AFAC

Air Force Acquisition Circular (AFAC) 2007-0823
23 AUG 2007

FOR ADDITIONAL INFORMATION CONTACT: SAF/AQCP, 1060 Air Force Pentagon, Washington, DC 20330-1060 (703) 588-7060

SUMMARY OF CHANGES

I

5301.602-2(c)(5)(iii)a through d; 5347.4; 5350.403-100; 5352.247-9000, 5352.247-9001 and 5352.247-9002 -- These AFFARS paragraphs/clauses were deleted due to realignment of the Contract Airlift Division from AMC to the US Transportation Command.

II

5301.602-3 and MP5301.602-3, paragraphs 5 and 6 -- Changes required as a result of AFMC's initiative to transform the AFMCFARS, eliminate all Center process books, and streamline/standardize procedures. All AFMC organizations will follow the AFFARS MP and ratification template.

III

5309.202 -- Corrects paragraph reference.

IV

5325, MP5325, and MP5325.7002-2 -- Revises policy and provides new mandatory procedures to be followed when purchasing restricted food, clothing, fabrics, and specialty metals.

V

5334 and MP5334.7002 -- Provides new policy and procedures on major system acquisition as commercial items.

VI

5337.170-3(b) and 5337.503-90(c)(2) -- Revises language on simplified acquisition thresholds.

VII

5352.242-9000 -- Revises clause on contractor access to Air Force installations.

VIII

5337.2 -- Adds information on delegation of approval authority to HCAs and/or to SCCOs for AFMC and AFSPC.

IX

MP5303.104-7(g)(2) -- Corrects office symbol.

X

5307.104-90(a)(3) and 5307.107-3(a)(3)(i): Updates thresholds.
5307.104-92(d)(3) -- Adds clarifying language on requirement for SASS.

XI

5301.9000(b)(2) -- Clarifies clearance requirements for task orders for services issued against multiple award indefinite delivery/indefinite quantity contracts to include GSA schedules.

I

5301.602-2(c)(5)(iii)a through d; 5347.4; 5350.403-100; 5352.247-9000, 5352.247-9001 and 5352.247-9002 -- AFFARS changes required due to realignment of Contract Airlift Division from AMC to the US Transportation Command.

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5301.602-2 Responsibilities.

(c) Legal Review.

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(i) Funding actions without any other changes

(ii) Unilateral exercise of pre-priced options that were reviewed and approved at the time of award of the basic contract

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PART 5347
Transportation

[Revised August 23, 2007]

RESERVED

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II

5301.602-3 and MP 5301.602-3, paragraphs 5 and 6 -- Changes required as a result of AFMC's initiative to transform the AFMCFARS, eliminate all Center process books, and streamline/standardize procedures. All AFMC organizations will follow the AFFARS MP and ratification template.

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5301.602-3 Ratification of unauthorized commitments.

See the Mandatory Procedures at MP5301.602-3 for required ratification procedures.

(b) Policy.

(2) Ratification approval authority is as follows:

(A) The HCA for actions equal to or greater than $30,000.

(B) The chief of the contracting office for actions less than $30,000.

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Mandatory Procedure

MP5301.602-3

Processing Ratifications

August 2007

5301.602-3 Procedure For Processing Ratifications (IAW FAR 1.602-3):

1. The contracting officer initiates an investigation by requesting the office(s) involved to provide documentation and evidence concerning the unauthorized commitment.

2. The commander of the organization in which the unauthorized commitment occurred ensures the following are provided to the contracting officer within 30 days of the request:

b. A signed statement from the individual who made the unauthorized commitment detailing the incident. If a statement is unavailable, the commander explains in the report the reason for not providing the individual's statement.

c. Relevant documentation and records, (e.g., evidence the supplies or services were received, accepted, and were of benefit to the government, contractor correspondence and invoice, funds availability statement, etc.).

3. The contracting officer analyzes the documentation and, if ratification is appropriate, prepares a file. The file contains the following:

a. Statement of the contracting officer that summarizes the case and addresses each of the elements contained in FAR 1.602-3(c).

b. Legal opinion.

c. Contractor's invoice with relevant correspondence.

d. The report by the organization in which the unauthorized commitment occurred--prepared in accordance with paragraph 2 above. Include any attachments to the report.

