Clear thinking

Learn how to improve your proposals and win more business.

Defending your price

 August 20, 2019
by Paul Heron

Last week we made the case for including a pricing executive summary in proposals. The aim is to show your offer was carefully developed, and is realistic and more attractive than alternatives.

This post shows how to make that summary easy to consume and responsive to your prospect’s issues.

Organizing your cost/price summary

Structure the summary around 3-5 themes important to your prospect. Themes vary by industry and project type, but common examples include price reasonableness, total cost of ownership, costs aligned to progress payments, risk of overruns and/or non-performance, return on investment, etc.

Present the information at a high level and aim for a 50/50 balance of text and visuals.

Rich visualization gives evaluators fresh perspectives on your price and builds comfort. Your goal is to make the evaluator’s job easier, not to complicate it.

Cost/price presentation examples

Use these examples to stimulate your thinking, and then decide what will work best in your situation.

  • Over time: Show costs broken out by major milestones and/or project segments
    Purpose: To show affordability, alignment with progress payments and/or possible divisions between budget categories (e.g. capital vs. expense items).

  • Compared with similar projects: Use a table and visual to present costs of recent projects of similar size and scope to the current project.
    Purpose: To show price is realistic and competitive
  • How estimated: Diagram your estimating process
    Purpose: To reinforce that your price is cost-based and carefully calculated, so the prospect understands your price is realistic and any contracting negotiations must be logic-based.
  • By subcontractor: Use a pie chart to show the relative size of contracted segments, together with information on each contractor.
    Purpose: To show how costs are allocated, emphasize competitive selection process, contractor capability and low non-performance risk.

  • Including trade-offs: Use a table to show options and how each decision impacted cost and price
    Purpose: To show how cost/price decisions align with the prospect’s strategic drivers and hot button issues. Also use to ghost competitors’ price offers.
  • Return on investment: Use a graph to show value added, compared to project costs
    Purpose: Where your solution will increase sales or reduce costs, to show a comparison of costs and related profits/savings over time

Add a selling caption

For each visual, include a selling caption to stress the benefits it conveys. Write these so they can be cut-and-pasted into an evaluator’s summary.

Here’s a post on writing selling captions in proposals.

The payoff: Better contracting conversations

In the absence of cost calculations, market comparisons or alternatives considered, your prospect has little basis for negotiation other than “your price seems high.”

A strong summary will help prospects see you as a responsible and reasonable vendor, willing to share information and seeking a fair deal.

This is to your advantage, whether you want to avoid turning an informal opportunity into an open competition, or in a formal bid situation where final selection is subject to successful contracting.

Next week: Positioning your price

       

Need help presenting price information in complex proposals?

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Paul Heron, MBA, is the founder and managing partner of Complex2Clear, and leads our bid response practice. LinkedIn 

 

 

  

Pricing executive summary

 August 13, 2019
by Paul Heron

Because price matters so much, it makes sense to invest in presenting it as favourably as possible. Despite this, many companies relegate price to a single number at the back of informal proposals and submit only the issuer-supplied pricing forms in formal bids.

A better strategy is to give your price the prominence it deserves.

Price-included proposals

Informal proposals (solicited without an RFP process), and many private sector RFPs, call for a single document that includes both the solution and price. In these cases:

  • Include your price in the executive summary. The belief that burying the price quote will force your buyer to read the proposal is false. He or she will read a page or two at most, then flip to the back to find the price. That brings us to the next point.
  • Present your price favourably. Use the executive summary to telegraph that your quoted price is logic-based and competitive, and then make the detailed case in the pricing section.

Remember: Almost always, the person who solicited your informal proposal needs internal buy-in for the purchase. Anything you can do to help—and avoid involving other vendors—is worth the effort.

Two-envelope proposals

Include a summary with your price submission in all large RFPs. Do this unless the RFP specifically forbids including additional material in the price binder.

This practice has at least three benefits:

  • Creates an executive summary for senior decision makers. Senior people seldom read pricing tables, which are often highly technical and complex. A plain language summary, including visualization, increases your chances of getting senior-level attention to price.
  • Sets up a positive evaluation. A well-crafted summary creates context and positions your price as carefully reasoned and organized.
  • Makes it easy for evaluators. The team evaluating prices on complex RFPs usually need to prepare a written summary with their recommendations. An ideal way to think of your summary is as cut-and-paste content for evaluators to include in theirs.

