CONNECTICUT CONFERENCE OF MUNICIPALITIES REQUEST FOR PROPOSALS. For SEALED BID, REVERSE AUCTION SERVICES

CONNECTICUT CONFERENCE OF MUNICIPALITIES REQUEST FOR PROPOSALS For SEALED BID, REVERSE AUCTION SERVICES June 16, 2008 The Connecticut Conference o...
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CONNECTICUT CONFERENCE OF MUNICIPALITIES

REQUEST FOR PROPOSALS For SEALED BID, REVERSE AUCTION SERVICES

June 16, 2008

The Connecticut Conference of Municipalities (CCM) invites proposals for the consulting services as described herein. The consultant must complete this proposal in its entirety. Only written proposals will be accepted. Acceptance Date: On or before July 8, 2008 by 4:00 p.m., Acceptance Place: CCM, 900 Chapel Street, 9th Floor, New Haven, CT 06510-2807 Attention: Andy Merola Background Information on CCM CCM is Connecticut’s association of cities and towns. CCM represents municipalities at the General Assembly, before the state executive branch and regulatory agencies, and in the courts. CCM provides member cities and towns with a wide array of other services, including management assistance, individualized inquiry service, assistance in municipal labor relations, technical assistance and training, policy development, research and analysis, publications, information programs, and service programs such as workers’ compensation and liability-automobile-property insurance, risk management, and energy cost containment. Federal representation is provided by CCM in conjunction with the National League of Cities. CCM was founded in 1966. CCM is governed by a Board of Directors, elected by the member municipalities, with due consideration given to geographical representation, municipalities of different sizes, and a balance of political parties. Numerous committees of municipal officials participate in the development of CCM policy and programs. CCM has offices in New Haven (the headquarters) and Hartford. Project Background Connecticut’s municipalities, school districts and Local Public Agencies are significant, stable consumers of numerous products and services and are clearly desirable customers. Through this RFP, CCM is interested in obtaining a consultant that will assist CCM in maximizing the purchasing power of its municipal members in order to obtain the best available products and services at the lowest available cost. Scope of Services CCM is seeking the services of a consultant to assist in the organization of cities, towns, and other eligible public entities for purposes of conducting sealed bid, reverse auctions. Services will be provided through a newly created CCM member service program.

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CCM is seeking the following services from the consultant: 1.

Program Design: •

Provide consulting to CCM and program participants on which items to reverse auction and how to structure the reverse auction



Provide consulting to CCM and program participants on pre-qualifying suppliers to participate in reverse auctions



Provide training to program participants and suppliers on how to use the reverse auction process, technology, and tools



Provide training to suppliers on how to bid using the reverse auction technology/tools



Own and operate the reverse auction technology/tools



Conduct the auctions



Provide real-time monitoring of the auctions in progress



Provide supplier assistance during auctions



Provide alternate systems and processes to obtain bids from non-standard suppliers (e.g., a supplier without Internet connectivity)

In addition, CCM is interested in systems containing features that provide structured negotiation and multidimensional bidding in association with reverse auctions, e.g., capabilities for ranking non-price factors such as warranty period, help-desk service, etc. CCM wants to see these services structured at no cost to CCM or program participants. 2.

Contract Negotiations: The consultant will develop a sample contract between program participants, the consultant and CCM for CCM’s review and approval, and, as applicable, other agreements, e.g., with suppliers, for CCM review and approval.

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Education, Marketing, & Outreach: The consultant will assist with development and implementation of marketing plans/materials for reverse auctions targeted toward program participants and potential suppliers. The plan will include the consultant's attendance at regional “kick-off” meetings and potentially other events.

