Coast Guard: Status of Deepwater Fast Response Cutter Design
Efforts (23-JUN-06, GAO-06-764).
The Coast Guard has been pursing a replacement vessel for its
aging and deteriorating patrol boats as part of the Integrated
Deepwater System (or Deepwater) acquisition. Originally, all 49
of the Coast Guard's 110-foot patrol boats were to be converted
into 123-foot patrol boats as a bridging strategy until a
replacement vessel, the 140-foot Fast Response Cutter (FRC) came
on line beginning in 2018. The initial conversions of the
110-foot patrol boats proved unsuccessful, though, and this
prompted the Coast Guard to cancel further patrol boat
conversions and accelerate the design and delivery of the FRC
from 2018 to 2007. Early design efforts called for the FRC's
hull, decks, and bulkheads to be made from composite materials
rather than steel. Recently, design problems with the FRC's hull
shape and weight have raised questions about the viability of the
FRC design and use of composite materials. This report examines
(1) the factors that went into the decision to use composite
materials for the FRC hull, (2) the types of composite materials
that have been selected for the FRC hull, (3) the extent of
contingency plans developed for use if the prototype hull fails
to meet Coast Guard performance requirements, and (4) the status
of design efforts for the FRC.
-------------------------Indexing Terms-------------------------
REPORTNUM: GAO-06-764
ACCNO: A55901
TITLE: Coast Guard: Status of Deepwater Fast Response Cutter
Design Efforts
DATE: 06/23/2006
SUBJECT: Equipment upgrades
Materials research
Research and development
Ships
Strategic planning
Systems design
Fast Response Cutter
Coast Guard Integrated Deepwater System
******************************************************************
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GAO-06-764
GAO
June 2006
COAST GUARD
Status of Deepwater Fast Response Cutter Design Efforts
GAO-06-764
COAST GUARD
Status of Deepwater Fast Response Cutter Design Efforts
What GAO Found
The Deepwater system integrator, Integrated Coast Guard Systems, decided
to use composite materials for the FRC's hull because, according to
contractor analyses, use of such materials instead of steel generally
offers several advantages, including lower maintenance and life cycle
costs, a longer service life, and reduced weight. Other potential
advantages, according to the Office of Naval Research, include corrosion
prevention and decreased damage from impacts.
The current FRC design calls for the use of two types of composite
materials: (1) a solid laminate form to be used for the hull and (2) a
"sandwich" form which is to be used on decks and bulkheads. Composite
materials are not commonly used for vessels with comparable naval
operations and have not been used on any prior Coast Guard vessels.
The Coast Guard does not have a formal, documented contingency plan should
the FRC fail to meet performance requirements. However, Coast Guard
officials said it plans to pursue certain mitigation strategies, such as
repairing deteriorated hull structures and replacing obsolete or
unsupportable equipment and systems, to keep the current patrol boats
operating longer.
The Coast Guard suspended FRC design work in late February 2006 because of
design risks, such as excessive weight and horsepower requirements. To
address these and other risks, the Coast Guard is pursuing three
strategies. The first strategy involves the system integrator purchasing
design plans for and building an off-the-shelf patrol boat that could be
adapted for Coast Guard use as a way to increase patrol hours until the
FRC design is finalized. The first of these replacement patrol boats is to
be operational in late 2009. The second strategy is to revise the
necessary capabilities of the FRC in order to allow for modifications to
the current FRC design. The third strategy is to have a third party
reassess the analyses used in the decision to use composite materials for
the FRC to determine if the use of composite materials will, in fact,
reduce total ownership costs.
One of the Current Patrol Boats to Be Replaced by a Fast Response Cutter
Contents
Letter 1
Results 3
Concluding Observations 5
Agency Comments 5
Appendix I Briefing Section 7
Appendix II GAO Contacts and Staff Acknowledgments 27
Related GAO Products 28
[IMG]
Abbreviations
FRC Fast Response Cutter
GAO Government Accountability Office
ICGS Integrated Coast Guard Systems
RFI request for information
This is a work of the U.S. government and is not subject to copyright
protection in the United States. It may be reproduced and distributed in
its entirety without further permission from GAO. However, because this
work may contain copyrighted images or other material, permission from the
copyright holder may be necessary if you wish to reproduce this material
separately.
