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USPS Corporate Flats Strategy FAQ USPS Corporate Flats Strategy Automated Package Processing System (APPS)

Automated Postal Centers Postal Automated Redirection System (PARS) Reshaping  the Workforce

 Repositioning the Workforce Changing Postal Workforce in the 21st Century

Distribution Technology in the Postal Service, PAST, PRESENT, AND FUTURE by Thomas Day USPS engineering VP

On this page

 Uncoded Address Resolution System (UARS) | Automatic Flat Tray Lidder| Singulator-Scan-Induction Unit (SSIU |

AFSM 100 UPGRADES PLANNED| Wide Field of View (WFOV) Camera System  | Advanced Facer Canceller System

Postal Automation Discussion

Corporate Automation Plan Phase 2 Timeline

(12/01/05) The USPS recently provided APWU with updated deployment schedules for the following automated equipment:

Automatic Induction systems on FSM 100 machines - The USPS has announced plans to retrofit approximately 200 FSM 100 machines, about one third of its inventory.  Flat mail that requires preparation will be integrated into the FSM 100 machine.  The retrofit is expected impact clerks and mail handlers.  The USPS anticipates a reduction of the work-hour equivalent of approximately 900 full-time positions, spread across both crafts, nationwide.

Automated Tray Handling systems - A retrofit of the FSM 100, the Automated Tray Handling System eliminates the need to label flat tubs and to replace flat tubs once they are dispatched from the machine. The anticipated impact of this system will be a reduction of one mail processing clerk from each five-person crew that is currently used to operate an FSM 100.

Integrated Dispatch and Receipt systems - Using gantry robots, this system will automate dispatch and receipt systems and will be applied to such operations as in-bound mail preparation, mail transportation from one operation to another within a building, sleeving, strapping, containerization, the labeling of tubs, trays, etc., and dispatch. The sytem's principal impact is expected to be felt by Mail Handlers, although some clerks will be affected.

Postal Automation Redirection systems (PARS).

The United States Postal Service awarded Advanced Facer Canceller-Remote Computer Reader system upgrade Lockheed Martin Corporation, Owego, New York. This contract modification has a value of $33,153,322, and is scheduled for completion in June, 2005.
USPS pushes envelope on single sign-on technology-The U.S. Postal Service this summer plans to complete the installation of a single sign-on system that will support about 155,000 end users and more than 7,000 applications and Web sites -- one of the largest deployments of the user access technology done thus far. The new system has already been rolled out to 147,000 users, and Bob Otto, chief technology officer at the USPS, said last week that the 11-month rollout is due to be finished in August. The new system lets USPS workers log onto 1,000 internal applications and 6,000 external ones using only their Windows passwords, Otto said. (Computerworld-5/31/04)

(Excerpt from Transformation Plan-"Delivery point sequencing of flats will replace the need for an individual to sort flats manually into the sequence in which they are to be delivered. It requires the development of an automated Flats Sequencing System. Multiple contract awards are in process and proposals are due early in FY2004. Delivery point packaging consolidates delivery point sequenced letters and flats into a single unit that can be delivered as a single piece. This is a six-year project planned through FY2008. The Board of Governors has approved research and development funding for this project."

Flat Sequencing System
The Flat Sequencing System (FSS), as the first initiative, will automate flat sorting to delivery order. While this will not merge flats and letters into one package, its goal is to place flats in delivery sequence within one or more five-digit zones. "This program essentially strives to replicate the success we have achieved with Delivery Point Sequencing of letters," he explained. "We'll work with vendors to develop a machine to perform three key functions: Induct flats at high speed; automatically manage trays throughout the process; and sequence flats to delivery order."

Flats Sequencing System (FSS): This system provides flat mail in "Delivery Point Sequence" (DPS) or "walk" sequence to all carriers within one or more delivery zones. Currently, the USPS has sorting equipment to sort letter mail to full DPS level and flat mail to zone and carrier level. The FSS system approach could add flat mail sorting systems to the existing automation fleet to walk sequence flat mail for carriers. The FSS system must be able to handle all types of flat mail, currently processed by the USPS AFSM100 and the UFSM1000 (upgraded FSM1000) flat mail sorting machines. The FSS must demonstrate a minimum machine throughput of 40,000 pieces per hour for a single pass operation and/or a cumulative 16,350 pieces per hour for a multi-pass operation. The FSS may use image processing to automate sorting using bar codes, optical character reading and online video encoding to achieve a minimum of 95% sort rate to the delivery point with an error rate not to exceed 1% of the volume sorted.

