Date: June 30, Company: THE UNIVERSITY OF SOUTHERN MISSISSIPPI is considering the purchase of the following item(s). We ask that you submit

Transcription

1 REQUEST FOR BIDS/PROPOSALS COVERSHEET THE UNIVERSITY OF SOUTHERN MISSISSIPPI Procurement and Contract Services 118 College Drive #5003, Hattiesburg, Mississippi Name: Date: June 30, 2017 Bid No THIS IS NOT AN ORDER Company: THE UNIVERSITY OF SOUTHERN MISSISSIPPI is considering the purchase of the following item(s). We ask that you submit Address: your bid and retain one copy for your files. Right is reserved to accept or reject any part of your bid. Your quotation will be given City/State/Zip: TERMS - Bidder should state terms of sale. Our terms are 2% ten days, net 45 days. consideration if received in Bond Hall, Room 214 on or before: 2:00 p.m. CDT These terms will apply per Mississippi law. July 28, 2017 AWARDING CONTRACT - Cash terms will not be used as a basis for awarding contracts; however, the University will accept cash discounts when earned. Buyer: Jessica Turner NOTE: If you cannot quote on the exact material shown, please indicate any exception giving brand name and complete specifications of any alternate. If additional space is required, use a separate sheet or letter of transmittal. ITEM QUANTITY UNIT PRICE TOTAL NET PRICE DESCRIPTION RFP Loan Servicers for the provision of student loan services, which include, but are not limited to accounting, billing, in-school and out of school loan services, due diligence and collection support, reports and an interactive online system to support the administration and collection of Perkins, Nurse Faculty, and other campus based (if applicable) loan programs, as per the attached specifications/requirements. PROPOSAL MUST BE RETURNED TO THE UNIVERSITY IN A SEALED ENVELOPE. RFP NUMBER AND DATE OF BID OPENING MUST BE SHOWN ON THE OUTSIDE OF THE ENVELOPE. We quote you as above-f.o.b. The University of Southern Mississippi. Shipment can be made in N/A days from receipt of order. DATE TERMS Return quotation to Procurement Services at above address. AA/EOE/ADAI Signature Required

2 Table of Contents PART I INFORMATION FOR SERVICERS INTRODUCTION SERVICER RESPONSIBILITY CONTRACT INFORMATION TERM OF CONTRACT VOLUME ESTIMATES TERMINATION OF AGREEMENT ORAL AND/OR WRITTEN PRESENTATIONS/DEMONSTRATIONS RESERVATION ANTICIPATED SCHEDULE OF EVENTS REQUIRED SERVICES... 3 PART II PROPOSAL REQUIREMENTS INTRODUCTION SERVICES AGREEMENT SERVICE PHILOSOPHY CONVERSION ASSISTANCE TERMS AND CONDITIONS COST OF SERVICES... 8 PART III PROPOSAL SUBMISSION PROCEDURE PROPOSAL FORMAT PROPOSAL SUBMISSION PROPOSAL OPENING ADDENDA AND INTERPRETATIONS PROPRIETARY INFORMATION CAUTION TO SERVICERS PART IV EVALUATION AND SELECTION PROCESS PROPOSAL EVALUATION EVALUATION CRITERIA AND AWARD PROCESS Appendix A Appendix B... 14

