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Saturday, December 21, 2013

SECRETARY OF DEFENSE HAGEL MAKES REMARKS WITH EGYPTIAN MINISTER OF DEFENSE GEN. AL-SISI

FROM:  U.S. DEFENSE DEPARTMENT 
Hagel, Al-Sisi Discuss U.S.-Egypt Relationship
American Forces Press Service

WASHINGTON, Dec. 19, 2013 – Defense Secretary Chuck Hagel called Egyptian Minister of Defense Gen. Abdel Fattah Al-Sisi this morning to provide an update on his recent visit to the Middle East and to discuss the United States-Egypt relationship, Pentagon Press Secretary Navy Rear Adm. John Kirby said in a statement issued today.

Kirby’s statement reads as follows:
Secretary Hagel called Egyptian Minister of Defense General Al-Sisi this morning to provide an update on his recent visit to the Middle East and to discuss the United States-Egypt relationship.

Secretary Hagel conveyed that the United States is committed to the U.S.-Egypt defense relationship and wants to continue working with Egypt to support a stable inclusive political transition.

He told Minister Al-Sisi that, on his visit to the Gulf region, he encouraged regional partners to continue playing a role in improving Egypt's economy and to play a constructive role in supporting Egypt's transition.

Secretary Hagel noted that the United States looks forward to Egypt's constitutional referendum in mid-January. They discussed the importance of a transparent process, in which the freedom of expression is protected for all citizens during the campaign period, regardless of whether they support or oppose the constitution.

Secretary Hagel also expressed concern over the recent charges involving former President Morsi and the Muslim Brotherhood, as well as the recent violence against a Non-Governmental Organization. The Secretary noted that civil society organizations play a vital role in any democracy and that incidences such as these can undermine confidence in the interim government's commitment to a non-violent, inclusive and sustainable democratic transition.

Secretary Hagel and Minister Al-Sisi agreed to continue to talk frequently to continue to engage on these important issues in the U.S.-Egypt relationship.

DEFENSE DEPARTMENT VIDEO: U.S. TROOPS TRANSFER BASE TO AFGHANS



NATO STATUS OF FORCES AGREEMENT NEGOTIATIONS BEGIN WITH AFGHANISTAN GOVERNMENT

FROM:  U.S. DEFENSE DEPARTMENT 
NATO Begins SOFA Negotiations with Afghanistan
American Forces Press Service

WASHINGTON, Dec. 21, 2013 – NATO began Status of Forces Agreement negotiations with the government of Afghanistan, Pentagon Press Secretary Navy Adm. John Kirby said in a statement issued today.
Kirby’s statement reads as follows:

“Secretary of Defense Chuck Hagel was pleased to learn that NATO has begun negotiations with the Government of Afghanistan on the NATO Status of Forces Agreement (SOFA).

“NATO's decision to move forward with negotiations on a SOFA is yet another demonstration of the international community's willingness to support Afghanistan after 2014.

“But, as both the NATO Secretary General and Secretary Hagel have made clear, the Alliance won't finalize their agreement with the Bilateral Security Agreement still hanging in the balance. The message of the United States and its allies in Europe is clear: the Bilateral Security Agreement should be signed without any more delay.”

Weekly Address: Working Together on Behalf of the American People (+play...

MAN ARRESTED IN CONNECTION WITH TRAFFICKING OF NARWHAL TUSKS

FROM:  U.S. JUSTICE DEPARTMENT 
Thursday, December 19, 2013
Canadian Citizen Arrested for Money Laundering in Connection with Illegal Importation and Trafficking of Narwhal Tusks

A Canadian man was arrested today in St. John, New Brunswick, Canada, on an extradition warrant requested by the United States for money laundering crimes related to the illegal importation and illegal trafficking of narwhal tusks, announced Robert G. Dreher, Acting Assistant Attorney General for the Environment and Natural Resources Division .

On Nov. 14, 2012, a federal grand jury sitting in Bangor, Maine, returned an indictment that was partially unsealed today upon the arrest of Gregory R. Logan of Grand Prairie, Alberta, Canada.   The indictment also names Jay G. Conrad of Lakeland, Tenn., and Andrew L. Zarauskas of Union, N.J.   Logan was arrested on charges in the indictment for money laundering conspiracy and substantive money laundering violations.   The indictment also charges Conrad and Zarauskas with conspiracy to smuggle narwhal tusks, money laundering conspiracy, smuggling narwhal tusks and money laundering violations.   According to the indictment, Logan illegally laundered the money earned from his illegal imports and sales of narwhal tusks in the United States.   It further charges that Conrad and Zarauskas bought the narwhal tusks from Logan, knowing the tusks had been illegally imported into the United States, and sold or attempted to sell the tusks after their illegal importation.

The arrest of Logan on an extradition warrant in Canada begins the extradition process to the U.S.   The extradition process is governed by a 1971 extradition treaty between the U.S. and Canada.

The charges contained in the indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty in a court of law.   If convicted of these charges, the defendants each face up to twenty years in prison on each of the most serious charges, as well as fines up to $250,000.

The case was investigated by agents from National Oceanic and Atmospheric Administration Office of Law Enforcement and the U.S. Fish and Wildlife Service Office of Law Enforcement.   The case is being prosecuted by Trial Attorney Todd S. Mikolop of the Justice Department’s Environmental Crimes Section, with assistance from the Justice Department's Office of International Affairs.


ON BOARD: TRAVELS WITH THE VICE PRESIDENT IN ASIA

FROM:  THE WHITE HOUSE 





U.S. LABOR DEPARTMENT ANNOUNCES $2 MILLION GRANT TO STRENGTHEN LABOR LAWS IN REPUBLIC OF GEORGIA

FROM:  U.S. LABOR DEPARTMENT 
Project to improve compliance with labor laws in the Democratic 
Republic of Georgia awarded $2M grant by US Labor Department

WASHINGTON — U.S. Department of Labor's Bureau of International Labor Affairs today announced a $2 million grant award to improve compliance with labor laws in the Democratic Republic of Georgia. The grant provides funding for a project that will be developed and implemented through a cooperative agreement between the department and the International Labour Organization.
The project will improve the government's ability to enforce labor laws and adhere to international labor standards. It will also help worker organizations be more effective when representing workers' rights and interests to the government, employers and courts.

Since 1995, ILAB has worked with other governments and international organizations to identify assistance that countries may require to improve the labor conditions of their workers. ILAB's Office of Trade and Labor Affairs currently provides approximately $76 million in technical assistance to improve worker rights, livelihoods and labor law compliance in more than 72 countries around the world.

EXPORT-IMPORT BANK SUPPORTS $694 MILLION FINANCING FOR EXPORTS TO AUSTRALIA

FROM:  U.S. EXPORT-IMPORT BANK 
Ex-Im Bank Approves $694 Million to Finance Export of U.S. Mining 
and Rail Equipment to Australia 
Transaction Supports 3,400 U.S. Jobs

Washington, D.C. – In a decision that will support thousands of U.S. jobs, the Export-Import Bank of the United States (Ex-Im Bank) has authorized a $694.4 million loan to Roy Hill Holdings of Australia contingent upon the purchase of U.S. mining and rail equipment from Caterpillar Inc., GE, and Atlas Copco.

According to Bank estimates derived from Departments of Commerce and Labor data and methodology, the credit will support 3,400 U.S. jobs across America. Furthermore, an estimated 20 percent of the job support will benefit small-business jobs.

“After a comprehensive review, the Bank determined that this transaction represents a significant opportunity for American exporters to create and sustain American jobs,” said Ex-Im Bank Chairman and President Fred P. Hochberg. “Our financing positions American companies on a level playing field so they can close the sales and expand their homegrown workforces. Projects this size can be difficult to finance—that’s where Ex-Im comes in. And I am proud that today’s action will support 3,400 jobs across the country, many of them at small businesses.”

Export credit agencies of several other countries have obtained preliminary or final approvals for the Roy Hill transaction as well.

The exported equipment will contribute to the development of the Roy Hill iron ore mine, an open-pit surface mine in the Pilbara region of northwestern Australia. The mine sits approximately 280 kilometers south of Port Hedland.

Ex-Im Bank’s loan increases the likelihood that Caterpillar, a leading equipment manufacturer based in Peoria, Ill., will provide surface-mining equipment for the project.

“Caterpillar applauds Ex-Im Bank for approving the long-term financing request for the Roy Hill’s Australian iron-ore project,” said Steve Wunning, group president with responsibility for the Resource Industries Group, Caterpillar Inc. “By backing this project, Ex-Im Bank is bolstering U.S. manufacturing competitiveness, supporting American jobs and promoting exports. Ex-Im Bank is also providing Caterpillar and other U.S. suppliers with the opportunity to support Roy Hill with mining equipment that may have otherwise been supplied by non-U.S. competitors using their countries’ export credit agencies. We appreciate the support of Chairman Hochberg and all the Ex-Im Bank officials who worked so hard to get us to this point.”

The financing also increases the likelihood that GE will furnish locomotives to transport the iron ore to the port.

“Ex-Im Bank’s support of the Roy Hill’s Australian iron-ore project represents a major milestone for the mining industry and U.S. job growth,” said Russell Stokes, president and chief executive officer, GE Transportation. “Further, it’s testament to the great outcomes that can be achieved through collaboration of federal and private sector leadership. We’re thrilled to have our locomotives leading the charge and enabling transport efficiencies.”

In line with its economic-impact procedures, Ex-Im Bank performed a detailed economic-impact analysis and found that the transaction will likely have a significant net positive effect on the U.S. economy. Additionally, Ex-Im Bank obtained a market-based supplemental analysis prepared by a third party that also yielded a positive finding.

SECRETARY OF DEFENSE HAGEL: TROOP DEATHS A "HEARTBREAKING REMINDER" OF WAR

FROM:  U.S. DEFENSE DEPARTMENT  

VIOLENCE IN SOUTH SUDAN: SECRETARY OF STATE KERRY'S REMARKS

FROM:  U.S. STATE DEPARTMENT 
Violence in South Sudan
Press Statement
John Kerry
Secretary of State
Washington, DC
December 20, 2013

The international community is laser-focused on the deeply alarming violence in South Sudan. We are all determined to continue standing for the aspirations of a people who have endured far too many years of conflict and sacrificed far too much to allow their young country to plunge back into turmoil. With the world watching and South Sudan’s people yearning for a country marked by peace and prosperity not conflict and division, peace is the only option.

Last night, I called South Sudanese President Kiir and urged him, as president of all of South Sudan, to protect all South Sudanese citizens and work toward reconciliation. We recalled the difficult decisions that led to the remarkable moment when so many stood in long lines for a referendum to give birth to South Sudan, knowing all too well that the toughest decisions were still to come. Now is the time for leadership that makes those decisions through dialogue.

