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4. COMMUNICATIONS
<br />HUD letter dated February 11, 1975: This letter, over
<br />the signature of Mr. Albert G. Smith,, Acting Director,
<br />Community Planning and Development, (re proposed Plaza
<br />Park Contracts l and 2, Project Indiana R -66), advises
<br />their office does not concur in our award of Contract
<br />No. 1 to Arco Engineering Construction Corporation, in
<br />the amount of $240,322.63, as:
<br />1) The amount of the low bid ($277,555.57) exceeded
<br />the engineer's estimate of $245,162.25 by a con-
<br />siderable amount which is in violation of sub -
<br />paragraph 4, page 2, Section 3, Chapter 4 of RHA
<br />7209.1.
<br />2) The practice of reducing unit price quantities in
<br />order to obtain a contract price lower than the
<br />price obtained by competitive bidding is unaccept-
<br />able.
<br />Mr. Smith advised the only apparent action open at this
<br />point to proceed with the project is to readvertise
<br />Contract No. 1 with the scope reduced so that the low
<br />bid will be within the revised estimate.
<br />HUD concurrence in Contract No. 2 is withheld pending
<br />our advice as to our proposed action.
<br />Mr. C. Wayne Brownell, Executive Director, advised he
<br />has a meeting scheduled for Thursday morning, February
<br />27, 1975, in the Indianapolis Area Office, with Miss
<br />Fredi Rolsky, Messrs. Donald.A. Bassett, Albert G.
<br />Smith, and Chuck Norton, to discuss the above contract
<br />and advise the HUD representatives that the contract
<br />items cannot be reduced any more. Mr. John'Fisher with
<br />Lawson Associates, consulting engineer, will also attend
<br />the meeting.
<br />b. HUD letter dated February 11, 1975: This letter, over
<br />the signature of Mr. Albert G. Smith, Acting Director,
<br />Community Planning & Development Division, concurs in
<br />relocation payment to Office Engineers, Inc., in amount
<br />of $606.00, representing payment for installation of
<br />conduit between Office Engineers' two buildings.
<br />Mr. Brownell advised this is part of the moving cost
<br />for Office Engineers.
<br />PLAZA PARK
<br />CONTRACTS 1 & 2,
<br />R -66
<br />RELOCATION
<br />PAYMENT APPROVED,
<br />OFFICE ENGINEERS,
<br />R-66
<br />c. Ms Conchita Washington, P.A., letter dated February. 14, BID BONDS, E -7,
<br />1975: Mr. Brownell advised, in response to,her previous BUREAU OF HOUSING
<br />letter to the Redevelopment Commissioners dated January PROGRAM
<br />28, 1975, and discussed in the February 7, 1975, Commis-
<br />sion meeting, Ms. Conchita Washington was invited to at-
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