Delivery Point Packager
"The second initiative, Delivery Point Packager (DPP), reduces the time carriers spend casing flats and reduces the time they spend delivering by creating packages of mixed letters and flats for each delivery stop. Previous tests of this method have shown a 20% reduction in the time required to deliver when mail is prepared in these bundles. (Thomas) Day said applying this twenty percent savings in delivery time to the 7,000 locations results in a delivery savings of approximately $2.8 billion annually. He noted however, that this amount excludes some additional mail processing costs. Field tests were conducted in Carson City, NV and Sterling, VA where letters and flat mail were manually sorted into plastic bags to simulate the output of a Delivery Point Packager. Letter carriers then delivered the bags to customers. "

Delivery Point Packager (DPP): This system provides for an all encompassing, seamless operational approach that results in a single bundle of "packets" containing letters and flats individually packaged for each delivery point on the carriers' route. To fulfill this vision requires mail sorting and packaging equipment that efficiently sorts, merges and packages the letter and flat mail streams in delivery sequence order for the letter carrier. The DPP system may result in reduction or complete elimination of some or all, existing USPS mail sorting equipment. A key component of this new approach is a sorting system that assembles a large range of letters and flats into delivery point packages. The system will accommodate all sizes, and weights of letters and flats. A DPP sorting system will be able to process all carriers' flat and letter mail for one or more delivery zones and capable of sorting the mail volume for the next day's delivery within the time window available. The output volume will meet or exceed the existing carrier volume levels available from current sorting methods. Current machine throughput for the equipment is 35,000 pieces per hour. The DPP may use image processing to automate sorting using bar codes, optical character reading and online video encoding to sort all letter and flat mail to the delivery point with an error rate not to exceed 0.5% of the volume sorted. 

Contracts Awarded to:


Northrop Grumman Corporation  -1,455,840 Phase I
Lockheed Martin Systems Integration-1,500,000 Phase I

"Lockheed Martin and Northrop Grumman were awarded funds to conduct simulation modeling for the flat sequencing system, which would sort flat mail in delivery point sequence or walk sequence to all carriers within one or more delivery zones."




Siemens Corp. ($1,312,397 million), Elsag Spa  Postal Systems Int'l  ($1,197,253 million) Bowe Bell and Howell ($1,177,726 million) and FKI Logistex ($655,975)-all Phase I

"Four companies were awarded funds to develop simulation models for the delivery point packager, a system that would result in a single bundle of packets containing letters and flats individually packaged for each delivery point on the carrier's route." (source: Business Mailers Review via

What are the next steps?

Phase 2

FSS Prototype In plant 2005

DPP Test Bed Evaluation 2005

Phase 3

FSS Competitive Field Test 2005

DPP Prototype In plant 2006

Phase 4

DPP Competitive Field T

sidenote: "The highly publicized Segway™ Human Transporter (HT) is a motorized scooter which the Postal Service deployed experimentally along various postal routes. The test was designed to determine the feasibility of using the Segway HT to assist carriers in delivering the mail. The Segway HT allows letter carriers to travel more quickly while reducing the physical burden of carrying the mail. A contract was signed in spring FY2002 to test 40 units. There are no plans to expand this testing beyond this current phase until Segway can provide an extended-life battery." (source Transformation Plan)

The USPS Board of Governors approved funding for two equipment upgrades to the Advanced Facer Canceller System.   Automated Sorting Enhancements-The Board also approved funding for two upgrades to equipment that aligns and postmarks letter mail. The first enhancement to the Postal Service's Automated Facer Canceller Systems (AFCS) is an Inkjet Canceller (IJC) that uses inkjet printers and commercial off-the-shelf computer software to apply postmarks with text and graphics. The IJC will replace today's mechanical "die hub" postmarks that require the labor intensive task of changing dates manually. (USPS Press Release 9/9/03)

- Lockheed Martin Wins $33 Million USPS Contract for AFCS Enhancement (6/9/04)