4. The ratification statement reads substantially as follows:

“Pursuant to the authority vested in me by AFFARS 5301.602-3(b)(3), I hereby ratify the act of (name, title, grade, and organization), who on or about (date) authorized (company name) to (commitment). The dollar value of the transaction is (dollar amount). Ratification is deemed to be in the best interest of the government and is within the authority and limitations of FAR 1.6 and supplements thereto.”

5. For ratification of unauthorized commitments equal to or greater than $30,000 of appropriated funds, the contracting officer shall forward the file through the wing commander for review by the SCO; for SMC and AFMC, forward the file through the wing commander for review by the SCCO. For organizations that do not have a wing commander, forward the file to the Center technology/functional director for review. The contracting officer should include words substantially as follows:

"Attached is the ratification file concerning the unauthorized contracting act of (name) for your review. If you concur ratification of this act is appropriate, this file will be forwarded to the Head of the Contracting Activity (HCA) or designee (if delegated) for final approval."

6. When an unauthorized commitment occurs within a tenant organization and the tenant organization has its own contracting authority, the ratification shall be processed through the tenant’s chain of command. For tenant organizations without contracting authority, the host command shall investigate, process, and, if appropriate, approve the ratification. The host command shall provide copies of the ratification to the tenant’s parent organization.

7. After execution of the ratification statement by the appropriate authority, the contracting officer processes the ratification action. A copy of the ratification statement is included in the contract file. A copy of the contract is placed in the ratification file. Files are maintained in the contracting office in accordance with AFMAN 37-123. A copy of the signed contract action executing the approved ratification shall be sent to the SCO.

8. Nonappropriated Fund (NAF). NAF policies and procedures are prescribed in AFI 64-301.

9. Organizations may use the ratification template when preparing a ratification.

III

5309.202 -- Corrects paragraph reference.

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5309.202 Policy.

(a) The “designee” referenced in FAR 9.202(a) is the HCA.

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IV

5325, MP5325, and MP5325.7002-2 -- Revises policy and provides new mandatory procedures to be followed when purchasing restricted food, clothing, fabrics, and specialty metals.

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5325.7002 Restrictions on food, clothing, fabrics, specialty metals, and hand or measuring tools. (No Text)

5325.7002-2 Exceptions.

Follow the Mandatory Procedures at MP5325.7002-2 when purchasing restricted food, clothing, fabrics, specialty metals or hand and measuring tools.

(a) Food, Clothing and Fabrics. When the contracting officer determines, through market research, that an article or suitable substitute is not available from a domestic source the contracting officer shall submit a determination and finding (D&F) following the format in the Mandatory Procedures at MP5325.7002-2, Addendum 1. The D&F, including the market research report shall be coordinated through SAF/AQCK, for approval by the Secretary of the Air Force. The authority of the Secretary of the Air Force to make determinations in accordance with DFARS 225.7002-2 is not delegable.

(b) When the contracting officer determines, through market research, that a specialty metal melted or produced in the United States or its possessions cannot be procured in satisfactory quality and sufficient quantity, and in the required form, as and when needed, they shall follow the format in the Mandatory Procedures MP5325.7002-2, Addendum 2, when submitting a request for Domestic Nonavailability Determination (DNAD). The DNAD shall include a discussion of circumstances, detailed market research, alternatives considered, in-depth market analysis submitted by the prime contractor, government validation of contractor’s analysis, and certification by the requiring activity. The DNAD shall be coordinated through SAF/AQCK for approval by the Secretary of the Air Force. Contracting officers have no authority to award contracts containing non-compliant specialty metals in the absence of an approved DNADor an exception on all contracts awarded after November 16, 2006. However, if an award is anticipated while a DNAD is in process, the Contracting Officer may conditionally award the contract (MP5325.7002-2, Paragraph 2d). If the DNAD is not approved, the contractor must deliver compliant products. The authority of the Secretary of the Air Force to make determinations in accordance with DFARS 225.7002-2 is not delegable.