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Proposals Submission of Proposals The consultant shall submit five (5) copies of its proposal, with copies of annual financial statements covering the previous two years, and other pertinent information about the consultant including information on the firm’s qualifications, the qualifications of the individuals performing the work, and client references. (See APPENDIX A for details). Any proposals received after the above-specified date will not be accepted. Right to Reject Proposals A contract will be awarded to the consultant that provides the best proposal meeting CCM’s requirements. CCM reserves the right to accept or reject any and all proposals. Non-Compete CCM plans to select a firm that will not compete with the association by consulting with other entities in establishing reverse auction purchasing for public entities in Connecticut. The firm shall agree not to perform reverse auction consulting work for Connecticut municipalities, school districts, Local Public Agencies, or state agencies individually or collectively. Conflict of Interest CCM seeks to work with a consulting firm that represents consumers, not suppliers, avoiding both the appearance, as well as any actual conflict of interest. Any subsequent disclosure of a conflict of interest after the award has been made, but which existed at the time of proposal submission, will be grounds for termination of the consulting contract. Non-Collusion Affidavit The firm shall submit as part of its proposal a sworn non-collusion affidavit (see APPENDIX A, Item 15). Other Proposal Information CCM will evaluate the proposals using several factors such as the qualifications of the firm, the qualifications of the staff, the consultant’s understanding of the work to be performed, and cost. CCM will select certain consultants to be interviewed. The consultant’s performance at this interview and the references provided also will be factors in selecting the successful consultant. While cost will be an important factor in determining the successful consultant, other considerations

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also will be taken into account in selecting a firm. If it becomes necessary to revise any part of this RFP, or otherwise provide additional information, an addendum will be issued and furnished upon request to all consultants that have received copies of the original RFP. It is the sole responsibility of the consultant to verify whether an addendum has been issued. CCM is not liable for any cost incurred by consultants in replying to this RFP. Information Required To simplify the evaluation process and obtain the maximum degree of comparison, CCM is requiring prospective consultants to submit proposals in the format and manner described in APPENDIX A. Contact Information If there are any questions concerning the RFP or the services that are being requested, please contact: Andy Merola Manager of Enterprise Programs Phone: 203-498-3056 E-mail: [email protected]

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APPENDIX A PROPOSAL FORM A. Title Page 1. 2. 3. 4. 5.

RFP project title Name of proposing firm Address and telephone number of proposing firm Name and title of contact person Date of submission

B. Contents of Proposal Please provide a Table of Contents giving a clear identification of the material by section and by page number. Such sections will be those identified below. 1.

Description of your firm a. Provide a brief history of your firm. b. How many clients does your firm service? List the current state and local governmental clients and private sector clients. c. Buyer Experience: Submit a list of five (5) customer references (buyers) that used the consultant for reverse auction services on more than one (1) occasion in the past twelve (12) months. Include the mailing address, e-mail address, telephone number and the name of individuals to contact. d. Seller Experience: Submit a list of five (5) customer references from suppliers (sellers) who placed bids using your reverse auction software on more than one (1) occasion in the past twelve (12) months. Include the mailing address, e-mail address, telephone number and the name of individuals to contact. The consultant shall have acceptable experience with successfully providing the services described in this RFP to clients with similar requirements, scope of service(s), and quantities as those of municipalities, school districts, Local Public Agencies, and state agencies. CCM shall be the sole judge as to what is acceptable experience. e. Describe prior experience with organizing entities for reverse auction purchasing. f. Describe your firm’s experience with suppliers of products and services purchased by state and local governments. g. Disclose whether your firm has any financial relationship with any supplier. Describe the relationship.

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2.

Professional Experience and Staffing a. Identify the staff that would be assigned to this project. Provide resumes (which may be included as appendices) showing relevant past experience, education, training, etc. b. Describe the firm’s participation, if any, in similar type projects.

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Consultant’s Approach to the Project a. State your understanding of the services to be performed and the work products to be provided. b. Submit a work plan to accomplish the scope of services (as described earlier under “Program Design”), including a proposed time frame for completion. c. Provide a list of all reports routinely provided to a client. Include an explanation of each report and an example thereof.

