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Ministry of Advanced Education
Version 1.2March 31, 2014
CONCEPT PLAN REPORT
CAPITAL ASSET REFERENCE GUIDE: TEMPLATE 4
TABLE OF CONTENTS
EXECUTIVE SUMMARY............................................................................................................. iii1.0 PROJECT DESCRIPTION..................................................................................................42.0 BACKGROUND INFORMATION........................................................................................53.0 STRATEGIC ALIGNMENT................................................................................................64.0 ENVIRONMENT ANALYSIS..............................................................................................75.0 PROGRAM DELIVERY OPTIONS ANALYSIS......................................................................86.0 CONCLUSIONS & RECOMMENDATIONS.......................................................................197.0 IMPLEMENTATION STRATEGY......................................................................................20
OTHER RESOURCES FOR THE CONCEPT PLAN REPORT.........................................................24APPENDICES FOR THE CONCEPT PLAN REPORT.....................................................................25
EXECUTIVE SUMMARY Provide a summary for each section of the Concept Plan Report
PROJECT DESCRIPTION
BACKGROUND INFORMATION
STRATEGIC ALIGNMENT
ENVIRONMENT ANALYSIS
PROGRAM DELIVERY OPTIONS ANALYSIS
CONCLUSIONS & RECOMMENDATIONS
IMPLEMENTATION STRATEGY
Concept Plan Report | iii
1.0 PROJECT DESCRIPTION1.1 Project Objectives
Update the project description from the Opportunity Assessment Report, including the opportunity in the context of strategic and business drivers, project objectives
1.2 Project Scope Update project scope from the Opportunity Assessment Report, including
user needs, and space requirements, as follows:- Category 1: New Priority Projects, driven by growth accommodation
and labour market demand-driven capacity, resulting in new system capacity, IM/IT, skills training, etc.
Indicate the number of new FTEs the project will accommodate- Category 2: Whole Asset Replacement & Renewal Projects which
improve the physical asset condition and reduce deferred maintenance backlog. 50% or more of the asset is replaced1, resulting in increased system capacity from improved functional efficiency
Indicate the number of additional FTEs the project can accommodate due to functional improvements, if applicable
1.3 Project Outcomes Update the project outcomes from the Opportunity Assessment Report,
including the concrete results necessary to meet the project objectives
Note: Projects greater than $50M must be evaluated by Partnerships BC for public private partnership (P3) viability during the Concept Plan Report activity. Institutions are instructed to coordinate with the Ministry for any services provided by Partnerships BC. While it is not mandatory to use PBC’s services to plan, deliver and oversee project delivery, they do offer those services. Please refer to Section 13.0 Governance in the CARG and http://www.partnershipsbc.ca.
RESOURCES Approved Opportunity Assessment Report Institutional Accountability Plan & Report 5 Year Capital Plan FTE and space utilization rates Ministry’s Space Standards Ministry’s Budget Model
1 This threshold is provided as a guideline, not as a rule. In some instances, the Ministry may determine that it is prudent to undertake projects that do not meet the threshold.
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2.0 BACKGROUND INFORMATION2.1 Current Situation
Update the current situation from the Opportunity Assessment Report, including the circumstances and events leading up to the opportunity, as well as the risks of status quo
2.2 Demand Update the forecast demand from the Opportunity Assessment Report Analyze relevant reports, data, or trends using tables/figures relating to the
opportunity, including those identified in the following:- BCStats Population Projections (P.E.O.P.L.E.) - Provincial data on labour trends
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RESOURCES Approved Opportunity Assessment Report BCStats Population Projections (P.E.O.P.L.E.) Provincial data on labour trends
3.0 STRATEGIC ALIGNMENT3.1 Stakeholder Identification
Update the internal and external stakeholders identified in the Opportunity Assessment Report
Table 3-1. Stakeholder Identification
StakeholderInternal/External(I or E)
Role
The MinistryStakeholder #2Stakeholder #3Stakeholder #4Stakeholder #5Stakeholder #6
3.2 Stakeholder Alignment Evaluate each stakeholder (e.g., business plan, etc.) to determine how the
opportunity supports their goals Table 3-2. Stakeholder Alignment
The Ministry
Goal How the Institution’s Opportunity Supports the Stakeholder’s Goals
Impact(High, Medium, Low)
1.2.3.
