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Home » The Tanker Tango » How Boeing Doth Protest

How Boeing Doth Protest

kc-767.jpg

On Tuesday, the Boeing Company for­mally sub­mit­ted its protest of the NorGrum/​EADS tanker award to the Government Accountability Office. The process takes like 60–90 days sup­pos­edly, but have we yet to resolve the CSAR-​​X protest? No. So I don’t have much hope for this one end­ing any time soon.

And that’s a shame, because more than a new CSAR, the Air Force has got to replace the old­est of its KC-​​135s very soon, or metal fatigue will seri­ously ham­per aer­ial refu­el­ing ops. It seems that this argu­ment has been firmly planted in the polit­i­cal arena and that Boeing’s argu­ments on the tech­ni­cal flaws they find in the award are an out­growth of prod­ding from Capitol Hill and the unions.

I could be wrong, of course, and maybe there was a grand con­spir­acy here to award the deal to Airbus. But it seems to me — and call me crazy — that after the last tanker fiasco (which cost an Air Force Secretary his job) the Air Force would have been SUPER care­ful about its award. I mean, the Air Force has pro­fes­sional acqui­si­tion offi­cers who do noth­ing their entire careers but buy stuff and work con­tracts to the “T.” With such a high-​​stakes con­tract and its shady his­tory, don’t you think the folks who decided this worked the angles back­wards and for­wards? It doesn’t make sense to me that the Air Force would have been slip shod on this one.

Secondly, I need to say out­right here that Sue Payton, the Air Force’s top acqui­si­tion offi­cial, is about as pro­fes­sional and hon­est as any civil ser­vant can come. I inter­viewed her a cou­ple times over the years and have found her hon­est, forth­right and enthu­si­as­tic about her ser­vice and respon­si­bil­i­ties. I just don’t see her let­ting any­thing be taken to chance.

And lastly, I find it humor­ous that Boeing is using the same argu­ment to protest the tanker award that Sikorsky and Lockheed Martin are using in their protest of Boeing’s win in the CSAR-​​X con­tract: that the ser­vice asked for a medium-​​sized tanker and awarded a heav­ier one.

Here’s a release from Boeing for­warded to me yes­ter­day after a con­fer­ence call with reporters (that I missed because my email server was down dammit!) explain­ing the logic behind their protest:

  • The con­tract award and sub­se­quent reports ignore the fact that in real­ity Boeing and the Northrop/​EADS team were assigned iden­ti­cal rat­ings across all five eval­u­a­tions fac­tors: 1) Mission Capability, 2) Risk, 3) Past Performance, 4) Cost/​Price, and 5) Integrated Fleet Aerial Refueling Assessment. Indeed, an objec­tive review of the data as mea­sured against the Request for Proposals shows that Boeing had the bet­ter offer­ing in terms of Most Probable Life Cycle Costs, lower risk and bet­ter capability.
  • Flaws in this pro­cure­ment process resulted in a sig­nif­i­cant gap between the air­craft the Air Force orig­i­nally set out to pro­cure — a medium-​​size tanker to replace the KC-​​135, as stated in the request for pro­posal — and the much larger Airbus A330-​​based tanker they ulti­mately selected. It is clear that fre­quent and often unstated changes dur­ing the course of the com­pe­ti­tion — includ­ing manip­u­la­tion of eval­u­a­tion cri­te­ria and appli­ca­tion of unstated and unsup­ported pri­or­i­ties among the key sys­tem require­ments — resulted in selec­tion of an air­craft that was rad­i­cally dif­fer­ent from that sought by the Air Force and infe­rior to the Boeing 767 tanker offering.
  • Because of the way the Air Force treated Boeing’s cost/​price data, the com­pany was effec­tively denied its right to com­pete with a com­mer­cial deriv­a­tive prod­uct, con­trary not only to the RFP but to fed­eral statute and reg­u­la­tion. The Air Force refused to accept Boeing’s Federal Acquisition Regulation-​​compliant cost/​price infor­ma­tion, devel­oped over 50 years of build­ing com­mer­cial air­craft, and instead treated the company’s air­frame cost/​price infor­ma­tion as if it were a military-​​defense prod­uct. Not only did this flawed deci­sion deny the gov­ern­ment the man­u­fac­tur­ing ben­e­fits of Boeing’s unique in-​​line pro­duc­tion capa­bil­ity, sub­ject­ing the Air Force to higher risk, but it also resulted in a dis­tor­tion of the price at which Boeing actu­ally offered to pro­duce tankers.
  • In eval­u­at­ing Past Performance, the Air Force ignored the fact that Boeing — with 75 years of suc­cess in pro­duc­ing tankers — is the only com­pany in the world that has pro­duced a com­mer­cial deriv­a­tive tanker equipped with an oper­a­tional aerial-​​refueling boom. Rather than con­sider recent per­for­mance assess­ments that should have enhanced Boeing’s posi­tion, the Air Force focused on rel­a­tively insignif­i­cant details on “some­what rel­e­vant” Northrop/​EADS pro­grams to the dis­ad­van­tage of Boeing’s experience.
  • Boeing offered an air­craft that pro­vided the best value and per­for­mance for the stated mis­sion at the low­est risk and low­est life cycle cost,” said McGraw.