Stay client-focused

The goal in your informal proposal is to close the sale without involving competitors. In a formal RFP response, you want to show your price covers all requirements, is reasonable and realistic, minimizes risk and includes trade-offs that best address the prospect’s needs and issues.

In both cases, keep your prospect in mind when presenting your price.

 

Next week: Visualizing your pricing and costs.

 

Want to add a cost-price summary to your next bid?

Contact Complex2Clear 

 

Photo credit

 


Paul Heron, MBA, is the founder and managing partner of Complex2Clear, and leads our bid response practice. LinkedIn 

 

 

  

The importance of price

 August 6, 2019
by Paul Heron

Although our posts focus mainly on differentiating and presenting your proposal’s technical offer, we’d never suggest price is unimportant.

Even in the case of two-envelope RFPs, where prices are revealed only after the narratives are scored, price looms large in the final decision. This is true even when the narrative sections are weighted at more than 50% of the total.

The chart below shows the narrative points advantage you need to prevail (expressed as a percentage of the total) if your price is anywhere up to 10% higher at various weightings.

In competitive situations, bidders are unlikely to overcome a price disadvantage of 5% or more.

Favouring price

If a buyer is determined to award to the lowest priced bidder—whether due to budget pressures, or to avoid protests or public scrutiny—there are at least three ways to accomplish this.

  1. Adjust technical scores after the price envelopes are opened (This is unfair and/or illegal—but it happens.)
  2. Score the technical narratives in a very narrow range, so the lowest price is likely to prevail, despite the relative weighting scheme
  3. Structure the RFP rules so the lowest qualified bid wins

The good news is, most buyers are looking for value and strategic fit, not just the lowest price.

Also, nearly every bid we’ve supported has been run fairly. In fact, evaluation teams for large government bids typically include an independent monitor responsible for ensuring a fair process.

Still, as a key element of your offer, price deserves the same attention to expressing value as do the sections devoted to your understanding, solution, experience, team and implementation plan.

Presenting and positioning and your price

This month, we’ll look at ways to help evaluators understand how you reached your price, why it is reasonable—and proof you can deliver within it. This will include ideas in two areas:

  • Presenting: Most bidders limit price presentation to completing the issuer-supplied forms. But—especially for multi-phase projects and complex blended pricing situations—we’ll suggest other approaches.
  • Positioning: Every technical narrative reflects choices made when developing an offer. Many of these will differ from your competitors’ decisions and will impact price. It’s important to make your trade-offs visible and to justify them.

Added benefit: By making the effort to present and position your price, you and your team will gain new perspectives on decision making that impacts costs and pricing. This may well lead to adjustments in your process that improve your chances of winning.

Next week: Pricing executive summary

 

Need to do a better job of presenting price in your proposals?

Contact Complex2Clear

 

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Paul Heron, MBA, is the founder and managing partner of Complex2Clear, and leads our bid response practice. LinkedIn 

 

 

  

Managing the final stretch

 July 30, 2019
by Paul Heron

This month’s series explains how to manage large narratives to submission. Recent posts focused on preparing proposal writers for success, pre-Red Team management, and running a Red Team review. This post provides guidance for managing from Red Team to submission.

Immediately following Red Team, provide section leads with annotated narrative(s), and confirm they understand and have committed to making required updates.

Pens down

During or before the Red Team review, set and communicate a “pens down” date. This is the point at which all post-Red Team updates are due. For most proposals, assuming pre-review narratives were largely complete and compliant, section leads should require less than a week to submit for pens down.

Copy editing and proofing

Following pens down, the core team copyedits the narratives for smoothness, grammar, one-voicing and consistency in the use of acronyms, short forms and capitalization. This is often an intense period—but nothing like the panicky efforts to rewrite entire sections that often characterize poorly managed proposals.

Editors should identify instances where Red Team input was not integrated, and/or where content is unclear. When these flaws are found, do not send the sections back to the authors. Instead, retain control of the narrative, by sending a snippet and question via email or using screen-share to make the correction. This is faster and reduces the chance of corrupting a nearly perfected document.

