Service - emits - ESA

ESA EO Payload Data Systems 

Operations and Maintenance Contracts 

Industry Information Day 

7 September 2009 

ESRIN 

EO PDS O&M - Industry Information Day, ESRIN, 7 Sept 2009 Slide 1

Agenda 

1. Introduction (G. Kohlhammer) 

2. Contractual Overview (L. Govaert, O. Leonard) 

3. Operations and Maintenance (O&M) (G. Mason) 

Contract 

4. Operational Integration, Verification (S. Jutz) 

and Validation (OIVV) Contract 

5. Engineering and Management Support (A. Tauber) 

(EMS) Contract 

6. ESA Costing Software (ECOS) (P. Ponzio) 

7. Questions 

8. Coffee 


Introduction 

1. Introduction 


Introduction – Background and History 

-2005 2005-2010 2010-2015 

Different durations (3+2) (3+2) 

• Until 2005: >25 individual Ops & Maint Contracts 

• Until 2010: Ops & Maint and Engineering Support ‘Frame Contracts’ 

principle implemented with 2 Consortia plus Management 

Support being incumbent from 2005-2010. 

• Objectives: - increased level of outsourcing; 

- reduced ESA management overheads; 

- gradual implementation of ‘end-to-end responsibility’; 

- sharing and efficiency; 

- consistence of evolution and operations already within 

industry (less ESA staff involvement). 


Intro – Experience & Lessons Learned 

• Outsourcing and delegation of end to end responsibility: 

– working but very slow (+/-); 

– assumption of end-to-end responsibility and management slow. 

• Smooth absorption of new missions: 

– generally OK, but late (+/-). 

• Technical evolution of Payload Data Segment: 

– driven more by development and engineering team, only few 

improvements initiated by operations, not enough process 

analysis (-). 

• Financial management and control: 

– strong cost overrun during contract versus original proposal (-); 

– strong shift in geo-return versus original proposal (-). 

• Service to users generally OK (+). 

• Move to off-site partially OK, but slow (+/-). 


Introduction – Contractual Approach 

• Covers period 1 August 2010 to 31 July 2015 (initial period of 3 years 

with an optional extension for a further 2 years). 

• Three separate contracts: 

– O&M (operations driven !) - Service type contract, 

– OIVV - Service type contract, 

– EMS - Manpower type contract. 

• Following lessons learnt from the past years of operations and 

maintenance, the OIVV activity is separated as an independent 

procurement in order to guarantee an unbiased validation of 

developments before final operational release. 

• In order to ensure ‘neutrality’, exclusions have been introduced 

between various tasks in the three contracts. 

• Major evolution and development activities are not part of these 

contracts. 


Intro – Relations Between Contracts 


Introduction – Financial Framework 

• Financial Framework for ESA: 

– AC/IPC approved an upper limit for the 5 years period; 

– major evolutions and developments not included in contracts; 

– non-linear distribution of funding (Sentinel operations and 

maintenance will not start until 2012); 

– clear geo-return targets for the ESA funded part of the contracts 

(more off-site activities possible today, both technically and from an 

organisation point-of-view). 

• ESA now working in an environment of decreasing funds for EO PDS 

operations. 

• European Commission (EC) co-funding: 

– EC funding under the FP7 programme for some GMES activities; 

– such activities eligible for award to companies from any country 

participating to FP7; 

– to be awarded in accordance with ‘Best Practices’ procedures. 


Introduction – Schedule and Deadlines 

• ITT Issued: 25 Aug 2009 (O&M, OIVV) 

27 Aug 2009 (EMS) 

• Industry Information Day: 7 Sep 2009 

• Proposal Deadlines: 26 Oct 2009 (O&M, EMS) – no extension 

20 Oct 2009 (OIVV) 

• ESA Evaluation: Nov – Dec 2009 

• IPC Approval: Feb 2010 

• Contract Kick-off: 1 Apr 2010 (O&M, OIVV) 

(various and shorter Phase-In’s for EMS) 

• Phase-In Period Apr – Jul 2010 (O&M, OIVV) 

• Start of Full Operations: 1 August 2010 


Contractual Overview 

2. Contractual Overview 


Contractual Overview – Geographical 

Constraints 

• All ESA Member States and Canada eligible. 

