The Ultimate Government Contracting Guide For Beginners in 2024

Summary

This video script outlines steps for securing a government contract, emphasizing the importance of adding value and understanding the federal government's needs. It introduces a 'Money Making Idea Matrix' to help businesses identify profitable ideas and scale them. The speaker shares personal insights from owning three multi-million dollar companies, discusses the North American Industry Classification System (NAICS) for aligning business offerings with government interests, and provides actionable advice on networking and leveraging platforms like sam.gov to find contract opportunities. The focus is on patience, persistence, and the joy of entrepreneurship in the government sector.

Takeaways

• 💰 The federal government spends over $600 billion a year on contracts, presenting vast opportunities for businesses.
• 🔑 To secure a government contract, businesses must offer unique value or a compelling reason for the government to choose them over thousands of other contracting companies.
• 🛍️ The ease of doing business is highly valued by the government, similar to the convenience people seek from platforms like Amazon.
• 🤔 Businesses should introspect about their business model, whether they are experts providing specific services or entrepreneurs open to a variety of opportunities.
• 💡 Entrepreneurs are encouraged to dream big and explore ideas that could be of interest to the federal government, considering profitability, scalability, and personal enjoyment.
• ⚠️ A stark reality is highlighted: 80% of black-owned businesses fail within 18 months, emphasizing the need for tough and honest conversations about business sustainability.
• 📈 The presenter shares a 'Money Making Idea Matrix' to help businesses brainstorm and evaluate their ideas for government contracting.
• 🔍 The North American Industry Classification System (NAICS) is crucial for understanding how the government classifies products and services, which helps in aligning business offerings with government needs.
• 🔗 The process of matching business ideas with NAICS codes is likened to currency exchange, translating ideas into recognized categories that the government seeks.
• 📊 The Dynamic Small Business Search website is a valuable resource for identifying small businesses registered for federal contracting and potential partnership opportunities.
• 📞 Persistence is key in government contracting; the presenter suggests contacting at least a hundred companies via email, call, or LinkedIn to increase the chances of securing a contract.

Q & A

What is the annual spending of the federal government on contracts?

The federal government spends over $600 billion a year on contracts.

What is the key factor that differentiates a business from a hobby in the context of this script?

The key factor is the ability to make money, as a business that isn't making money is considered a hobby.

What is the significance of the North American Industry Classification System (NAICS) in obtaining a government contract?

NAICS is used by the federal government to classify products and services they need, helping businesses understand how their offerings are categorized and recognized by the government.

What is the failure rate of black-owned businesses within the first 18 months, according to the script?

80% of black-owned businesses fail within the first 18 months.

What is the importance of dreaming big when considering ideas for government contracts?

Dreaming big is important as it allows for the generation of ideas that could potentially be profitable, scalable, and bring joy to the entrepreneur, without being limited by current competition or market constraints.

What is the role of the Dynamic Small Business Search website for those looking to provide their expertise to the government?

The Dynamic Small Business Search website allows users to look up small businesses registered with the federal government for potential contracting opportunities, helping experts identify companies that may need their services.

What is the recommended approach for contacting potential contracting companies found on the Dynamic Small Business Search website?

The recommended approach is to contact at least a hundred companies via email, phone, and LinkedIn, repeating the process at least once a week to increase the chances of securing a contract.

What does the script suggest as a starting point for those interested in becoming government contractors?

The script suggests starting with the expertise or interests one has, identifying profitable needs, and ensuring that the chosen path aligns with the NAICS codes used by the government.

Why is patience important when navigating government contracting websites and processes?

Patience is important because government contracting websites may load slowly and the process of securing a contract can be time-consuming, requiring persistence and a long-term outlook.

What is the script's advice for those who are experts looking to provide their services to the government?

The script advises experts to identify their area of expertise, find companies that may require such services using the Dynamic Small Business Search, and actively reach out to these companies to offer their value.

What is the role of LinkedIn in the process of contacting potential government contractors?

LinkedIn serves as a platform to look up the person of contact, engage with their posts to get on their radar, and send direct messages as part of the outreach strategy to secure a contract.