Mandatory Procedure

MP5325
Foreign Acquisitions

August 2007

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Mandatory Procedure

MP5325.7002-2

Domestic Non-Availability Determinations (DNAD) Under DFARS 225.7002

August 2007

TABLE OF CONTENTS

1. Introduction

2. Pre-Award Procedures

3. Applicability of Exceptions to Specialty Metals Restrictions

4. Domestic Non-Availability Exception

5. DNAD Package Contents

ADDENDA

1: Sample DNAD Format -- Specialty Metals

2: Sample DNAD Format -- Food, Clothing, Fabrics, and Hand or Measuring Tools

3: Definitions

1. Introduction

Follow the mandatory procedures at MP5325.7002-2 when determining to purchase restricted food, clothing, fabrics, specialty metals, and hand or measuring tools under DFARS 225.7002. The requirement to comply with these statutory and regulatory restrictions applies to procurements in excess of the simplified acquisition threshold. This MP provides pre-award procedures and help in determining the applicability of specialty restrictions when drafting a Domestic Non-Availability Determination (DNAD).It is mandatory that you use this procedure when drafting a DNAD. A DNAD must be tailored to your acquisition scenario. In some cases it may not be possible to obtain all of the data contained in the attached sample DNAD; however, contracting officers should make every effort to do so.

2. Pre-award Procedures

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b. The DFARS clauses (Deviation 2006-O0004)also apply to service contracts, including Contractor Logistics Support (CLS) contracts, if tier 1 or tier 2 components will be delivered to and accepted by the Government during delivery or upon completion of the contract and are not incidental to services being performed by the contractor.

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d. For contracts covered by the specialty metals restrictions, contracting officers must have either an approved DNAD or an exception to the specialty metals restrictions, otherwise the contractor must deliver compliant products, Contracting Officers can no longer use conditional acceptance or withholds to resolve non-compliance on new contracts entered into after November 16, 2006.

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f. The Air Force may be able to use an existing approved DNAD if the DNAD was signed by the Undersecretary of Defense (Acquisition, Technology, and Logistics (OUSD (AT&L)) or by a Service Secretary.

1) If the DNAD was signed by (OUSD(AT&L)), and covers the specific noncompliant parts/materials and the specific time period for the DNAD covers the contract performance period, the Contracting Officer may make the determination to use the DNAD. OUSD(AT&L) DNADs that are currently available for reciprocal use are posted on the DCMA Website and in PGI 225.7002-1. The Contracting Officer’s Determination and Finding (D&F) must be approved by the Senior Contracting Official (SCO) or for AFMC and AFSPC the Senior Center Contracting Official (SCCO) if using an OUSD (AT&L) approved DNAD. This approval may not be further delegated. The Contracting Officer shall obtain legal review and may obtain engineering analysis to support the determination.

2) For the purpose of using a DNAD executed by the Army, Navy, or a DNAD previously executed by the SECAF, the Contracting Officer must determine that condition warrants reliance on the exiting DNAD based on:

If the Contracting Officer determines that use of the existing DNAD would be appropriate, the Contracting Officer must prepare a D&F approving the use of the existing DNAD for signature by the SECAF. The Contracting Officer shall obtain legal review and engineering analysis to support the determination.

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4. Domestic non-availability exception

a. If the domestic non-availability exception applies, a DNAD must be submitted to the Secretary of the Air Force for approval. OUSD(AT&L) or the Secretary of the Air Force, can grant a DNAD if compliant food, clothing, fabrics, specialty metals, and hand or measuring tools of satisfactory quality and sufficient quantity, and in the required form, cannot be procured as and when needed. This approval authority is not delegable.

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5. DNAD Package Contents

a. Determination and Finding – Prepared by the Contracting Officer

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c. In-Depth market analysis by the prime contractor

ADDENDUM 1

DNAD FOR [SPECIFY] FOOD, CLOTHING, FABRICS, AND HAND OR MEASURING TOOLS

Pursuant to the authority contained in Section 9005 of Public Law 102-396, as amended, 10 U.S.C. 2533a (the “Berry Amendment”) and Defense Federal Acquisition Regulation Supplement (DFARS) 225.7002-2, I hereby make the following determination and findings concerning [insert agency], [insert contracting activity].

Findings

1. The [insert contracting activity] proposes to purchase [insert description of the item(s)] under contract number [insert contract number]. The item(s) is/are produced or manufactured in [insert country of origin]. The total estimated cost of the item(s) is [insert amount].

2. Describe the mission of the organization:

3. Describe the circumstances that preclude the buying of a domestic end item (“The Berry Amendment (10 U.S.C. 2533a) requires affected items to be domestic (i.e., of domestic origin and wholly of domestic content) unless a determination is made that such product cannot be acquired as and when needed in a satisfactory quality and sufficient quantity at U.S. market prices”).