STAKEHOLDER #2
Goal How the Institution’s Opportunity Supports the Stakeholder’s Goals
Impact(High, Medium, Low)
1.2.3.
STAKEHOLDER #3
Goal How the Institution’s Opportunity Supports the Stakeholder’s Goals
Impact(High, Medium, Low)
1.2.3.
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RESOURCES Approved Opportunity Assessment Report Ministry Business Plans Cross-ministry initiatives
4.0 ENVIRONMENT ANALYSIS4.1 Environment Scan
Identify similar initiatives to the proposed project and summarize the findings in the table below
Table 4-1. Similar Initiatives in Other Jurisdictions SummaryPost-secondary
Institution/Project Name
Type of Project (New Build, Expansion,
Maintenance, etc.)
Programs
Delivered
Scope Cost Risks Impact on Job Creation
Institution #1Institution #2Institution #3Institution #4Institution #5
4.2 Lessons Learned Summarize the lessons learned from the environment scan exercise
performed in 4.1 Similar Initiatives in Other Jurisdictions Summary
Table 4-2. Lessons Learned SummaryPost-secondary Institution/
Project Name Lessons LearnedInstitution #1Institution #2Institution #3Institution #4Institution #5
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RESOURCES Approved Opportunity Assessment Report Post-secondary institutions and similar
clients in BC and other jurisdictions (provinces, states, international)
5.0 PROGRAM DELIVERY OPTIONS ANALYSISThe program delivery options analysis can be summarized in three steps, as follows:
Step 1– Identify All Options: List all options identified in the approved Opportunity Assessment Report including status quo. These are evaluated against mandatory criteria to determine which options are viable and should undergo further analysis
Step 2 – Evaluate Viable Options: Options that meet mandatory criteria undergo rigorous testing:
1. Options are compared using quantitative (cost/benefit) and qualitative (advantages and disadvantages) analysis
2. Identification of financing sources for each viable option3. Preliminary risk assessment for each viable option
Step 3 – Summary of Options: The options analysis will be used to select one option as “preferable”, for which an implementation strategy will be developed
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Table 5-3. Options Analysis Methodology
Identify All Options
Quantitative Analysis
(Financial)
Yes
Determine if any mandatory criteria exist. If so, does the option
meet the mandatory criteria?
Option does not move forward for further analysis
Summary of Options
Evaluate Viable Options
Cost/Benefit Analysis
Qualitative Analysis
(Non-Financial)
Preliminary Financing
Preliminary Risk Assessment
NoSTEP
1ST
EP 2
STEP
3
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5.1 Step 1: Identify All Options List all options (both capital and non-capital options) as identified in the
approved Opportunity Assessment Report Include “do nothing” as an option to identify the costs and disadvantages of
maintaining status quo
Table 5-4. Summary of Options from the Opportunity Assessment ReportOPTIONS
Option Type of ProjectCapital (include category of
project) or Non-CapitalDescription
Status QuoOption #1Option #2Option #3
Identify mandatory criteria that the options must meet. For example, mandatory criteria may include:
- Infrastructure Improvements: FCI improvement and/or reduction of life safety & occupational health risks
- Cost Effectiveness: Funding partnerships and/or cost benefits throughout lifecycle
- Innovation: Demonstrates sustainable solutions and/or collaboration- Strategic Alignment: Alignment with government priorities (e.g.
Ministry Service Plan) and Institutional priorities (e.g., mission statement, master planning etc.)