Now is the time for South Sudan’s leaders to rein in armed groups under their control, immediately cease attacks on civilians, and end the chain of retributive violence between different ethnic and political groups. The violence must stop, the dialogue must intensify.

To help facilitate this process, we have asked our U.S. Special Envoy for Sudan and South Sudan, Ambassador Donald Booth, to travel to the region and support regional efforts already underway. He will be departing today.

The United States strongly condemns yesterday’s attacks on the United Nations Mission in South Sudan (UNMISS) base in Akobo County in Jonglei State, South Sudan. We offer our condolences to the UN and victims of this attack. We call on all parties to respect UNMISS, to refrain from any attacks on its personnel, and to help facilitate its mission to protect civilians who have sought shelter from the turmoil secure the delivery of humanitarian assistance to all those in need.

The United States and other partners are committed to the realization of South Sudan’s full political, social, and economic potential, but make no mistake: these cooperative efforts will be undermined if political disputes drag the country back into senseless conflict and strife. Moreover, any armed attack on the capital will be seen as an attempt to achieve an unlawful usurpation of power, which would be universally condemned. Those who seek to take or hold power by violence or division of South Sudanese along ethnic lines will not have our support. Violence today will not pave the way for a more stable or prosperous tomorrow.

Friday, December 20, 2013

PRESIDENT APPROVES PEACEFUL USE OF NUCLEAR ENERGY AGREEMENT

FROM:   THE WHITE HOUSE  
Presidential Determination -- Taiwan

MEMORANDUM FOR THE SECRETARY OF STATE

THE SECRETARY OF ENERGY

SUBJECT: Proposed Agreement for Cooperation Between the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office in the United States Concerning Peaceful Uses of Nuclear Energy

I have considered the proposed Agreement for Cooperation Between the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office in the United States Concerning Peaceful Uses of Nuclear Energy, along with the views, recommendations, and statements of the interested agencies.

I have determined that the performance of the Agreement will promote, and will not constitute an unreasonable risk to, the common defense and security. Pursuant to section 123 b. of the Atomic Energy Act of 1954, as amended (42 U.S.C. 2153(b)), I hereby approve the proposed Agreement and authorize the Secretary of State to arrange for its execution.

The Secretary of State is authorized to publish this determination in the Federal Register.

BARACK OBAMA

SEC ALLEGES ADM SUBSIDIARIES PAID BRIBES TO UKRAINIAN OFFICIALS

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 

The Securities and Exchange Commission today charged global food processor Archer-Daniels-Midland Company (ADM) for failing to prevent illicit payments made by foreign subsidiaries to Ukrainian government officials in violation of the Foreign Corrupt Practices Act (FCPA).

An SEC investigation found that ADM’s subsidiaries in Germany and Ukraine paid $21 million in bribes through intermediaries to secure the release of value-added tax (VAT) refunds.  The payments were then concealed by improperly recording the transactions in accounting records as insurance premiums and other purported business expenses.  ADM had insufficient anti-bribery compliance controls and made approximately $33 million in illegal profits as a result of the bribery by its subsidiaries.

ADM, which is based in Decatur, Ill., has agreed to pay more than $36 million to settle the SEC’s charges.  In a parallel action, the U.S. Department of Justice today announced a non-prosecution agreement with ADM and criminal charges against an ADM subsidiary that has agreed to pay $17.8 million in criminal fines.

“ADM’s lackluster anti-bribery controls enabled its subsidiaries to get preferential refund treatment by paying off foreign government officials,” said Gerald Hodgkins, an associate director in the SEC’s Division of Enforcement.  “Companies with worldwide operations must ensure their compliance is vigilant across the globe and their transactions are recorded truthfully.”

According to the SEC’s complaint filed in U.S. District Court for the Central District of Illinois, the bribery occurred from 2002 to 2008.  Ukraine imposed a 20 percent VAT on goods purchased in its country.  If the goods were exported, the exporter could apply for a refund of the VAT already paid to the government on those goods.  However, at times the Ukrainian government delayed paying VAT refunds it owed or did not make any refund payments at all.  On these occasions, the outstanding amount of VAT refunds owed to ADM’s Ukraine affiliate reached as high as $46 million.

The SEC alleges that in order to obtain the VAT refunds that the Ukraine government was withholding, ADM’s subsidiaries in Germany and Ukraine devised several schemes to bribe Ukraine government officials to release the money.  The bribes paid were generally 18 to 20 percent of the corresponding VAT refunds.  For example, the subsidiaries artificially inflated commodities contracts with a Ukrainian shipping company to provide bribe payments to government officials.  In another scheme, the subsidiaries created phony insurance contracts with an insurance company that included false premiums passed on to Ukraine government officials.  The misconduct went unchecked by ADM for several years because of its deficient and decentralized system of FCPA oversight over subsidiaries in Germany and Ukraine.

The SEC’s complaint charges ADM with violating Sections 13(b)(2)(A) and 13(b)(2)(B) of the Securities Exchange Act of 1934.  ADM consented to the entry of a final judgment ordering the company to pay disgorgement of $33,342,012 plus prejudgment interest of $3,125,354.  The final judgment also permanently enjoins ADM from violating those sections of the Exchange Act, and requires the company to report on its FCPA compliance efforts for a three-year period.  The settlement is subject to court approval.  The SEC took into account ADM’s cooperation and significant remedial measures, including self-reporting the matter, implementing a comprehensive new compliance program throughout its operations, and terminating employees involved in the misconduct.

The SEC’s investigation was conducted by Nicholas A. Brady and supervised by Moira T. Roberts and Anita B. Bandy.  The SEC appreciates the assistance of the Justice Department’s Fraud Section and the Federal Bureau of Investigation.

U.S. DEFENSE DEPARTMENT CONTRACTS FOR DECEMBER 20, 2013

FROM:  U.S. DEFENSE DEPARTMENT 

CONTRACTS

 AIR FORCE

Lockheed Martin Aeronautics Co., Fort Worth, Texas, has been awarded an undefinitized contract action to incorporate contract change proposal 0362 "CY14 Follow-on Agile Sustainment to the Raptor (FASTeR)" via a firm-price-incentive-fee and cost-plus-fixed-fee modification (P00212) under an existing contract (FA8611-08-C-2897) with a total not-to-exceed value of $561,957,658.  The effort includes nine months of sustainment activities for the F-22 air vehicle.  As part of this effort, the contractor will provide all sustaining engineering, field service, technical data, supply chain management, modification and heavy maintenance, and reliability and maintainability upgrades for the F-22 Raptor.  The work will be performed at Fort Worth, Texas, and is expected to be complete by Sept. 30, 2014.  Fiscal 2014 procurement, research and development, operations and maintenance and Air National Guard funds in the amount of $157,262,925 are being obligated at time of award.  Air Force Life Cycle Management Center/WWUK, Wright-Patterson Air Force Base, Ohio, is the contracting activity.

United Technologies Corporation, Pratt and Whitney, East Hartford, Conn., has been awarded an undefinitized contract action via a not-to-exceed $231,465,987 modification (P00116) for an existing contract (FA8611-08-C-2896) for F119 Engine Sustainment. The contract modification is for calendar year 2014 Sustainment of F119-PW-100 Engines.  Work will be performed at East Hartford, Conn.; Edwards Air Force Base, Calif.; Elmendorf AFB, Alaska; Hickam AFB, Hawaii; Hill AFB, Utah; Holloman AFB, N.M.; Langley AFB, Va.; Nellis AFB, Nev., Sheppard AFB, Texas; Tinker AFB, Okla.; and Tyndall AFB, Fla., and is expected to be completed by December 31, 2014.  Fiscal 2014 Research and Development and Operations and Maintenance Funds in the amount of $106,909,873 are being obligated at time of award.  Air Force Life Cycle Management Center/WWUK, Wright-Patterson AFB, Ohio, is the contracting activity.

Northrop Grumman Systems Corp., Herndon, Va., has been awarded a $12,317,909 cost-plus-incentive-fee modification (P00019) for an existing contract FA8707-12-C-0001) for Air Operations Center Weapon System, modernization engineering and manufacturing development and initial deployment.  The total cumulative face value of the contract is $513,157,909.  The contract modification is for a credit/debit modification to modify the plan for engineering and manufacturing development and initial deployment to incorporate the new program schedule and strategy, and to clarify requirements.  Work will be performed at Hampton, Va., and Davis-Monthan Air Force Base, Ariz., and is expected to be completed by Nov. 25, 2015.  This modification is changing an established contract line item number which is funded through Jan. 10, 2014.  Air Force Life Cycle Management Center/HBBK, Hanscom Air Force Base, Mass., is the contracting activity.  

NAVY

J. Walter Thompson, Atlanta, Ga., is being awarded an undefinitized contract action in an amount not-to-exceed $170,000,000 for an indefinite-delivery/indefinite-quantity bridge contract under a previously awarded cost-plus-fixed-fee contract (M00264-08-D-001).  Task order 0001 in the amount of $77,433,499 will be awarded concurrently.  The bridge contract is for the Marine Corps Recruiting Command's (MCRC) Advertising and Recruitment Services Program's requirement.  This contract provides for services to furnish the supplies and services customarily provided by a full-service advertising agency in order to support recruiting programs for MCRC at Quantico, Va., and other locations throughout the United States.  Work will be performed primarily at Quantico, Va., with an expected completion date of Dec. 19, 2014.  With all options exercised the contract will continue through June 19, 2015.  Fiscal 2014 operations and maintenance, Marine Corps funds in the amount of $29,701,083 are being obligated at time of award for the first task order, and will expire at the end of the current fiscal year.  The Regional Contracting Office, National Capital Region, Quantico, Va., is the contracting activity (M00264-14-D-0002).

Electric Boat Corp., Groton, Conn., is being awarded a $121,847,000 undefinitized contract action under existing contract (N00024-12-C-2115) for additional long lead time material associated with the second fiscal 2014 Virginia-class submarine (SSN 793) and the two fiscal 2015 Virginia-class submarines (SSN 794 and SSN 795).  This contract modification provides additional long lead time material for steam and electric plant components, the main propulsion unit efforts and ship service turbine generator efforts, steel and miscellaneous hull, mechanical and electrical system components.  Work will be performed in Sunnyvale, Calif. (56 percent); Coatesville Pa. (9 percent); Florence, N.J. (6 percent); Phillipsburg, N.J. (5 percent); Groton, Conn. (3 percent); Newport News, Va. (3 percent); Charlottesville, Va. (2 percent); Warren, Mass. (2 percent); Farmingdale, N.Y. (2 percent), and other efforts performed at various sites throughout the United States (12 percent), and is expe
cted to be complete by September 2014.  Fiscal 2013 shipbuilding and conversion, Navy funding in the amount of $121,847,000 will be obligated at time of award and will not expire at the end of the current fiscal year.  The Naval Sea Systems Command, Washington, D.C., is the contracting activity.