• O&M and EMS: 

– Share of companies belonging to the same Member State within 

the overall offered price (3y – O&M: excl. Application, WAN and 

GMES) does not exceed 35%. 

– For under-returned Member States in EOEP (A, CH, GR, IRL, 

LUX, N, S, UK), limit raised to 50%. 

• OIVV: 

– Minimum of 50% of the overall offered price (3y) is to be 

allocated to under-returned Member States in EOEP. 


Contractual Overview – Conflicts of 

Interest, Exclusions 


Contractual Overview – Duration 

• Duration 

– 36 months. 

– Phase-In Period: 

• O&M, OIVV: 4 months; 

• EMS: as per Appendices B/C to SoW. 

– Quotation for optional additional 24 months. 


Contractual Overview – Price Types 

• O&M: 

– Service: FFP + FUP + CR. 

– Phase-In: FFP. 

– Rates for 3y + option for years 4/5. 

• OIVV: 

– Service: FFP + FUP + CR. 


– Rates for 3y + option for years 4/5. 

– OIVV for new S/W developments: when requested, FFP based 

on FFHLR (Firm Fixed Hourly Labour Rate). 

• EMS: 

– FUP within LoL for Engineering Support 

– FFP for Management Support. 



Contractual Overview – Target Prices 

• O&M: 

– Target price: 32 M€. 

• 3y baseline; 

• excluding Phase-In, Applications Maintenance, WAN Service; 

• excluding future GMES and sentinel operations, at later stage. 

• OIVV: 

– Target price: 8.3 M€. 


• including Phase-In; 

• excluding future GMES and other activities. 

• EMS: 

– No target price. 


• including Phase-In, where relevant; 

• pre-award negotiations leading to ‘Best And Final Offers’ on the 

proposed hourly rates. 


Contractual Overview – ‘Best Practices’ 

• New ESA funded activities: 

– General approach: 

• use “Procedure for tender action carried out by the contractor for the 

selection of subcontractors” (Appendix to Draft Contract); 

• selection carried out by the Prime contractor under ESA supervision; 

• evaluation carried out by ESA in case contractor has a vested 

interest in the outcome of the selection. 

• EC funded activities (e.g. GMES): 

– General approach: idem. 

– Specific conditions for EC-funded activities (Appendix to Draft 

Contract): 

• ITTs to be published via Cordis, open to FP7 participating states, EC 

to be invited in TEB; 

• specific provision to be included in ITT documents: 

– Cover letter, 

– Draft Contract, 

– STC. 


Contractual Overview – O&M Mandatory 

Sub-contractors 

1. Applications Maintenance Contractors 

– RFQ issued to Maintainers 

• 1 year FFP + 2 years options. 

• Draft contract in Annex 3 STC. 

• Maintainers explicitly commit to be subcontracted to O&M 

Prime Contractor (“The Operator”). 

– Transfer to O&M Prime Contractor 

• ESA will negotiate FFP year 1 and optional CP for years 2-3. 

• After negotiation, ESA to transfer rights and obligations to the 

Operator. 

• Start of activities 1 August 2010. 




2. EO WAN Service Provider 

– RFQ issued to WAN service provider (WSP) 

• ESA will negotiate directly with WSP. 

• WSP explicitly commit to be subcontracted to O&M Prime 

Contractor. 

– Transfer to O&M Prime Contractor 

• After negotiation and completion of migration from current 

network infrastructure to new one. 

• Start of activities: estimated end 2010. 




3. Requirements for O&M Bidders 

– O&M bidders shall in their proposal explicitly confirm agreement 

to include in the consortium ALL Maintainers at the conditions 

negotiated by ESA (mandatory FFP year 1, optional years 2-3). 

– O&M bidders shall in their proposal explicitly confirm agreement 

to include in consortium the WSP(s) at the conditions negotiated 

by ESA. 

– O&M bidders shall demonstrate in their proposal how these 

activities will be appropriately be managed and integrated in the 

overall service. 


O&M 

3. Operations and Maintenance 


O&M – Overview 

• The O&M contract covers the operations and maintenance of ESA 

Earth Observation Payload Data Systems for current ESA and 

selected Third Party Missions as well as for future missions such as 

Earth Explorers and Sentinels. 