4. Describe the market research performed, to include firms contacted.

5. Describe the impact if the waiver is not approved.

6. Describe any alternatives/substitutes considered and why these alternatives/substitutes are not satisfactory.

7. Provide any other data that will support the request.

Determination

I determine that a satisfactory quality and sufficient quantity of the above [specify item(s)] that complies with the Berry Amendment cannot be acquired nor produced as and when needed at United States market prices. This determination is made in accordance with DFARS 225.7002-2(b) and 10 U.S.C. 2533a. Based on this determination, an exception applies to the requirements of the Berry Amendment to procurement of these items.

This determination will be effective until [specify time period or program completion that specify item or program will comply with 10 U.S.C. 2533a are available.]

______________________________ ________
[NAME] DATE
SECRETARY OF THE AIR FORCE

ADDENDUM 2

DNAD FOR [SPECIFY] SPECIALITY METALS

In accordance with 10 U.S.C. 2533b, I hereby make the following findings and determination concerning acquisition of the domestic non-availability of specialty metals in [identify the program affected or, if the material/part concerned affects multiple programs, identify the specific material/part].

Findings

1. The [name of contracting activity] has an acquisition for [identify specific item at prime and subcontract level]. It was determined that this acquisition is subject to the 10 U.S.C. 2533b requirements to buy strategic materials critical to national security from U.S. sources and did not fall under any of the statutory exceptions. [Identify prime contractor] has asserted that [identify non-compliant end item, component, part, or material] cannot be obtained containing specialty metals melted or produced in the U.S. and has requested approval of a determination that is not available from domestic sources.

2. Describe the mission of the organization:

3. Describe the circumstances that preclude the buying of a domestic end item (10 U.S.C. 2533b) requiring specialty metals to be domestic. [Provide a detailed description to explain what portion of the specific item being procured at the prime contract level is not compliant. Specify whether the DNAD is for a program as a whole, a specific contract, certain deliveries, and/or specified end items, components, or parts.]

4. Describe market research performed, to include firms contacted. [Summarize the market research and analysis supporting the assertion of non-availability or include the contractor provided data as an attachment.] The [specify the activity (e.g., AFRL)] conducted an in-depth study of these items and determined that they are [provide brief summary of the analysis -- this should address the aspects of satisfactory quality, sufficient quantity, correct form, and time requirements.]

5. Describe the impact if the waiver is not approved.

6. Describe any alternatives/substitutes considered and why these alternatives/substitutes are not satisfactory.

7. Provide any other data that will support the request.

Determination

Based on the findings above, I have determined that [specify item/material] is not exempt from coverage by 10 U.S.C. 2533b, I hereby determine that satisfactory quality and sufficient quantity of complaint specialty metals in the form of [specify specific items] cannot be procured as and when needed. This determination is made in accordance with DFARS 225.7014 and /or Alternate I (Deviation 2006-O00004) and 10 U.S.C. 2533b. Based on this determination, an exception applies to the delivery of end items, and components thereof, containing [specify items] where the specialty metals contained in such items were melted or produced. [State whether or not this DNAD is available for other programs or Services to use.] This determination will be effective until [specify time period or program completion.]

______________________________ ________
[NAME] DATE
SECRETARY OF THE AIR FORCE

ADDENDUM 2 (Attachment 1)

DEFINITIONS

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V

5334 and MP5334.7002 -- Provides new policy and procedures on major system acquisition as commercial items.

PART 5334
Major System Acquisition

[August 22, 2007]

5334.7002 Determination and Findings

See the Mandatory Procedures at MP5334.7002 for required D&F contents when acquiring major weapons systems as commercial items.

Mandatory Procedure

MP5334.7002

Acquisition of Major Weapon Systems as Commercial Items

August 2007

1. To support the Determination and Findings (D&F) for Secretary of Defense approval described at DFARS 5334.7002, Air Force acquisitions of major weapon systems as commercial items must provide the following additional supporting documentation:

2. Annually thereafter, the program manager or contracting officer shall submit a notification to SAF/AQCK that identifies whether increases in competition, greater access to the commercial markets, better prices, and new market entrants or technologies have been realized.

VI

5337.170-3(b) and 5337.503-90(c)(2) -- Revises language on simplified acquisition thresholds.

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5337.170-3 Approval requirements

(a) The Services Designated Official (5337.503) is responsible for approving any services acquisition that is not performance-based. This authority includes acquisitions to be purchased within and outside of DoD. Purchase requests for services acquisitions that are not performance-based will include the following statement:

“IAW 10 USC 2330, the Services Designated Official has approved the attached non-performance-based work statement. Any contract or task order resulting from this request is to be acquired using performance-based principles to the maximum extent practical.”