Raytheon Co., Tucson, Ariz., is being awarded an $80,474,905 modification to a previously awarded firm-fixed-price contract (N00019-13-C-0011) to exercise an option for the procurement of 200 full rate production Lot 10 AGM-154C-1 unitary joint stand-off weapon missiles, including associated support equipment.  In addition, this contract provides for one AGM-154C-1 for performance characterization test.  Work will be performed in Dallas, Texas (44 percent); Cedar Rapids, Iowa (24 percent); Tucson, Ariz. (22 percent); and McAlester, Okla. (10 percent), and is expected to be completed in August 2016.  Fiscal 2014 weapons procurement, Navy contract funds in the amount of $80,474,905 are being obligated on this award, none of which will expire at the end of the current fiscal year.  The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.

Nova Group Inc. - Underground Construction Inc., a Joint Venture, Napa, Calif., is being awarded a $52,364,400 firm-fixed-price contract for construction of a new fuel transfer pipeline and upgrade of an existing fuel transfer pipeline from Sasa Valley Fuel Farm to Andersen Air Force Base, Guam.  Work includes upgrading a pumphouse, providing new fuel pumps, providing a new generator building with emergency generators, new filter separators, piping modifications, upgrades to the electrical system, and cathodic protection.  The contractor will provide operations and maintenance support information, demolish existing piping components, and mitigate construction impacts on archaeological site along the pipeline route.  Work will be performed across multiple areas on Guam, and is expected to be completed by February 2016.  Fiscal 2013 military construction, Defense Logistics Agency contract funds in the amount of $52,364,400 are being obligated on this award and will not expire at the end of the current fiscal year.  This contract was competitively procured via the Navy Electronic Commerce Online website, with seven proposals received.  The Naval Facilities Engineering Command, Marianas, Guam, is the contracting activity (N40192-14-C-1300).

AMSEC LLC, Virginia Beach, Va., is being awarded a $45,779,743 cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity contract to furnish engineering services, maintenance and operator training and technical and repair support for U.S. Navy aircraft carriers.  This contract will support maintenance and planning for the overhaul, modernization and repair of shipboard elevators, cargo handling equipment and associated systems.  Work will be performed in Norfolk, Va. (40 percent), San Diego, Calif. (30 percent), Bremerton, Wash. (20 percent), Everett, Wash. (5 percent), and other fleet concentration areas to be determined (5 percent), and is expected to complete by December 2014.  Fiscal 2014 operations and maintenance, Navy funding in the amount of $200,000 will be obligated at time of award and will expire at the end of the current fiscal year.  This contract was competitively procured via the Navy Electronic Commerce Online website, with one offer received.  The Norfolk Ship Support Activity, Norfolk, Va., is the contracting activity (N50054-14-D-1406).

BAE Systems Southeast Shipyards Alabama LLC, Mobile, Ala., is being awarded a $32,946,457 firm-fixed-price contract for the regular maintenance and overhaul of USNS Supply (T-AOE 6).  This contract includes two additional options which, if exercised, would bring the cumulative value of the contract to $42,499,988.  Work will be performed in Mobile, Ala., and is expected to be completed by October 2014.  Fiscal 2014 working capital contract funds in the amount of $32,946,457 are being obligated and will not expire at the end of the current fiscal year.  This contract was competitively procured with more than 50 companies solicited and three offers received.  The solicitation was posted to the Federal Business Opportunities website.  U.S. Navy's Military Sealift Command, Washington D.C., is the contracting activity (N00033-14-C-7508).

Bath Iron Works, Bath, Maine, is being awarded a $23,124,445 modification to previously awarded contract (N00024-12-C-2313) to exercise options for DDG 51 class lead yard services.  This work will provide class engineering and design services including technical assistance to the follow shipbuilders in the interpretation and application of the detailed design developed by Bath Iron Works, the lead yard contractor.  Lead yard services include:  liaison for follow ship construction, general class services, class logistics services, class design contractor services, class changes design services for follow ships, ship trials and post-shakedown availabilities support and materials, noise, shock and vibration program, special studies, modernization support and baseline management.  Work will be performed in Bath, Maine, and is expected to be completed by December 2014.  Fiscal 2011 shipbuilding and conversion, Navy contract funds in the amount of $231,244 and research, development, test and evaluation funding fiscal 2012 in the amount of $22,430,712 and fiscal 2014 in the amount of $462,489 will be obligated at time of award and will expire at the end of the current fiscal year.  The Naval Sea Systems Command, Washington, D.C., is the contracting activity.

General Dynamics National Steel and Shipbuilding Co., San Diego, Calif., is being awarded a $21,400,000 modification on a not-to-exceed basis to previously awarded contract (N00024-09-C-2229) for Detail Design and Construction of Mobile Landing Platform (MLP) 3 Afloat Forward Staging Base (AFSB) for the MLP Program and to accomplish limited AFSB block construction for the MLP Program.  Work will be performed in San Diego, Calif., and is expected to be completed by May 2014.  Fiscal 2012 National Defense Sealift funds in the amount of $21,400,000 will be obligated at time of award and will not expire at the end of the current fiscal year.  The Naval Sea Systems Command, Washington D.C., is the contracting activity.

Sikorsky Aerospace Maintenance, Stratford, Conn., is being awarded an $18,298,546 modification to a previously awarded firm-fixed-price contract (N00019-09-C-0024) to exercise an option for organizational, selected intermediate, and limited depot-level maintenance for aircraft operated by adversary squadrons.  Work will be performed at the Naval Air Station (NAS) Key West, Fla. (40 percent); NAS Fallon, Nev. (30 percent); and the Marine Corps Air Station, Yuma, Ariz. (30 percent), and is expected to be completed in December 2014.  Fiscal 2013 operations and maintenance, Navy reserve funding $5,036,560 is being obligated at time of award, all of which will expire at the end of the current fiscal year.  The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.

Raytheon Integrated Defense Systems, Largo Fla., is being awarded a $12,921,937 modification to previously awarded contract (N00024-12-C-5231) to exercise options for cooperative engagement capability (CEC) for the AN/USG-2B Shipboard System and three planar array antenna assembly (PAAA) systems.  CEC is a sensor netting system that significantly improves battle force anti-air warfare capability by extracting and distributing sensor-derived information such that the superset of this data is available to all participating CEC units.  CEC improves battle force effectiveness by improving overall situational awareness and by enabling longer range, cooperative, multiple, or layered engagement strategies.  Work will be performed in St. Petersburg Fla. (90 percent), and Largo, Fla. (10 percent), and is expected to be completed by September 2014. Fiscal 2013 other procurement, Navy funding in the amount of $6,034,545 and fiscal 2014 in the amount of $6,887,392 will be obligated at time of award and will not expire at the end of the current fiscal year.  The Naval Sea Systems Command, Washington, D.C., is the contracting activity.

Lockheed Martin Corp., Manassas, Va., is being awarded an $11,912,771 cost-plus-fixed-fee, firm-fixed-price contract for the Integrated Common Processor Program.  The organization will be providing software and hardware development, production, installation, training, maintenance and provisioned items under the Maritime Surveillance Systems Program Office, PMS-485, Program Executive Office Submarines, Naval Sea Systems Command.  This contract includes options which, if exercised, would bring the cumulative value of the contract to an estimated $83,502,467.  This contract combines purchases for the U.S. Navy (90 percent) and the government of Japan (10 percent) under the Foreign Military Sales (FMS) Program.   Work will be performed at Manassas, Va., (80.5 percent); Fairfax, Va., (7.5 percent); San Diego (5.3 percent); Falls Church, Va., (1.9 percent); Burlington, Mass., (1.7 percent); McLeansville, N.C., (1.2 percent); Mount Laurel, N.J., (0.8 percent); Corona, Calif., (0.7
percent); Virginia Beach, Va., (0.4 percent); and is expected to be completed by Dec. 31, 2014.  If all options are exercised, work could continue until 2017.  Fiscal 2014 research, development, testing and evaluation and 2014 FMS funding in the amount of $1,302,015 will be obligated at the time of award.  Contract funds will not expire at the end of the current fiscal year.  This contract was not competitively procured (sole source) in accordance with authority of 10 U.S.C. 2304(c)(1) - only one responsible source (FAR Subpart 6.302-1).  The Space and Naval Warfare Systems Command, San Diego, Calif., is the contracting activity (N00039-14-C-0035).

Northrop Grumman Systems Corp., Linthicum Heights, Md., is being awarded a $10,500,000 modification under a previously awarded cost-plus-fixed-fee contract (M67854-07-C-2072) for the ground/air task-oriented radar engineering and manufacturing development phase for associated engineering support services and related program cost increases.  Work will be performed in Linthicum Heights, Md., and work is expected to be completed Aug. 31, 2014.  Fiscal 2014 research, development, test and evaluation funding in the amount of $10,500,000 will be obligated at the time of award.  Contract funds will not expire the end of this current fiscal year.  The Marine Corps Systems Command, Quantico, Va., is the contracting activity.

A&D GC Inc.*, Santee, Calif., is being awarded $9,650,000 firm-fixed-price task order 0013 at under a multiple award construction contract for the design and construction of the Project Entry Control Gate 5 at Marine Corps Recruit Depot, San Diego.  The work to be performed provides for the design and construction of Project Entry Control Gate 5 at Marine Corps Recruit Depot, San Diego.  The contractor shall provide all labor, supervision, engineering, materials, equipment, tools, parts, supplies and transportation to perform all work described in the request for proposal.  The contractor shall also provide three extra traffic lanes for access to the base during the entire construction period.  The planned modification, if exercised, provides for the furniture, fixtures, and equipment.  The task order also contains one planned modification, which if exercised would increase cumulative task order value to $9,995,495.  Work will be performed in San Diego, Calif., and is expected to be completed by April 2015.  Fiscal 2013 military construction, Navy funding in the amount of $9,650,000 will be obligated on this award and will not expire at the end of the current fiscal year.  Five proposals were received for this task order.  The Naval Facilities Engineering Command, Southwest, San Diego, Calif., is the contracting activity (contract number N62473-09-D-1658).