Outlines

00:00

💼 Pursuing Federal Government Contracts

The speaker introduces the topic of securing contracts with the federal government, emphasizing the need to add unique value and solve specific problems. They share their experience owning three multi-million dollar companies and highlight the importance of understanding one's business model and the North American Industry Classification System (NAICS) codes for identifying profitable opportunities. The speaker encourages dreaming big and aligning business ideas with government needs, stressing the importance of patience and persistence in the contracting process.

05:01

🔍 Matching Business Ideas with NAICS Codes

The speaker provides a step-by-step guide on how to match business ideas with NAICS codes, which are crucial for understanding government classification of products and services. They demonstrate how to use the NAICS website to find relevant codes and emphasize the importance of patience when dealing with government systems. The speaker also discusses the distinction between being an expert and an entrepreneur in the context of government contracting, and how to identify opportunities that align with personal interests and capabilities.

10:03

📞 Building Connections for Government Contracting

The speaker outlines strategies for experts looking to leverage their knowledge in government contracting. They recommend using the Dynamic Small Business Search website to identify potential contracting opportunities and connect with companies that match one's expertise. The speaker advises on the importance of networking, suggesting to contact at least a hundred companies via email, phone, or LinkedIn to increase the chances of securing a contract. They also provide tips on how to engage with potential contacts effectively.

15:04

🚀 Exploring Entrepreneurial Paths in Government Contracting

The speaker shifts focus to entrepreneurs, guiding them on how to navigate SAM.gov to find contract opportunities. They explain the process of using NAICS codes to filter opportunities and the benefits of targeting set-aside contracts for small businesses. The speaker encourages entrepreneurs to consider various training topics as potential services they can offer, emphasizing the need to align offerings with government needs and personal enjoyment to ensure a sustainable business model.

20:04

🌟 Embracing Opportunities in Government Contracting

In the concluding remarks, the speaker reiterates the importance of offering value and aligning business interests with government needs. They provide a recap of the steps taken throughout the video and encourage viewers to explore the entrepreneurial or expert path in government contracting. The speaker leaves the audience with a sense of hope and the belief that success in government contracting is attainable, urging them to comment with any further questions or topics they wish to explore.

Keywords

💡Government Contract

A government contract is an agreement between a business and the government to provide goods or services. In the video, the theme revolves around obtaining such contracts, with the speaker sharing steps and insights on how businesses can secure them. The script mentions the federal government spending over $600 billion a year on contracts, indicating the vast opportunities available.

💡Value Addition

Value addition refers to the process of enhancing the worth or utility of a product or service. The speaker emphasizes the importance of businesses adding value to stand out among numerous contracting companies. The concept is exemplified when the speaker asks what problems a business solves and why the federal government should work with them.

💡Business Model

A business model outlines how a company delivers value to customers and generates revenue. The script discusses the necessity for businesses to understand their business model when pursuing government contracts. The speaker differentiates between being an expert and an entrepreneur within the context of government contracting, highlighting the importance of aligning one's business model with the government's needs.

💡North American Industry Classification System (NAICS)

NAICS is a system used by governments in North America to classify businesses for statistical and contracting purposes. The video script explains that understanding NAICS codes is crucial for businesses to identify government needs and classify their products and services correctly, which is essential for securing contracts.

💡Entrepreneur

An entrepreneur is an individual who creates a new business, bearing the risks and benefits of the venture. The script encourages entrepreneurs to explore government contracting opportunities, emphasizing the importance of offering products or services that not only generate profit but also align with the government's classified needs through NAICS codes.

💡Expert

An expert is someone with extensive knowledge or skill in a particular area. The video script differentiates between entrepreneurs and experts, suggesting that experts can leverage their specialized knowledge in areas like diversity and inclusion training to secure government contracts, as the speaker herself did.

💡Reoccurring Revenue

Reoccurring revenue refers to income that a business receives on a regular basis. The speaker's money-making idea formula includes the necessity for a business to have reoccurring revenue to ensure stability and growth. This concept is integral to the video's theme of establishing a sustainable business model for government contracting.

💡Small Business Set-Aside

A small business set-aside is a government procurement procedure that reserves a contract for small businesses. The script explains that as a small business, one can take advantage of set-asides to reduce competition and increase the chances of securing a government contract.

💡Dynamic Small Business Search (DSBS)

DSBS is a database that lists small businesses registered with the federal government for contracting opportunities. The video script instructs viewers on using DSBS to find companies that match their expertise and NAICS codes, facilitating networking and potential subcontracting opportunities.