“We did bring our A-​​game to this com­pe­ti­tion. Regrettably, irreg­u­lar­i­ties in the process resulted in an incon­sis­tent and prej­u­di­cial appli­ca­tion of pro­cure­ment prac­tices and the selec­tion of a higher risk, higher cost air­plane that’s less suit­able for the mis­sion as defined by the Air Force’s own request for pro­posal. We are only ask­ing that the rules of fair com­pe­ti­tion be followed.

Come on, every­one, includ­ing Boeing, knew from the VERY BEGINNING that Airbus was going to offer up the A330. It seems a lit­tle strange for Boeing to com­plain about some mis­con­cep­tion of the cri­te­ria now.

But, again, I think this is get­ting more polit­i­cal than con­trac­tual. We’ll see. And keep an eye out for more cov­er­age here on the attempt to hang the lost con­tract on the Republican pres­i­den­tial nominee…

– Christian

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March 12th, 2008 | The Tanker Tango | 3891117 Comments »http://defensetech.org/2008/03/12/how-boeing-doth-protest/How+Boeing+Doth+Protest2008-03-12+12%3A07%3A46Ward You can skip to the end and leave a response. Pinging is currently not allowed.

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  1. irtusk says:
    March 14, 2008 at 8:17 pm

    > in real­ity, with KC-​​767 you WILL have more booms in the air & have MORE total fuel to trans­fer in most the­aters.
    this is just flat out wrong
    the KC-​​30 can oper­ate from more air­fields and can stay on sta­tion longer
    on sta­tion longer = less time in tran­sit = more booms in the air
    > The UK DID NOT study all air­fields, only ones they reg­u­larly oper­ate from
    of course they didn’t study all, but they stud­ied hun­dreds
    not find­ing a sin­gle one that the KC-​​767 had an advan­tage at should tell you some­thing
    > It is a 100% FACT that 767–200 can (because of their smaller size &
    > lower weight) oper­at­ing from air­fields that the A330-​​200 sim­ply can not
    no one’s found one yet
    don’t think that just because it’s smaller it has bet­ter take­off per­for­mance, that is absolutely not true
    the ginor­mous wing of the A330 gen­er­ates a ton of lift and allows it take­off at slower speeds
    the­o­ret­i­cally, there could be some taxi­way that sup­ports the 767 but not the A330, but again no one’s found one yet
    > When you look as real-​​world sce­nar­ios the KC-​​767AT puts more booms in the air woth an over­all greater total fuel offload capa­bil­ity
    sim­ply not true
    the KC-​​30
    1. can oper­ate from more air­fields
    2. carry more gas
    3. stay on sta­tion longer
    4. oper­ate from bases fur­ther away
    the ONLY area where the KC-​​767 has any sort of ‘advan­tage’ is park­ing foot­print, and even that isn’t that big. Again i don’t have the exact num­bers, but at some­place like Kandahar it was 12 KC-​​767s vs 11 KC-​​30s
    and the extra capac­ity, range and endurance of the KC-​​30 more than makes up for that
    for booms in the air, you can’t beat the KC-​​30
    > They strength­ened & enlarged infra­struc­ture
    again no one has found a taxi­way that will sup­port the KC-​​767 but not the KC-​​30
    > placed their air­craft closer together than they are in the real world.
    nope, the AF does park air­craft that close which is why they allowed that change