Raytheon Co., McKinney, Texas, is being awarded an $8,977,748 modification to previously awarded firm-fixed-price contract (N00164-12-G-JQ66) for common sensor payload (CSP) AN/AAS-53 high definition retrofits.  CSP AN/AAS-53 high definition retrofits, while functioning on manned or unmanned aircraft, provide battlefield commanders with a day/night imaging sensor and laser designator for reconnaissance, intelligence, surveillance, target acquisition, and target designation.  The payload must operate day and night, detect and recognize operationally-meaningful targets at survivable standoff ranges, determine range-to-target, auto track and designate targets for precision-guided standoff weapons, provide target-location coordinates, and display continuous high-resolution imagery to the battlefield commander.  The ability to provide such a capability to the supported commander will greatly increase battlefield effectiveness.  The CSP high definition will have adequate on-board processing to perform auto tracking, designation, and to support the transmission of near-real-time motion imagery.  Work will be performed in McKinney, Texas, and is expected to be completed by March 2016.  Fiscal 2013 aircraft procurement, Army in the amount of $8,977,748 will be obligated at time of award and will not expire at the end of the current fiscal year.  The Naval Surface Warfare Center, Crane, Ind., is the contracting activity.

General Electric Aviation, Lynn, Mass., is being awarded a $7,760,214 cost-plus-fixed-fee delivery order (0001) against a previously issued basic ordering agreement (N00421-14-G-0001) for the F414 Engine Component Improvement Program, including engineering and engine system improvement support for the U.S. Navy and the government of Australia.  Work will be performed at Lynn, Mass., and is expected to be completed in December 2014.  Fiscal 2014 research, development, test and evaluation funding in the amount of $2,000,000 will be obligated at time of award, none of which will expire at the end of the current fiscal year.  This order combines purchases for the U.S. Navy ($7,343,378; 94.63 percent) and the government of Australia ($416,836; 5.37 percent) under the Foreign Military Sales program.  The Naval Air Warfare Center Aircraft Division, Patuxent River, Md., is the contracting activity.

General Electric Aviation, Lynn, Mass., is being awarded a $7,500,074 cost-plus-fixed-fee delivery order (0002) against a previously issued basic ordering agreement (N00421-14-G-0001) for the F404 Engine Component Improvement Program, including engineering and engine system improvement support for the U.S. Navy and the governments of Canada, Spain, Sweden, Korea, Australia, Finland, Kuwait, Switzerland, and Malaysia.  Work will be performed at Lynn, Mass., and is expected to be completed in December 2014.  Fiscal 2014 research, development, test and evaluation funding in the amount of $1,500,000 will be obligated at time of award, none of which will expire at the end of the current fiscal year.  This order combines purchases for the U.S. Navy ($3,402,545; 45.3 percent) and the governments of Canada ($821,474; 11 percent); Spain($827,057; 11 percent);Sweden ($608,596; 8.1 percent); Korea ($536,667; 7.2 percent); Australia ($413,175; 5.5 percent); Finland ($390,842; 5.2 percent); Kuwait ($240,088; 3.2 percent); Switzerland ($209,379; 2.8 percent); and Malaysia ($50,251; .7 percent) under the Foreign Military Sales program.  The Naval Air Warfare Center Aircraft Division, Patuxent River, Md., is the contracting activity.

DEFENSE LOGISTICS AGENCY

Cyalume Technologies Inc.*, West Springfield, Mass., has been awarded a maximum $32,535,714 modification (P00102) exercising the third one-year option period on a two-year base contract (SPM8E7-10-D-0001) with three one-year option periods for various chemical light sticks supply support. This is a fixed-price with economic-price-adjustment contract.  Location of performance is Massachusetts with a Jan. 21, 2015 performance completion date.  Using military services are Army, Navy, Air Force, and Marine Corps.  Type of appropriation is fiscal 2014 through fiscal 2015 defense working capital funds.  The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.

Jianas Brothers Packaging Co.*, Kansas City, Mo., has been awarded a maximum $14,143,534 modification (P00201) exercising the second one-year option period on a one-year base contract (SPM3S1-12-D-Z120) with four one-year option periods for beverage base component items for use in the meal-ready-to-eat program.  This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract.  Location of performance is Missouri with a Dec. 21, 2014 performance completion date.  Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies.  Type of appropriation is fiscal 2014 defense working capital funds.  The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.

CFM International, Cincinnati, Ohio, has been awarded a maximum $8,531,880 firm-fixed-price contract for combustion liners.  This contract is a sole-source acquisition.  Location of performance is Ohio with an April 15, 2015 performance completion date.  Using military service is Air Force.  Type of appropriation is fiscal 2013 Air Force funds.  The contracting activity is the Defense Logistics Agency Aviation, Tinker Air Force Base, Okla., (SPRTA1-14-G-0002-0020).

Raytheon Co., McKinney, Texas, has been awarded a maximum $8,035,430 firm-fixed-price contract for support of naval aircraft advanced targeting system.  This contract is a sole-source acquisition.  Location of performance is Texas and Switzerland with a December 2014 performance completion date.  Using military service is Navy.  Type of appropriation is fiscal 2013 Navy working capital funds and foreign military sales.  The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pa., (SPRPA1-09-G-001X-0112).

Excel Garment Manufacturing Ltd.**, El Paso, Texas, has been awarded a maximum $7,125,286 firm-fixed-price contract for rip-stop airmen battle uniform coats and trousers for both men and women.  This contract is a competitive acquisition and five offers were received.  Location of performance is Texas with a Nov. 19, 2014 performance completion date.  This is a one-year base contract with four one-year option periods.  Using military service is Air Force.  Type of appropriation is fiscal 2014 through fiscal 2015 defense working capital funds.  The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPM1C1-14-D-1006).

U.S. TRANSPORTATION COMMAND

Three companies have each received an indefinite-delivery/indefinite-quantity, fixed-price with economic adjustment contract for domestic ocean and intermodal distribution services.  Work will be performed in the continental United States, Alaska, Hawaii and Puerto Rico as specified on each individual order, and is expected to be completed Nov. 30, 2014.  The three companies are:  Matson Navigation Co., Oakland, Calif., $27,292,829 (HTC711-14-D-W006); Totem Ocean Trailer Express Inc., Federal Way, Wash., $15,421,735 (HTC711-14-D-W012); and Sea Star Line LLC, Jacksonville, Fla., $7,342,931 (HTC711-14-D-W011).  The minimum amount of $5,000 will be obligated at time of award.  Remaining funds will be obligated on individual task orders.  Contracted funds will expire at the end of the current fiscal year.  There were 13 proposals received and awarded.  U.S. Transportation Command, Directorate of Acquisition, Scott Air Force Base, Ill., is the contracting activity.

ARMY

Lockheed Martin Missiles and Fire Control-Dallas, Grand Prairie, Texas was awarded a $255,134,404 firm-fixed-price contract to procure the unitary (quantity 1824 rocket) and reduced range practice rocket (quantity-158 pods) for the Guided Multiple Launch Rocket System for the Army and Marine Corps and the Republic of Italy.  Fiscal 2014 other procurement funds in the amount of $18,470,196 were obligated at the time of the award.  Estimated completion date is Mar. 31, 2016.  Bids were solicited via the Internet with one.  Work will be performed in Grand Prairie, Texas. Army Contracting Command, Redstone Arsenal, Ala. is the contracting activity (W31P4Q-14-C-0066).

Sikorsky Aircraft Corp., Stratford, Conn. was awarded a $105,300,000 modification (P00089) to contract W58RGZ-12-C-0008 to modify eight UH-60M Black Hawk Helicopters to a General Service Configuration in Support of the Saudi Arabian National Guard. Fiscal 2014 other procurement funds in the amount of $10,000,000 were obligated at the time of the award. Estimated completion date is Mar. 31, 2016. One bid was solicited with one received. Work will be performed in West Palm Beach, Fla. and Saudi Arabia. Army Contracting Command, Redstone Arsenal, Ala. is the contracting activity.

Essence Bottling Co., Lubbock, Texas was awarded a $100,000,000 firm-fixed-price contract to deliver bottled water within the United States and overseas. Funding and work performance location will be determined by each order.  Estimated completion date is Mar. 31, 2018. Bids were solicited via the Internet with five received. Army Corps of Engineers, Concord, Mass. is the contracting activity (W912WJ-14-D-0001).

*Four Thirteen, Inc. Texarkana, Texas (W911RQ-14-D-0004); *Blackhawk Milcon LLC, San Antonio, Texas (W911RQ-14-D-0005); *Altec, Inc. Texarkana, Texas (W911RQ-14-D-0006); *PentaCon, LLC, Catoosa, Okla. (W911RQ-14-D-0007); *American Contractor and Technology Inc., Scott, La. (W911RQ-14-D-0008); *Abba Construction, Inc., Jacksonville, Fla. (W911RQ-14-D-0009); *Jireh Group, LLC [dba Blackwood Services], Texarkana, Texas (W911RQ-14-D-0010); *LeeTex Construction, LLC, Dallas, Texas (W911RQ-14-D-0011) was awarded a $48,000,000 firm-fixed price multiple-award, indefinite-delivery/indefinite-quantity contract  for  construction, alteration, repair, rehabilitation of buildings, highways of other real property on Red River Army Depot, Texarkana, Texas. Funding and work performance location will be determined with each order.  Estimated completion date is Dec. 19, 2018. Bids were solicited via the Internet with twenty-four received. Army Contracting Command, Red River Army Depot, Texarkana, Texas is the contracting activity.

L-3 Combat Propulsion System (CPS), Muskegon, Mich. was awarded a $37,641,154 firm-fixed-price contract for 122 Transmission Operational Reliability HMPT 800 horsepower transmissions with required hardware with an option for 58 additional units. Fiscal 2014 other procurement funds in the amount of $5,109,056 were obligated at the time of the award. Estimated completion date is Nov. 30, 2015. One bid was solicited with one received. Work will be performed in Muskegon, Mich. Army Contracting Command, Warren, Mich. is the contracting activity (W56HZV-14-C-0048).

J&J Contractors, Inc., Lowell, Mass. was awarded a $31,687,000 firm-fixed-price contract for  the construction of the Hanscom Middle School, Hanscom Air Force Base Bedford, Mass.  Fiscal 2014 military construction funds in the amount of $31,687,000 were obligated at the time of the award.  Estimated completion date is Mar. 14, 2016.  Bids were solicited via the Internet with five received. Work will be performed in Bedford, Mass. Army Corps of Engineers, Concord, Mass. is the contracting activity (W912WJ-14-C-0007).

STG, Inc., Reston, Va. was awarded a $16,989,443 modification (P00009) to contract W91RUS-13-C-0003 for Non-personal Information technology services and support requirement for the 2nd Signal Center, continental United States - Theater Network Operations and Security Center. Fiscal 2014 operations and maintenance (Army) funds in the amount of $1,578,757 were obligated at the time of the award.  Estimated completion date is June 30, 2014.  One bid was solicited with one received. Work will be performed at Fort Huachuca, Ariz. Army Contracting Command, Fort Huachuca is the contracting activity.