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Technical Details: Please provide a technical description of your proposed solution. The system(s) provided by consultant should be platform independent and comply with all applicable industry standards. All software should be written in non-proprietary, industry standard programming languages. Interfaces, where applicable, to consultant's system(s) shall be easily installed into and removed from participants' system(s) without significant impact. Consultant's system(s) shall in no way hinder CCM or participants from using another consultant's services presently or in the future.

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Functional Details: Please provide a description of the functionality provided by your proposed solution. CCM is initially interested in a Standard Full-Service Reverse Auction solution wherein suppliers bid a unit price for specific products/services/quantities; the lowest total dollars would be the low bidder. The following functionality is preferred: 1) multiple line items per lot; 2) multiple lots per auction; 3) CCM and/or participants viewing of the auctions (ability to see additional information not shown to suppliers); 4) auction detail and summary data; 5) provision of electronic copies of RFPs to potential suppliers; 6) detailed reporting and records in both paper and electronic format of all bidding-related events and timing during the reverse auction, including the connectivity of participating suppliers.

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In the future, CCM might explore solutions for other pricing scenarios. Please include your ability to structure an auction such as: Structure Percent Off List Price

Percent Over Supplier's Cost Fixed Amount Off List Price Fixed Amount Over Supplier's Cost

Example Scenario: Conducting a reverse auction to determine what supplier(s) will be the approved supplier(s) to sell a particular product. The entire supplier's catalog would be available to program participants, but purchasing details are unknown at the time of the reverse auction. Auction Setup: Specify types/groups of catalog products and ask suppliers to bid a percent off of list price for each type/group. Weight the groups based on the estimated amount of that type/group to be purchased annually. The supplier with the highest combined percent off list would be the low bidder. Same as above but supplier with the lowest combined percent over cost would be the low bidder. Same as above but supplier with the highest combined amount off list would be the low bidder. Same as above but supplier with the lowest combined amount over cost would be the low bidder.

CONTINUED ON PAGE 9

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Reverse Auction Functions Typical requirements for reverse auction functions are listed below. The consultant must demonstrate which of the following elements exist in the offered Reverse Auction service: Yes No Description of Feature 1

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‡ User registration: Bidders allowed different levels of access to the site depending on their assigned roles.

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‡ Individual bidder training: Event administrator provides training to all auction event participants as necessary.

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‡ User profile and preferences: Users of the auction site can manage their own vital profile information, such as contact information, payment and freight terms, that apply to particular transaction, as deemed appropriate by the auction administrator.

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‡ Bidder review RFP: Bidder can review RFP online.

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‡ Bidder submit bids: Bidder can submit bids online.

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‡ Attribute-based bidding (view): Bidder can bid products with varying attributes (specifications), and those attributes can be viewed real-time by the buyer (and suppliers, if specified).

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‡ Review and submit bids: Bidders can review bids before final submission to prevent bids placed in error.

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‡ Bidder review all bids: Bidder can review all of his/her (historical) bids online.

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‡ Bid Display: Real time display of bids as they are received.

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‡ Obtain real-time award status updates online: Bidders can determine whether their bid was the apparent winning bid online.

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‡ Bidder notified of fulfillment online: Bidder can be notified of fulfillment of contract online.

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‡ Select and invite bidders: Participants can select and invite bidders from those who submitted proposals or quotes.

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‡ Configure bid controls: Participants can configure how the auction is conducted, such as bid invitations, auto extension, and bidding on all lines.

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‡ Add items to auction: Software allows participants to include items, such as item description, shipping information, notes to bidders, pricing parameters, and item-specific attributes when adding line items to an auction.

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‡ Define evaluation criteria: Participants can define bid evaluation criteria for the auction, such as best value or lowest price.

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‡ Stipulate target price: Software allows participants to indicate a target price for the auction event’s contract(s).