Gold Team review

A Gold Team review, typically by senior executives, is standard for most teams. It aims to confirm the offer aligns with the requirements, is viable, and entails an acceptable balance of risk and reward. If the proposal has been well managed, with a sound strategy, clarity on requirements and well managed reviews, there should be no surprises at Gold Team.

Final tweaks and preparation for submission

Correct any flaws identified at Gold Team and prepare the proposal for upload as text or PDF(s) to the issuer’s portal, or for printing and binding. If printing, have the printer make one copy and do a page-flip with the core team to catch production flaws before printing and binding.

The time scheduled between Gold Team and submission depends on the size of the proposal, the submission requirements—and, of course, your confidence the Gold Team reviewers won’t suddenly have second thoughts about some major aspect(s) of the proposal.

Careful management pays off

This month’s posts describe in a general way how we support our clients in managing proposals for large contracts. The logic is self-evident—before you unleash dozens (or hundreds) of individuals in a high-stakes, time-constrained proposal effort, it only makes sense to communicate a clear strategy, have a plan to manage them closely, and conduct formal progress reviews.

If you base your process on this month’s posts, you’ll see upcoming submission deadlines as a time to celebrate, not panic.

 

 

Need help with proposal processes?

Contact Complex2Clear

 

 

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Paul Heron, MBA, is the founder and managing partner of Complex2Clear, and leads our bid response practice. LinkedIn 

 

 

  

Managing a Red Team review

 July 23, 2019
by Paul Heron

This month’s series explains how to manage large proposal narratives to submission. Recent posts focused on preparing proposal writers for success and pre-Red Team management. This post provides guidance on running a Red Team review session.

Red Team review input

As advised in last week’s post, send all participants the annotated sections in MS Word or PDF format at least two days before the review. Include a clear expectation that reviewers read and be familiar with the content prior to the review.

Review process

Use the following steps as a starting point and modify to suit your situation:

  • Welcome participants and thank them for their efforts to date. Confirm everyone has received the content
  • Remind everyone of the status of the narratives—leaders have reviewed content against RFP and strategy to identify gaps or confusing content that will not score well and visualization opportunities for discussion during review
  • Establish the order of sections. Start with big picture sections as a warm-up, but then move to any particularly complex or problematic sections to take advantage of morning energy, scheduling less challenging sections for after lunch
  • Remind everyone of the purpose: To ensure responses answer the questions and identify opportunities to improve clarity, responsiveness and competitive positioning. Red Team is not a forum for copy tweaking
  • Set ground rules: No slowing down for people who haven’t read sections; session leader will suggest taking discussions offline after 4-5 minutes; content leads should understand and agree with all decisions and commitments made
  • Explain work that will be done after the review. Assure participants that all content will be edited for grammar, consistency and one voice to achieve a finished product
  • Begin review, making sure all commitments are recorded and annotations understood by those responsible
  • Break after 75-90 minutes to assess progress

Technology

Project the current section in MS Word and live edit the annotations, so all attendees can follow and see the results of their input and evidence of assignments and commitments made.

Consider using a second screen on which you can keep the RFP, org chart, ATOC open for easy access.

Unified or multi-part reviews?

We’re often asked whether everyone needs to be present for all sections. Is it not more efficient to conduct a review with just the author(s) for each individual section? The answer depends on the situation. Use the following for guidance in deciding:

  • RFQ responses, which are fairly short and aim to present a unified team and strategy, are best reviewed by the entire team to ensure no opportunities for fresh thinking, cross-section references and strategic consistency are missed
  • Conversely, very large consortium RFP responses are almost always reviewed in rolling reviews, due to the volume of material to cover, the number of authors, and the time it takes to annotate and prepare content for review
  • Single-company RFP responses, where everyone is familiar with the solution and have developed several proposals together, are also candidates for multi-part reviews
  • Generally, the more one section’s content directly affects other sections, the stronger is the case for reviewing them together; also unified reviews offer the greatest opportunities for fresh thinking, and avoiding group think—assuming participants are fully engaged

Always do a Red Team review

Do not skip the Red Team review step in developing proposals. With proper preparation and management, this review allows you to make major course corrections and improvements while there is still time before submission.