Nordic Industries, Inc., Olivehurst, Calif., was awarded a $12,562,131 firm-fixed-price contract to construct an oxbow bypass in the Napa River, Napa, Calif.  Fiscal 2014 other procurement funds in the amount of $12,562,131 were obligated at the time of the award. Estimated completion date is April 22, 2015. Bids were solicited via the Internet with five received.  Work will be performed in Napa, Calif.  Army Corps of Engineers, Sacramento, Calif. is the contracting activity (W91238-14-C-0002).

Thales Raytheon Systems, Fullerton, Calif. was awarded an $11,890,678 modification (P00017) to contract W31P4Q-13-C-0091 for life cycle contractor support services for the Sentinel radar system. Fiscal 2014 operations and maintenance (Army) funds in the amount of $11,890,678 were obligated at the time of the award. Estimated completion date is Dec. 31, 2014. One bid was solicited with one received. Work will be performed in Fullerton, Calif. Army Contracting Command, Redstone Arsenal, Ala. is the contracting activity.

Wolpert, Inc., Dayton, Ohio was awarded a $9,500,000 firm-fixed price multi-year contract for architectural and engineering services for Army, Air Force, other military and civil works projects primarily within the Great Lakes and Ohio River Division mission boundaries.  Funding and work performance location will be determined by each order.  Estimated completion date is Dec. 12, 2018.  Bids were solicited via the Internet with one received. Army Corps of Engineers, Louisville, Ky. is the contracting activity (W912QR-14-D-0002).

M7 Aerospace LLC, San Antonio, Texas was awarded an $8,560,000 modification (P00116) to contract W58RGZ-09-C-0207 for continued support of total aircraft maintenance, repair, modification, service, logistical support, and management to maintain the worldwide fleet of eleven C-26 aircraft. Fiscal 2014 operations and maintenance (Army) funds in the amount of $8,560,000 were obligated at the time of the award.  One bid was solicited with one received. Work will be performed at Madison Wisc., Columbus Ohio; Otis ANGB Mass. Clarksburg W.Va.; Ft. Belvoir Va.; Raleigh-Durham N.C.; Columbia S.C.; Dobbins ARB Ga.; Little Rock Ark., Buckley ANGB, Col.; Wheeler AFB, Hi.; San Antonio, Texas. Army Contracting Command, Redstone Arsenal, Ala. is the contracting activity

Creative Times Dayschool Inc., doing business as Creative Times Inc., Ogden, Utah was awarded a $6,781,000 firm-fixed-price contract for an addition and alteration to an F-35 hanger at Hill Air Force Base, Utah. Fiscal 2014 military construction funds in the amount of $6,781,000 were obligated at the time of the award. Estimated completion date is April 3, 2015. Bids were solicited via the Internet with four received. Work will be performed at Hill AFB, Utah. Army Corps of Engineers, Los Angeles, Calif. is the contracting activity (W912PL-14-C-0005).

*Small Business
**In HubZone Small Business

Navy Secretary Addresses Alleged Contractor Fraud

DETROIT MAN AND COMPANY CHARGED BY SEC WITH RUNNING A PUMP AND DUMP SCHEME

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 
SEC Charges Detroit Area Man and His Company with Conducting a Pump and Dump Scheme

On December 10, 2013, the Securities and Exchange Commission charged Randy A. Hamdan and a related entity, Oracle Consultants LLC, with carrying out a pump-and-dump scheme in the securities of CompuSonics Video Corporation. Through his trading entity, Hamdan generated illicit proceeds of approximately $30,000.

According to the Commission's Complaint filed in U.S. District Court for the Eastern District of Michigan, Hamdan, who lives in the Dearborn, Michigan area, carried out the pump-and-dump scheme by engaging in manipulative trading, conducting a fraudulent marketing campaign, and, by pretending to be a representative of CompuSonics, causing a news service to issue a false press release on behalf of CompuSonics. Through the phony press release and fraudulent marketing campaign, Hamdan disseminated false claims that CompuSonics had "reached an out-of-court settlement" regarding the company's patent portfolio and the phony press release added the claim that CompuSonics was "considering many options to bring back shareholder value," including a cash dividend and a stock buy-back program. The Complaint alleges that in order to conduct the scheme, Hamdan employed numerous tactics to hide his true identity, including a proxy internet server, an anonymous email service, fictitious contact information, and a prepaid cellphone.

The Complaint alleges that Hamdan and Oracle violated of Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. As to both Hamdan and Oracle, the Commission is seeking permanent injunctions, disgorgement of ill-gotten gains plus prejudgment interest, penalties, and a penny stock bar.

The Commission acknowledges the assistance of the British Columbia Securities Commission and the Office of Fraud Detection and Market Intelligence of the Financial Industry Regulatory Authority ("FINRA") for its assistance in this investigation.

West Wing Week: 12/20/13 or "26 Candles" (+playlist)

REMARKS ON MALAYSIA BECOMING FIRST INITIATIVE PARTNER TO REACH FULL TRAINING CAPABILITY

FROM:  U.S. STATE DEPARTMENT  
Presentation at Malaysia's Full Training Capacity Ceremony
Remarks
Tom Kelly
Acting Assistant Secretary, Bureau of Political-Military Affairs
Kuala Lumpur, Malaysia
December 13, 2013

Thank you General Datuk (DAH-toe) Raja Mohamed Effandi bin Raja Mohamed Noor, Chief of Army. It’s a pleasure to be here in Port Dickinson for this important event. As the Acting Assistant Secretary for the Bureau of Political-Military Affairs, it is my honor to be here on behalf of the U.S. Department of State and the Office of the Global Peace Operations Initiative. This program, which is lead by the U.S. Department of State and supported by the U.S. Department of Defense, has helped train and equip more than 225,000 peacekeeping personnel worldwide, including many right here in Malaysia.

The United States is very honored to celebrate Malaysia’s significant achievement as the first Global Peace Operations Initiative partner country to reach Full Training Capability. What this means, what this ceremony today celebrates, is that Malaysia is the first of our partner nations to become fully self-sufficient in training their military peacekeepers to deploy to UN peace operations. That is indeed an accomplishment to celebrate.

Malaysia has a long history as a valued partner in global peace and security operations. The first Malaysian deployment began in 1960 in the present day Democratic Republic of the Congo. Malaysia’s contributions have since expanded, with over 900 Malaysian troops currently deployed on missions around the world. Malaysian peacekeepers are serving in the Democratic Republic of the Congo along with Lebanon, Sudan, South Sudan and Western Sahara. We in the United States are grateful for the thousands of Malaysians who have served on over 13 different United Nations peacekeeping missions in the past. Most importantly, we must also recognize, and never forget, the 29 Malaysian peacekeepers who gave the ultimate sacrifice for their country, the United Nations, and the world pursuing international peace and security.

I would like to express the United States’ particular appreciation for Malaysia’s service and sacrifice alongside U.S. forces in Somalia. Twenty years ago last October, two U.S. Black Hawk helicopters were shot down over Mogadishu, leaving U.S. service members trapped in hostile territory. Malaysian forces helped rescue the American troops. Nine Malaysians were injured. One lost his life. Their bravery is an inspiration to each of us here today.

Malaysia’s deployment to Afghanistan, although not strictly a peacekeeping mission, was very successful in helping the Afghan people recover and rebuild from years of violence by providing medical assistance and access to clean drinking water. The United States was proud to work with Malaysia in support of that mission.

I would also like recognize Malaysia’s effectiveness, superior conduct and professionalism in United Nations peace operations. Your high-quality peacekeepers reflect the training caliber at the Malaysian Peacekeeping Centre, the first of its kind in Southeast Asia. This training center demonstrates Malaysia’s role as a provider of peacekeepers, a training supplier, and an important regional partner.

Malaysia has consistently committed to building Southeast Asia’s capacity to deploy on peace operations. Malaysia provides instructors to regional training courses organized by the United States Pacific Command. The Malaysian Peacekeeping Centre here at Port Dickson also hosts a number of international events relating to gender, protection of civilians, civil-military coordination and child protection. Training courses in these areas make a critical contribution to international peace operations and build effectiveness of United Nations peacekeepers from other troop contributing countries. The United States has been pleased to stand with Malaysia in these efforts.

The United States applauds Malaysia’s innovative approach to building regional capacity by incorporating other regional partners’ peacekeeping forces with their own units, as Malaysia has done with Brunei. We encourage continued national investment in these “attached unit” opportunities that enable other countries to contribute troops to international peacekeeping missions and foster regional collaboration.

We also commend your efforts to integrate women into the peacekeeping deployment cycle. Malaysian women are part of the battalion in Lebanon and one of the Malaysian female peacekeepers serves as an expert on mission in the Democratic Republic of the Congo. Female peacekeepers play an important role by improving access and support for local women, and helping to reduce conflict and confrontation. We encourage Malaysia to continue its efforts in this regard.

We are proud that the United States has contributed more than $3 million to Malaysia’s success in obtaining self-sufficient capabilities in peace operations training. The United States looks forward to continuing to work with Malaysia in their future contributions to international peace operations. Achieving full training capability is not the end of the partnership between our two countries; it simply marks the creation of a new framework for our partnership, which we look forward to jointly developing.

Through our new partnership framework, the United States will continue to work with Malaysia in other areas of defense cooperation. We look forward to every opportunity to discuss not only our continued cooperation on international peace operations, but other areas of defense cooperation of mutual interest to our two nations.

In closing, I would like to again give our congratulations Malaysia for its significant achievement as the first Global Peace Operations Initiative partner country to reach full training capability. The United States applauds Malaysia’s enduring leadership in peace operations and looks forward to continuing our defense cooperation partnership with the Government of Malaysia. Thank you very much.

EXPORT-IMPORT BANK FINALIZES AGREEMENT TO EXPORT BOEING AIRCRAFT TO MONGOLIA

FROM:   U.S. EXPORT-IMPORT BANK 
Ex-Im Bank Finalizes Agreement for U.S. Export Transaction to Mongolia

WASHINGTON, D.C. – Officials from the Export-Import Bank of the United States (Ex-Im Bank) and MIAT Mongolian Airlines (MIAT) participated in a signing ceremony today that finalized the export of a U.S. Boeing 767-300ER aircraft with GE engines to MIAT.

Ex-Im Bank Chairman and President Fred P. Hochberg, MIAT President and CEO Jargalsaikhan Gungaa, and PEFCO Vice President Vince Herman signed the financing documents. Altangerel Bulgaa, Mongolia’s Ambassador to the United States, and representatives from GE and The Boeing Company were also in attendance.