• Approach and aims: 

– service based contract; 

– focussed on operations, maintenance and associated aspects; 

– single, coherent, integrated service (though constituted from 

several service domains); 

– overall aim to improve efficiency and effectiveness of operations 

and to reduce costs; 

– increased level of outsourcing to industry; 

– requires a responsible and motivated Prime Contractor and 

consortium. 


O&M – Service Functions and Domains 

• The overall Operations and Maintenance service consists of: 

– Dedicated functions: 

• Mission and Production Planning; 

• Operations of ESRIN Facility; 

• ESA User Services; 

• GMES Data Access Services; 

• Research and Service Support Services; 

– Service-wide support functions: 

• Operations Service Desk; 

• Configuration, Inventory and Asset Management; 

• Dissemination Networks and Security; 

• Maintenance of Applications; 

– Place holder for future activities: 

• GMES Sentinel Data Circulation and Dissemination. 


O&M – Service Groupings 

• This breakdown into several service domains has been made with a 

given logic and to ensure that all required functions have been 

captured. 

• However, this represents only one possible grouping of functions. 

• If bidders consider that a better and/or more cost-effective overall 

service could be provided by a different grouping of some functions, 

then the bidder is not obliged to follow the grouping given. 

• ESA is interested in the overall service provided and that all 

requirements are met. 


O&M – Planning 


O&M – Planning, Reviews and Meetings 

• Phase-In Period: April – July 2010 

• Operations Phase 1: August 2010 – July 2013 

• Operations Phase 2: August 2013 – July 2015 

• Phase-Out Period: last 4 months of Contract 

• Kick-off: April 2010 

• Service Readiness Review: July 2010 

• Service Performance Reviews: every six months 

(March & September) 

• Progress Meetings: monthly 

• Joint-Change Control Boards: weekly 

• Scheduling Meetings: weekly 


O&M – Location Of Work 

• The location of work is defined as: 

– On-Site = on the ESRIN premises in Frascati; 

– Near-Site= near the ESRIN premises, within a distance of 50 km; 

– Off-Site = not on the ESRIN premises. 

• In some cases, the bidder is given the choice where to locate the 

work. In such cases, the bidder shall clearly identify the benefits 

(cost and otherwise) to ESA resulting from the proposed solution. 

• ESA is interested in reducing On-Site activities, if possible. 

For all work identified as to be performed On-Site, the bidder may 

propose an option to have such work performed Off-Site, clearly 

identifying the benefits (cost and otherwise) to ESA resulting from 

the optional solution. 


O&M – Application Maintenance 

• ESA has developed several Applications which are required for the 

PDS operations and integration / verification. 

• Maintenance of these Applications is to be included in O&M contract. 

• To ensure a “level playing field” for all companies, ESA will negotiate 

the maintenance contracts for these Applications 

• Initial contracts with each Maintainer will be a firm fixed price for one 

year (August 2010 to July 2011) with options for subsequent annual 

renewals (options available for the O&M contractor to exercise). 

• Contracts will be handed over to O&M contractor during negotiations 

or Phase-In Period. 

• O&M contractor shall assume responsibility for these maintenance 

contracts from 1 August 2010. 


O&M – Application Maintenance Process 


O&M – Application Maintenance Process 

• The process for the maintenance of the Applications is defined in the 

Statement of Work for Application Maintenance (AD03 to the O&M 

Statement of Work). 

• This Statement of Work for Application Maintenance also includes 

requirements on the O&M contractor, which shall be complied with. 

• O&M contractor and OIVV contractor shall negotiate and agree, 

during the Phase-In Period, an Operational Level Agreement to 

ensure an efficient interface and the delivery of the required services 

to ESA. 


O&M – WAN Service Provider 

• The current ESA EO Wide Area Network (WAN) is HiSEEN (also 

known as ODAD-NS), which is based on the European National 

Research and Education Networks. 

• ESA intends to rationalise the connectivity services for the WAN into 

a single service provider. 

• ESA will select and negotiate with a Sub-contractor for the provision 

of these WAN services and then manage the migration from the 

current network infrastructure to the new one. 

• When the migration is completed (intended before the end of 2010), 

the operations and maintenance activities for the WAN services will 

be transferred to the O&M contractor. 


O&M – WAN Service Provider (continued) 

• Until taking over responsibility for the operations and maintenance of 

the WAN services, the O&M contractor shall be compatible with the 

existing WAN services provided by ESA. 