    Reply
  2. pfcem says:
    March 14, 2008 at 9:32 pm

    irtusk,
    No the KC-​​30 can NOT oper­ate from more air­fields than the KC-​​767AT. The KC-​​767AT can oper­atate from ANY air­field the KC-​​30 can oper­ate from but the oppo­site is not true — there are air­fields who’s infra­struc­ture can acco­modant the KC-​​767AT but not the KC-​​30 due to its size &/​or weight.
    And the KC-​​30 car­ry­ing more fuel does not nec­ces­sar­ily mean it can stay on sta­tion longer — it depends on how far/​long it had to fly to get on sta­tion plus every minute a KC-​​30 is in the air it burns ~25% more fuel than a KC-​​767AT…
    on sta­tion longer =/​= less time in tran­sit =/​= more booms in the air
    And I guess you need to tell the air­lines that the A330-​​200 can oper­ate from any air­port that can oper­ate the 767–200 then… But since you are under the illu­sion that no such air­fields can be found I will give you oa cou­ple — Invercargill Airport, NZ & Fort Lauderdale-​​Hollywood International Airport, USA.

    Reply
  3. SMSgt Mac says:
    March 15, 2008 at 12:29 am

    RE: “The KC-​​767AT can oper­ate from ANY air­field the KC-​​30 can oper­ate from but the oppo­site is not true.“
    Well if both NG’s and Boeing’s web­sites are to be believed, the 767 tanker can ‘use an 8000 ft run­way’, and the A330 tanker can ‘take­off in 7000 ft’. Both num­bers are for fully-​​loaded air­craft, and I assume this is best per­fo­mance at sea-​​level, stan­dard day. So it would seem that the A330 can at least per­haps use some air­fields that the 767 can­not? Even if this is just the same per­for­mance expressed in dif­fer­ent ways, the point that NG makes with the num­ber of air­fields is that for any given sce­nario, the A330 can oper­ate out of more dis­tant fields (adding num­bers of options) than the B767.
    The higher fuel burn of the A330 is only to the Boeing’s advan­tage if it is higher per pay­load unit per mis­sion mile or mis­sion hour, with pay­load unit being expressed in pounds of off-​​boardable (for lack of a bet­ter word) fuel, num­bers of pas­sen­gers or patient lit­ters car­ried, and of course pounds or pal­lets of cargo (depend­ing upon if vol­ume or mass is the con­strain­ing fac­tor). Example: If the 767 burns 10% less fuel, but you can fly either 1 fully loaded A330 or 2 B767s, then I’d say chances are pretty darn good that you will be burn­ing more fuel fly­ing 2 767s. Even if you can bal­ance the load to make the 767’s fuel burn rates even lower indi­vid­u­ally, unless each 767 now burns half as much fuel as the A330 (highly improb­a­ble given the sim­i­lar­ity in pow­er­plants and thrust rat­ings) then you are burn­ing more fuel using 767s than the A330 for the same mis­sion. There’s a whole pile of other con­sid­er­a­tions and ques­tions con­cern­ing the AF needs thet the AF knows and we don’t. Things such as how many tankers are needed to sup­port one-​​way fighter drags? How impor­tant is what capa­bil­ity to which mis­sion? How impor­tant is the abil­ity get to and to stay on sta­tion? How impor­tant is cruise speed (the A330 is nom­i­nally faster) or best loi­ter time? What’s the low­est man­power option? The AF knows what is impor­tant to them and we don’t. It also sounds like Boeing is telling its Customer that they know bet­ter than the Customer what the Customer needs. This was a mis­take my com­pany used to make and I remem­ber a lot of lost con­tracts dur­ing that time­frame.
    Speaking of air­lines and the ‘B767 vs the A330-​​200′ bat­tle. It is inter­est­ing that this is one air­frame mar­ket com­pe­ti­tion where EADS seems to be beat­ing Boeing. A per­son on an ear­lier thread was insist­ing that the A330 just HAD to be in a dif­fer­ent class and Boeing was sput­ter­ing about the A330 being so much big­ger (heavy vs medium argu­ment). It took very lit­tle research to find that the A330-​​200 is a direct com­peti­tor to the 767-​​300ER and 767-​​400ER. While I per­son­ally would describe the two air­craft as being of dif­fer­ent ‘classes’ (both smaller than a B777 or B747 ‘class’ BTW) the air­liner mar­ket is what has declared these two air­frames com­peti­tors.
    Since the A330-​​200 is a short­ened ver­sion of the A330, I’m won­der­ing if Boeing is kick­ing them­selves over elect­ing to not come out with a short­ened ver­sion of the 777 and instead opt­ing to stretch the 767. History would have given them con­fi­dence in such a deci­sion at the time they made it, since the A330-​​200 has been the only really suc­cess­ful ‘shrink job’ I can think of. All oth­ers that come to mind have not been very suc­cess­ful (sales wise) — a good exam­ple would be one of my all-​​time favorite air­lin­ers: the B747SP.
    One has to won­der if Boeing has the audac­ity to tell its com­mer­cial cus­tomers that they can’t buy A330s intead of B767s because they are ‘too different’.