The transaction, guaranteed by Mongolia’s Ministry of Finance, was previously approved by Ex-Im Bank’s board of directors and counts as both the Bank’s first significant transaction in Mongolia and its first transaction with MIAT.

“There are numerous opportunities for U.S. exporters in Mongolia, and I hope that this agreement encourages more Americans to explore this diverse and exciting market,” said Chairman Fred P. Hochberg. “By increasing MIAT’s fleet, we are able to support high-quality jobs in both the United States and Mongolia.”

“Aviation plays a strategic role in Mongolia’s global interactions. Boeing is delighted that MIAT’s latest 767-300ER marks the carrier’s first direct purchase of one of our jetliners and continues the airline’s reliance on quality U.S. made aircraft to meet its mission.  This, in turn, links Mongolia to the success of American aviation manufacturing and the many thousands of U.S. jobs it supports,” said John Wojick, senior vice president, Global Sales & Marketing for Boeing Commercial Airplanes.

“MIAT is pleased to conclude its first financing transaction with the support of Ex-Im Bank,” said President Jargalsaikhan Gungaa. “We are proud to be the first airline in Mongolia to acquire an aircraft directly from The Boeing Company and to finance an aircraft with the support of Ex-Im Bank. This is an important step for the aviation industry in Mongolia, and the confidence shown by Ex-Im Bank in Mongolia will have a positive impact on all industries.”

Last year, Chairman Hochberg participated in a business-development mission in Mongolia, where he encouraged sourcing of U.S. products and services for regional infrastructure projects. Chairman Hochberg also oversaw the signing of a memorandum of understanding with the Development Bank of Mongolia to facilitate trade opportunities between the United States and Mongolia.

PHOTOS FROM RECENT FIREFIGHT IN HELMAND PROVINCE, AFGHANISTAN



FROM:  U.S. DEFENSE DEPARTMENT 
U.S. Marine Corps Lance Cpls. Ian Forry, left, and Brian Schaeffer crouch behind a wall during a firefight with insurgents near a bazaar in the Nad Ali district of Afghanistan's Helmand province, Dec. 4, 2013. Forry and Schaeffer, riflemen, are assigned to the 1st Battalion, 9th Marines. U.S. Marine Corps photo by Cpl. Paul Peterson.



U.S. Marine Corps Cpl. Kyle Klingaman, front, leads a group of Marines to cover during a firefight with insurgents near a bazaar in the Nad Ali district of Afghanistan's Helmand province, Dec. 4, 2013. Klingaman, a scout sniper, is assigned to the 1st Battalion, 9th Marines. U.S. Marine Corps photo by Cpl. Paul Peterson.



U.S. Marine Lance Cpl. Brandon Bowker, bottom, supports a fellow Marine as he attempts to locate insurgents during a firefight near a bazaar in the Nad Ali district of Afghanistan's Helmand province, Dec. 4, 2013. Bowker is a rifleman assigned to the 1st Battalion, 9th Marines. U.S. Marine Corps photo by Cpl. Paul Peterson.

FLORIDA COURTS ORDERS OVER $ 8 MILLION IN SANCTIONS IN COMMODITY POOL FRAUD CASE

FROM:  U.S. COMMODITY FUTURES TRADING COMMISSION 
Federal Court in Florida Orders More than $8 Million in Sanctions against Defendants Philip Leon and Paul Rangel for Commodity Pool Fraud and Misappropriation

In a Parallel Criminal Action, Leon Pleaded Guilty to Mail and Wire Fraud

Washington, DC — The U.S. Commodity Futures Trading Commission (CFTC) obtained federal court Orders requiring Defendants Philip Leon, of Altamonte Springs, Florida, to pay a $4 million civil monetary penalty and $1,598,343 in disgorgement and Paul Rangel, of Apopka, Florida, to pay a $1.7 million civil monetary penalty and $819,781 in disgorgement to settle CFTC charges related to a fraudulent commodity pool scheme. The consent Orders of permanent injunction, both entered on December 17, 2013 by Judge Gregory A. Presnell of the U.S. District Court for the Middle District of Florida, also impose permanent trading and registration bans against Leon and Rangel and prohibit them from violating provisions of the Commodity Exchange Act and a CFTC Regulation, as charged.

The Orders stem from a CFTC Complaint filed on July 16, 2012 against Leon and Rangel, as well as Defendants John G. Wilkins and their company Altamont Global Partners LLC (see CFTC Press Release 6315-12).

The Orders find that, from approximately March 2009 to at least June 22, 2012, Leon and Rangel operated a fraudulent scheme that solicited at least $18 million from approximately 241 commodity pool participants to trade, among other things, commodity futures contracts, options on futures, and off-exchange foreign currency contracts. The Orders further find that Leon and Rangel misappropriated a combined total of more than $2.4 million of pool participants’ funds and issued false statements to pool participants regarding the profitability and value of their accounts. Specifically, Leon misappropriated nearly $1.6 million and Rangel nearly $819,000 of pool participants’ funds as “loans” and “advances” from the commodity pools, designed to disguise their misappropriation, the Orders find.

In a related criminal action, on November 6, 2013, Leon pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud (see United States v. Leon, No. 13-cr-249 (M.D. Fla. Oct. 2, 2013)). Leon has not yet been sentenced.

The CFTC’s litigation continues against Altamont Global Partners and Wilkins.

The CFTC thanks the National Futures Association for its assistance.

CFTC Division of Enforcement staff members responsible for this case are Rachel Hayes, Peter Riggs, Stephen Turley, Charles Marvine, Rick Glaser, and Richard Wagner.

UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT FOR WEEK ENDING DECEMBER 14, 2013

SEASONALLY ADJUSTED DATA

In the week ending December 14, the advance figure for seasonally adjusted initial claims was 379,000, an increase of 10,000 from the previous week's figure of 369,000. The 4-week moving average was 343,500, an increase of 13,250 from the previous week's revised average of 330,250.

The advance seasonally adjusted insured unemployment rate was 2.2 percent for the week ending December 7, an increase of 0.1 percentage point from the prior week's unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending December 7 was 2,884,000, an increase of 94,000 from the preceding week's revised level of 2,790,000. The 4-week moving average was 2,799,000, an increase of 4,250 from the preceding week's revised average of 2,794,750.

UNADJUSTED DATA

The advance number of actual initial claims under state programs, unadjusted, totaled 414,002 in the week ending December 14, a decrease of 48,196 from the previous week. There were 401,429 initial claims in the comparable week in 2012.

The advance unadjusted insured unemployment rate was 2.2 percent during the week ending December 7, a decrease of 0.1 percentage point from the prior week. The advance unadjusted number for persons claiming UI benefits in state programs totaled 2,878,730, a decrease of 81,111 from the preceding week. A year earlier, the rate was 2.5 percent and the volume was 3,244,564.
The total number of people claiming benefits in all programs for the week ending November 30 was 4,412,144, an increase of 606,051 from the previous week. There were 5,402,429 persons claiming benefits in all programs in the comparable week in 2012.

No state was triggered "on" the Extended Benefits program during the week ending November 30.

Initial claims for UI benefits filed by former Federal civilian employees totaled 2,175 in the week ending December 7, an increase of 667 from the prior week. There were 2,356 initial claims filed by newly discharged veterans, an increase of 970 from the preceding week.

There were 22,439 former Federal civilian employees claiming UI benefits for the week ending November 30, an increase of 4,215 from the previous week. Newly discharged veterans claiming benefits totaled 32,937, an increase of 3,837 from the prior week.

States reported 1,374,031 persons claiming Emergency Unemployment Compensation (EUC) benefits for the week ending November 30, an increase of 125,099 from the prior week. There were 2,096,545 persons claiming EUC in the comparable week in 2012. EUC weekly claims include first, second, third, and fourth tier activity.

The highest insured unemployment rates in the week ending December 7 were in Alaska (6.0), Puerto Rico (3.6), New Jersey (3.5), California (3.4), Connecticut (3.1), Pennsylvania (3.1), West Virginia (3.0), Wisconsin (3.0), Montana (2.9), and Oregon (2.9).

The largest increases in initial claims for the week ending December 7 were in California (+21,876), New York (+14,322), Pennsylvania (+14,004), Georgia (+11,582), and Texas (+9,761), while the largest decreases were in Ohio (-1,095), Kentucky (-838), Vermont (-400), Massachusetts (-317), and New Mexico (-176).

SUBSIDIARY OF CONVERGEX GROUP & 2 EMPLOYEES PLEAD GUILTY TO SECURITIES FRAUD

FROM:  U.S. JUSTICE DEPARTMENT 
Wednesday, December 18, 2013
Convergex Group Subsidiary and Two Employees Plead Guilty to Securities and Wire Fraud Charges

A brokerage subsidiary of ConvergEx Group LLC pleaded guilty today to charges of wire fraud and conspiracy to commit securities fraud and wire fraud.   ConvergEx Group has also agreed to pay $43.8 million in criminal penalties and restitution as part of a deferred prosecution agreement with the Department of Justice.   In addition, Jonathan Daspin, the head trader at the brokerage subsidiary, and Thomas Lekargeren, a sales trader at a different ConvergEx subsidiary, both pleaded guilty today to conspiracy to commit securities and wire fraud before U.S. District Judge Jose Linares in the District of New Jersey.

Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office, and Inspector in Charge Phillip Bartlett from the U.S. Postal Inspection Service (USPIS) made the announcement.

ConvergEx Global Markets Limited (CGM Limited), a former broker-dealer registered in Bermuda, has also agreed to plead guilty today.   The department also filed today a criminal information in connection with a deferred prosecution agreement, charging ConvergEx Group with one count of conspiracy to commit securities fraud and wire fraud and one count of wire fraud.   To resolve the charges, ConvergEx Group and CGM Limited have agreed to pay in total a criminal penalty of approximately $18.0 million and forfeit approximately $12.8 million, for a total penalty of $30.8 million, and additionally to pay restitution of approximately $12.8 million to defrauded customers.

In a parallel action, the U.S. Securities and Exchange Commission also reached a resolution today with three ConvergEx Group subsidiaries, Daspin and Lekargaren.

“As described in the guilty plea agreements and charging documents announced today, ConvergEx – which was a broker for some of the most sophisticated institutional investors in the world – along with several of its employees, engaged in a concerted and coordinated effort to fleece its clients by charging them millions of dollars in unwarranted fees – which ConvergEx called “trading profits,” or “spread” – and then concealing those charges from its clients through a pattern of deception,” said Acting Assistant Attorney General Mythili Raman.  “Although the theft of money from ConvergEx’s clients was large in scale, the fraud scheme was committed in the most basic of ways:  ConvergEx and its traders, plain and simple, lied to their clients to hide that they were stealing their money.  This coordinated bilking of clients by a broker-dealer – accomplished through intentional and repeated misrepresentations – not only inflicted real financial losses on investors, but also undermines investors’ confidence in the integrity and reliability of the financial markets.  As the guilty pleas and resolutions announced today show, we will not tolerate this type of criminal conduct and we will hold both institutions and individuals to account.”