The Coast Guard converted 8 of the 110-foot patrol boats to 123-foot
boats, but discontinued further conversions because the patrol boats were
experiencing technical difficulties, such as hull buckling on the
Matagorda, and were not able to meet post-September 11, 2001 mission
requirements.
Page 1 GAO-06-764 Co
During the early design efforts, the Deepwater program's system
integrator2 proposed building the FRC's hull, decks, and bulkheads out of
composite materials rather than steel. Composite materials, as used in
shipbuilding, are typically fiber-reinforced plastic laminates consisting
of plies of various reinforcing fabrics laminated together. While design
problems with the FRC's hull shape and weight have only recently been made
public, Coast Guard engineering officials raised concerns about the
viability of the FRC design beginning in January 2005.
In response to your request, we have been reviewing and analyzing the
design efforts for the FRC. This is part of a large body of work GAO has
undertaken since 1998 regarding the Deepwater program.3 On April 12, 2006,
we briefed your offices on four topics, as follows:
o the factors that went into the decision to use composite materials for
the FRC hull,
o the types of composite materials that have been selected for the FRC
hull,
o the extent of contingency plans developed for use if the prototype
hull fails to meet Coast Guard performance requirements, and
o the status of design efforts on the FRC.
This report summarizes the findings we addressed at that briefing, as well
as provides more current information on the Coast Guard's FRC design
efforts to supplement the detailed briefing slides that we presented to
your offices. Appendix I provides a copy of those slides.
In addressing the four topics, we reviewed and analyzed a variety of Coast
Guard and contractor documents, briefings, and studies. We supplemented
these document reviews by holding discussions with officials from the
Coast Guard, the Office of Naval Research, and the Naval Surface Warfare
Center. We conducted our work from February 2006 through May 2006 in
accordance with generally accepted government auditing standards.
2
Under the Deepwater program, the Coast Guard is relying on a prime
contractor-called the system integrator-to identify and deliver the assets
needed to meet Coast Guard mission requirements.
3
Please see the Related Products section for a list of prior GAO products
on the Deepwater program.
Page 2 GAO-06-764 Coast Guard
Results
The Deepwater system integrator, Integrated Coast Guard Systems (ICGS)4
decided to use composite materials for the FRC's hull form after an
analysis of alternatives found that the use of such materials instead of
steel generally offers several advantages, such as lower maintenance and
life cycle costs, a longer service life, and reduced weight. While these
were the main reasons given for considering composites, the Coast Guard
and ICGS have also leveraged information from research performed by the
U.S. Navy's Office of Naval Research, which shows other potential
advantages, such as corrosion prevention and decreased damage from
impacts.
The current FRC design calls for the use of two types of composite
materials: (1) a solid laminate form consisting of layers of
glass-reinforced plastic and (2) a "sandwich" form consisting of two
thinner layers of glassreinforced plastic surrounding a core of either
balsa wood or synthetic foam. The solid laminate form is to be used for
the hull, which is to be constructed from a mold in a single process. The
sandwich form, which weighs less than the solid form, is to be used on
decks and bulkheads. Composite materials are not commonly used for vessels
with comparable
U.S. naval operations and have not been used on any prior Coast Guard
vessels.
Even though composite materials are not commonly used in the construction
of U.S. naval vessels used in military operations, the Coast Guard does
not have a formal, documented contingency plan should the FRC fail to meet
performance requirements. However, according to Coast Guard officials, the
Coast Guard plans to pursue certain mitigation strategies to keep the
current patrol boats operating longer, such as repairing deteriorated hull
structures and replacing obsolete or unsupportable equipment and systems.
Coast Guard officials also stated that they are pursuing the option of
selecting design plans for a patrol boat that is already on the market
that could be adapted for Coast Guard use as an interim measure until the
FRC design is finalized. In addition, according to Coast Guard officials,
the Coast Guard has taken steps designed to help ensure the FRC's
reliability. First, because the FRC is to employ composite materials for
the hull, the Coast Guard undertook a series of risk mitigation efforts,
which are often part of a naval shipbuilding program, during the FRC's
preliminary design phase. These efforts included fatigue
4
In 2002, the Coast Guard awarded a contract to ICGS as the system
integrator for the Deepwater program. ICGS is a joint venture between two
contractors-Lockheed Martin and Northrop Grumman-that in turn contract
with other subcontractors.