Next week: Managing the final stretch

 

 

 

Need help with proposal processes?

Contact Complex2Clear

 

 

Photo credit


Paul Heron, MBA, is the founder and managing partner of Complex2Clear, and leads our bid response practice. LinkedIn 

 

 

  

Pre-Red Team management

 July 16, 2019
by Paul Heron

This month’s series explains how to manage large narratives. Last week we focussed on preparing proposal writers for success. Today’s post includes tools and processes for managing the period from kickoff to Red Team review.

Red Team review planning

NOTE: The points below assume narratives total 200 pages or less, and the response window is 45-60 days. Adjust for larger or smaller responses and submission times. For much larger narratives, consider scheduling multiple Red Teams or plan a multi-day review.

  • Time the review for about halfway through the response window
  • Issue invitations early for an all-day, in-person session
  • Invite the proposal manager, capture manager and section leads
  • Set a content submission deadline 4-6 days ahead of the review
  • Specify that submitted narratives be at least 70 percent complete

Pink Team review

If the schedule permits and especially if requirements are complex, consider scheduling a bullet point or Pink Team review between kickoff and Red Team. To prepare, ask writers to analyse their sections and provide their analyses and proposed responses in point form. For all but very large responses, conduct review sessions virtually and/or one-on-one. Focus on ensuring writers are clear on structure and compliance before they begin drafting.

Triaging submitted content

Analyse pre-Red Team submissions when received and return or escalate sections that are not 70 percent or more complete and/or that are non-compliant. Include notes explaining your decision. Fast turnaround increases the chances of getting acceptable content back in time for Red Team.

Structural editing

Due to time constraints, and because reviewers’ input often results in wholesale changes, do not invest in copyediting content at this stage. Focus annotations on recommended cuts to irrelevant or non-responsive content and missing information and opportunities to improve compliance, logical flow, convert plain text to tables, graphics, mini-case studies etc., and to add strategic messaging.

Circulating documents for Red Team

Assemble annotated narratives into a Word or PDF document and distribute to all reviewers at least two days before the review. In your distribution email, set the expectation that reviewers will have read the narratives before the review session.

Payoff

These investments in supporting writers and making clear and thoughtful annotations enable more successful Red Team reviews and create early momentum towards a complete, compliant and strategic response.

Next week: Managing the Red Team Review

 

Need help with proposal processes?

Contact Complex2Clear

 

 

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Paul Heron, MBA, is the founder and managing partner of Complex2Clear, and leads our bid response practice. LinkedIn 

 

 

  

Preparing narrative writers

 July 9, 2019
by Paul Heron

This month’s blog series explores managing large narratives. This post explains how to set up proposal writers to be successful.Most content developers are not professional writers. They typically have other responsibilities as their main focus and fit proposal writing in among those other tasks. When assigned a set of RFP questions, they’re likely to reuse existing content, borrow from supplier marketing material, or find other workarounds to avoid drafting original copy.

The most effective way to counter these inclinations is with tools and processes that establish expectations and make it easier to write compelling responses. Main items include:

Proposal strategy

Share your team’s win strategy with content developers to build coherence and consistency across sections. Aim for a document that goes beyond one-liners (We’re local! We have experience!) but is concise (one-to-three pages), so writers will read it. Include section-level win themes or strategy statements, so each writer understands how the strategy should be expressed in his or her content. For details, see this post on proposal strategy making.

Templates and prompts

A well-built template enables writers to easily understand the structure of their sections and to avoid wasting time replying to unscored questions (as often happens), omitting key points, or misunderstanding how their responses should be structured. Include defined styles for all types of content required (body copy, main heads, multiple subheads, captions, callouts, tables, two-level bullet lists, numbered lists, etc.). We’ll devote a future post to templates.

Prompts are the single most helpful tool you can give writers. Each should address a single question and include elements of a complete response and guidance on structure. For example, for the question, “Provide staffing details for the operations team,” the prompt might read: Structure this as a table, with a row for each role and columns for Responsibilities, Head count, Shifts, Reports to. Asterisk key individuals and refer in text to subsection containing resumes. If space permits, include a snippet of the org chart showing the operations team.