“With today’s guilty pleas, ConvergEx and two of its employees admitted their roles in a scheme in which they committed securities fraud,” said Assistant Director in Charge Parlave.  “By doing so, they hid the fact that they were secretly earning millions of dollars by deliberately fabricating transaction reports which were provided to clients with false details regarding their orders.   The FBI will continue to investigate allegations of securities fraud and abuse to ensure those who participate in the global trading market are doing so fairly.”

“This is yet another example of the significant results that can be achieved when law enforcement agencies partner, share information, and collaborate,” said USPIS Inspector Bartlett.   “The Inspection Service values its partnership with the FBI and SEC in this case.”

According to court documents, certain ConvergEx Group broker-dealers that provided agency brokerage services and disclosed to clients that they would charge commissions for their services regularly routed securities orders to CGM Limited in Bermuda so that it could take a mark-up (an additional amount paid for the purchase of a security) or mark-down (a reduction of the amount received for the sale of a security) when executing the orders.   ConvergEx employees referred to such mark-ups and mark-downs as “spread,” “trading profits,” or “TP.”

To hide the fact that spread had been taken on trades, traders at CGM Limited and sales traders at a ConvergEx Group subsidiary in New York sent false transaction reports to clients with fabricated details regarding the execution orders, including the number of shares involved in a trade, the time at which a trade was executed and the price at which shares were either purchased or sold.   CGM Limited traders, including Daspin, created these false reports using exchange data from transactions entered into by others on the same trade date as the trades that had been executed by CGM Limited on behalf of its clients.   Daspin instructed a sales trader while creating a false report to “Please put all Prints in one spreadsheet in the least Friendly Format….If possible take this out of spreadsheet Format and make a PDF – Or put this in picture file or something tricky to manipulate.”   In another instance, Daspin notified an executive that “We need to be creative putting something together as did not have time and sales for the price given. Fyi.”   In total, CGM Limited took approximately $12.8 million in trading profits from these clients after it had sent the false statements to them.

Daspin and others also came up with a plan to continue taking spread on a client by violating the client’s instructions to provide “real-time” transactional data, i.e., an immediate data feed of the details of trades that CGM Limited executed for the client in offshore markets through  foreign brokers.   If the client’s instructions had been followed, CGM Limited’s traders would not have been able to take spread on the client’s trades.   Daspin and other CGM Limited traders “turned off” real time for certain portions of the client’s orders and took spread while “real-time” was turned off.   On several occasions, when the client asked why it was not receiving real-time data, Lekargeren falsely blamed it on various “IT” issues.

Certain employees of CGM Limited and the broker-dealers offering agency brokerage services also took other steps designed to conceal the fact that CGM Limited was taking spread and the fact that spread was included in the trade prices reported to clients, including: taking smaller amounts of spread on certain price-sensitive clients; taking larger amounts of spread when it was less likely to be discovered; insuring that the marked-up price they charged to clients was within the high or low price at which the security traded that day; and using multiple local brokers during the course of a trade so that a client would not be able to track the execution of the client’s order through publicly available resources.

The head of the division offering transition management services – which provided clients in the process of changing fund managers or investment strategies the ability to execute large orders to buy and sell securities – provided several clients with false information to hide trading profits.   In July 2010, for example, this executive caused a client to be told that “no principal trading has been carried out in any transition” for that client, when this executive knew CGM Limited had traded in a principal capacity and had taken approximately $1.75 million of trading profits on the client’s trades a month earlier.   After that false response was sent to the client, CGM Limited’s traders took approximately $4.5 million of additional trading profits on that client’s trades.

In addition, ConvergEx employees assisted an unaffiliated provider of transition services in concealing that it was receiving a 50 to 60 percent share of the trading profits CGM Limited was taking on the unaffiliated company’s clients, in violation of the unaffiliated company’s client agreements.   The unaffiliated company sent invoices addressed to ConvergEx Group that falsely stated that they were for trading cost analysis, when in fact the invoices were sent to cover up that the payments were in fact for the unaffiliated company’s share of the spread taken by CGM Limited on its clients.

As part of the deferred prosecution agreement with ConvergEx Group, the department highlighted the internal investigation conducted by the company; its extraordinary and ongoing cooperation; its extensive remediation, including terminating officers and employees, ceasing all trading activities at CGM Limited and voluntarily relinquishing the subsidiary’s Bermudan securities license; and enhancing its compliance program and internal controls; as well as the guilty plea by CGM Limited and its agreement to pay restitution and the significant sanctions imposed by the SEC.

The case was investigated by the FBI’s Washington Field Office and the Washington, D.C., and New York offices of the U.S. Postal Inspection Service.   The case is being prosecuted by Trial Attorneys Justin Goodyear, Jason Linder and Patrick Pericak of the Criminal Division’s Fraud Section.

The SEC referred the matter to the Justice Department for investigation, and the department expresses its appreciation for the significant assistance provided by the SEC.

The department also recognizes the assistance of the Criminal Division’s Office of International Affairs, the Financial Industry Regulatory Authority, and the United States Attorney’s Office for the District of New Jersey.

FDA, EU LAUNCH JOINT INITIATIVE TO SHARE INFORMATION IN SUPPORT OF GENERIC DRUG APPROVALS

FROM:  U.S. FOOD AND DRUG ADMINISTRATION FDA, 
For Immediate Release: Dec. 18, 2013 
FDA and European Medicines Agency launch generic drug application inspections initiative

The U.S. Food and Drug Administration and the European Medicines Agency (EMA) today announced the launch of a joint initiative to share information on inspections of bioequivalence studies submitted in support of generic drug approvals. This collaborative effort provides a mechanism to conduct joint facility inspections for generic drug applications submitted to both agencies.

Studies submitted for generic drug applications must demonstrate scientifically that a generic drug is “bioequivalent.” These studies help demonstrate that the generic drug performs in the same manner as the brand name drug. The FDA and the regulatory authorities in the European Union (EU) inspect facilities that conduct these studies to ensure data submitted to the agencies are reliable.

Taking part in this initiative are the EMA and the EU member states France, Germany, Italy, the Netherlands and the United Kingdom.

“Our continued collaboration with the EMA and the EU enhances our ability to leverage inspection resources and helps us meet the challenges of increased globalization in drug development,” said Janet Woodcock, M.D., director of the FDA’s Center for Drug Evaluation and Research. “By streamlining the inspection process for generic drug applications, we will help consumers gain access to safe and effective generic drugs.”

Key objectives of the initiative are to:

• streamline information sharing on inspections of bioequivalence studies conducted and planned for generic drug applications (inspectional information will be shared for clinical facilities, analytical facilities or both);
• share information about negative inspection outcomes that reveal system problems at a facility;
• conduct joint inspections at facilities all over the world; and
• provide training opportunities to improve bioequivalence inspections.

This initiative will be implemented using the confidentiality arrangements established among the European Commission, the EMA, interested EU member states and the FDA.

This agreement includes an 18-month pilot phase and follows on the successful 2009 EMA-FDA Good Clinical Practices (GCP) Initiative, designed by the agencies to ensure that clinical trials data submitted in new drug applications in the United States and Europe are conducted ethically and are reliable.

Thursday, December 19, 2013

FORMER MICROSOFT PORTFOLIO MANAGER AND BUSINESS PARTNER CHARGED WITH INSIDER TRADING BY SEC

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 

The Securities and Exchange Commission today charged a senior portfolio manager at Microsoft Corporation and his friend and business partner with insider trading ahead of company announcements.

The SEC alleges that Brian D. Jorgenson, who lives in Lynwood, Wash., obtained confidential information about upcoming company news through his work in Microsoft’s corporate finance and investments division.  Jorgenson tipped Sean T. Stokke of Seattle in advance of the Microsoft announcements, the most recent occurring in October.  After Stokke traded on the inside information that Jorgenson provided, the two equally split the illicit profits in their shared brokerage accounts.  They made joint trading decisions with the goal of generating enough profits to create their own hedge fund.

In a parallel action, the U.S. Attorney’s Office for the Western District of Washington today announced criminal charges against Jorgenson and Stokke.

“Abusing access to Microsoft’s confidential information and generating unlawful trading profits is not a wise or legal business model for starting a hedge fund,” said Daniel M. Hawke, chief of the SEC Enforcement Division’s Market Abuse Unit and director of the SEC’s Philadelphia Regional Office.  “We thwarted the misguided plans of Jorgenson and Stokke as they sought to illegally profit at others’ expense.”

According to the SEC’s complaint filed in U.S. District Court for the Western District of Washington, Jorgenson and Stokke made a combined $393,125 in illicit profits in their scheme, which began in April 2012.

The SEC alleges that Stokke first traded in advance of a public announcement that Microsoft intended to invest $300 million in Barnes & Noble’s e-reader business.  Jorgenson learned of the impending transaction after his department became involved in the financing aspects of the deal.  Jorgenson tipped Stokke so he could purchase approximately $14,000 worth of call options on Barnes & Noble common stock.  Following a joint public announcement on April 30, Barnes & Noble’s stock price closed at $20.75 per share, a 51.68 percent increase from the previous day.  Jorgenson and Stokke made nearly $185,000 in ill-gotten trading profits.

The SEC alleges that Stokke later traded in advance of Microsoft’s fourth-quarter earnings announcement in July 2013.  As part of his duties at Microsoft, Jorgenson prepared a written analysis of how the market would react to the negative news that Microsoft’s fourth quarter earnings were more than 11 percent below consensus estimates.  He estimated that Microsoft’s stock price would decline by at least six percent.  Jorgenson tipped this confidential information to Stokke, who purchased almost $50,000 worth of Microsoft options.  After Microsoft’s announcement on July 18, its stock price declined more than 11 percent the next day from $35.44 to $31.40 per share.  Jorgenson and Stokke realized more than $195,000 in illicit profits.

According to the SEC’s complaint, Stokke traded in advance of another Microsoft announcement on Oct. 24, 2013.  Jorgenson was aware that the company would be announcing first quarter 2014 earnings that were more than 14 percent higher than consensus estimates.  Rather than purchase Microsoft securities directly, Jorgenson and Stokke purchased more than $45,000 worth of call options on an exchange-traded fund in which Microsoft comprised more than eight percent of the fund’s holdings.  Following the announcement, Microsoft’s share price increased nearly six percent and the price of the ETF increased 0.51 percent.  Jorgenson and Stokke made approximately $13,000 in illegal trading profits.

