ML20033F342

Directs Award of Contract to as Rosenthal for Investigation of Allegations That Personnel in Ofc of Investigations Failed to Properly Perform Certain Assigned Duties

ML20033F342
Person / Time
Issue date:	03/24/1989
From:	Zech L NRC COMMISSION (OCM)
To:	Halman E NRC OFFICE OF ADMINISTRATION (ADM)
Shared Package
ML20033F335	List: ML20033F334 ML20033F342 ML20033F343
References
FOIA-90-6 NUDOCS 9003200076
Download: ML20033F342 (17)

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MEMORANDUM FOR:

Edward L. Halman, Director Division of Contracts and Property Management FROM:

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SUBJECT:

AWARD OF CONTRACT TO ALAN S. ROSENTHAL

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Confirming my staff's previous oral instructions, you are directed to award a contract to Alan S. Rosenthal in as expeditious a manner as possible. As indicated in the accompanying Request for Procurement Action and draft Statement of Work, Judge Rosenthal is conducting very sensitive independent investications for the Commission. Due to the urgency of the situation, I personally instructed Judge Rosenthal to commence work on February 28, 1989, and the contract should reflect that starting date.

The investigation in question involves allegations that personnel in the Office of Investigations (01) failed to properly perfona certain of their assigned duties. Because the investigations have not been completed -I ar not at liberty to convey the substance of those allegations.

I can assure you, however, that these investigations involve serious allegations that are of strong interest to the Connissioners and.the Congress.

Given the fact that further delay in completing the investigations will con-tinue to interfere with this agency's ability to conduct business in the sensitive areas that are 01's responsibility, as well as the strong Congres-sional interest in the matter, it is imperative that NRC complete this investigation without delay. Therefore, in my judgment the need to award this contract is both urgent and compelling,-and the delay incident to com-petition would seriously injure the agency's ability to perform its mission.

Judge Rosentnal, the fonner Chairman of the Atomic Safety Licensing and Appeal nE Panel, is uniquely qualified to conduct this investigation. He is intimately g

D-familiar with NRC operations, particularly its licensing procedures, and he g

has extensive experience with the appropriate consideration of evidence in the e

course of licensing. He is also experienced with NRC investigative matters 4 4 and is familiar with NRC's Office of Investigations, its role and its func-

-Q tions, which relate primarily to the conduct of NRC licen n es, contractors, Som vendors and employees of these entities. This comprehensive understanding of gu.

NRC and 01's role is essential to the successful completion of this investi-no

-gation since, absent this knowledge, other potential investigators would be 85"5 required to spend unnecessary time familiarizina themselves with these matters. Further, as a former Chairman of the Appeal Panel, Alan S. Rosenthal has extensive experience as an administrative judge, and has an unparalleled reputation for careful work and thorough analysis. The Commission has also E

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In summary, Judge Rosenthal has the unique combination of experience, personal reputation and other qualifications needed for the timely completion of this investiga-i tion.

The Connission is unaware of any other individual who possesses this combina-tion of qualifications, and certainly none who has our full confidence in this regard. It is therefore my opinion that the agency's minimum needs can only be satisfied by the unique combination of experience, personal reputation and other qualifications which Judge Rosenthal possesses.

You are to make such deteminations and grant such waivers from standard pro-curement procedures as are necessary to accomplish immediate award of this contract.

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SECTION C - DESCRIPTION / SPECIFICATION / WORK STATEMENT C.1 STATEMENT OF WORK C.1.1

Background

The NRC has an urgent requirement for investigative services to resolve certain outstanding allegations concerning the manner in which NRC's Office of Investigations (01) performs its functions. That office performs critical, highly visible investigations of HRC licensees, contractors, vendors and employees of these entities; the timely resolution of these allegations is therefore essential, sinct 01 must have the public's full confidence in order to perform its mission.

Investigative services to be performed under this contract are a matter of strong concern to NRC management and the Congress.

C.1.2 Contract Objective The objective of this procurement will include on-going investigations where the focus of the investigation is 01, as well as any new investigations that might be initiated as a result of allegations received arior to the activation of the Inspector General for the NRC. The contractor s1all provide indepen-dent investigative services for the Consission, and shall furnish fully docu-mented reports of his investigative findings. Such investigative services shall, in all cases, be consistent with the agency's need for timely resolu-tion of the allegations.

C.1.3 Appointment as Agent The contractor is appointed as agent for the NRC for purposes of administering oaths and such other ministerial functions as may be necessary to perform the investigative activities required in this statement of work.

Work Requirements C.1.4.1.