Style guide

We customize our in-house style guide for each opportunity, mainly for use by our editors. We provide writers with items they are most likely to use, including naming conventions and short forms for the proposal consortium and teams (Design-Build Team, etc.), RFP sponsor and reference projects; abbreviations for measurements, dates, etc., and capitalization rules. Editing time is reduced to the extent drafters observe these guidelines.

Storyboards

For tightly page-limited proposals, section storyboards can be very helpful in deciding how to use the pages allotted for responses. We use these especially in RFQ responses.

Kickoff

Take time to prepare and run a kickoff that will help writers understand the importance of the pursuit, expectations for their roles and the schedule and protocols for managing content. See this series of posts on proposal kickoff goals, preparation, people and agenda.

Organization and management tools

Although not the focus of this month’s posts, you’ll need the following two tools to manage any large proposal

  • Project schedule: Include all key dates to submission, including kickoff, submission deadlines ahead of reviews, review dates, print deadlines, etc.
  • ATOC: We use an annotated table of contents (ATOC) in the form of an Excel worksheet as a responsibilities matrix and deliverables tracker. A second worksheet contains contact information for all team members, and a third contains a calendar-format picture of the project schedule key dates.

Why invest this effort in preparing writers?

Properly prepared, most writers will produce compliant and responsive first drafts, which can then be managed in an orderly way to completion. Without preparation (and we see this all the time), drafts are all over the map, resulting in a small group working nights and weekends near the deadline to deliver a proposal with which no one is happy.

Next week: Pre-Red Team management

 

Need help managing large proposals?

Contact Complex2Clear

 

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Paul Heron, MBA, is the founder and managing partner of Complex2Clear, and leads our bid response practice. LinkedIn 

 

 

  

Managing large narratives

 July 2, 2019
by Paul Heron

Good management practice gets the proposal writing team aligned at the outset, and then reviews and provides helpful feedback on drafts at key milestones to submission. This approach is especially critical to achieving logical consistency and one voice in large responses where proposal teams often include individuals working remotely and for multiple entities.

Upcoming posts will cover key steps in narrative management, including:

  • Preparing writers for success
  • Pre-Red Team management
  • Managing Red Team reviews
  • Red Team to submission

Basic ingredients for success

In addition to careful management, successful proposals express strategy and reader focus. For guidance on these two components and links to learn more, see below.

Strategy: We’ve written dozens of posts on strategy. Bottom line: You need to develop a cogent win strategy before kicking off content development. Your strategy needs to:

Even in the tightest of response windows, time spent on developing and expressing strategy is well-spent.

Reader focus: Strategy expresses client focus at the business-level—but a proposal also needs to appeal to individual evaluators and decision makers. Personal knowledge of the prospect organization is the gold standard. For this reason, business developers pursuing large procurements can spend years building relationships with the individuals in the prospect organization. Whether or not you have the benefit of that insight, recognize that:

  • Evaluators are typically recruited to the task from their normal duties and may not be fully engaged. They often use a scoring guide to quickly skim content looking for scorable facts and benefits that might qualify for bonus points. Use this awareness to manage content towards plain English. When applicable, structure content into bullet points and tables and use visualization to make key benefits and differentiators stand out.
  • In addition to personal preferences, evaluators will assume different roles as economic buyers, technical buyers and user buyers. In managing content, subject responses to these different perspectives to avoid gaps in your sales argument.
  • Expect every reader to continually ask, “What’s in it for me?” Apply this WIIFM test to all content and prepare to brutally excise verbiage (no matter how elegantly written) that qualifies as mere filler without answering the question. NOTE: Often one question’s filler can be re-deployed as another’s response.

Remember the goals

A successful proposal uses resources efficiently, meets the deadline and makes the best possible case for your team and solution. Achieving this—especially when the team involves many members—requires close management, as much the quality of the offer itself.

Next week: Setting up writers for success

 

Need help developing stronger proposals?

Contact Complex2Clear

 

 

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Paul Heron, MBA, is the founder and managing partner of Complex2Clear, and leads our bid response practice. LinkedIn 

 

 

  

Win-loss review analyses

 June 25, 2019
by Paul Heron

Recent posts have focused on setting up a bid win-loss review process, conducting bid win-loss interviews and reporting on bid win-loss reviews.