(b) For services over the simplified acquisition threshold, the Services Designated Official (5337.503) is responsible for approving any purchase requests for services acquisitions to be purchased using a contract or task order being awarded by an agency other than DoD. A copy of the determination and finding required at MP5317.78 shall accompany the purchase request, if applicable. Purchase requests shall include the following statements:

“The attached purchase request is approved by the Services Designated Official for procurement outside of DoD. This acquisition has been determined to be in the best interest of the AF.”

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5337.503-90 Services Designated Official(s). The designated official is responsible for the oversight and management of services acquisitions within their portfolio. For services acquisitions:

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(c) For other contracting, HCAs or designees are the SDO responsible for acquisitions with a total value of $100M or less, and A-76 studies involving less than 300 FTEs. For DRUs, SDO responsibility is limited to the following:

(1) Non performance-based approvals (5337.170-3(a)).

(2) Any contract or task order for services acquisitions over the simplified acquisition threshold to be awarded by other than DoD (5337.170-3(b)).

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VII

5352.242-9000 -- Revises clause on contractor access to Air Force installations.

5352.242-9000 Contractor access to Air Force installations.
As prescribed in 5342.490-1, insert a clause substantially the same as the following clause in solicitations and contracts:

CONTRACTOR ACCESS TO AIR FORCE INSTALLATIONS (AUGUST 2007)

(a) The contractor shall obtain base identification and vehicle passes, if required, for all contractor personnel who make frequent visits to or perform work on the Air Force installation(s) cited in the contract. Contractor personnel are required to wear or prominently display installation identification badges or contractor-furnished, contractor identification badges while visiting or performing work on the installation.

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(d) When work under this contract requires unescorted entry to controlled or restricted areas, the contractor shall comply with [insert any additional requirements to comply with AFI 31-101, Volume 1, The Air Force Installation Security Program, and AFI 31-501, Personnel Security Program Management,] citing the appropriate paragraphs as applicable.

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(End of clause)

VIII

5337.2 -- Adds information on delegation of approval authority to HCAs and/or to SCCOs for AFMC and AFSPC.

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SUBPART 5337.2 — ADVISORY AND ASSISTANCE SERVICES

5337.204 Guidelines for Determining Availability of Personnel. This approval has been delegated to HCAs. It may not be further delegated except within AFMC and AFSPC to no lower than the Center Commanders.

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IX

MP5303.104-7(g)(2) -- Corrects office symbol.

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MP5303.104-7 Violations or Possible Violations

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(g) HCA delegations:

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(2) HQ AFSPC/CC has delegated authority to HQ AFSPC/A7, SMC/CC (for Other Contracting actions) and to general officer wing commanders in AFSPC. For SMC (Other Contracting actions), SMC/CC may redelegate this authority no lower than the SCCO. The SCCO must be of General Officer, Flag, or Senior Executive Service, or equivalent rank.

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X

5307.104-90(a)(3) and 5307.107-3(a)(3)(i) -- Updates thresholds.
5307.104-92(d)(3) -- Adds clarifying language on requirement for SASS.

5307.104-90(a)

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(3) For Other Contracting acquisitions, Acquisition Strategy Panels (ASPs) shall be convened for all acquisitions requiring a formal/written Acquisition Plan (AP). The ASP chairperson may establish streamlined ASP procedures for acquisitions <$5.5M.

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5307.104 General procedures.

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(d) Solicitation Release.

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(3) For space-related programs under the purview of National Security Space Acquisition Policy 03-01 (NSS 03-01), the contracting officer shall not release the formal solicitation until the MDA has approved the acquisition strategy and the program has successfully passed a milestone decision, unless otherwise authorized by the MDA or SASS.

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5307.170-3 Policy and procedures

(a)(3)(i) The SPE has delegated the authority to make the consolidation determination for actions exceeding $5.5 million, and less than $100 million, to the Head of the Contracting Activity.

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XI

5301.9000(b)(2) -- Clarifies clearance requirements for task orders for services issued against multiple award indefinite delivery/indefinite quantity contracts to include GSA schedules.

5301.9000 Scope and definitions.

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(b) Excluded from business or contract clearances are:

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(2) orders issued against existing contracts in accordance with the terms and conditions of the basic contract; except task orders for services issued against multiple award indefinite delivery/indefinite quantity contracts to include GSA schedules;

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