Scope of Work The contractor shall perform any and all investigations necessary to accomp-lish the contract objectives for the Connission, either directly or through subcontractors approved under this contract. The NRC shall provide required office space, furniture, equipment, telephone service and the like, together with all necessary secretarial, clerical, administrative and other support that the contractor may require in his investigation. The NRC further agrees to cooperate fully in this investigation, and to grant the contractor unimpeded access to all necessary NRC files and documents. The priority to be assigned allegations that 01 personnel have not properly performed their assigned duties will be established by the contractor in consultation with the Project Officer. The contractor shall conduct complete investigations ir. accordance with the tems of this contract.

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l 1 C.1.4.2 Record Review The contractor shall review the record of The Office of Inspector and Auditor

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concerning any pending investigations of the Office of Investigations. Such reviews of the record shall include previous investigative materials, reports, and other documents which reflect relevant infomation or the conclusions of

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those prior investigative efforts. Record reviews shall, to the extent the 1

contractor deems necessary, include such supporting materials as records of interviews, transcripts, and tapes associated with the prior investigation, as well as the underlying documents referred to in those materials.

C.1.4.3 Independent Review In addition to his review of any prior investigative records, the contractor shall conduct such investigations and reviews as are necessary to indepen-dently determine the validity of the allegations that 01 personnel did not properly perform their assigned duties. This may involve interviews with witnesses, both fonnally transcribed by a court reporter and informal. Such independent reviews may also include any and all relevant documentary mater-ialsinot contained in the prior investigatory files, including internal NRC memoranda and other papers generated by NRC staff; correspondence with other federal agencies on the prior investigation; and other relevant documents obtained from licensees, contractors, and other entities.

In sum, the con-tractor is to take such additional investigative steps as are necessary to assure its full, accurate and complete assessment of the allegations in question.

C.1.4.4

' Investigative Report The contractor shall furnish an investigative report to the Comission upon completing each investigation of allegations that 01 personnel did not properly perform their assigned duties.

Such reports shall contain complete findings'as to the validity of the the allegations, and shall fully document the. reasons for those findings. To the extent that the contractor's find-ings' differ from those reflected in the prior investigatory materials, the contractor shall identify those differences and, to the maximum extent practi-cable,'the reasons for the differences.

Investigative resorts shall not.

contain recomendations on what management action should >e taken based on the findings in-the reports.

C.1.4.5 Briefings The contractor may be requested to provide oral briefings for the Comission, the Congress, and other interested parties on his findings after delivery of an investigative report. Such oral briefings shall be undertaken only in accordance with the written request of the contracting officer, which request shall identify the time, place and audience for the briefing. Necessary time to prepare for any oral briefings, as well as the actual briefing itself, shall be included in this task.

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Effective as of the execution of this contract all arrangements inconsistent with the terms of this contract shall be of no force or effect.

[End of statement of work]

OTHER CONTRACT TERMS 1

Deliverables:

Investigative reports in accordance with Paragraph C.1.4.4.

Delivery dates:

Mutual Agreement

' Delivery point:

Project Officer L

Contract funding:

60 days 9 $500 per day, to include costs l'

for travel.

Travel:

Include standard provision authorizing travel and per diem at government employee 7ates.

Completion date:

September 30, 1989 Reports:

Monthly, letter on status only.

' Payment:

Monthly.

NRC Support:

Include standard Government Furnished Equipment provision and listing consistent with C.1.4.1.

j Tennination:

Include standard termination provision giving NRC the right to teminate contract performance.

Subcontracts:

Include provision requiring the contracting officer's prior approval.

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4. OstenutNATioes Aaso suppoet No sTAteestNT or inMY TMs s nieTisse mesOumCes of THe NaC Ane sesAccouATs 70 PuRNisM Yne eenveces The NRC has determined that it is in the best interest of the Government to obtain the services of an independent expert whose broad experience in interpreting statutes and regulations, and the application of principles of administrative law will render his services to be of distinct value to the NRC in resolving issues before the Commission, i

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& EstanMINATION AND SUPPORTlaso STATWMENT OF WHY PtItSONNGL wtTH EMISTips0 SKILLS CANNOT 88 OSTAINGO P MOM ANOTHER PSO(RAL AGENCY lt is inappropriate to involve another agency in investigations internal to the NRC.

L S. DETEmbeN ATION AND SUPPORTINO STATOMENT OF WHY PERSONNEL CANNOT St OST AINGD THROUGH NORMAL CivlL SERVICE APPoisv7 MENT PROCEDURES This pro,iect will be short term and services are required to begin immediately. Therefore, a normal civil service appointment is not appropriate.