Page 3 GAO-06-764 Coast Guard
testing of composite material panels and joint configurations, as well as
testing a scale model of the hull, and conducting a third-party design
review. Second, the Coast Guard intends to conduct a 12-month performance
evaluation when the first FRC is delivered, though there are currently no
detailed plans as to what the evaluation will entail.
The Coast Guard suspended FRC design work in late February 2006 because of
high technical risks associated with the emerging design. In particular,
an independent design review by third-party consultants preliminarily
demonstrated, among other things, that the FRC would be far heavier and
less efficient than a typical patrol boat of similar length, in part,
because it would need four engines to meet Coast Guard speed requirements.
As a result, the Coast Guard is pursuing three strategies for moving
forward with the FRC acquisition. The first strategy involves ICGS
purchasing design plans for and building an "off-the-shelf" patrol boat as
a way to increase patrol hours currently unmet by the patrol boat fleet.
The first of these boats is projected to be ready for Coast Guard
operations in 2009. However, according to Coast Guard officials, the
off-the-shelf patrol boat may not meet Coast Guard performance
requirements. The Coast Guard issued a request for information (RFI) in
April 2006 to assess the off-the shelf options. According to Coast Guard
Deepwater Program Officials, in response to the RFI, the Coast Guard
received 26 distinct patrol boat design submissions from 17 vendors and is
currently in the process of reviewing these submissions. They further
stated that its senior leadership plans to make a decision regarding the
off-the-shelf design in September 2006. According to the Coast Guard, a
second strategy it is pursuing is to revise the necessary capabilities of
the FRC in order to allow for modifications to the current FRC design.
Concurrent with the first two strategies, the Coast Guard's third strategy
is to have a third party reassess the analyses used in the decision to use
composite materials for the FRC to determine if the use of composite
materials will, in fact, reduce total ownership costs. The result of the
Coast Guard pursuing these strategies is that the Coast Guard would end up
with two classes of FRCs. The first class of FRCs to be built would be
based on an adapted design from a patrol boat already on the market, to
expedite delivery, and a follow-on class that would be based on revisions
made to address the problems identified in the original FRC design plans.
Pursuant to these three strategies, Coast Guard officials now estimate
that the first FRC will likely not be delivered until late fiscal year
2009, at the earliest, rather than 2007 as outlined in the 2005 Revised
Deepwater Implementation Plan. Coast Guard officials have not yet
determined how changes in the design and delivery date for the FRC will
affect the overall
Page 4 GAO-06-764 Coast Guard
Concluding Observations
system of systems approach. However, because the delivery of Deepwater
assets are interdependent within this acquisition approach, schedule
slippages and uncertainties associated with potential changes in the
design and capabilities of the new assets have increased the risks that
the Coast Guard may not meet its expanded homeland security performance
requirements within given budget parameters and milestone dates.
A number of factors are tied to the uncertainty surrounding the FRC
program. First, the unanticipated problems associated with the 110-foot to
123-foot patrol boat conversion program prompted the Coast Guard to
accelerate the FRC program by more than a decade. In addition, the system
integrator has chosen to use a relatively new technology, namely composite
materials, for the FRC hull form. As of May 2006, the Coast Guard has
spent approximately $26.7 million for design and test efforts on the FRC,
although it has yet to produce a viable design. Because of this, the first
FRC will not be delivered until late fiscal year 2009, at the earliest,
rather than in fiscal year 2007 as outlined in the 2005 Deepwater Revised
Implementation Plan. This means the Coast Guard will have to continue to
rely on its aging and deteriorating patrol boats. Moreover, because of the
schedule slippage and uncertainties associated with potential changes in
the design and capabilities of the FRC, the Coast Guard has increased the
risks associated with the system-of-systems concept.
We requested comments on a draft of this report from the Department of
Homeland Security. The Department referred to the U.S. Coast Guard which
generally concurred with the findings of the report and provided technical
comments, which have been incorporated into the report as appropriate.
We are providing copies of this report to the Secretary of the Department
of Homeland Security, the Commandant of the U.S. Coast Guard, and
interested congressional committees. This report will also be made
available to others upon request. In addition, the report will be made
available at no charge on GAO's Web site at http://www.gao.gov.