3 PART I INFORMATION FOR SERVICERS 1.1 INTRODUCTION The University of Southern Mississippi is a comprehensive doctoral and researchdriven institution with a diverse student body of approximately 15,000 students. Not only is USM a haven for the arts, but the University maintains a tradition of success in both academics and athletics, offering undergraduate and graduate degrees in more than 180 programs through six degree granting colleges. A dual campus university, USM serves students on campuses in Hattiesburg and Long Beach, in addition to five teaching and research sites in Mississippi and Online at Southern Miss. The University of Southern Mississippi (referred to as both USM and the University ), is soliciting proposals from Loan Servicers for the provision of student loan services, which include, but are not limited to accounting, billing, in school and out of school loan services, due diligence and collection support, reports and an interactive online system to support the administration and collection of Perkins, Nurse Faculty, and other campus based (if applicable) loan programs. The University will utilize full service options. 1.2 SERVICER RESPONSIBILITY Servicer must agree to the following stipulations. A. The Servicer shall be financially responsible for obtaining all permits, licenses and bonding requirements to comply with all applicable city, county, state and/or federal laws and regulations and assumes liability of all applicable taxes. B. The Servicer agrees to observe and comply with federal and state laws, local laws, ordinances, orders, and regulations existing at the time of or enacted subsequent to the execution of the contract which in any manner may affect the completion of the work. The Servicer shall indemnify and save harmless The University of Southern Mississippi, and all its trustees, officers, representatives, agents and employees against any claim or liability arising from or based upon the violation of any such law, ordinance, regulation, order, or decrees by an employee, representative or subcontractor of the Servicer. D. The Servicer agrees to permit USM designated representatives and auditors access to all records pertinent to USM's relationship and transactions on an as needed basis and at mutually acceptable times. E. The Servicer agrees to provide a team of customer support for USM to resolve any problems reported as soon as possible. F. Servicer agrees it will not subcontract any of the services covered by the contract without prior written permission from The University of Southern Mississippi. Servicer agrees to disclose, in their proposal, any services to be subcontracted at contract initiation. 1.3 CONTRACT INFORMATION The requirements of this RFP, any amendments to it, the Servicer's proposal and any other official documents and correspondence will become part of the contract. Servicers will be asked to submit a sample of their proposed terms and conditions with their proposal. Servicers should take note of the following regarding the State's contracting authority, and amend any documents accordingly. Page 1

4 A. The State of Mississippi may not contract with another party: 1. To pay any penalties or charges for late payment or any penalties or charges which in fact are penalties for any reason. 2. To indemnify and defend the party for any liability and damages. 3. Upon default, to pay all sums to become due under the contract. 4. To pay damages, legal expenses, or other costs and expenses to any party. 5. To agree to any provision of a contract which violates the laws and constitution of the State of Mississippi. B. A party wishing to contract with The University of Southern Mississippi should: 1. Remove any language from its contract which grants to it any remedies other than: a. The right to possession. b. The right to accrued payment. 2. Include in its contract that the laws of the State of Mississippi govern the contract. 3. Acknowledge in its contract that contracts become effective when awarded by The University of Southern Mississippi. 1.4 TERM OF CONTRACT The initial term of this agreement shall be for one (1) year. At the end of the initial term, and at the end of each renewal term, this contract shall automatically renew for a period of one (1) year unless otherwise terminated as provided in Section VOLUME ESTIMATES The volume of transactions listed in the appendices of this RFP represent either historical data or are estimates. They in no way represent either a minimum or maximum volume commitment on the part of The University of Southern Mississippi. 1.6 TERMINATION OF AGREEMENT Either party may terminate the agreement at any time without cause by giving the other party not less than sixty (60) days prior written notice of its intent to terminate. 1.7 ORAL AND/OR WRITTEN PRESENTATIONS/DEMONSTRATIONS In the event USM deems it necessary to have the bidder further explain or demonstrate various portions of a proposal, the Servicer shall make oral and/or written presentations to comply with the requirement. USM will schedule the time and locations of each presentation. All presentations are subject to being recorded. Servicer refusal to honor the request for oral presentation may result in rejection of the proposal. 1.8 RESERVATION This RFP does not commit USM to award a contract, to pay costs incurred in the preparation of a proposal in response to this request, or to procure or contract for services or supplies. USM reserves the right to accept or reject all or any part of any proposal received as a result of the RFP, if it is in the best interest of USM to do so. 1.9 ANTICIPATED SCHEDULE OF EVENTS The following represents a tentative list of important dates concerning this RFP. Deviations from this schedule will be disseminated to potential Servicers as described in PART III, Paragraph 3.4 ADDENDA AND INTERPRETATIONS. Release RFP: June 30, 2017 Proposal Submission July 28, 2017 Contract(s) Awarded August 11, 2017 Conversion Date: November 1, 2017 Page 2