    Reply
  4. pfcem says:
    March 15, 2008 at 5:48 pm

    SMSgt Mac,
    The devil is in the details reguard­ing run­way length.
    Once again…The KC-​​767AT has the air­frame of the 767–200 (small­est & light­est 767) with the wings, land­ing gear & higher thrust engines of larger/​heavier 767. The KC-​​30 may have supe­rior take-​​off per­for­mance tha the “basic” KC-​​767 pre­vi­ously sold but the KC-​​767AT (as some are so keen to point out) IS NOT the same air­craft.
    Boeing is not kick­ing them­selves over elect­ing to not come out with a short­ened ver­sion of the 777 and instead opt­ing to stretch the 767. Boeing pro­posed what it believes (which had pre­vi­ously been con­firmed) is the right sized air­frame to replace the KC-​​135.
    The 767–300 & 767–400 are “direct com­peti­tors” to the A330-​​200 in some mar­kets but the 767–200 is not.
    Boeing doesn’t have to tell its com­mer­cial cus­tomers that they can’t buy A330-​​200s intead of 767-​​200s because they are ‘too dif­fer­ent’, cus­tomers know every bit as much as Boeing how dif­fer­ent the two are. The “com­pe­ti­tion” that has done the most to reduce demand for the 767–200 are stretched ver­sions of Boeing’s own 757.

    Reply
  5. pfcem says:
    March 15, 2008 at 6:19 pm

    irtusk,
    hypo­thet­i­cal sit­u­a­tion…
    KC-​​767AT oper­at­ing from an air­field ~500 miles from des­ig­nated refu­elling point.
    KC-​​30 being too big &/​or heavy can not oper­ate from said air­field & thus has to oper­ate from an air­field ~750 miles from des­ig­nated refu­elling. point.
    OR
    KC-​​30 oper­at­ing from an air­field ~500 miles from des­ig­nated refu­elling point can only do so at a sig­nif­i­cantly reduced take-​​off weight thus negat­ing (or even revers­ing) it fuel offload advan­tage.
    If A330-​​200 are oper­at­ing from Lauderdale-​​Hollywood International Airport then sig­nif­i­cant improve­ments to the air­field infra­strutcure have been made to sup­port heav­ier air­craft or the A330-​​200 oper­at­ing from there are doing so at a SIGNIFICANTLY reduced take-​​off weight.
    It is actu­ally quite com­mon to see in many areas a sin­gle (or few) large airfield(s) which can oper­ate “vir­tu­ally any­thing” sup­ported by a larger num­ber of smaller air­fields which can only oper­ate air­craft up to a cer­tain size &/​or weight limit. There are also areas where there are NO “large” air­fields & even the largest air­fields around can only oper­ate air­craft up to a cer­tain size &/​or weight limit.
    Keep in mind that the KC-​​30 car­ries less than 50,000 lbs more “max­i­mum offload­able” fule than the KC-​​767AT BUT is more than 100,000 lbs heav­ier. Also keep in mind that some air­fields are lim­ited by weight (thus a A330/​KC-​​30 could tech­ni­cally oper­ate from their but ONLY at reduced take-​​off weights) while oth­ers are lim­ited by hanger &/​or ramp space (which a A330/​KC-​​30 could only oper­ate from after improve­ments to the infra­stru­ture). Of course (as I ahve said before) the same is true for the 767 BUT the size & weight thresh­old for the 767 are sig­nif­i­cantly lower.