• The O&M contractor shall assume full responsibility for the Subcontractor 

selected for these services, together with their 

compatibility with the overall contract. 

• The O&M contractor shall integrate the operations and maintenance 

of the WAN services into the overall service provided to ESA. 


O&M – GMES Related Services 

• The O&M Statement of Work foresees two sets of GMES related 

services which are to be awarded during the contract by the O&M 

contractor in accordance with the ‘Best Practices’ procedure. 

• GMES Space Component Data Access Services: 

– Described in ‘Service Requirements – GMES Space Component 

Data Access Services’ (AD08). 

– Selection process to be initiated at start of Phase-In Period. 

– Full operations to start as of 1 October 2010. 

• GMES Sentinel Data Circulation and Dissemination: 

– Document ‘Service Requirements – GMES Data Circulation and 

Dissemination’ (AD12) included as a place holder. 

– Detailed requirements to be provided at a later stage. 

– Selection to be completed to start operations in 2012. 


O&M – Service Level Agreement and KPIs 

• The performance of the overall service to ESA shall be monitored on 

a monthly basis against a Service Level Agreement (SLA), with Key 

Performance Indicators (KPIs). 

• The ITT documentation contains ‘foreseen KPIs’ for service level 

requirements. KPI = 1 if target is met or 0 if not met. 

• The O&M Statement of Work also includes a proposed weighting 

factor (from 0 to 10) for each KPI to reflect its relative importance for 

the overall service provision. 

• A draft SLA, including all bidder proposed KPIs, weighting factors 

and associated targets is requested as part of the proposals. 


O&M – Penalty Scheme 

• Penalties will be applied, based on the overall performance of the 

service provided to ESA using the KPIs. 

Penalty = ∑ i w i (1 - KPI i ) x max Penalty 

∑ i w i 

Where: 

KPI i = 1 if target met or 0 if not met; 

w i is the weighting factor for KPI i ; 

max penalty = 10% of the monthly baseline service 

price. 


O&M – Incentive Scheme 

• ESA requires optimisation and evolution of processes and services 

to achieve price reductions without diminishing the overall service 

performances. 

• The O&M contractor is requested to submit proposals for improving 

efficiencies, streamlining processes, etc. in order to achieve price 

savings to ESA. 

• Any price savings achieved will then be shared equally between ESA 

and the Operator. 

• In addition, when the cumulative price savings to ESA reach trigger 

levels (5%, 10%, 15%, 20% of average annual price), the O&M 

contractor shall be entitled to further incentive payments. 


O&M – Other Incentives 

• In the event of critical, unforeseen events which are not under the 

responsibility of the O&M contractor (e.g. on-board satellite failure, or 

major problems with an acquisition station) and require a major reconfiguration 

of the overall system, ESA is prepared to make 

incentive payments for re-configuring the overall system to achieve 

operational service levels within set time limits. 


O&M – ITT Package (1) 

• The O&M ITT requirements package consists of several documents, 

in addition to the Cover Letter, Draft Contract and Special Conditions 

of Tender. (Consistent document (and requirement) numbering 

throughout all applicable documents in O&M ITT package). 

• Statement of Work (AD01). 

– Top-level document providing overall context, contractual approach, 

planning, management requirements, etc. 

– Applicable to all ‘service requirements’ documents. 

• Statement of Work for Application Maintenance (AD03). 

– Contains requirements for the Maintainers of the various Applications. 

– Also contains requirements for O&M and OIVV contractors and on 

process for verifying and implementing upgrades. 



• Operations Service Desk (AD04). 

– Ops Service Desk is focal point for receiving, resolving and managing all 

issues related to the overall O&M service. 

– Includes Service Desk, System Engineering, Support to Operational 

Centres, Configuration of Common Infrastructure, Network and Security 

Maintenance, Overall Service Reporting and Management. 

– To be directly managed by the Prime Contractor. 

• Configuration, Inventory and Asset Management (AD05). 

• Mission and Production Planning (AD06). 

– Covers Mission Planning, Management and Monitoring of Mission 

Production and International Charter and Emergency Tasking. 

– Also covers management of initial ENVISAT 2010+ Operations (to 

extend in-orbit life, no inclination manoeuvres from Oct 2010). 



• ESA User Services (AD07). 