- Quality Education: Improves student learning outcomes, and/or improve access to learning and/or student full time equivalents (FTE) and space utilization rates
Options are evaluated against mandatory criteria to determine if any options can be dismissed. For example:
- Strategic – the option does not conform to the Institution’s Campus Master Plan, etc.
- Quality Education – the option does not accommodate the FTE forecast at maximum student full time equivalents (FTE) and space utilization rates
5.2 Step 2: Evaluate Viable Options Options that meet mandatory criteria are evaluated through quantitative
(cost/benefit) analysis, qualitative (advantages/disadvantages) analysis, financing, and preliminary risk assessment
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5.2.1 Quantitative (Cost/Benefit) Analysis A quantitative analysis provides a preliminary estimate of annual capital and
operating costs, including program/service delivery and facility lifecycle costs Prepare a net present value cash flow analysis for the shortlisted viable
options. The term of the cash flow analysis should equal to one of the following:
- If asset is financed with debt – use the term for the debt/mortgage.- If no debt financing required – use the expected life of the new asset.
Ensure that assumptions are adequately disclosed for revenue and cost estimates
Include schedules detailing the annual principal and interest payments to accompany the cash flow forecast, as well as for total capital cost estimate
The cash flow analysis should reflect the total ‘incremental’2 costs and revenues associated with each project option being evaluated, not the ‘full cost’ including existing programs and facilities. However, in cases where the new project/program also results in additional costs or cost savings in existing facilities or programs, these amounts are also to be included in the project incremental cash flow
2 Incremental costs refer to the additional costs associated with the new program only. Costs for the existing programs prior to the new development would not be included.
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Table 5-5. Summary Table of a Quantitative Cost/Benefit Analysis
CASH FLOW FORECAST – Viable Option 1Inflow/(Outflow)
OPERATING YEAR
Year 1201x
Year 2201x
Year 3201x
Years4….1
9
Year 20
201xOperating Cash Flows
Incremental program revenues, by source $ xxx $ xxx $ xxx …….. $ xxxIncremental program costs, by source $ (xxx) $
(xxx)$
(xxx)…….. $ (xxx)
Incremental facility operating costs, by source $ (xxx) $
(xxx)$
(xxx)…….. $ (xxx)
Interest expense on new debt financings * $ (xxx) $ (xxx)
$ (xxx)
…….. $ (xxx)Total Operating Cash Flows $ xxx $ xxx $ xxx …….. $ xxx
Investing (Capital) Cash FlowsTotal capital cost $
(x,xxx) - - - -
Annual capital renewal, by source $ (xxx) $ (xxx)
$ (xxx)
…….. $ (xxx)
Total Investing Cash Flows $ (xxx) $ (xxx)
$ (xxx)
…….. $ (xxx)
Financing Cash FlowsNew debt financing3 $ x, xxx - - - -Internal financing $ xxx $ xxx $ xxx …….. $ xxxExternal financing $ xxx $ xxx $ xxx …….. $ xxxAnnual debt repayments $ (xxx) $
(xxx)$
(xxx)…….. $ (xxx)
Total Financing Cash Flows $ xxx $ xxx $ xxx …….. $ xxx
Net Cash Inflow/(Outflow) $ xxx $ xxx $ xxx …….. $ xxxNet Present Value – 20 years at x
% $ xxx
3 Although debt financing may not be used for specific projects, there is still an opportunity cost of using available cash flow for project funding.