The USPS has a fleet of 1086 Advanced Facer Canceler Systems (AFCS) at USPS Processing and Distribution Centers (P&DC) throughout the country. The AFCS is a mail handling system that faces letter mail by locating the stamp, meter, or indicia. The AFCS also cancels letter mail, sprays an identification (ID) tag, lifts the image, and sorts letter mail to a set of bins for further processing. Individual mail pieces are picked-off at the Feeder of the AFCS at a throughput rate of approximately 36,000 mail pieces per hour. On occasion, the Feeder picks off more than one mail piece at a time resulting in what is termed as a "Double Feed."  A double feed requires additional handling downstream of the mail distribution process because at some point the extra mail piece of the double feed is rejected by mail processing equipment or letter carrier. The rejected mail piece of the double feed will need to be reintroduced into the mail distribution process. This additional handling adds costs and decreases service performance for the USPS. Therefore, the USPS requires a Double Detector that can be added onto the AFCS to detect and reject double feed in order to eliminate the additional handling required downstream of the mail distribution process.

The United States Postal Service intends to purchase 1,086 Advanced Facer Canceler System InkJet Canceler (AFCS-IJC) Modification Kits.   The inkjet canceler will use ink jet printing technology to apply cancellation information on each mail piece by spraying tiny ink droplets at high velocity under computer control. The computer control will ensure automatic update of cancellation dates and provide precise time stamping of individual letters. Generally speaking, the inkjet canceler will be a retrofit kit for the AFCS. The Inkjet Canceler will consist of the following subsystems: 1) Deck Plate Assembly 2) Two (2) Print Head Assemblies 3) Ink Reservoirs and Ink Delivery System 4) Control System with corresponding cable assemblies for I/O and power 5) Two (2) Interface Boards with I/O connectors 6) Optional Encoder and Encoder Roller Assembly (posted 9/9)

The second AFCS enhancement, known as a Doubles Detector, identifies two mail pieces inadvertently stuck together as one. This "doubling" effect is caused by high humidity, static adhesion, or excessive envelope adhesive and results in processing delays. The Doubles Detector will greatly reduce handlings and mis-sortings by using a high-speed camera and software to identify these occurrences. A contract is expected to be awarded in December. Deployment will begin in August 2004 and be completed by August 2005.-posted 9/9/03

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Automated Flat Sorting Machine 100 (AFSM 100)

The USPS has notified the APWU of plans to modify Automatic Flat Sorting Machine (AFSM) 100 machines with automatic induction systems and automatic tray handling systems.

Beginning in May 2005 and continuing through June 2006, the Postal Service will deploy Automatic Tray Handling Systems (ATHS) to 350 of the 534 system fleet. In a letter dated Feb. 17, 2005 the Postal Service said the modification will eliminate the need to affix a dispatch label to the flat tub; pull and dispatch the full tub; and replace the dispatched tub with an empty one.

Beginning in October 2005 and continuing through August 2006, the Postal Service will deploy 206 AFSMs with Automatic Induction (AI) systems. In a letter dated Dec. 23, 2004 the Postal Service said the modification will automate the task of feeding the machines as well as related mail preparation and transport activities. (4/22/05)

AFSM 100 UPGRADES PLANNED-the USPS is currently on schedule to finish all the AFSM 100 feeder upgrades by the middle of May, 2004. Nationally, 14 AFSM 100s will be upgraded each week now until the upgrades are complete, except for the week of Christmas. Upgrades to the four AFSM 100s located at the Cincinnati P&DC are planned for the weeks of 11/29, 12/6, 12/13, and 12/27. All FSM 1000s have now been upgraded with their new automated feeders

 USPS Board of Governors approved two enhancements to the AFSM 100 one will apply a label with a unique ID to non-barcoded flats allowing sortation in subsequent operations — the other adds 354 Automatic Tray Handling Systems to automate the handling of flat trays (source: USPS 8/26/03)

The flat ID code sort is a small (16-inch) module that will add ID tags to non-barcoded flat mail.   The label will be a 4-state barcode that allows more data in a small space.  The label is easy to remove.  The benefits include a reduction of images sent to the remote encoding centers by 43%, which reduces work-hours by 1.4 million per year, and a reduction in mis-coding errors from 2.9% to .68%.  The time frame for this improvement is as follows:  Board of Governors’ approval in August, a contract by the end of the fiscal year, first tests in February 2004 and roll-out scheduled for completion by February 2005.