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In sunnary, Judge Rosenthal has the unique combination of experience, personal reputation and other qualifications needed for the timely completion of this investiga.

tion.

The Commission is unaware of any other individual who possesses this combina-

- tion of qualifications, and certainly none who has our full confidence in this regard.

It is therefore my opinion that the agency's minimum needs can only be satisfied by the unique combination of experience, personal reputation and other qualifications which Judge Rosenthal possesses.

You-are to make such determinations and grant such waivers from standard pro-curement procedures as are necessary to accomplish immediate award of this contract.

Attachments: As stated l

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U.S. NUCLEAR REGULATORY COMMISSION DIVISION OF CONTRACTS AND PROPERTY MANAGEMENT i

Justification for Other Than Full and Open Competition 1.

The U.S. Nuclear Regulatory Commission (NRC) has entered into a non-competitive contract with Judge Alan S. Rosenthal for investigative services. The estimated amount of this contract is $30,000.00 and the period of performance is February 28, 1989 through September 30, 1989, 2.

The NRC has an urgent requirement for investigative services to resolve outstanding allegations concerning the manner in which NRC's Office of Investigations (01) performs its functions.

That office performs critical, highly visible investigations of NRC licensees, contractors, vendors and employees of these entities. The timely resolution of these allegations is therefore essential, since OI must have the public's full confidence in order to perform its mission.

Investigative services to be performed under this contract are a matter of strong concern to NRC management and the Congress.

3.

Given the fact that any delay in completing the investigation will continue to interfere with NRC's ability to conduct business in the sensitive areas that are the 01's responsibility, as well as the strong Congressional interest in the matter, it is imperative that NRC complete this-investigation without delay. Therefore, the need to award this contract is both urgent and compelling.

The Chairman has determined that the delay incident to competition would seriously injure the agency's ability to perform its mission.

4.

Judge Rosenthal, the former Chairman of the Atomic Safety and Licensing Appeal Panel, is uniquely qualified to conduct these investigations.

He is intimately familiar with NRC operations, particularly its licensing procedures, and he has extensive experience with the appropriate consideration of evidence in the course of licensing.

He is also experienced in NRC investigative matters and is familiar with NRC's OI, its role and its functions, which relate primarily to the conduct of NRC licensees.

Further, Judge Rosenthal has conducted investigations for NRC in the past. This comprehensive understanding of NRC and 01's role is essential to the successful completion of these investigations.

Absent this l

knowledge, other potential investigators would be required to spend unnecessary time familiarizing themselves with both NRC, its licensing process and its Office of Investigations.

As a former Chairman of the Appeal Panel, Judge Rosenthal also has extensive experience as an administrative judge, and has an unparalleled reputation for careful work and thorough analysis.

In summary, Judge Rosenthal has the unique combination of experience, personal reputation, and knowledge needed for the 1-timely completion of this investigation.

NRC knows of no other individual who possesses this unique combination of qualifications essential to the L

timely performance of this contract.

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The statutory authority permitting other than full and open competition l-is 41 USC 253 (c) (2), as implemented by FAR 6.302-2(b), which provides for i

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limiting competition in those situations where an unusual and compelling urgency exists, i

6.

In accordance with the procedures outlined in FAR 6.302-2, this acquisition was not synopsized in the Commerce Business Daily because the Agency's need for Judge Rosenthal's services is of an unusual and compelling urgency _As described above, and as reflected in the Chairman's March 24,

-1989 memorandum to the Contracting Officer, the Agency would be seriously injured by the delay attendant to the conduct of competition for these services.

7.

Judge Rosenthal, in addition to performing under the contract as described above, will serve concurrently as a member of the Atomic Safety and Licensing Appeal Panel.

As such, Judge Rosenthal is a "special government employee" and covered under the prohibition in FAR 3.601 regarding contracts with government employees.

Because-of the uniqueness of Judge Rosenthal's experience and ability to complete this project in an expeditious manner, the award of this contract meets the compelling circumstances contemplated under FAR 3.602 " Exception".

The Agency's need for this work c3nnot reasonably be met other than through the use of Judge Rosenthal's serv'ces.

8.

No follow-on acquisition for these services in anticipated at this time.

9.

The price to the Government for this work was determined to be fair and reasonable based on a price analysis.

Technical Certification I certify that-the facts and representations-under my cognizance which are included in this justification are accurate and complete to the best of my knowledge-and belief.