– Covers EOHelp Desk, Management of Online Information Services, 

Data Ordering Service and Data Catalogue Service. 

– To be located Off-Site, with a bidder choice for Housing (i.e. procure a 

mirror infrastructure of what available in ESRIN) or Hosting (i.e. migrate 

the applications onto bidder’s infrastructure). 

• GMES Space Component Data Access Services (AD08). 

– Covers Operations of the Core Infrastructure of the Coordinated Data 

Access System, Reporting for the GMES Data Access, and Account 

Management for the GMES Services. 

– Not to be included in bid. 

– To be selected in accordance with “Best Practices” during Phase-In, and 

to be operational as of 1 October 2010. 



• ESRIN Facility Operations (AD09). 

– Covers Artemis Data Acquisition, NRT Production and Dissemination, 

General Operations, Data Circulation Management and Monitoring, 

System Administration and Management, Database Administration, and 

Logistics Support. 

• Research / Service Support and Hosting (AD10). 

– Covers Grid Processing On Demand (G-POD) Service and Operations, 

Image Information Mining Service, Service Support Environment and 

associated Tools, Standards and Services, Web Map / Feature / 

Coverage Services, Ontology Service, Virtual Reality Theatre, and the 

Control / Demo Room. 



• Dissemination Networks and Security Services (AD11). 

– Covers provision of the WAN, Network Infrastructure and Services, 

Security Services, Network and Security Monitoring, Performance and 

Reporting, and Satellite Dissemination Services. 

– Remote Access Service to be quoted as an option. 

• EOP Connectivity Services (AD100). 

– Statement of Work for WAN service provider (applicable doc to AD11). Also 

includes Remote Access Service as an option. 

– Not to be included in bid. 

• GMES Data Circulation and Dissemination Services (AD12). 

– Place holder for future requirements for Data Circulation and 

Dissemination for GMES Sentinels. 



• Management Plan and Requirements (AD13). 

– Covers common Quality, Risk, Configuration, Documentation 

Management requirements for all three Contracts. 

– In particular, defines the Configuration Management approach. 

• Supported Missions (AD14). 

– Defines the baseline for the satellite missions to be supported. 

• Operated and Maintained Applications (AD15). 

– Identifies the Applications that are subject to Operations, Maintenance 

and Verification / Validation. 

– Also provides the intervention requirements for each Application for 

Blocking, Critical and Routine anomalies. 



• Hardware Assets (AD16). 

– Identifies the Hardware Assets that are subject to Operations, 

Maintenance and Verification / Validation. 

• Procedure for Tender Action carried out by the Contractor for the 

Selection of Sub-contractors (AD17). 

– Defines the ‘Best Practices’ procedures. 

• Network and ICT Security Requirements (AD18). 

– Provides Network and ICT Security requirements for ESA Earth 

Observation Payload Data Systems, derived from ESA policies, 

directives and regulations. 



• ECSS Standards (AD19 to AD22). 

• Mission and Production Planning: 

– Procedure for USMP Handling of EO Satellite Emergency User 

Requests (AD50). 

• ESA User Services: 

– ESA User Services Hosting Requirements (AD60). 

– EOP-G RedHat 5 installation baseline (AD61). 

– ESA Communications Style Guide (AD62). 

– Inventory of EO Web Site (AD64). 

– User Services Statistics Requirements (AD65). 


O&M – Summary 

• This ITT represents an on-going evolution from the approach used 

previously and ESA is signalling its desire to change the way of 

performing Operations and Maintenance. 

• This requires a responsible and motivated industrial consortium. 

• Service based contract for a single, integrated and coherent service. 

• Increased outsourcing and increased contractor responsibility. 

• Emphasis on efficient and cost effective operations, with an aim for 

continuous improvement. 

• Balanced approach including Penalties and Incentives. 


OIVV 

4. Operational Integration, Verification and Validation 


OIVV – Required Experience 

• Requirements for Bidders: 

– Independent from Development and Operations. 

– Expert in Verification, Validation & Test Management. 

– Very good Knowledge of the EO Ground Segment 

Domain. 

– Capable to Integrate Complex Systems. 


OIVV – Services 

• Total of 6 Services are requested: 

– Reference Platform Hosting & Maintenance Service RPH. 