5 1.10 REQUIRED SERVICES Vendors must agree to provide the following services. USM recognizes that technological advancement may provide options for operational enhancements. A. General 1. The Servicer shall perform all phases of the loan servicing in full compliance with all established Federal and State regulations and guidelines including but not limited to: Title II of the National Defense Education Act of 1958 as amended Title VI and VII of the Public Health Act Title IV of Higher Education Act of 1965 as amended and all provisions to these acts Department of Education and Federal programs added by the Federal government Fair Debt Collection Practice Act (P.L ), Title 26, United States Code, Section 6103(m)(4) and (5)] that are applicable to addresses obtained from the internal Revenue Service and acknowledges the substantial penalties which may be assessed by using the addresses for purposes other than that of the student loan [Title 26, United States Code, Section 7213, 7217] All established Federal and State regulations and guidelines Family Educational Rights and Privacy Act (FERPA) (20 U.S.C. 1232g; 34 CFR Part 99) Gramm Leach Bliley Privacy Act (GLB) Telephone Consumer Protection Act of 1991 (TCPA) Department of Education Electronic Signatures and Reg Z disclosure requirements? 2. The Servicer must be compliant with Payment Card Industry Data Security Standards (PCI DSS) and provide an AOC (Attestation of Compliance) annually. 3. The Servicer and its employees shall represent the University in a professional manner during all deliberations and dealings with contacted borrowers. 4. The Servicer shall provide a list of three references of Institutions using similar services. Provide name and telephone number of a contact person at the Institution this is familiar with daily operations and Servicer interface. 5. The Servicer shall transfer all collected funds to the University s designated bank at an agreed upon frequency. 6. The Servicer shall provide the University with an independent audit report annually. Annual audits shall be conducted in accordance with generally accepted account principles and applicable federal rules and regulations. The Servicer shall submit their compliance audit of Attestation Examination, on an annual basis. B. Conversion [Conversion is defined as the transfer of account servicing information history and current billing and payment information from the current servicer to the new servicer awarded under this proposal.] 1. The Servicer shall provide for technical assistance, clerical expense, material expense, specific conversion programming required, and all data processing support needed to create a computer file as of the conversion date. 2. The Servicer is responsible for the full completion of the conversion (the transfer of account servicing information, history, and current billing and payment information, from the existing Servicer to the Servicer to be chosen under this RFP). Page 3

6 3. The Servicer, during the performance of the conversion, shall include an audit of all accounts and mail notification to the borrower of the change in billing services. 4. The Servicer shall provide on site training of appropriate University staff as designated by USM Business Services during the conversion period at no cost to the University. The Servicer must provide follow up training of these employees in addition to service call support for the department. 5. The Servicer shall provide all data processing support required to create a computer file as of the conversion date. 6. Upon completion of the conversion, the contractor must confirm with the borrower the status of the account using the newly created records. 7. A formal reconciliation comparing the existing loan Servicer s records to the new Servicer s records shall be prepared by the Servicer at the end of the conversion period. 8. The conversion must be completed by November 1, C. Billing 1. The Servicer must provide maintenance for enrolled accounts and the automatic movement of a loan from an enrolled status to a grace period status, based on separation data in accordance with the Federal and/or State regulations that govern the loan program. 2. The Servicer shall provide contacts with borrowers during their grace periods as required by loan program regulations. 3. The Servicer must provide for online exit interviews. 4. The Contractor must accrue interest monthly and automatically assess late charges 5. The Contractor must handle deferments, postponements, and cancellations in a timely manner with a minimum amount of effort (e.g. automatic rescheduling of loans after hardship). The Servicer must provide automatic reprocessing of accounts, defined as entering retroactive data into the system to be automatically recalculated, necessary in instances where notification of eligibility for cancellation are given late, or retroactive corrections are needed on borrower accounts. 6. The Servicer shall provide billing cycles that include at a minimum annual, quarterly, and monthly billing. The Servicer s system shall have the capability to bill for minimums prescribed by regulations (or policy) while ensuring repayment within the ten year maximum (or other specified) period. 7. The Servicer shall use the U.S. Postal Service s Forwarding and Address Correction Requested on all mailings to borrowers. 8. The Servicer shall provide a toll free (800) telephone number for use by borrowers and the University. The Servicer shall provide an account representative to handle the institution staff inquiries and shall respond to inquiries within twenty four (24) hours. 9. The Servicer shall follow up on delinquent accounts with past due notices as required by program regulations. 10. The Servicer shall support the acceleration process with Intent to Accelerate warnings and Acceleration notifications. Notices should be generated at the past due age specified by the Institution. 11. The Servicer should have the ability to interface with multiple collection agencies. Placements to the agencies chosen by the Institution must be provided on both an automatic and selected basis. Page 4

