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• V�� "'.1 ~�+it DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
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REGION VIII IN REPLY REFER TO1
July 27, 1973
Mr. Logan Rappe
State Coordinating Officer
Division of Emergency Services
EOC, Camp George West
Golden, Colorado 80401
Dear Mr. Rappe:
Reference is made to your letter of July 26, 1973, and correspondence from
Weld County, Colorado, OEP-385-DR, in connection with bid overruns for
various work items under Category C.
In conjunction with FHWA we have reviewed the materials as submitted by
the County for those items where bid overruns are apparent. The Damage
Survey Reports which formed the basis for the County's initial project
application should be considered the best estimate at that particular point
in time. Our experience shows that actual costs may run higher in some
instances and lower in others.
We have no reservation about the County giving the contractors the notice
to proceed based on our review. Our final reimbursement will be based on
the actual costs of the low bid. FHWA has been requested to develop revised
Damage Survey Reports to replace those in the original project application.
Once these are developed, they can be included in a supplemental project
application from Weld County in order that adequate funds can be obligated.
The revised Damage Survey Reports will incorporate the eligible costs to
restore the projects in accordance with the County's applicable standard.
Any betterments or add-on features will be an expense to be borne by the
County. This was explained to Mr. Byron Ewing on July 27, 1973, by the
undersigned.
Sincerely,
J hn D. Swanson
eputy Regional Director
cc: Mr. Byron Ewing
730948
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