REP14132

DIVISION OF MINERALS AND GEOLOGY
Department of .Natural Resources
1313 Sherman St.. Room 2 I.S
Denver, CO 80203
Phone: [phone]'
FAX: [phone]b
STATE OF COLOSADO
To: Bob Nondorf, Purchasing Division
From: Bruce Stover, Division of Minerals and Geolog�
Date: November 6, 1992
Re: Change Order Justification, Poverty Gulch/Tenderfoot
RN- Mines -292, P.O. No. C -65913
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.MrLhiel B 'long
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As we discussed in the confirming phone conversation of September 30, 1992, we are proposing
to add two additional mine closures to the Poverty Gulch/Tenderfoot Purchase Order. These mine
openings are located at the heavily visited Mollie Kathleen Tourist Mine, and are custom closures to
allow for proper ventilation, while safeguarding the vertical shaft openings. We originally intended
to bid these closures out next year after the tourist season according to the landowners wishes,
however, the situation has changed, and the landowner would like to safeguard the shafts this fall.
Rather than bid out this job separately, and incur the costs of the bidding process and re-
mobilization of equipment we already have working, it would be in the best interests of the State to
reduce overall costs by adding these closures to the existing Purchase Order Contract. The
contractor's schedule will permit this additional work, and he is willing to do it immediately. Please
note that since drawing up the Change Order with the original estimates for the additional work,
we have been forced to reduce our scope of work due to land owner /lessee constraints. The
present additional amount reflects this latest change.
Due to extremely competitive bidding on the presently active Poverty Gulch/Tenderfoot project, we
were able to contract the work for much less than our own estimate. This low overall job cost
means that adding the additional work outlined above will result in a purchase order increase of
around 17 percent. If the job had been contracted for an amount closer to our original estimate,
the increase would be less than 13 percent.
Based on these considerations, we are requesting approval for a change order to add this work to
the current Poverty Gulch/Tenderfoot Project.
If you have any questions or require more information, give me a call.
BKS /yjb
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