💡System for Award Management (SAM)

SAM is a federal platform where businesses register to be eligible for government contracts. The speaker mentions SAM in the context of finding contract opportunities, emphasizing that even without specific certifications, businesses can offer value and secure contracts through the platform.

💡Profitability

Profitability refers to the ability of a business to generate profit. The video script stresses the importance of identifying profitable needs within the government sector and ensuring that the business ideas presented are scalable and can bring joy to the entrepreneur, aligning with the overall theme of creating a successful government contracting business.

Highlights

The federal government spends over $600 billion a year on contracts, providing ample opportunities for businesses.

To secure a government contract, businesses must offer unique value and solve specific problems for the government.

The presenter emphasizes the importance of client relation skills, as the government seeks easy and efficient solutions.

Understanding one's business model is crucial, whether it's based on expertise or entrepreneurial flexibility.

A 'Money Making Idea Matrix' is introduced to help businesses brainstorm and evaluate their ideas for profitability and scalability.

80% of black-owned businesses fail within 18 months, highlighting the need for tough conversations and strategic planning.

The North American Industry Classification System (NAICS) is essential for understanding how the government classifies products and services.

Businesses should match their ideas with NAICS codes to determine if the government has a need for their offerings.

The Dynamic Small Business Search website is a valuable resource for finding potential partners and opportunities.

Patience is key when navigating government contracting processes, as websites and responses may not be instantaneous.

Being an expert or an entrepreneur in government contracting requires different strategies and approaches.

The SAM (System for Award Management) website is a portal for contract opportunities and set-aside options for small businesses.

Set-asides can significantly reduce competition, making it easier for small businesses to secure contracts.

The presenter shares a personal anecdote about securing a contract without prior certifications, emphasizing the importance of value.

Engaging with potential partners on LinkedIn can increase visibility and the chances of securing a contract.

The presenter encourages viewers to reach out to at least a hundred companies to increase the likelihood of a 'yes'.

The video concludes with a message of hope and the belief that success in government contracting is possible for everyone.

