted on the Wall Streef Journal’s web site. “Our goal is to help state agencies comply with thisrequirement (to cut contract-related spending by 15 while continuing to purchase the food commoditiexs they need.” The states provides a worksheet for the businessesz to complete on how they’ll achievre that 15 percent cost savings. The state’s food vendor are wasting no time voicing how little profit suchcontracts carry.
Adam owner of grocery supplier ABC Ventures in San was among those receiving the requesty for the price His company, which has had a contract with the statw since 1992, sells frozen pizzas, waffles, pasts and other groceries to the state’xs prison system. Clingerman, who says he makezs less than 10 percent on thestate contract, is turningb to his suppliers seeking price cuts, the newspaper Meridian Food’s owner Rebecca Kitchinges said she was surprised to get the letter this week seekint the cuts. “Oh, for heaven’s sake,” Kitchings told the Wall Streeyt Journal. “It’s a contract.
If something happened to my compan andI said, ‘I mis-bid that and I need another half a penny,’ they’d say no

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