For information about this report, please contact me at (202) 512-9610, or
[email protected] . Contact points for our Offices of Congressional
Relations and Public Affairs may be found on the last page of this report.
Stephen L. Caldwell
Acting Director, Homeland Security and Justice Issues
This appendix contains the briefings slides presented to your staffs on
April 12, 2006. While we have not modified the briefing slides, we have
provided updated information in the accompanying letter regarding the
Coast Guard's three strategies and cost information in an effort to
provide the most current information. For example, slides 17 and 18
provide information on the Coast Guard's strategies to move forward with
the FRC acquisition and associated program cost data but the letter
provides updated information.
U.S. Coast Guard's Fast Response
Cutter: Status of Design
Presented to House Appropriations
Subcommittee on Homeland Security
April 12, 2006
Introduction
The Fast Response Cutter (FRC) is slated to replace the 110' and 123'
patrol boats under the Deepwater system
The FRC is projected to provide greater speed, endurance, and operational
hours than current patrol boats
As of the 2006 update submitted with the Administration's fiscal year 2007
budget request, the Coast Guard plans to acquire 58 FRCs
Researchable Questions
o What factors went into the decision to use composite materials for the
FRC hull form?
o What types of composite materials have been selected for the FRC hull
form?
o What contingency plans have been formulated should the prototype hull
form fail to meet Coast Guard performance requirements?
o What is the status of the FRC design?
GAO's Approach
* Reviewed the decision to use composite materials for the FRC hull
form, to include:
o Relevant Coast Guard and contractor documents, trade studies,
and briefings
o Discussions with staff from the Coast Guard's Deepwater
Program and the Engineering Logistics Center, the Office of
Naval Research, and the Naval Surface Warfare Center
* Reviewed the decision regarding the types of composites to be used
on the FRC hull form, to include:
o Relevant Coast Guard and contractor documents and trade
studies
o Discussions with staff from the Coast Guard's Deepwater
Program, as well as an Office of Naval Research official
o Discussed Coast Guard mitigation efforts and contingency plans with
relevant Coast Guard Deepwater Program and test and evaluation
officials
GAO's Approach
* Reviewed the current status of the FRC design effort, to include:
o Coast Guard documents, studies, briefings; contractor
documents and briefings; and independent design review
materials
o Discussions with Coast Guard Deepwater Program and Engineering
and Logistics Center officials
o We conducted our work between February and April 2006 in accordance
with generally accepted governmental auditing standards
Briefing Overview
o Decision to use composite materials for the FRC hull form
o Types of composite materials planned for use on the FRC hull form
o Risk mitigation and contingency plans should the first hull form fail
to meet Coast Guard's performance requirements
o Recent history of FRC design concerns
o FRC re-design options
o FRC program costs to date
Decision to use Composite Materials for the FRC
In July 2004, Integrated Coast Guard Systems (ICGS) decided to use
composite materials for the FRC hull form
o ICGS's analysis of alternatives for the FRC found that the use of
composite materials instead of steel offered advantages such as:
o Reduced Total Ownership Costs
o Increased operational availability (extended time between depot-level
maintenance, decreased maintenance requirements)
o Increased performance through weight savings (higher speed, extended
range)
An official with the Office of Naval Research (ONR) also cited additional
advantages such as:
o Corrosion prevention
o Impact damage - less likely than steel to result in a hole in the
cutter
Decision to use Composite Materials for the FRC
* According to ONR, some examples of successful use of composite
material hulls include:
o European naval vessels including British, Dutch, Swedish
o U.S. Navy Minesweepers
* However, a Naval Surface Warfare Center official also cited the
following disadvantages of using composite versus steel materials:
o Far less stiff than a steel hull, thereby making it more
likely to bend under weight
o Level of confidence in performance and service experience less
than that of steel
Risk Mitigation and Contingency Plans
Risk mitigation efforts during the Preliminary Design Phase (January
2005-February 2006) included:
o Model testing of the current design
o Independent Design Review (IDR) of the FRC design
o Testing of proposed composite material panels and joint configurations
Because of potential use of composite materials, Coast Guard intends to
conduct a 12-month performance evaluation on the first FRC before
ordering follow-on cutters
o Although the first FRC was to be delivered in 2007, per the revised
2005
Deepwater plan, there are currently no detailed plans as to what this
evaluation will entail
While there is no documented contingency plan, according to a Coast
Guard Deepwater Program official, should the first FRC fail to meet
performance requirements, the Coast Guard would pursue further
sustainment of the current 110-ft patrol boat fleet while reviewing
other alternatives to reduce risk by exploring existing designs
Recent History of FRC Design Concerns
Concerns about the FRC design have been raised since January 2005
o January 2005
o Coast Guard Engineering Logistics Center (ELC) provided significant
comments to ICGS's initial Concept Design Report, outlining concerns about
the hull form, potential speed, and propulsion plant studies, among others
o April 2005
* Coast Guard Deepwater Program Office and ICGS held a Systems
* Requirements Review
o Coast Guard Deepwater Program Office focused on weight reduction
strategies, with little to no attention on design concerns
o May 2005
o Coast Guard ELC published a white paper formally outlining design
concerns,
such as the design process, estimated weight increases, hull form and
propulsion
o According to Deepwater Program officials, they acknowledged ELC's
concerns
and determined further testing was necessary to validate them
Recent History of FRC Design Concerns
* August 2005
o Due to its continued design concerns, Coast Guard Deepwater
Program Office asked for an IDR
o ICGS contracted with John J. McMullen & Associates to perform
an IDR
* September 2005
o Coast Guard Deepwater Program Office and ICGS held a
Preliminary Design Review (PDR) and ICGS was authorized to
award a contract for detailed design
o PDR considered by Coast Guard Deepwater Program Office to be
"successful" because ICGS met contractual requirements
o October 6, 2005
o After PDR, Coast Guard Deepwater Program Office sent a letter to ICGS
highlighting design concerns such as the hull design and inconsistent
total ownership cost data, to be addressed prior to Critical Design Review
Recent History of FRC Design Concerns
o January 2006
o Due to preliminary model test observations ICGS identified cavitation
(which can lead to engine inefficiencies and potential structural damage)
as a concern with the FRC's hull form and presented an issue paper and
briefing to Coast Guard officials
o Coast Guard authorized additional testing to explore potential cavitation
problems
o February 14, 2006
o John J. McMullen & Associates provided a briefing on preliminary IDR
results that, among other things, noted:
o FRC preliminary design was unlike those typically found for patrol
boats. For example, at 330 tons, FRC is 52% heavier than a standard
patrol boat of similar length; thereby driving hull proportions, required
power, structural design, fuel load and costs.
o IDR preliminary results validated concerns raised in ELC's May 2005
white
paper, as well as the initial concerns raised in early 2005
Recent History of FRC Design Concerns
o February 28, 2006
* According to Coast Guard Deepwater Program Office, FRC design work
has been temporarily suspended because of high technical risks
associated with current design
* o Risks include excessive weight, excessive horse power, and the
likelihood of additional problems
o According to the Coast Guard Deepwater Program Office, ICGS maintains
that its FRC design has met contractual requirements and is
withholding any judgment about the design until final IDR and model
test results are available
FRC Re-design Options
The Coast Guard is pursuing three strategies to mitigate FRC design
technical risks
o Market survey
* ICGS would purchase an "off-the-shelf" patrol boat design and if
necessary,
* make modifications to meet Coast Guard requirements
o The Coast Guard recently released a request for information to obtain
data
about the state of the market for proven patrol boat designs
o Modify current design
o Coast Guard would revise planned FRC capabilities to allow for
alterations to
the FRC design
o Re-assessment of the composite versus metal business case analysis
o Coast Guard would have a third party reassess the composite v. metal
business case analysis to determine if the use of composite materials is