4 (See attached Memorandum dated March 24, 1989 (Zech to Halman))

Contracting Officer's Certification I hereby certify that this justification is accurate d comple to the best of my knowledge and belief.

3!3d

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Date:

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EtGar'd L. Halm'an Contracting Officer As required by Part 6.304(a)(2) of the Federal Acquisition Regulation, I havereviewedand((rthanfullandopencompetition.

) approved (

) disapproved the above described acquisition for othe

1. 1. ~ U Date:

J Patricia G. Norry, Director Office of Administration

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UsesoteCffED PRO 805AL JUSTIFCAftose JUSTFCAft08e FOR NoseCOMeETITiVE PROCUREndsaff DESIGasAft0N OF MEMSEftS TO SOURCE EVALUAfton PAseEL eenument eartshessess wel be earussess # erpsar v JUSTEMCATION FOR ACQUISfTION OF CONSULTANT SERVICES,leRC FORM 400A

'1 SPECIAL REQUIREMENTS (See NRC Ampenske 8707. (sAdut f. #epe 87 z.~.

14 ESTIMATED COST #AerecA toer-seresesse eresessment cuentarr secow resso F0 fat FY89 - $33,000.00

15. FN Ties omrense out neias m pu ensure omed tiencre are emudseen m FY M9 -

lar Die wort osecreed seiove.

AMOussi leAME OF CERTFYteeG OFFictAL (Freedenersgneds DATE JMp>Mw M,(g//'M;{

9ffi(/89

$3,000.00

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• seuMuim

wouems, B&R NO. 9701901000

1. load FIN'ND. L D 9 83 0+d.de 31X020.970

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16. PROJECT OFFICER'8 teAME (1

MAIL sTOP TELEPHONE NUMSER Steven G. Burns

\\l OCM/KC 21750 ir. APPRom op onwCToR oR oEs.oNEe <r,e no

.n, Am s.ne,.,e,,,e e, eem,,eewr.,i,,

oArt u_vah.

9/11/89 oRoANuAfioN Kenneth M. Carr, Chairman

,i. REMuMa.

Modify the contract to:

l.

Provide an additional $2,000.00 in funding to perform the work required through

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September 30, 1989.

2e Extend the period of performance to December 31, 1989 and provide nominal funding in the amount of $1,000.00 to cover anticipated sporadic effort during the period October 1, 1989 to December 31, 1989.

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1 FOR OtviSION OF CONTRACT'S USE ONLY IDe ner wrsee senew es,s knet

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INITIAL ENTRY MADE tNTO THE CIS/FPDS SYSTEM m'% W ' '

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ge;c up c."DMSION OF, CONTRACTS (DC) COPY'}w mumwnw+</ eer:e$wge% l

.*p* ***g.k UNITED STATES NUCLEAR REGULATORY COMMISSION -

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. wAsHWGTON, D. C,20656 y

September 18, 1989 MEMORANDUM FOR:

Edward L. Halman Director Division of Contracts and Property Management

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S. Rosenthal FROM:

1

SUBJECT:

ALLOCATION OF ADDITIONAL CONTRACT FUNDS As my secretary' Barbara Tompkins advised you by telephone on Friday, the funding on my contract will run out i

tomorrow (September 19).

I clearly will have to spend at least two additional days in finishing.the. investigation' i

report that is now in progress and must be furnished to the Commission on this Friday, September 22.

Further, it'is

'possible that I will have to. spend a day or two in the week of Sqptember 25 on matters associated with the same investigation.

In the circumstances, I would appreciate the allocation of an additional $2000 to the contract.

It is my understanding that an extension of the l

contract from October 1 to December 31, 1989, will be arranged with no specific monetary provision inserted pending further developments on the front of the subpoena that was issued to Stephen Comley.

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evaeRoi m r.n t.

nec Pan 4E M 1 U.S. NUCLEAR REGULATORY COMMISS40N sen REQUEST FOR PROCUREMENT ACTION (RFPA) i

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it DupuCATION OF SMORT gn e pr. ore.sf 13 US1 OF ATT AODedENTS

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tWAtuAftOn CRaftRIA WTTH Nuent AsCAL wt Gwis AsesGastO UST OF FIRMS TO H SOLICittO. #es AD0tTIOst TO THE offetRAL PutolC A

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ur. cave,OR O COM <mivi e.OCune=NT OtteGesattoss OF MEMsties TO SOURC4 (VALUAftOss PAmtL J c.