 The automatic tray handling system collects empty tubs, applies adhesive labels, and reloads the empty tubs for use.   The current requirement for a sweeper is eliminated (although the labels must be manually removed).  It is anticipated that the contract for this project will be negotiated in September, with deployment beginning in October 2004, and completion scheduled  for Fall 2006.

 Mr. Day announced that the wide field of view cameras (approximately 10,000 systems) will be fully deployed in November 2003 and will be utilized on barcode sorters. (source: Mailers´ Technical Advisory Committee (MTAC)

AFSM 100 UPGRADES PLANNED- USPS Board of Governors approved two enhancements to the AFSM 100 — one will apply a label with a unique ID to non-barcoded flats allowing sortation in subsequent operations  the other adds 354 Automatic Tray Handling Systems to automate the handling of flat trays

Program Benefits
Reduces number of images sent to remote keyers by 43.1%
Reduces keying and manual labor requirements by 1.4M work hours per year

Flats ID Code Sort- Proposed schedule

Board of Governors -August 2003
Contract Award -September 2003
First Article Test -February 2004
Deployment -Apr 2004 – Feb 2005

Automated Tray Handling System (ATHS) -Proposed Schedule
Board of Governors August 2003
Contract Award September 2003
Deployment Start April 2005
Deployment End July 2007

source: USPS


USPS Announces Plans to Deploy Flat Mail Identification Code System (FICS) Federal Register 10/28/03


Northrop Grumman Systems - Electronic Systems Sector awarded $117,392,683 contract September 2, 2003 (according to a Federal business Contracts Report) --however,  no 'official' press release on the contract award can be found) 10/13/03

U.S.P.S. Awards $127M Contract to Siemens Dematic for Automated Tray Handling System (Siemens)


--New Addressing Tools: Uncoded Address Resolution System (UARS) What is UARS? A Web-Based System Used by Postal Carriers to Make Address Corrections to Unresolved Addresses .Beta-Test Conducted Through June 2003.Initially Used By USPS To Correct Address Information Provided By Customer Change-of-Address Submission. USPS Production Rollout Scheduled For July 2003.Enables Customers Who Use The Address Element Correction Program The Option To Submit Unresolved Addresses For Carrier Resolution

What is Intelligent Mail? standardized, data-rich, machine-readable codes to make each mailing piece unique and trackable.
Key Strategies

Uniquely Identify and Track Mail

Standardize Codes

Enhance Supporting Infrastructure

Improve Address Quality



Strategy: Enhance Infrastructure- Mail Processing Infrastructure

Lockheed Martin Wide Field of View (WFOV) Camera SystemEnhances Image Capture and Performance on High-Speed Applications-The Lockheed Martin Wide Field of View (WFOV) Camera System is specifically designed to improve bar code reading and optical character recognition performance on high-speed machine transport applications. The imaging solution for applications calling for high resolution, at high speeds,


Lockheed Martin Wins $2.8 Million Contract from U.S. Postal Service to Build 20 Automatic Mail Tray Lidding Systems

OWEGO, NY, April 14, 2003 – Lockheed Martin has been awarded a $2.8 million contract from the U.S. Postal Service to supply systems that will automatically place lids on mail containers and help achieve cost savings in dispatch operations.

The initial contract is for 20 Automatic Flats Tray Lidder (AFTL) systems, with options for up to 200 systems. The base contract period of performance is now through September. Installation of the 20 AFTL systems will begin at U.S. Postal Service processing and distribution centers (P&DCs) and airmail facilities (AMFs) throughout the nation in July.

"The AFTL system is one more piece of the U.S. Postal Service’s plan to automate its mail processes," said Brian Tanton, vice president of Material Handling and Identification Solutions for Lockheed Martin Distribution Technologies. "Winning this contract illustrates Lockheed Martin’s ability to provide technology that supports the U.S. Postal Servic’s quest to improve productivity, increase material movement efficiencies and reduce manual interface in material handling tasks."

The AFTL system automatically places lids on mail containers commonly called "flats trays" by the Postal Service. The system is part of an overall dispatch modernization effort aimed at providing increased throughput and performance during peak periods, while capturing sustainable labor savings.