    Reply
  6. Ken says:
    March 15, 2008 at 7:46 pm

    The man­u­fac­tur­ing guys over at Evolving Excellence have also been tak­ing Boeing to task, first in terms of the hypocrisy of whin­ing about los­ing the tanker deal to NG/​Airbus at:
    http://​www​.evolvingex​cel​lence​.com/​b​l​o​g​/​2​0​0​8​/​0​3​/​b​o​e​i​n​g​-​w​h​i​n​e​r​-​e​.​h​tml
    Then the even greater hypocrisy of the politi­cians that are sid­ing with Boeing:
    http://​www​.evolvingex​cel​lence​.com/​b​l​o​g​/​2​0​0​8​/​0​3​/​s​o​-​w​h​o​s​-​m​o​r​e​-​p​a​.​h​tml
    Ken

    Reply
  7. irtusk says:
    March 15, 2008 at 7:58 pm

    > The “com­pe­ti­tion” that has done the most to reduce demand for the 767–200 are stretched ver­sions of Boeing’s own 757.
    the 757 hasn’t been in pro­duc­tion for 4 years and the 767–200 still isn’t sell­ing …
    > KC-​​30 being too big &/​or heavy can not oper­ate from said air­field
    except in real life that just doesn’t hap­pen
    > KC-​​30 oper­at­ing from an air­field ~500 miles from des­ig­nated refu­elling point
    > can only do so at a sig­nif­i­cantly reduced take-​​off weight thus negat­ing (or
    > even revers­ing) it fuel offload advan­tage.
    again not going to hap­pen
    here’s a hypo­thet­i­cal:
    the run­way at some podunk field (like say MILDENHALL) is too short for the KC-​​767AT so it has to take­off with a reduced fuel load
    except, it’s not a hypo­thet­i­cal
    > There are also areas where there are NO “large” air­fields & even the
    > largest air­fields around can only oper­ate air­craft up to a cer­tain
    > size &/​or weight limit.
    sure there are weight lim­ited air­ports
    it’s just that gen­er­ally if they’re strong enough to sup­port a 767 they’re also strong enough to sup­port an A330
    you are sim­ply going to find more fields where the KC-​​767 is lim­ited by run­way length than the KC-​​30 is lim­ited by weight restric­tions
    you can’t deny it
    and another thing to con­sider is that it’s not just weight, it’s weight dis­tri­b­u­tion (ie weight per tire)
    both have 2 dou­ble twin main land­ing gear and a twin nose gear BUT the KC-​​30 is also fit­ted with the center-​​line twin gear from the A340 fam­ily
    the extra tires help dis­trib­ute more of the weight and allow it to use run­ways you would oth­er­wise think it couldn’t
    > while oth­ers are lim­ited by hanger
    1. you can oper­ate with­out a hangar
    2. lots of the KC-​​135 hangars don’t acco­mo­date the KC-​​767 either, so they will have to be redone what­ever the case
    > ramp space (which a A330/​KC-​​30 could only oper­ate from after improve­ments to the infra­stru­ture)
    ramp space isn’t nearly as big an issue as you think plus since the KC-​​30 can put more booms in the air, there will be fewer planes sit­ting at the base (as opposed to the more more-​​booms-​​on-​​the-​​ground KC-​​767)

    Reply
  8. irtusk says:
    March 15, 2008 at 8:18 pm

    an inter­est­ing quote from the com­ments here:
    http://​blogs​.wsj​.com/​m​a​r​k​e​t​b​e​a​t​/​2​0​0​8​/​0​3​/​1​0​/​b​o​e​i​n​g​-​e​x​p​e​r​i​e​n​c​e​s​-​d​r​ag/
    who knows how cred­i­ble it is, but inter­est­ing nonethe­less …
    > My spouse worked on the orig­i­nal tanker pro­posal (the one that
    > was awarded to Boeing, then taken away). When the government/​Air
    > Force first came to Boeing about the tanker idea, Boeing shoved
    > the 767 plat­form down their throats about as calmly as a car
    > sales­man will sell you the lot-​​lemon. The Air Force asked for a
    > quote on a 777 plat­form, and Boeing coun­tered that