7 12. The Servicer shall provide for monthly reporting to the National credit bureau(s) selected by the Institution. 13. The Servicer shall provide reporting and updating of loan records to the National Student Loan Database (NSLDS) and National Student Loan Clearinghouse. D. Cash Collection Services 1. Servicer must deposit funds received from borrowers, upon receipt, to an account in the name of the University. The Servicer is responsible for reconciling, with research as may be necessary, the amounts deposited with the parallel transaction on the borrower s loan record. 2. Monthly bank statements detailing each transaction from the first day of the month to the last day of the month shall be sent directly to the University before the fifth day of the following month. 3. The Contractor must handle monthly electronic debiting of borrower bank accounts 4. The Contractor must automatically prorate borrower payments across multiple programs. 5. The Contractor must apply payments to collection costs and late charges before applying to principal and interest. E. Online Services Contractor must provide secure, on line, real time access to database with the following inquiring/updating: 1. Access by social security number, alpha name, and encrypted account number is required. 2. A complete history of the activity of each account in chronological order. 3. A hierarchy of security. 4. System availability between the hours of 7:00 a.m. and 7:00 p.m. 5. Daily updates of the data base. 6. Transmit the following types of updates on line or in a manual mode a. new loan/loan advances b. separations c. name/address changes d. loan number/social security number changes e. repayment schedule requests f. general file maintenance g. special messages i. payment posting F. Special Account Handling 1. The Servicer must be able to upload a monthly file of new loan advances sent by the University. The current file layout is described in Appendix B. 2. The system must handle at least three collection agency interfaces. 3. The system must identify accounts by collection agency assigned. 4. The Servicer must provide the University with all records and files pertaining to student loan accounts when required by Federal, State and University auditors. These records must be retained for ten (10) years. The University reserves the right to audit or cause to be audited the Servicer s books and accounts with the University at any time during the term of this Page 5

8 agreement and for five (5) years thereafter. The Servicer must have control procedures in place that test for compliance, reconciliation, and balancing, to ensure the integrity of the loan as transactions are processed. G. Reports 1. The Servicer must meet all federal and state reporting requirements for the loan programs. 2. Hardcopy reports generated by the Servicer, from their billing system, must be on 8 1/2 X 11 paper and also available in CD format. Monthly accounting reports, activity, and balances, must be available to the University online. The University must receive, at a minimum, the following types of monthly, quarterly and annual reports by loan type: Monthly Analysis and Summary In School/Exits/Separation Cohort Borrower Detail Collections/Delinquent Analysis Direct Payments Received Accounting Entries/Trans Totals/Reconciliation Transactions/Loans Transferred Entitlements Overview Cancellations Deferments Requires Action NSLDS Error Credit Bureau Reporting Clearing House Enrollment Borrower Snapshot Fiscal Operations Report Annual Operating Report 1098E Report ACH Monthly Activity and Manifest Coupon Billing Activity and Manifest Expected Billings and Collections Paid in Full Page 6

9 PART II PROPOSAL REQUIREMENTS 2.1 INTRODUCTION Servicers must provide the following information and completed documentation for review and evaluation. All requirements must be submitted with the proposal on or before the stated closure date. Failure to comply with this stipulation may result in the rejection of the submitted proposal. 2.2 SERVICES AGREEMENT Servicer must provide a brief narrative stating its agreement to provide, at a minimum, the services detailed in PART I, Paragraph 1.10 REQUIRED SERVICES and to meet the terms stipulated in PART I, Paragraph 1.2 SERVICER RESPONSIBILITY. 2.3 SERVICE PHILOSOPHY USM considers it essential that the selected Servicer be progressive in their business approach and committed to quality and customer service. To provide USM insight into the corporate mission of its organization, the Servicer must provide the following: A. Corporate Structure and Credentials (1) Number of years of experience (2) Organizational chart (3) A listing of customers for whom you provide similar services in size and structure, including contact information for the accounts. The listing shall also include two customers who have achieved a successful transition to your firm within the past two years and contact information for each. (4) Staffing levels and support proposed. (5) Provide information on those individuals assigned to work with USM, including a description of their experience with similar accounts. Specifically, identify one service manager to handle USM s account including his/her name, qualifications B. Operations and Ability to Perform (1) Provide operation plan. This should include, but not be limited to, acknowledgement and agreement with all requirements as well as explanations, where applicable, of the intended plan to achieve the requirements. (2) Describe how services will be provided to the campus, this should include a detailed plan for transition (if applicable) as described in 2.4 below. (3) Provide samples of one monthly and one annual report that will be available to provide all necessary information to USM (4) Proposed schedule for conversion 2.4 CONVERSION ASSISTANCE Servicer must provide a detailed description of the services that will be provided to assist in the conversion. Costs for this service should be listed on pricing schedule. 2.5 TERMS AND CONDITIONS Servicer must supply samples of any proposed agreements required to initiate the contract (s). These should be modified to reflect the requirements stated in PART I, Paragraph 1.3 CONTRACT INFORMATION. Page 7