Lockheed Martin will provide program management, engineering, manufacturing, integration, testing, training, technical data, and operation and training manuals. Industrial Manufacturing and Installations Inc. (IMI) of Littleton, CO, the designer of the prototype system, will provide engineering support as a subcontractor to Lockheed Martin.

The AFTL system complements other dispatch automation technology and equipment designed and deployed by Lockheed Martin for the Postal Service such as systems that automatically sleeve and band letter trays as well as automatically assign airline flights to both trays and sacks of mail.

Lockheed Martin Distribution Technologies, Owego, NY, designs, produces and integrates mail automation, recognition, information processing and online postage systems for postal services, package delivery operations and corporate mail centers, airline and airport baggage handling systems, and material handling systems for distribution, fulfillment and manufacturing centers worldwide. Distribution Technologies is a unit of Lockheed Martin Corporation, Bethesda, MD.

About Automatic Flats Tray Lidder System

Designed specifically to automate the process of manually lidding flats trays, the Automatic Flats Tray Lidder (AFTL) system is an economical solution that was developed with an emphasis on ease of operation, low maintenance and low life cycle costs.

The AFTL is a simple machine comprised of four main components:

  • A conveyor for supplying stacks of lids
  • A mechanism to lift the stacks of lids to a consistent height
  • A transfer device to pick the lid and transfer it to a waiting tray
  • A tray conveyor to transport the flats trays through the machine

The touch-screen graphical user interface (GUI) provides clean, concise error messages and graphics, which allows operators to quickly and easily recognize and resolve any faults that occur.

The system includes data collection and reporting as well as compliance with interoperability requirements, including remote commands.


  • Processes in excess of 900 trays per hour with an error rate of less than 1 percent
  • Convenient four-button operator controls, located over the tray conveyor exit
  • Detects and passes through lidded and over-filled flats trays and letter trays
  • Bidirectional lid conveyor design, allowing lids to be loaded and unloaded with the same ease
  • Field configurable for right- or left-handed operation
  • Telescoping legs in the frame support to accommodate a wide range of heights and conveyor designs; interfaces well with existing or new conveyor systems
  • Minimal maintenance required


  • Compact design minimizes the amount of floor space required
  • Operators can load on the fly, increasing operator and machine productivity, which means the system never stops processing trays for lid loading and operators are free to load lids at their convenience
  • Easy on-site installation and integration
  • Significant return on investment (ROI)
  • Easily reconfigured to perform unlidding operations with the addition of an unstrapper module

source: Lockheed Martin

Small Parcel and Bundle Sorters (source USPS )

The Postal Service moved forward with its efficiency-based strategy to improve package sorting productivity and sorting accuracy as part of its Transformation Plan by obtaining Board approval for the Automated Package Processing System (APPS). This technology will replace more than 100 of today's mechanized Small Parcel and Bundle Sorting (SPBS) machines at 70 postal facilities nationwide.

The APPS achieves significant productivity improvements with greatly reduced manual handling by:
Automating the feeding process;
Utilizing Optical Character Recognition (OCR) technology to read addresses;
Utilizing a recirculating transport system that permits on-line video encoding of pieces that cannot be read by the Optical Character Reader; and,
Expanding the size and weight of mail it can accommodate.
US Postal Service awards $300M Automated Package Processing System (APPS) contract using DecisionPoint

OWEGO, NY, September 24, 2002
-The U.S. Postal Service has selected Lockheed Martin as the prime contractor for a multimillion-dollar program that will integrate and modernize the Postal Service's small package processing capabilities through the installation of a new system known as the Automated Package Processing System (APPS). The U.S. Postal Service is upgrading its existing parcel processing network to advance its competitive position in the parcel delivery market.

The APPS program contract, which carries an initial value of more than $300 million, initially requires Lockheed Martin to build and deploy 74 U.S. Postal Service package processing systems nationwide beginning in 2004. If all additional quantities are exercised through 2006, more than 120 systems could be delivered.

The APPS program will provide the U.S. Postal Service with a fully integrated, end-to-end system capable of automatically sorting high volumes of first-class packaged mail, Priority Mail envelopes and parcels, and bundled mail such as magazines or catalogs with greater efficiency and higher accuracy. The Lockheed Martin system is capable of processing more than 9,500 packages an hour with machine printed or handwritten addresses.