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‡ Stipulate/enforce mandatory reserve price: Software allows participants to impose a mandatory reserve, which represents the minimally acceptable price.

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‡ View bidder information: Participants can view bidder information during the auction event.

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‡ Monitor/detect/identify bidder connections (and failure thereof) during auction event: Software allows event administrator to detect bidders’ Internet connections to the event, and to distinguish each bidder from the others.

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Yes No Description of Feature 20 ‡

‡ Failure recovery/Risk mitigation: Ability to recover from a catastrophic outage, i.e., ability to re-create from point of failure.

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‡ Phone support during auction: Consultant provides bidder and participant telephone support during auction event.

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‡ Compare bids and award: Participants can compare final bids and award after the auction event.

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‡ Secure user registration: Software allows secure registration of bidders and participants.

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‡ Latest SSL (version): Indicates whether software utilizes latest version of Secure Socket Layer (SSL) security.

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‡ Level of encryption: Indicates level of encryption of software.

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‡ Allow static preview of auction: Software allows a preview of the auction setup for participants prior to the auction event.

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‡ Include/display item- or auction-level notes and attachments (e.g., anticipated award date, product minimum specifications, and delivery point(s) ). ‡ Multiple categories/sub-categories to be bid upon during auction

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‡ Stipulate/enforce mandatory bid start price: Software allows the imposition of a mandatory maximum or minimum mandatory bid start price.

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‡ Minimum bid decrement or increment modifiable: The minimum bid decrement or increment can be modified according to participant’s preferences.

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‡ Automatic minimum bid decrement or increment: Software only allows bids that are at least as great as the minimum bid decrement, in both percentage terms and absolute dollar terms.

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‡ Automated supplier communication: Software allows communication between bidders and participant in event of emergency or clarifications.

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‡ Automated supplier tracking: Software can detect the connections and identities of bidders online.

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‡ Proxy bidding: If a bidder loses their connection, the enabler can bid on their behalf.

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‡ Pause feature for buyers: Software allows auction to be paused by participant during the auction event, and to be resumed when deemed proper.

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‡ Save bid(s) function for paused auctions: Software saves all bid information for auctions that are paused.

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‡ Auto extend an auction: Auction can be extended based on pre-specified criteria, such as last bids placed competitively. ‡ Database to capture final bids for evaluation: Software captures the best and final bids from each bidder for post-auction evaluation. ‡ Bidder registration: Bidders are granted access to the event site based on the auction creator’s preferences. They are allowed different levels of access to the site based on their assigned roles.

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‡ Maintain past auction templates: Software allows past auction templates to be maintained by the auction creator.

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Yes No Description of Feature 42 ‡

‡ Copy previously created auction: Software allows participants to duplicate a past auction for future use.

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‡ Display of Bidding Information to Interested Parties: Software configurable (at the option of participants) to display bidder information, pricing information and other auction attributes at various levels (participants - all bids, bidder - two lowest bids, etc.)

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‡ Automatic refresh: Software automatically refreshes at the participant-indicated time increments.

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‡ Power bidding: Software can revise bids automatically for bidders on those items on which they have previously bid. These revisions can consist of a specified percentage or dollar amount.

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‡ “Safety net” feature: Software can impose a bid safety net for each bidder, below which the bidder is not permitted to place bids, or prompt bidder to be sure it wants to submit a bid at the specified price.

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Reliability/Uptime: Please provide information about the reliability of your proposed solution. CCM intends to give preference to proposals that provide for guaranteed reliability (auction will be at no cost to participants in addition to being re-auctioned at a later time). Where applicable, please include information about such issues as: backups, dual-paths, redundant systems, uptime statistics, disaster recovery, application stability - "stress-test" statistic, concurrent users supported, etc., and any others.

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Implementation Time: Please provide information about the average implementation time that it would take for a participant to use your service(s).