Transcripts

the federal government spends over

$600 billion a year and I'm here to

share with you steps to get a government

contract you have to add value what

problems do you solve why should the

federal government work with you when

there's thousands upon thousands of

different Contracting companies out

there what do you offer that's maybe a

little different perhaps unique or maybe

you offer something that somebody else

offers however you add a little twist or

your client relation skills are amazing

because the federal government wants

their lives to be easy don't we all

isn't that why we shop at places like

Amazon you also have to ask yourself

what is your business model so I'm going

to share my screen and walk through

several things you're going to notice

that throughout this video money making

idea Matrix we're just going to jump

right into it because if you're not

making money this isn't a business it's

not it's something you do for fun maybe

it's a hobby but when it comes to a

business regardless of who your client

is it is all about being able to make

money so you stay in business you know

one stat just to be aware of before I

jump into this

80% of blackowned businesses fail within

18 months I own three multi-million

dollar company so I know it can be done

it's just that we have to have these

tough kind of conversations these raw

honest conversations and that's why

we're beginning here with money because

value is involved with money so you have

to ask yourself what is my money making

idea and I have this Matrix here for you

to help you walk through it so what

you're going to want to do is come up

with ideas what are you interested in

offering to the federal government is

there a profitable need for it is this

something you could scale will this

bring you Joy how long do you want to do

this and you may be asking yourself well

how do I even figure this out where do I

even begin don't ask too many questions

just dream dream like you did when you

were a little kid you just dream what

are some ideas hey initially when I

started out I Lov training I loved

helping with diversity and inclusion I

loved analyzing data I love just being

of help was there a profitable need yes

there's always going to be a need for

diversity and inclusion training is that

something I could scale at that time yes

did it bring me joy immense Joy I even

have a book published on the title it's

surreal how long did I want to do it at

the time I thought hey I'm going to do

it as long as I'm able to do it had no

idea right but what I did have an idea

about is dreaming just like you did when

you a little kid and I knew that

diversity and inclusion training

training data analytics was value added

how there are job openings for it

private sector clients were out there

the federal government spends money on

it I just knew from just checking out

things on Google so dream don't get

caught up in the competition dream this

is just dream you know if you have to

you don't have to type it you can even

use crayons or markers allow yourself to

dream this is so important it's very

very important hey moving on here money

making idea formula this is just as

important as coming up with your

money-making ideas or idea it involves

has to be profitable something you enjoy

there has to be some type of reoccurring

Revenue we're going to talk a little bit

more about this okay but this is the

formula that I have created and this

will help you stay in business so you

may be wondering what in the heck is

this what is n a i CS why is this on her

screen I know so it stands for North

American industry classification system

and what we're going to do is take a

look at some other areas that are

related to this that I have set aside

for you okay so this is the NES website

so I'm going to share this link with you

what's really important is the federal

government they use this n system to

organize to

classify products and services that they

need this is very important because so

many people will say well you know I

offer this medical device private sector

clients love it I know the VA is going

to need it okay maybe maybe not but you

have to at least have an understanding

of how are they classifying it what

terms should you use to even determine

if they really want this is this really

a problem for them that they need you to

solve perhaps it's not or maybe somebody

else is already solving it or there's a

different type of problem out there so

let's go a little deep so what you're

going to end up doing is taking your

ideas and you're going to now correspond

or kind of exchange them with nakes code

so I kind of look at it as like a

currency exchange you know like you're

going to a Cambio and you're exchanging

dollars for a different kind of currency

maybe Canadian dollars or something of

that sort that's basically what you're

doing is you're translating you're

exchanging your ideas with these nakes

codes so you have a good idea of if the

government is interested in these areas

and things of that sort so we're going

to run with it so in order to look up

the different nakes that correspond with

your ideas you should you need to go to

this website and I will provide the link

so you go here and you're going to type

type in the keywords from the list that

you had over here you're going to type

in the different keywords so we are

going to start with training because

that is where I started out in the

government space you're going to see

something interesting and I also want to

share this this is very important as you

go through this journey several of these

links different websites they're not

going to load as fast as uh Tik Tok

Instagram link in Google there's going

to be a little bit of a delay and this

isn't because I'm screen recording it's

just how it is so another thing that's

really important when it comes to steps

to get a government contract you have to

have

patience you must have patience it's

just how it is it's okay it's okay just

take a deep breath it's okay so what I

want you to notice is as follows you

have Apprenticeship Training computer

professional flight look at all of these

wow there's a lot so the area that I

like to focus in on because I found that

a ton of work is typically under this

area is what's called

professional and management development

training okay but I already know that so

if I were to fill this out I would put

down training and then that nak I just

showed you but you're going to put and

populate every single nakes that's that

comes up you may find when you look at

this that you're like you know what hey

Flight Training that sounds kind of cool

I'm also interested in vocational

rehabilitation services hey why not list

all of the NES that are of interest to

you because remember the formula this is

about what brings you not only profit

not only reoccurring Revenue it has to