    Reply
  9. irtusk says:
    March 16, 2008 at 1:08 pm

    > Would you sign (another) con­tract with these folks ?
    if they had the best prod­uct at the best price, absolutely
    they’ve served their time (paid their fine), it’s time to move on
    they bring too much to the table to sim­ply ignore
    that said, i would scru­ti­nize any deal­ings very care­fully ;)

    Reply
  10. pfcem says:
    March 16, 2008 at 4:22 pm

    irtusk,
    You lack of under­stand­ing of real life is pathetic.
    There are NO air­fields or run­ways which the KC-​​30 can oper­ate from where the KC-​​767AT can not. But there ARE run­ways & air­fields which the KC-​​767AT can oper­ate from where the KC-​​30 can not.
    The KC-​​767AT IS NOT a 767-​​200ER nor is it a “basic” KC-​​767 sold to Italy & Japan.

    Reply
  11. irtusk says:
    March 16, 2008 at 5:56 pm

    > The KC-​​767AT IS NOT a 767-​​200ER nor is it a “basic” KC-​​767
    > sold to Italy & Japan.
    no kid­ding, let us com­pare the specs
    http://​www​.boe​ing​.com/​i​d​s​/​g​l​o​b​a​l​t​a​n​k​e​r​/​u​s​a​f​/​K​C​_​7​6​7​/​p​e​r​f​o​r​m​a​n​c​e​.​h​tml
    “The abil­ity to take off at NEAR max­i­mum gross weights from an 8,000-foot run­way“
    in other words, it is lim­ited from an 8000 ft run­way and who knows what ‘near’ means
    now let us com­pare to the KC-​​45
    http://​www​.northrop​grum​man​.com/​k​c​4​5​/​p​e​r​f​o​r​m​a​n​c​e​/​d​e​p​l​o​y​i​n​g​.​h​tml
    “The aircraft’s excel­lent take­off per­for­mance allows it to depart from a 7,000-ft. run­way fully loaded.“
    so there we have it:
    KC-​​767AT — 8000′ at LESS THAN MTOW
    KC-​​45 — 7000′ at MTOW

    Reply
  12. pfcem says:
    March 17, 2008 at 2:43 pm

    irtusk,
    Ha, ha, ha.
    That is the prob­lem with only get­ting your info­ma­tion from the inter­net…
    Note how nearly all the “data” on the KC-​​767AT on the inter­net is rather vague. ;)
    Take a wild guess where the “8,000ft” fig­ure comes from. I would tell you but you obvi­ously don’t believe FACTS oth­ers present that dis­agree with your misconceptions.

    Reply
  13. Dave says:
    March 19, 2008 at 8:09 pm

    RE: Would you sign (another) con­tract with these folks ?
    if they had the best prod­uct at the best price, absolutely
    they’ve served their time (paid their fine), it’s time to move on
    they bring too much to the table to sim­ply ignore
    that said, i would scru­ti­nize any deal­ings very care­fully ;)
    Well said although the best prod­uct & price is of no value with­out deliv­ery !
    With regards
    Dave

    Reply
  14. Todd R. says:
    April 19, 2008 at 6:27 pm

    I hon­estly do not thing that the United States gov­ern­ment should be award­ing a 100 bil­lion dol­lar stim­u­lus pack­age to France. Regardless of mild per­for­mance dif­fer­ences between the two com­pa­nies, I think it’s time to recon­sider the num­ber of jobs that would be gen­er­ated in the United States as a result of our gov­ern­ment invest­ing in Boeing. I do not work for Boeing, I do not work in the avi­a­tion indus­try. I work in health­care. It seems incred­i­bly short sighted. How can they EVER encour­age us to “Buy American” after some­thing like this? It smacks of hypocrisy.

    Reply
  15. http://www.linksoflondons.co.uk says:
    May 20, 2009 at 1:29 am

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    Designer from UK
    Diamond
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    Links Jewelry
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    Links Charm
    Links Earrings
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    Reply

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