Companies conducting large numbers of reviews per year should also consider using win-loss analyses to aggregate review data to see performance patterns and trends. This post will show you how to get started.

Create headers

  • Brainstorm all the parameters against which you might want to analyze results. Examples of common header items include:
  • Bid review tracking number (if used)
  • Bid/No bid decision score (if known)
  • Result (win or loss)
  • Winner
  • Incumbent (use a code for each key competitor)
  • Product category
  • Sales territory
  • Client type (e.g. by industrial category)
  • Pre-RFP sales contact
  • Degree to which you were able to shape the RFP
  • Prospect is/is not a current client

NOTE: The headers you choose will determine the ways you can sort bid results to see what’s happening. Selecting header items is an important step with long-term consequences. While you can always add new headers later, you will only be able to use those new items to analyze future bids—unless you go back and reconstruct historical header data.

Now, add placeholders for the header items to your review format, so you collect all header items each time you perform a review. Assign a code to each header item, using letters or numbers.

Add quantitative questions to each section

For each of the interview areas (refer to our earlier post on win-loss reviews), add a question that can be scored numerically. For example, to the questions on responsiveness, add the following (or a similar) question:

  •  “Overall, on a scale of 1 to 5, how well did XYZ Co. demonstrate it understood your needs?”

You can also ask:

  • IF A WIN: “Again on a scale of 1 to 5, how would you rank the next closest bidder on responsiveness?”
  • IF A LOSS: “Again on a scale of 1 to 5, how would you rank the winning bidder on responsiveness?”

To obtain high quality responses, ask your quantitative questions at the end of each section, rather than grouping them as a separate set of questions.

Assemble the review data and analyze

Input the header information and quantitative responses to a database or Excel spreadsheet. Over time you will be able to answer questions such as:

  • How does pre-RFP sales contact affect our win rate?
  • What is our responsiveness score on winning bids vs. losses?
  • Does our loss rate as incumbent vary by territory?

Of course, the headers you assign and the questions you ask will depend on your specific business.

 

Need help understanding your bid performance?

Contact Complex2Clear

 

 

Photo credit


Paul Heron, MBA, is the founder and managing partner of Complex2Clear, and leads our bid response practice. LinkedIn 

 

 

  

Win-loss review reporting

 June 18, 2019
by Paul Heron

Last week we posted on how to plan and conduct win-loss interviews. This week, we’ll look at reporting the feedback.

Aim to write a brief, plain language report likely to get read by senior managers and executives. Structuring, formatting and writing for reader friendliness are especially important if you report on two or more win-loss reviews per month.

Develop a report format

Build your report around the interview guide. Set out each question in bold face or italics, followed by a summary of the interviewee’s response. Keep these summaries very concise for all but prospect comments significant to the outcome. 

Wherever possible, include direct quotes. Many senior executives have little direct client contact and are eager for any chance to hear the “voice of the customer.” Direct quotes that align with the response summaries and that “ring true” (that is, actually sound like a person speaking) will help your reports get attention and action.

Open with a summary

Begin each report with an overall summary of the interview. Explain in one or two short paragraphs why you won or lost the opportunity. Lead with the most important point.

Busy reviewers may only read the summary. Therefore, follow the opening paragraph(s) with three to five bullet points taken from responses that support your summary. Include the question reference for each bullet point, in case the reader wants to investigate further.

Take care to ensure your summary is balanced—that it accurately reflects the prospect’s overall message and doesn’t give undue weight to some aspect that may have impressed you or the interviewer.

Decide whether to include internal interview findings

Some companies include a brief section highlighting any disconnects between the internal team’s analysis of a bid loss and the prospect’s feedback. Decide as a team whether this should be part of the report or documented separately as part of a sales discovery and process improvement project.

Next step: Win-loss analyses

Win-loss reviews focus on individual bid opportunities; win-loss analyses reveal patterns and trends in bid wins. Next week we’ll look at how to structure and manage win-loss reviews to enable analysis.

Next week: How to conduct a win-loss analysis

 

 

Need help learning from your wins and losses?

Contact Complex2Clear


Paul Heron, MBA, is the founder and managing partner of Complex2Clear, and leads our bid response practice. LinkedIn 

 

 

  

 

 

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