be something that you like if you don't

like doing it then you might as well

just work for someone and I'm not

suggesting that when you work for

someone that you're miserable what I'm

suggesting is it is such a blessing and

such an honor to be an entrepreneur and

to help fuel the economy but it's

something I love I always knew since a

little girl was going to be an

entrepreneur I love it but there are

some things I don't love there are some

areas that I don't enjoy and we just

don't focus on them with my Flagship

company so own it it's okay it's okay to

own it so you're going to want to go

back through here list all of your ideas

and list all the corresponding NES and

you may need several pieces of paper

because as you notice look at what came

up just under training a lot right a lot

of things here the other big piece when

it comes to steps to get a government

contract involves your business model

and let me explain you have to ask

yourself are you an expert or are you an

entrepreneur you just went through the

steps where you identified all of these

ideas you identified all of these nakes

codes now you have to ask yourself are

you in the position where you yourself

you want to provide said products or

services or are you at the place where

you're like look I am open to anything

that will make me a buck I'm interested

in products Services I heard you can

sell coacher potato chips and pancake

mix and trainers and it I want to do it

all just let's do it KY let's go okay

that's cool you can do it or maybe you

want to do a little both it's okay this

is awesome I'm going to show you what

you need to do for both paths if you

want to be an expert or if you want to

be more of an entrepreneur when I first

started out I was definitely an expert I

had a PhD I was like Dr

Parks I thought everyone was just going

to you know pay me for my expertise and

I love diversity and inclusion and

training and analytics and that's the

approach I took I was the expert I was

the doctor contact the doctor

that's the role I was in so let's take a

look at what that really means and what

that entails for those of you who are

interested in being paid for your

expertise because the federal government

has a variety of

opportunities that speak to you to every

single one of you watching but before I

show you I know you may already be

thinking wow we're this far into the

video and you haven't talked about set

aside or being and Sam or anything like

that that's correct because I had none

of those things when I got my first

contract because you don't need those to

get your first contract you have to add

value so let's take a look at that so

I'm going to share my screen again so

for those of you that want to take more

of the expert route you are going to

want to go to the dynamic small business

search website I will also include the

link below keep in mind this website

takes a long long time too load as I

stated before so what's really cool

about this website is you can look up

any and everything in terms of small

businesses registered with the federal

government to contract with them as a

prime contractor so what I recommend is

that you number one you select the state

where you live because we as people like

to connect with people who are like us

so you're not going to really know where

they go to school or if they're into

sports do they have kids where did they

grow up did they serve in the military

you're not going to know all of that yet

however comma you can at least connect

on the state level hey I live in Florida

you live in Florida oh my gosh I would

love to help you we're both in Florida

we like to help people in which we have

something in common with them we like

that we like the ingroup ingroup is very

important so here what you're going to

do is select the state and you're going

to put in your a nakes code I suggest

just you do one nakes code at a time

because you're going to get so many

results that is going to seem like you

in the cereal aisle at the grocery store

I don't want you to be overwhelmed

whatsoever I want you to have that

feeling when you go out for brunch and

it's a prefix menu and you're like wow

this is great they have seven items in

there this is awesome you don't have so

many things to choose from right okay

let's get into it here so when you

search This I Promise it's going to lead

to this and feel free to to try this on

your own so when you go here you're

going to notice the name of the firm the

point of contact it has their address

and what they do so let's say you are a

trainer your area of expertise is soft

skills so you may glean through here and

say okay they offer project management

process Improvement administrative

support okay you're going through and

you're like okay Global resilience group

they offer diversity equity and

inclusion positive outcomes okay this

involves soft skills maybe that's the

company I want to connect with well you

are in luck cuz guess what did you catch

it here at the top did you see this

you're over

1,500 companies that match his profile

it's insane you can go back here and

drill things down which I'll have to

touch upon in another uh video but for

now at least it's like this hopefully

provides you the confidence to know oh

my gosh there's over 1,500 companies

that could potentially use my expertise

and remember we just used the training

Nate right that's it one Nate 1500 so

the next step is you're going to want to

contact them you can click here and

it'll give you more information keep in

mind it takes a little bit to load we

have tons of information here you have

when the up the profile was last updated

you have the name of the firm you have

their address you have their phone

number all of their websites their email

address you also get more information

about the ownership of the firm this

firm in particular is blackowned other

minority owned self-certified you can

see all of that there and you can also

see the nakes codes so in addition to

6114305

with in your ideas and nakes Matrix

potentially so the next step is you're

going to reach out to the point of

contact shaa shaa yeah I think it's shaa

Willis potentially and you may wonder

what do you say well guess what I have

that for you I have it for

you oh my gosh I love this space so much

because it changed my life being able to

help the federal government with all

these amazing missions it just makes me

so happy so hopefully you have as much

joy as as I do and hopefully you find

this helpful okay so what you're going

to want to do email call LinkedIn if you

don't have a LinkedIn profile we're

going to talk about that in a different

video in the intrum email and call your

goal is to contact at least a hundred

companies because someone's going to say

yes there's no reason when the federal

government spends over $600 billion doar

a year on contracts that you can't at

least earn ear