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A supporting schedule detailing the annual principal and interest payments should accompany the cash flow forecast. For example:
LONG TERM DEBT – Continuity Schedule
DEBT TERMYear 1201x
Year 2201x
Year 3201x
Years4 to 19
Year 20201x
Long term debt, opening balance $ xx,xxx $ xx,xxx $ xx,xxx …….. $ x,xxxAnnual debt payment:
Interest expense xxx xxx xxx …….. xxPrincipal repayment (xxx) (xxx) (xxx) …….. (xxx)
Long term debt, closing balance * $ xx,xxx
$ xx,xxx
$ xx,xxx …….. $ -
* Closing balance = Opening balance less Principal Repayment
A supporting schedule detailing the total capital cost estimate should also be included. For example:
CAPITAL COST ESTIMATECONSTRUCTION YEAR
TOTALYear 1201x
Year 2201x
Year 3201x
Land:Acquisition costSite preparationParking and improvements
$ xx,xxxx,xxx
-
$ -x,xxx
xxx
$ --
xx,xxx
xx,xxxx,xxx
xx,xxxTotal Land Costs $ xxx,xxx $ xxx,xxx $ xxx,xxx $ xxx,xxx
Buildings:Hard costs (construction materials and labor)Soft costs (design, engineering, PM/CM etc.)Construction contingency
$ x,xxx,xxxxxx,xxxxx,xxx
$ x,xxx,xxxxx,xxxx,xxx
$ x,xxx,xxxx,xxxx,xxx
x,xxx,xxxxx,xxxxx,xxx
Total Building Costs $ x,xxx,xxx $ x,xxx,xxx $ x,xxx,xxx $ x,xxx,xxxFurniture, Fixtures & EquipmentFurniture and fixturesEquipment
$ x,xxxxx,xxx
--
$ xx,xxxxxx,xxx
xx,xxxxxx,xxx
Total F,F&E $ xxx,xxx $ xxx,xxx $ xxx,xxx $ xxx,xxxSub-totalAdd: Inflation during construction $ xxx $ x,xxx $ xx,xxx $ xx,xxxAdd: Construction financing costs $ xxx $ x,xxx $ xx,xxx $ xx,xxx
Total Capital Cost $ x,xxx,xxx
$ x,xxx,xxx
$ x,xxx,xxx
$ x,xxx,xxx
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5.2.2 Qualitative Analysis A qualitative analysis is required to evaluate the non-financial costs
(disadvantages) and benefits (advantages) of each viable option, including physical, social, environmental, and risk considerations
Determine a list of qualitative criteria. Examples include:- Operational – criteria related to expected facility or program
operational improvements, such as: ability to meet student needs and enrollment demand ability to attract new learners (e.g. First Nations, out-of-country) improved staff recruitment and retention integration of new and existing programs ability to implement new technologies and learning
methodologies impact on other areas of the Institution such as parking, food
services, recreation, housing, student, and health services improved operations and maintenance facility costs, e.g.,
energy efficiency, improved FCI
- Physical – criteria related to increased or decreased facility functionality, efficiency etc., such as:
effectiveness of facilities for meeting existing and new program needs
integration with existing facilities improved access and mobility flexibility to adapt to changing demands in the future
- Environmental – criteria related to the impact that the project and subsequent operations is expected to have on the local environment, such as:
increase/decrease in noise levels Increase/decrease in local traffic levels Impact on GHG emissions, waste levels etc.
- Strategic – criteria related to impact that the project and subsequent operations is expected to have on key stakeholders, such as:
government education and training goals response to industry requirements attracting research funding now or in future program or Institution prestige public/student perception of the program(s) and/or the
Institution public and private sector perception of the Province/the Ministry perception of other provincial and national Institutions
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For each viable option, compile qualitative analysis findings in a summary table. For example:
Viable Option 1: NAMESummary of Qualitative Analysis
Advantages DisadvantagesOperational Physical Environmental Strategic
Viable Option 2: NAMESummary of Qualitative Analysis
Advantages DisadvantagesOperational Physical Environmental Strategic
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5.2.3 Preliminary Financing For each viable option, identify intended sources of capital and operating
funding, including direct capital funding (e.g., provincial grants), federal grants, own resources, debt financing, private financing, disposition of surplus property, etc.
