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<br />, ~ <br /> <br />. <br /> <br />. <br /> <br />If the indemnification clause is not modified as requested, <br />I will have to terminate negotiations with Boyle and go to the <br />second ranked firm I short-listed. This firm is Dames & <br />Moore. As you know, they were also selected to do work for the <br />Arkansas River Compact litigation and they too refused to sign <br />the contract with the State Engineer's Office unless the <br />idemnification clause was modified. I presume that their <br />position with me would be no different. . <br /> <br />The third firm I short-listed is Western Engineers. I do <br />not know their position concerning the indemnification clause. <br />However, they are only marginally qualified to perform the <br />study and would do a far less capable jOb than Boyle. <br />Furthermore, they lost their general liability insurance last <br />fall. Thus, even if they signed the indemnification clause, it <br />would seem to me to be a hollow gesture as they are a small <br />firm with very few assets. I fail to see how the state could <br />hold them in any fiscally meaningful way to the requirements of <br />the indemnification clause. <br /> <br />Finally, I do not believe that the state would be at risk <br />in mOdifying the indemnification clause in the manner <br />requested. Any work done by Boyle will, since this is only an <br />appraisal level study, be thoroughly reevaluated in much <br />greater detail in follow-up feasibility studies and final <br />design work. Thus, any "errors" by Boyle would be uncovered <br />and corrected in subsequent engineering studies. <br /> <br />I would note in closing that Boyle has, in good faith, <br />expended considerable time and effort in negotiating a scope of <br />services for this study, including traveling to the project <br />area. All of this was done before the new indemnification <br />clause came to their attention. I believe that this is a <br />further reason for accommodating their request, they having <br />anticipated a different idemnification clause based upon their <br />previous contract with the state. <br /> <br />JWM/gI <br /> <br />Enclosures: as stated <br /> <br />-4- <br />