10 2.6 COST OF SERVICES Servicer must supply a comprehensive listing of prices for services that may be incurred by USM. Prices shall not be increased during the initial term of the agreement. Any request for a price increase after the initial term must be received by the University at least 60 days prior to the expiration of the applicable term. A price increase must be executed as an amendment to the original agreement and signed by both parties. Page 8

11 PART III PROPOSAL SUBMISSION PROCEDURE 3.1 PROPOSAL FORMAT All paragraphs of PART II, PROPOSAL REQUIREMENTS, of this RFP must be responded to by the Servicer. Servicers must address each of the Required Services by category (A. General, B. Conversion, C. Billing, etc.) by providing a response. Servicer responses should contain sufficient information and/or detail for USM to determine that the Servicer has met ALL requirements listed for each, and for USM to further evaluate the merit of the Servicer's response. Your submission of a proposal indicates you can meet all requirements listed in each category unless you specify otherwise in your response. 3.2 PROPOSAL SUBMISSION Servicers must submit one (1) signed original, and one (1) copy of their proposal to the address listed below prior to the deadline established in Part III, Paragraph 3.3, PROPOSAL OPENING. Documentation and/or forms requiring additional original signed copies as specified in PART II must be submitted in the quantity and format designated to one of the addresses below. In order for your bid to be considered, it must be received and time stamped in our office by 2:00 P.M. of the bid opening date. It is the responsibility of the Servicer to ensure their bid is received within the appointed time. If your bid package is not received in Bond Hall, Room 214, by 2:00 P.M. of the bid opening date, it will not be considered. If you are delivering your bid, you need to hand carry the bid package to: The University of Southern Mississippi Procurement Services Bond Hall, Room 214 Hattiesburg, Mississippi RFP If you are mailing your bid package via U.S. Postal Service, mail to: The University of Southern Mississippi Procurement Services 118 College Drive #5003 Hattiesburg, MS RFP If you are express mailing your bid package via Federal Express or UPS, or any other delivery service which requires the use of a physical address, deliver to: Page 9 The University of Southern Mississippi

12 Receiving Department 2609 West 4 th Street Hattiesburg, MS RFP PROPOSAL OPENING Proposals MUST be received prior to 2:00 PM CDT, July 28, 2017, at which time they will be opened. Proposals must be received prior to the date and time set for opening. The officer whose duty it is to open the proposals will decide when the specified time has arrived and no proposal received thereafter will be considered. No responsibility will be attached to any officer for the premature opening of a proposal not properly addressed and identified. 3.4 ADDENDA AND INTERPRETATIONS No interpretations of the meaning of this RFP, specifications, or other pre proposal documents will be made to any Servicer orally. Every request for answers to questions or an interpretation should be in writing and delivered or submitted by (preferred) to the following: Jessica Turner, Buyer Department of Procurement and Contract Services 118 College Drive #5003, Hattiesburg, MS Attn: RFP jessica.turner@usm.edu In order for a request for answers or interpretations to be given consideration, the request must be received on or before 4:00 PM CDTJuly 17, "Interpretation Requested" and the RFP number must be clearly written on the exterior of the envelope, or in the subject line of the . Any and all such interpretations and any supplemental instructions may be issued in the form of a written addenda to the specifications if applicable to all proposers, and, if issued, will be delivered via to all prospective Servicers who have notified USM of its intent to bid on or before July 21, Failure of any Servicer to receive such addendum or interpretations shall not relieve such Servicer from any obligation under his proposal as submitted. All addenda so issued shall be posted on USM Procurement s Bid Calendar, and will become part of the contract documents. 3.5 PROPRIETARY INFORMATION Proprietary information submitted in response to this RFP must be clearly identified as proprietary, then packaged and sealed as a separate component of the proposal. Proposals and documents pertaining to the RFP become the property of USM and shall be open to public inspection after award, excluding proprietary information only to the extent exempted by law. Notwithstanding the foregoing, USM is an agency of the State of Mississippi and is subject to the Mississippi Public Records Act, Section , et seq., Miss. Code Ann. No party to this agreement shall be liable to the other party for disclosures of information required by court order or as required by law. Page 10