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,. u.m JUS 1,sCAfiO8e f OR ACOuisitaO8e OF COassyttANY stavicts. seAC F08W 4004

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..r c.~ n i SPtC1AL pic.vtRE Mt NTS ISee NRC Anedes 8 70f. f she, f. P.y. 8/

CONTROLLER S APPROVAL OF A 78 Dt 71RMW.ATION u esr,ua,aO cas, anus a.a.....,. o..

..a Fm pr

'o'M cg.w ago o r,am FY89 - $30,000.00 l

15 FUNDPs0 The c.rt.,e. th.t #wnc. e th.. mount ca.d tme we aa.N. m FV.__e.otm.nl hw th. wo o.sann.d.now.

LMOUN1 NAME OF CERTIFYING OFFICAL (Type..a.39ne#/

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.,,,,,,u, asuu$tmise A4douaiYist hva.sgs, AagJisi N/A l

1e PCECT OFFICER S NAME MAik stor itttenomt hountR L

Steven G. Burns 0CM/KC 21750 s F F# PROS At OF DiRECTO8t OR D($eGNE( /Fyp n.m..n kn.

4 A4 39h.#ws, ps.c...em. typ.eregs DATE 9/ /89 l

l OAGam4AtlON l-Kenneth M. Carr, Chairman

i. Reu = a Extend the period of performance of the contract to December 31, 1989, with no change L

to the contract ceiling price.

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9001 DevltaON OF CONTRACT"S USE 080LY fD.s'.,.r 6.bw #A,8 An.J INiflAL ENTRY MADE INTO THE CIS/FPO$ Sv8 TIM

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ev e emo sees +toosaamies

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e e.one mses ese Pert 1 U. S. NUCLEAN RSOULATORY C0tetatS40N i

t OCM-89-347 a sioi.w e awAmaminem RROUEST POR PROCUREMENT ACTION (RPPA)

"El i orsea s t September

, 1989 4 TvWE OF ACTOIWQtESTs Otose endcongsfese as appriprestal nestnUCTIONSt Twelwe t wteuseelw wwtoue tweet or w omewme AcTasmeevorvecNw CommucTs m

esmeens, tuene note.e woe oceers, ooneetittvo conctiettone me

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enor ANuno0LaTo

,A &ACasemc,f.oNwemA,ew vuonnoeio none w sees ser wwen veemesen nae not noen osvotoose, enouis

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me es e,wi es be teR Meret. In eue.n cases, eis protect OScor should contact sie Devtalon et co.e,s. e r 3@mit the corvipleted formto: DNocto' ceCtt't A MOoriCATiONto A CCemuCT Ee$v*Nrek,

c5*ct '"**

I co"*c'ca NRC-34-89-347 Alan S. Rosenthal se Ptfe000F PE7FOfeAANCE b OELMRY eCHEtu.E l AWAPC A NONCOWETTTM CONT 1%CT (Ow conrector e namel mou To 2-28-89 12-31-89 goy,,As,e a,

,eNo Aamne<T m

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e eEContva.Anweewo=AATa

, peu,=0,c At ec.,ve.ct ANTeCPATED COB (TDe't.ATED

] mar AN p<TEpuopeCY AQMEDe(T (Gw sportyi name) vt3 (4troca 8MC Parm se7) vts NO NO

& DeC'elCNLeaf TITLE Support to the Office of the Commission j

e mtt or enomCT Afeene OsamoNor wom teo aree e ies, Conduct of investigations resulting from allegations for the NRC.

1 i

l i

l e l 10 PROGRAM OFFICE RECOtheOATON 4GAfOlNQ SOClo-ECONOMIC SET.AS DES (Corvices meiere octoi remmered ei 4 e6ow is for e cormoutw schetrerecrt a bes< mwry em a nortorriperfrM ccritract.)

100% eET.AmeDE FOR SaAALL suSeESS PARTIAL SET-ASCE FOR SMALL eUSWES8 JOINT eAAALL eUSeESS -LAeOR RAn'LUS AEA SET.A810E 100% LA80R RARUS AMA SET.A810E l

NONCOs#ETITM CONTiuCT PROCESSED LpOER DE PROCEDLfqES OF eECTiON.8e(e) ESTRICTED ACTION OF TM 88AALL eUS#ESS ACT FOR AWAfD TO A SMALL.048ADVANT AGED eUGOE

11. MANAGEMENT DGECTMS APPUCASLITY N

APPUCARE e4APPUCAR.E OEba'Tu'pt M OnS CotCLAAR A-7e fese aftC asessi stekt)

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A.UT.OMATic,.DA.T. A PROCEsesso C00feetAfiDM (See PMCef esed

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