$50,000 through Government Contracting

so you're going to contact the point of

contact here and you're going to just

send an an email like this put in their

information and you're going to call

email call email I would do this at

least once a week what you're also going

to do is look the person up on LinkedIn

I'm not going to go into great detail

because you may not have a LinkedIn

account for those of you who have a

LinkedIn account simply log into

LinkedIn look up the person and contact

them same thing DM them and here's

another bonus tip in LinkedIn whenever

you engage with one of their post if the

person has any kind of post even if

their last post was from a year ago that

person will be notified that you engaged

with them you're going to end up on

their radar and that's what you want you

want to show them that you have value

there's something that you can offer

that's going to make their life easier

and ultimately make the the life easier

of their government client since they're

registered in this system they're able

and may potentially have federal

government contracts and so you who

wants to be an expert you are an expert

this is the perfect opportunity for you

to have additional Revenue so I'm going

to show this one more time so you can

take a look for those of you who want to

take more of the

entrepreneur PA I have some things for

you too I'm going to share my screen

continue sharing my screen so where

you're going to end up going is

sam.gov now you may be asking yourself

or you may be saying but KY I'm not

registered how am I even going to be

able it's okay promise you I was not

registered in Sam I had zero

certification and I received my very

first contract that was a little less

than

$100,000 how because I offered value and

the agency put me as a subcontractor

through through a p Prime contractor's

contract vehicle so don't get caught up

in the weeds value value rules all so

you're going to go to sam.gov and when

you're here on sam.gov you're going to

go to contract opportunities then you're

going to go to Advanced Search you're

also going to want to make sure you have

this in front of you because you're

going to need your nakes codes because I

want to show you some things that are

very important when you're here you now

want to go to set aside small business

why as a small business and for those

who have contracts with the government

as small business owners you cut out all

this competition they cutting out IBM

and deoe because it can be very

difficult to compete against a large

company I'm not suggesting you can't hey

as a small business owner I have three

Government Contracting companies each

with well over a million dollars of work

on them in total I've won over 50

million we have beat big companies

before but when you're first starting

out or even if you have 10 years

experience in Government Contracting

it's nice to weed in Opportunities and

weed out the competition right you don't

want to have to worry about that so A

total small business this set aside

basically applies to any and all small

businesses soon as you sign up in Sam or

for those of you who are already

registered in Sam more than likely

you're going to be a small business okay

so you're going to go here you're going

to click total small business next we

are going to go to product or service

and you notice that lovely nakes code

comes up again so you're literally going

to either go to your sheet or you can go

here and you're going to cut and paste

the nakes code that you're interested in

and it's going to populate now you may

say well KY why don't you just type in

training it's this is not Google

patience is important this is not Google

this is not YouTube it's best to put

that aside just cut and paste the EG

code it's going to make your life easy

and you probably notice bam

automatically all of these things

populated and what's important is over

here on the right well it's my right

might be your left you want to select

updated date because if not you're going

to get opportunities from 2017 unless

you have a time machine maybe you do I

don't know if you do can we please talk

is that going to be of health so just

literally click update a date okay so

what we're going to do is just review

what's here space mission engineering

course ooh that sounds fun save a back

training sounds like something to help

with back eliminate back pain okay great

retirement webinar ooh academic support

radio radio frequency training project

management training mods introduction

course so you notice a wide variet y of

topics that's why it's very important

especially For You entrepreneurs you

have to ask yourself what not only will

bring you profit what's enjoyable and

what will bring you reoccurring Revenue

because just because the government

wants save a back training does not mean

that's something you even want to offer

but here's the big takeaway the way we

see things the way we want to offer in

products and services don't always align

one to one with how the government

purchases that is why we have the nakes

codes because these all of these

opportunities here fall under training

right they all fall under training so

then you have to ask yourself okay I'm

interested in training I like training

this woman Dr Park says it's profitable

okay so are you okay then with offering

save a back training retirement training

training for the Marine cors if the

answer is yes then that's awesome

because then what you do is you find

experts to serve as employees or 1099

contractors to then execute the work

there is a large company called

management Concepts this is one of their

practices they hone in on Professional

Services training they also offer

Contracting acquisition training and

they have this model where they have

employees they have contractors they

have subcontractors and pretty much the

majority of what they provide is

training it's an amazing business and I

believe their profit margin is anywhere

from 20 to 40% so it's a awesome area

because it fits well with this formula I

want to recap right now because I've

given you all a lot of information but

don't worry because I'm going to dig

deeper into what to look for how to

really examine but I don't want to give

you a 90-minute video because you're

going to end up going uh next I need out

of of this I got it so what I want to

leave you with is hope I want to leave

you with a lot of Hope because

everything is truly possible it is

because it happened for me and I'm not

saying that cuz I'm lucky or I was born

into some privileged family I didn't

serve in the military I didn't work for

the federal government I offered value I

ran with an opportunity and I continue

to offer value so before we kind of

close the same goes for you you want to

offer value you want to look at that

money making idea Matrix explore if

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