• Hosting and maintenance of the ESA-provided Reference Platforms 

• Reference Platform’s HW and SW maintenance and configuration 

control 

– Payload Data Ground Segment Configuration Control Service 

PCC. 

– Integration, Test Management and Validation Service ITM. 

• Ordinary OIVV 

• OIVV for Major Evolutions 

• Fully Automated OIVV Environment 

– OIVV Certification Centre Service VCC 

• Certify Suitability of Documentation 

• Location of Work near-site 

– GMES Integration, Test Management and Validation Service 

GTM. 

– OIVV Service Evolution VSE 


OIVV – Overview 

O&M and OIVV are Service contracts handled similarly 

wrt: 

− Service Management, Meetings, Review, Schedule. 

− Quality Assurance. 

− Configuration Control: Shared Repository with 

Operations 

– Reporting and Monitoring 

– Risk Management and Security Management 

– Best Practise approach for GMES funded activities: 

GTM 

Location of Work: off-site, only VCC near-site. 


OIVV – Planning 


OIVV – ITT Package 

• The OIVV ITT requirements package consists of several documents, in addition to the Cover 

Letter, Draft Contract and Special Conditions of Tender: 

• Statement of Work 

– Top-level document providing overall context, contractual approach, planning, management 

requirements, etc. 

– All ‘Service Tasks’ Requirements in chapter 7. 

• Applicable Documents AD01 to AD11: 

– Management Plan and Requirements (AD01) 

– Multi Mission PDGS Glossary (AD02) 

– Supported Missions (AD03) 

– Operated and Maintained Applications (AD04) 

– Hardware Assets (AD05) 

– Procedure for Tender Action carried out by the Contractor for the Selection of Sub-contractors 

(AD06) 

– ECSS Documents (AD07, AD08, AD09, AD10) 

– Network and ICT Security Requirements (AD11) 

• Reference Documents RD01 to RD05: 

– O&M SoW (RD01) 

– EMS SoW (RD02) 

– Baseline Reference Lists (RD03, RD04) 

– ECSS-M-ST-40C (RD05) 


OIVV – Service Level Agreement and KPIs 

• The performance of the overall service to ESA shall be monitored on a 

monthly basis against a Service Level Agreement (SLA), with Key 

Performance Indicators (KPIs). 

• The ITT documentation contains 19 ‘foreseen KPIs’ for 18 Service Level 

Requirements (SLR). KPI = 1 if target is met or 0 if not met. Less or more 

KPIs can be proposed and negotiated. 

• A draft SLA including all bidder proposed KPIs is requested as part of the 

proposal. 

• Pro-active Service Evolution with Continuous Improvements is requested, 

see Service Evolution VSE 

• Underperformance may result in Penalties up to 10% of Contract Value 

• OLA to be negotiated in Phase-in with O&M Contractor 


EMS 

5. Engineering and Management Support 


EMS – Engineering Support 

• Main Support Areas: 

– Earth Explorer Support (e.g. PDGS Design & 

Implementation, Sub-Systems Implementation 

Support Integration and Validation Testing). 

– Multi-Mission Ground Segment Support. 

– GMES – Data Access Support. 

• Capacity Plan / Location / Phase-in provided: 

– Annex B for all WPs. 

– Annex C for Earth Explorers => details per mission. 


EMS – Engineering Support 

• GMES – Data Access Support 

- Selected prime shall issue an Invitation to Tender to 

EU FP7 participating states (37 member states). 

- In case of conflict of interest => evaluation led by 

ESA. 

- Contracts need to be in place by 7-8/2010. 


EMS – Management Support 

• Main Support Areas: 

– Service Performance and overall schedule Monitoring 

for Payload Data System (PDS), mainly 

• PDS Operations & Maintenance activities 

• PDS Operations Integration and Verification 

activities 

– Ground Segment Configuration Management Support 

– Project Configuration Management and Product 

Assurance Support 

• EOP-G Management Support 

• Independent assessment 


EMS – Important Issues for the Proposals 

• CVs of candidates proposed should show experience 

relevant for the position proposed. 

• Proposed candidates shall be staff of the company 

(Prime or Sub) 

⇒ No further subcontracting to temporary staff 

agencies. 

• Highlight outstanding recruitments and potential backups. 


ECOS 

6. ESA Costing Software 

(only relevant to O&M Contract, 

see separate presentation) 


Questions 

7. Questions

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