Financing must include details of conditions, associated with external funding, borrowing assumptions, and planned commercial revenues
For each source of capital financing, include a table showing the required financing draws for each year of the construction, matching the applicable categories in the cash flow forecast, as follows:
Table 5-6. Sources of Funding for Each Viable Option
Project Financing Year1
Year2
Year3 Total
Sources of FinancingDirect capital funding
Source A Source B
$ xxx $ xxx
New debt financing Source A Source B
$ xxx $ xxx
Internal financing Source A Source B
$ xxx$ xxx
$ xxx$ xxx
External financing Source A Source B
$ xxx$ xxx
$ xxx$ xxx
Total Project Financing $ xxx $ xxx
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RISK IDENTIFICATION(Inherent)
RISK RESPONSE
Risk Identification
Details
Risk Response Details
Risk Monitor &
Control
Risk Evaluation
(With Response)
Risk
ID
Life
Cycle
Risk Event Trigger / Root Cause
Consequence on Project
Performance
Not
es
Risk
Pro
babi
lity
Risk
Impa
ct
Risk
Ran
king
Stat
us
Risk
Ow
ner
Ow
ner
Org
aniz
atio
n
Risk Response
Expected Results of Risk
ResponseRe
spon
se C
ost
Due
Date
of R
isk
Resp
onse
Res
pons
e Pe
rcen
tage
Co
mpl
ete
Notes on Risk Response (progress,
effectiveness, other notes)
Prob
abili
ty w
ith
Risk
Res
pons
e
Impa
ct w
ith R
isk
Resp
onse
Risk
Ran
king
w
ith R
isk
Resp
onse
Risk Identification Risk Response
Risk Evaluation (Inherent)
5.2.4 Preliminary Risk Assessment For each viable option, update the risks identified in the initial risk register
completed in the approved Opportunity Assessment Report by evaluating the risks in terms of probability, impact, risk owner, and mitigation strategies
Include new risks, if applicable A risk register is in accordance with project management best practices as
described in the Ministry’s Risk Management Guide . Refer to CARG Template 9: Risk Register for further details and examples of risk identification and evaluation
Note that risk response, risk monitoring & control, and risk evaluation (with response) are completed in the Business Case Report and implementation phase of the proposed project
Table 5-7. Risk Register- Risk Identification & Evaluation (Inherent)
At this stage of the planning phase, Institutions should engage the Province to determine the level of oversight and approval required. Complete the Capital Project Risk Screen Tool (CARG Template 8 ).
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RESOURCES Ministry’s Risk Management Guide Ministry’s Risk Register Capital Project Risk Screen Tool (CARG
Template 8)
5.3 Step 3: Summary of Options Typically, the preferred option is the lowest net cost option on a net present
value basis. However, other considerations including those identified in the qualitative analysis, financing, and risk assessment may surface another viable option with a higher net cost as the preferred option
Summarize the results from Sections 5.1-5.2, providing advantages, disadvantages, and key findings to select a preferred option
Key Findings Viable Option 1 Viable Option 2
Net Present Value $ $
Qualitative Advantages
Qualitative Disadvantages
Financing
Risk Assessment
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6.0 CONCLUSIONS & RECOMMENDATIONS6.1 Conclusions
List major conclusions based on Section 5.0 Identify a preferred option that has been selected
6.2 Recommendations List recommended next steps, including a corresponding budget for a
comprehensive Business Case Report for the following activities:- Initial Functional Program- Indicative Design- Quantity Surveyor Cost Estimate- Geotechnical Report- Environmental Assessment- Engineering Feasibility Studies
An implementation strategy is developed for the preferred option identified in Section 6.0 Conclusions & Recommendations
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7.0 IMPLEMENTATION STRATEGY7.1 Project Delivery Models
Provide a preliminary analysis of alternate project delivery models (e.g., design-bid-build, design-build, construction management, P3, etc.)
Summarize findings to arrive at a preferred project delivery model for procurement purposes
Refer to the Project Delivery Option Analysis Tool (CARG Templates 13).
