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<br />ATTACHMENT A <br />CWL CLAIMS AGAINST THE STATE (OWNER) <br />NEGLIGENCE ALLEGATIONS <br />i. Notice of Award was not given within the 4 days stated in Special Conditions. <br />Response; The Colorado Inactive Mine Program (IMP) had serious concerns that Colorado <br />West Leasing (CWL) significantly underbid the project, had perhaps made an error in <br />calculating the bid. This matter was thoroughly investigated and discussed with CWL during <br />the period of January 25, 1994 to February 2, 1994. CWL was given the option of removing <br />their bid if it was in error. Harry Rainey of the Coal Program, who had assisted IMP with <br />designing the reclamation plan was involved in the discussions. After carefully going over <br />the bid, IMP issued CWL the Notice of Award. Please see the attached memo from Harry <br />Rainey and the Notice of Award. <br />This examination of the bid is within the State's right. IMP has been instructed by the <br />Division of Purchasing that the State cannot in good conscience award a bid if we lmow or <br />believe that the contraaor will loose money. In cases where the low bid is very low in <br />comparison with other bids, IMP always consults with the low bidder to determine if an <br />error has been made. CWL was involved in the discussions and was directly aware of the <br />reasons for delay of the Notice of Award. <br />FINDING: <br />1. The notice of award was not issued within the four days stated in the special conditions <br />because the State felt it was necessary to investigate Preston Mease's bid. It was <br />significantly lower than that of the other bidders. His bid was $365,172.52. The other bids <br />ranged from $435,765.00 to $1,523,749.86. It is the IMP's policy to investigate bids if they <br />feel there could be an error. IMP has been instructed by the Division of Purchasing that <br />the State cannot in good conscience award a bid if they believe the contractor may lose <br />money. <br />During the period of January 25, 1994 to February 2, 1994 the Inactive Mine Program <br />discussed Mr. Mease's bid with him. It was found that he was going to reconfigure the post- <br />mining topography differentiy from the way Division had envisioned while keeping within <br />bid specifications. The amount of material estimated to be moved in his bid was reduced <br />from the State's rough estimate of 600,000 BCY to 374,000 BCY. This reduction made a <br />considerable difference in his bid amount. The AML determined his plan and estimates <br />were acceptable, provided he obtain some additional equipment and they awarded him the <br />bid on February 2, 1994. The date to Proceed was not delayed. <br />The State was responsibly handling the project and was not negligent. <br />1 <br />