"The Automated Package Processing System is an essential element in our strategic plans to enhance customer service in the highly competitive package delivery market," said Tom Day, the U.S. Postal Service's vice president of Engineering. "Lockheed Martin's proven credentials as a premiere systems integrator on other programs we've worked together assures us that this critical project will be installed on schedule by an experienced deployment team."

"Lockheed Martin understands the competitive challenges facing the United States Postal Service. We’ve been supporting its automation efforts for more than 30 years. Our postal automation team is dedicated to improving today’s automated mail processing throughout the Postal Service’s parcel network," said Judy F. Marks, president of Lockheed Martin Distribution Technologies. "We’re focused on delivering a proven, advanced system that will allow the Postal Service to give its customers superior package and parcel delivery service, while keeping Priority Mail, bundles of magazines and package mail cost competitive."

Lockheed Martin’s APPS increases productivity and delivers high throughput and sorting accuracy by combining state-of-the-art material handling capabilities with advanced optical character recognition (OCR), bar code reading (BCR) and video coding technologies. The system automatically processes bulk loads into a single stream of mail pieces; gathers detailed information specific to each package; acquires the correct delivery address through advanced OCR and BCR technologies; inducts a package individually onto a next-generation cross-belt sorter; and then accurately delivers the package to an assigned discharge bin so it can be dispatched to its destination.

"Our system offers the U.S. Postal Service a solution that is both modular and scalable. It has been designed to allow the Postal Service to customize the system for each site’s needs, which maximizes the return on investment for the program," Marks added.

The Lockheed Martin APPS prototype was competitively field tested in 2001 and is in use today at a U.S. Postal Service mail annex serving the Minneapolis Processing and Distribution Center. The prototype system automatically processed packages at a rate nearly double the throughput and productivity of the current operation, verifying that the APPS can generate an attractive return on investment for the U.S. Postal Service.

The prototype developed for the contract proposal included subsystems from Sandvik Sorting Systems Inc., Accu-Sort Systems Inc., Axmann Conveying Systems, Shuttleworth, Adaptive Optics Associates Inc., and Southworth Products Corp.

Lockheed Martin Distribution Technologies designs, produces and integrates mail automation, material handling, recognition and information processing systems for postal services, package delivery operations, corporate mail centers, and distribution, fulfillment and manufacturing centers worldwide. Distribution Technologies is a business unit of Lockheed Martin Systems Integration - Owego, which is a business segment of Lockheed Martin Corporation, Bethesda, MD.

System Overview

APPS is a fully integrated, end-to-end system capable of automatically sorting high volumes of first-class packaged mail, Priority Mail envelopes and parcels, and bundled mail such as magazines or catalogs with greater efficiency and higher accuracy. The system is capable of processing more than 9,500 packages an hour with machine printed or handwritten addresses.


  • Increases productivity
  • High accuracy sortation
  • Minimal manual interface
  • 10 configurations
  • Increases throughput

source: Lockheed Martin

Singulator-Scan-Induction Unit

Washington Bulk Mail CenterThe Singulator-Scan-Induction Unit (SSIU) is a robust system that can automatically process all of the mail that is currently being handled by today's bulk mail center parcel sorters. The SSIU is a solution that is both modular and scalable.

The SSIU automatically separates package and parcel mail into a stream of single pieces, reads barcode information, and inducts single mail pieces into a facility’s existing sorting system for finalization.

We are dedicated to improving today’s automated parcel processing by providing advanced sortation systems.

System Overview

The singulator takes a bulk stream of parcels and separates it into single pieces that are delivered to the data collection system for identification.

The data collection system identifies the delivery location of the mail piece and verifies that the mail piece has been singulated properly; oversize and overweight checks are also made by the data collection system.

The mail piece travels to a shoe sorter where it is diverted to one of several induction lanes.

The majority of mail pieces are diverted onto high-speed induction units, which deliver the mail onto a sorter for final disposition.

Mail pieces that are oversized or overweight travel to the end of the shoe sorter where they are returned to ground level for manual processing.


Flexible design that is adaptable to specific site needs
Minimal disruptions to the site’s operations during installation and deployment
Efficient and reliable system operation

source: Lockheed Martin

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