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Security: Please provide information about the security of your proposed solution. The proper handling of information regarding the procurement of products and services and the assured integrity of the bidding process are of paramount importance to CCM and require a very high level of security.

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Confidentiality: Consultant acknowledges that some of the data it may become privy to in the performance of its services is of a confidential nature and consultant shall make all commercially reasonable efforts to ensure that no such confidential information is disseminated or left exposed to unauthorized access by it or its employees.

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Secure Storage/Transmission of Data: All auction data transmitted over the Internet must be through an encrypted transmission, such as 128-bit Secure Sockets Layer (SSL) encryption. All of consultant's systems used in conjunction with providing the service to participants shall be protected

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by industry standard devices (e.g., firewalls, etc.) and continuously monitored for unusual access activities using industry standard intrusion detection software and procedures. 11.

Secure Physical Locations: Any information and/or data obtained by the consultant shall be stored in a place physically secure from access by unauthorized persons. Consultant shall take every reasonable precaution to ensure that all buildings, rooms, storage areas, and containers ("physical locations") used by consultant in providing the product(s) and service(s) under this RFP shall be secure and equipped with reasonable precautions against damage.

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Support Services: Please provide information about the technical and non-technical support features of your proposed solution, both to participants and to suppliers. Where applicable, please include information about such issues as: training, consulting, technical support, help desk, maintenance, implementation and migration services, account representatives.

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Additional Information Give any additional pertinent information not specifically requested previously that you consider necessary for a fair evaluation of the proposal.

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Financial Statements Attach your firm’s two most recent audited financial reports, including balance sheets and profit and loss statements and all the notes thereto. Financial statements shall remain confidential. CCM will contract only with firms found to be financially sound.

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COST PROPOSAL Consultants MUST complete on a separate sheet the Cost Proposal provided below. Consultant must affirm that its Cost Proposal will remain valid for a period of 120 days from date of submission. This part of the proposal MUST be submitted separately. Type

Price $/%________________ per auction value

Full-Service Reverse Auction

$____________ per auction

Instructions Consultant must provide pricing “per auction value”, "per auction", and a monthly "not to exceed" amount for an unlimited number of fullservice auctions per month.

$____________ per month Please describe any costs or penalties that might be assessed should a Reverse Auction NOT result in the issuance of a Purchase Order.

Please describe in detail your proposal for sharing revenue with CCM.

Please describe in detail any alternative pricing and/or revenue sharing proposals.

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15.

Non-Collusion Affidavit AFFIDAVIT

STATE OF :ss COUNTY OF ________

: , being duly sworn according to the law,

deposes and says: 1. That he/she is

__________

(a partner/officer) of

_______________________________, the party making the foregoing proposal, that such proposal is genuine and not collusive or sham; that said consultant has not colluded, conspired, connived, or agreed, directly or indirectly, with any consultant or person, to put in a sham proposal or to refrain from submitting a proposal, and has not, in any manner directly or indirectly, sought by agreement or collusion, or communication or conference, with any person, to fix the price of this or any other proposal, or to secure any advantage against the Connecticut Conference of Municipalities (CCM) or any person interested in the proposed contract; and that all statements in said proposal are true. Firm Name: _________________________________

By: _________________________________ Signature of Consultant Title: __________________________________

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16.

Signing Proposals

All proposals must be signed by an officer of the consultant duly authorized to bind the consultant to the proposal submitted. Responses to all sections of this proposal must be completed where appropriate and included in the sealed package submitted to CCM. Failure to properly sign the proposal and include all required information may result in the rejection of the proposal. The information in this proposal is true and correct, and the officer signing below is duly authorized to bind this consultant to such proposal. Consultant hereby affirms that its proposal will remain valid for a period of 120 days from date of submission. Signed this day

day of July, 2008.

By: ___________________________________ Name of Officer: ____________________________________ Title of Officer: ______________________________________ Name and Address of Consultant: _______________________________________________ _______________________________________________ _______________________________________________

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