13 3.6 CAUTION TO SERVICERS USM reserves the right to accept or reject in part or its entirety, any proposal received as a result of the RFP if it is in the best interest of the University to do so. Proposals may be rejected for one or more of, but not limited to, the following reasons a. Failure of the Servicer to adhere to one or more of the provisions established in this RFP b. Failure of the Servicer to submit its proposal in the format specified in PART III, Paragraph 3.1, PROPOSAL FORMAT. c. Failure of the Servicer to adhere to generally accepted ethical and professional principles during the proposal and selection process. d. Failure of the Servicer to respond to a request for oral or written demonstrations or presentations. e. Failure of the Servicer to comply with the intent of any statement in this document which has the word "must", "should" or "shall" in it. f. Failure of the Servicer to have an authorized officer sign the proposal cover sheet. Page 11

14 PART IV EVALUATION AND SELECTION PROCESS 4.1 PROPOSAL EVALUATION Loan servicing proposals will be evaluated independently. 4.2 EVALUATION CRITERIA AND AWARD PROCESS a. USM reserves the right to conduct discussions with any or all respondents, or to make an award of a contract without such discussions based only on evaluation of the written proposals. USM reserves the right to contact and interview anyone connected with any past or present projects with which the respondent has been associated. USM likewise reserves the right to designate a review committee to evaluate the proposals according to the criteria set forth under this section. USM may make a written determination showing the basis upon which the award was made and such determination shall be included in the procurement file. b. USM reserves the right to award this contract in whole or in part depending on what is in the best interest of USM with USM being the sole judge thereof. c. The evaluation factors set forth in this section are described as follows and listed in the order of importance: i. Operations and Plan to Perform USM will be attempting to determine the probability of future success of the program based upon the proposer s plans for providing the service. This will include an evaluation of the breadth of services available to USM ii. On going projected operating cost to USM This shall be the anticipated annual cost to USM during the term of the contract based upon the proposal. iii. Account references and past performances iv. Implementation Cost for USM Proposal shall include all anticipated costs to USM, including but not limited to equipment, hardware, software, business process changes, and staffing. d. Upon award of contract(s), successful respondent(s) will be asked to provide a transition/conversion plan and timeline and obtain USM s input and concurrence before moving forward. Page 12

15 Appendix A The University of Southern Mississippi Current Volume as of May 2017 Date Inst Description Total Outstanding Loan Amount PERKINS Principal Balance Outstanding 05/ In-School 1,929 7,353, ,352, / In Grace Period 1,386 5,660, ,651, / Current Billing 2,954 11,482, ,328, / Past Due < 120 Days , , / Past Due > 120 Days 1,600 5,083, ,703, / Temporary Plan 7 19, , / In Collection 780 2,454, ,248, / In House Collection 2 4, , / Assigned to OE 1 3, , / Assign/Accepted 1,407 2,667, / Paid (on SLJ) 10,751 42,895, / Overpaid , , / Death , / Disability 7 16, / Bankruptcy 3 12, / Paid (not on SLJ) 25,834 56,606, / Total 47, ,734, ,908, NFLP 05/ In-School Billing , , / In Grace Period 7 92, , / Current Billing 9 147, , / Postponed 1 24, , / Past Due < 120 Days 3 51, , / Past Due > 120 Days 1 3, , / In Collection , , / Paid (on SLJ) 12 82, / Overpaid 1 3, / Total , , Chester P Freeman 05/ Current Billing 4 9, , / Past Due > 120 Days 30 70, , / In Collection 15 55, , / Paid (on SLJ) 35 64, / Death 2 11, / Paid (not on SLJ) , / Total , , Page 13

16 Page 14 Appendix B

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