still
appropriate in terms of Total Ownership Cost
Estimated delivery date of first FRC: 4th quarter fiscal year 2009 or 4th
quarter fiscal year 2010
* Please see pages 1 and 4 for updated information. 17
FRC Program Costs To Date
o Costs of FRC design efforts to date
o Costs of all FRC test efforts to date
o Fiscal Year 2007 budget request includes approximately $41.6 million
for production of the first FRC
FRC design efforts Total Total expenditures Percent
obligations unexpended
Concept & preliminary design $18,504,593 $17,250,000 7%
Proposal preparation for Long
Lead Time Materials $76,380 $67,065 12%
Contract & detail design $14,520,000 $6,390,000 56%
Proposal preparation for
contract & detail design $1,441,036 $611,991 58%
Total $34,542,009 $24,319,056 30%
Total Total Percent
FRC test efforts obligations expenditures unexpended
Composite material
testing $1,830,289 $455,000 75%
Hydrodynamic model
testing $1,989,782 $230,000 88%
Total $3,820,071 $685,000 82%
* Please see page 3 for updated cost information. 18
Concluding Observations
o The Coast Guard has expended about $25 million and does not have a
viable FRC design to date
o Because the first FRC may not be delivered until fiscal year 2009 or
fiscal year 2010, the Coast Guard has lost time in acquiring the new
capabilities it needs in a post 9/11 environment
o The longer it takes for the Coast Guard and ICGS to get an acceptable
replacement for the 110-ft and 123-ft patrol boat fleets, the more the
Coast Guard will have to rely on aging, deteriorating vessels
o The Coast Guard may have increased the risks associated with the
"system of systems" concept due to schedule slippages and
uncertainties associated with potential changes in the design and
capabilities of the replacement assets
Steve Caldwell (202) 512-8777 or [email protected]
GAO Contact
In addition to the contact named above, Steve Calvo, Assistant Director;
Staff
Christopher Conrad, Adam Couvillion, Julie Leetch, and Acknowledgments
Stan Stenersen made key contributions to this report.
United States Coast Guard: Improvements Needed in Management & Oversight
of Rescue System Acquisition, GAO-06-623 (Washington, D.C.: May 31, 2006).
Coast Guard: Changes to Deepwater Plan Appear Sound, and Program
Management Has Improved, but Continued Monitoring is Warranted,
GAO-06-546 (Washington, D.C.: April 28, 2006).
Coast Guard: Progress Being Made on Addressing Deepwater Legacy Asset
Condition Issues and Program Management, but Acquisition Challenges
Remain, GAO-05-757 (Washington, D.C.: July 22, 2005).
Coast Guard: Preliminary Observations on the Condition of Deepwater Legacy
Assets and Acquisition Management Challenges, GAO-05-651T (Washington,
D.C.: June 21, 2005).
Coast Guard: Preliminary Observations on the Condition of Deepwater Legacy
Assets and Acquisition Management Challenges, GAO-05-307T (Washington,
D.C.: April 20, 2005).
Coast Guard: Observations and Agency Priorities in Fiscal Year 2006 Budget
Request, GAO-05-364T (Washington, D.C.: March 17, 2005).
Coast Guard: Deepwater Program Acquisition Schedule Update Needed,
GAO-04-695 (Washington, D.C.: June 14, 2004).
Coast Guard: Key Management and Budget Challenges for Fiscal Year 2005 and
Beyond, GAO-04-636T (Washington, D.C.: April 7, 2004).
Coast Guard: Replacement of HH-65 Helicopter Engine, GAO-04-595
(Washington, D.C.: March 24, 2004).
Contract Management: Coast Guard's Deepwater Program Needs Increased
Attention to Management and Contractor Oversight, GAO-04-380 (Washington,
D.C.: March 9, 2004).
Coast Guard: Challenges during the Transition to the Department of
Homeland Security, GAO- 03-594T (Washington, D.C.: April 1, 2003).
Coast Guard: Comprehensive Blueprint Needed to Balance and Monitor
Resource Use and Measure Performance for All Missions, GAO-03-544T
(Washington, D.C.: March 12, 2003).
Page 28 GAO-06-764 Coast Guard
Coast Guard: Strategy Needed for Setting and Monitoring Levels of Effort
for All Missions, GAO-03-155 (Washington, D.C.: Nov. 12, 2002).
Coast Guard: Actions Needed to Mitigate Deepwater Project Risks,
GAO-01-659T (Washington, D.C.: May 3, 2001).
Coast Guard: Progress Being Made on Deepwater Project, but Risks Remain,
GAO-01-564 (Washington, D.C.: May 2, 2001).
Coast Guard: Budget Challenges for 2001 and Beyond, GAO/T-RCED-00-103
(Washington, D.C.: March 15, 2000).
Coast Guard's Acquisition Management: Deepwater Project's Justification
and Affordability Need to Be Addressed More Thoroughly, GAO/ RCED-99-6
(Washington, D.C.: Oct. 26, 1998)
(440512)
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