Table 7-8. Summary of Procurement Models
Project Delivery Models Advantages Disadvantages
Procurement Model 1
Procurement Model 2
Procurement Model 3
7.2 Preliminary Schedule Create a Gantt chart that identifies the expected duration of each project
phase leading to implementation
Table 7-9. Examples of Schedules Based on Project Delivery Model4
Number of Months 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40Design-Bid-Build
Tender & Award Arch./Eng'r & ConsultantsDesignTendar & Award Gen. Construction Contract 40Construction
Design-BuildTender & Award Owner's ConsultantsPrepare Design-Bid SpecificationDesign-Build Tender & AwardDesignAward Trade Contracts 36Construction
Construction Manager At Risk – GMPTender & Award Arch./Eng'r & ConsultantsDesignTender & Award GMP ContractNegotiate & Award GMP ContractTender & Award Trade Contracts 37Construction
Construction Manager – Fixed Fee (CM as Agent)Tender & Award Arch./Eng'r & ConsultantsDesignTender & Award Construction ManagerTender & Award Trade Contracts 32Construction Consturction (24 months)
T&ADesign ( 12 months)
T&AConsturction (24 months)
Consturction (24 months)
T&ADesign ( 12 months)
T&AT&A Trade Contracts
T&ADesign ( 12 months)
T&AN&A
T&A Trade Contracts
Award Trade ContractsConsturction (24 months)
T&ASpec
T&ADesign ( 12 months)
4 Projects greater than $50 M must be evaluated by Partnerships BC for public private partnership (P3) delivery. Institutions are instructed to coordinate with the Ministry for any services provided by Partnerships BC. While it is not mandatory to use PBC’s services to plan, deliver and oversee project delivery, they do offer those services. Further details about Partnerships BC can be found at http://www.partnershipsbc.ca.
Concept Plan Report |Page 20 of 24
7.3 Project Governance The appropriate project governance structure is based on the complexity and
size of the project. Figures 7-1 and 7-2 provide examples of organization charts for a small and large project
The organization structure identifies relationships and communication lines between project members, and is intended to:
- Encourage appropriate input from a wide range of sources- Facilitate timely decisions- Fulfill all Institutional and government requirements- Ensure good business practice in accordance with government contract
guidelines and financial and signing authority controls- Focus on making design and equipment decisions within the
boundaries of key project parameters such as budget, schedule and project scope
A project board may be required depending on the scope, complexity and risk profile of the project, and may include members from the Institution, the Ministry and/or Ministry of Finance. The requirement of a project board will be identified upon completion of the Capital Project Risk Screen Tool (CARG Template 8), which identifies both organizational and project risks. Whereas the Capital Project Risk Screen Tool determines the level of oversight required by the Ministry, a project risk register is project specific and is updated in each phase of the project lifecycle
Figure 7-1. Example of an Organizational Structure for a Small Project
Institution
Stakeholders
Designers Contractors Supplier
Project Manager
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Figure 7-2. Example of an Organizational Structure for a Large Project
Campus Development Committee
Board of Governors
President & Executive Committee
Project Steering Committee
Finance & Audit Committee
President’s Council Capital Projects Academic Schools & Service Units
Construction Manager
Special Consultants
Functional Programmer
Prime Consultant
Program Staff
Sub-trades
Sub-consultants (Structural, Mechanical, Electrical)
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OTHER RESOURCES FOR THE CONCEPT PLAN REPORT Approved Opportunity Assessment Report Institutional Accountability Plan & Report 5 Year Capital Plan Campus Master Plan Student full time equivalents (FTE) and space utilization rates Ministry’s Space Standards Ministry’s Budget Model BCStats Population Projections (P.E.O.P.L.E.) Provincial data on labour trends Ministry Business Plans Cross-ministry initiatives Partnerships BC Ministry’s Risk Management Guide
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APPENDICES FOR THE CONCEPT PLAN REPORTThe following should be appended to the Concept Plan: Initial Programming Information Concept Options/Drawings Engineering Pre-feasibility Studies BC Budget Model Output Quantity Surveyor Cost Estimate Capital Project Risk Screen Tool (CARG Template 8)
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