Jorgenson and Stokke are charged with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, both directly and pursuant to 20(d) of the Exchange Act.  The SEC seeks permanent injunctions, disgorgement of ill-gotten gains plus prejudgment interest, and financial penalties against Jorgenson and Stokke as well as an officer-and-director bar against Jorgenson.

The SEC’s investigation was conducted by Brendan P. McGlynn, Patricia A. Paw, John S. Rymas, and Daniel L. Koster of the Philadelphia Regional Office.  The SEC’s litigation will be led by John V. Donnelly and G. Jeffery Boujoukos.

The SEC appreciates the assistance of the U.S. Attorney’s Office for the Western District of Washington, Federal Bureau of Investigation, Options Regulatory Surveillance Authority, and Financial Industry Regulatory Authority.

21 PEOPLE RECEIVE A COMMUTATION OR PARDON FROM PRESIDENT OBAMA

FROM:  U.S. JUSTICE DEPARTMENT 
Thursday, December 19, 2013
President Obama Grants Commutations and Pardons
Today President Barack Obama granted clemency to 21 individuals, consisting of eight commutations and 13 pardons.

The President granted commutations to the following eight individuals:

Clarence Aaron - Mobile, Ala.
Offense: Conspiracy to possess with intent to distribute cocaine and cocaine base; possession with intent to distribute cocaine; attempt to possess cocaine with intent to distribute (Southern District of Alabama)
Sentence:  Life imprisonment, five years' supervised release (Dec. 10, 1993)
Commutation Grant: Prison sentence commuted to expire on April 17, 2014
Stephanie Yvette George - Pensacola, Fla.
Offense: Conspiracy to possess cocaine base with intent to distribute (Northern District of Florida)
Sentence:  Life imprisonment, ten years' supervised release (May 5, 1997)
Commutation Grant: Prison sentence commuted to expire on April 17, 2014
Ezell Gilbert - Tampa, Fla.
Offense: Possession with intent to deliver cocaine base; possession with intent to distribute marijuana (Middle District of Florida)
Sentence:  292 months' imprisonment, five years' supervised release (Mar. 25, 1997)
Commutation Grant: Prison sentence commuted to time already served
Helen R. Alexander Gray - Ty Ty, Ga.
Offense: Conspiracy to possess with intent to distribute cocaine base; possession with intent to distribute cocaine base; possession of a firearm by a convicted felon (Middle District of Georgia)
Sentence:  240 months' imprisonment; 10 years’ supervised release (Oct. 8, 1996)
Commutation Grant: Prison sentence commuted to expire on April 17, 2014
Jason Hernandez - McKinney, Tex.
Offense: Conspiracy to possess with intent to distribute   controlled substances; possession with intent to distribute cocaine base; possession with intent to distribute methamphetamine; possession with intent to distribute a mixture of methamphetamine and cocaine hydrochloride; distribution of a controlled substance   within 1,000 feet of a protected property; establishing a place for manufacture and distribution of controlled substances (Eastern District of Texas)
Sentence:  Life imprisonment; eight years' supervised release; $5,000 fine (Oct. 2, 1998)
Commutation Grant: Prison sentence commuted to 240 months (20 years)
Ricky Eugene Patterson - Fort Pierce, Fla.
Offense: Conspiracy to possess with intent to distribute cocaine base; possession with intent to distribute cocaine base (Southern District of Florida)
Sentence: Life imprisonment, 10 years’ supervised release (Aug. 3, 1995)
Commutation Grant: Prison sentence commuted to expire on April 17, 2014
Billy Ray Wheelock - Belton, Tex.
Offense: Conspiracy to distribute more than 50 grams of crack cocaine; possession with intent to distribute more than 5 grams of crack cocaine within 1,000 feet of a school; possession with intent to distribute crack cocaine; aiding and abetting possession with intent to distribute and distributing more than 5 grams of crack cocaine within 1,000 feet of a school (Western District of Texas)
Sentence: Life imprisonment, 10 years' supervised release, $3,000 fine (Jun. 9, 1993)
Commutation Grant: Prison sentence commuted to expire on April 17, 2014
Reynolds Allen Wintersmith, Jr. - Rockford, Ill.
Offense: Conspiracy to possess with intent to distribute and distribute cocaine and cocaine base; possession with intent to distribute   cocaine base (Northern District of Illinois)
Sentence: Life imprisonment, five years' supervised release, $1,000 fine (Nov. 23, 1994)
Commutation Grant: Prison sentence commuted to expire on April 17, 2014
The President granted pardons to the following thirteen individuals:

William Ricardo Alvarez - Marietta, Ga.
Offense: Conspiracy to possess with intent to distribute heroin ; conspiracy to import heroin (District of Puerto Rico)
Sentence:  Time served after service of nine months' imprisonment, four years' supervised release (Apr. 30, 1997; amended Jul. 31, 1997)
Charlie Lee Davis, Jr . - Wetumpka, Ala.
Offense: Possession with intent to distribute and distribution of cocaine base; use of a minor to distribute cocaine base (Middle District of Alabama)
Sentence: 87 months' imprisonment, five years' supervised release (Mar. 21, 1995)
Ronald Eugene Greenwood - Crane, Mo.
Offense: Conspiracy to violate the Clean Water Act  (District of South Dakota)
Sentence: Three years' probation, conditioned on six months' home confinement and 100 hours’ community service, $5,000 restitution, $1,000 fine (Nov. 18, 1996)
Little Joe Hatch , aka Joe Hatch Sr. - Lake Placid, Fla.
Offense: Possession with intent to distribute marijuana  (Southern District of Florida)
Sentence: 60 months' imprisonment, four years' supervised release (May 15, 1990)
Martin Alan Hatcher . - Foley, Ala.
Offense: Distribution and possession with intent to distribute marijuana (Southern District of Alabama)
Sentence: Five years' probation (Nov. 9, 1992)
Derek James Laliberte - Auburn, Me.
Offense: Money laundering (District of Maine)
Sentence:   18 months imprisonment, 2 years' supervised release (Oct. 2, 1992, as amended May 21, 1993)
Alfred J. Mack - Manassas, Va.
Offense: Unlawful distribution of heroin  (District of Columbia Superior Court)
Sentence: 18 to 54 months' imprisonment (Apr. 5, 1982)
Robert Andrew Schindler - Goshen, Va.
Offense: Conspiracy to commit wire fraud; conspiracy to commit mail and wire fraud (District of Utah)
Sentence: Three years' probation conditioned on four months' home confinement, $10,000 restitution (May 14, 1996)
Willie Shaw, Jr. - Myrtle Beach, S.C.
Offense: Armed bank robbery (District of South Carolina)
Sentence: Fifteen years' imprisonment (Aug. 7, 1974)
Kimberly Lynn Stout , formerly known as Kimberly Lynn Cooley - Bassett, Va.
Offense: Bank embezzlement; false entries in the books of a lending institution (Western District of Virginia)
Sentence: One day of imprisonment, three years' supervised release,   conditioned on five months’ home   detention) (Nov. 9, 1993)
Bernard Anthony Sutton, Jr. - Norfolk, Va.
Offense: Theft of personal property (Eastern District of Virginia)
Sentence: Three years' probation, $825 restitution, $500 fine (Apr. 4, 1989)
Chris DeAnn Switzer , formerly known as Chris DeAnn Rasco   - Omaha, Neb.
Offense: Conspiracy to violate narcotics laws (methamphetamine) (District of Nebraska)
Sentence: Four years' probation, conditioned on six months’ home confinement and 200 hours' community service (Jun. 25, 1996)
Miles Thomas Wilson - Williamsburg, Ohio.
Offense: Mail fraud (Southern District of Ohio)
Sentence: Three years’ probation (Jul. 15, 1981)


U.S. DEFENSE DEPARTMENT CONTRACTS FOR DECEMBER 19, 2013

FROM:  U.S. DEFENSE DEPARTMENT

CONTRACTS

DEFENSE LOGISTICS AGENCY

Pacific Unlimited Inc., Barrigada, Guam, has been awarded a maximum $262,500,000 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for subsistence prime vendor support for various customers in Guam.  This contract is a competitive acquisition and there were three offers.  Location of performance is Guam with an April 17, 2019 performance completion date.  This is a 64-month base contract with no option periods.  Using military services are Navy and federal civilian agencies.  Type of appropriation is fiscal 2014 defense working capital funds.  The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.; (SPM300-14-D-3735).  (Awarded on Dec. 18, 2013)

TXU Energy Retail Company LLC, Irving, Texas, has been awarded a maximum $24,753,778 fixed-price with economic-price-adjustment contract for electricity and ancillary services.  This contract is a competitive acquisition and five offers were received.  This is a 36 month contract.  Location of performance is Texas with a Jan. 30, 2017 performance completion date.  Using service is National Aeronautics and Space Administration.  Type of appropriation is fiscal 2014 service funds.  The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Va.; (SPE600-14-D-8002). (Awarded on Dec. 17, 2013)

Federal Prison Industries, Washington, D.C., has been awarded a maximum $15,948,000 modification (P00012) exercising the second one-year option period on a one-year base contract (SPM1C1-12-D-F503) with two one-year option periods for extreme cold wet weather trousers.  This is a firm-fixed-price contract.  Locations of performance are District of Columbia and Kentucky with a Dec. 24, 2014 performance completion date.  Using military service is Army.  Type of appropriation is fiscal 2014 through fiscal 2015 defense working capital funds.  The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.

Northrop Grumman, Woodland Hills, Calif., has been awarded a maximum $7,784,925 un-definitized contract for the manufacture and delivery of computers for Navy support services.  This contract is a sole source acquisition.  Location of performance is California with a December 2015 performance completion date.  This is a two-year base contract.  Using military service is Navy.  Type of appropriation is fiscal 2014 Navy funds. The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pa.; (SPRPA1-09-G-001Z-5011).

AIR FORCE

Lockheed Martin Missiles and Fire Control, Orlando, Fla., has been awarded a $232,545,447 firm-fixed price and cost-plus-fixed-fee contract for the joint air to surface standoff missile (JASSM) baseline missiles (190 each) and JASSM extended range (ER) missiles (40 each), systems engineering, foreign military sales test assets, ER avionics bulkhead value engineering change proposal - cost share savings, tooling and test equipment, Baseline JASSM Weapon Systems Evaluation Program and Obsolescence Management Oversight.  Work will be performed at Orlando, Fla., and Troy, Ala., and expected to be completed by Nov. 30, 2016.  This award is a result of a sole source acquisition and one offer was solicited and one offer was received.  Fiscal 2012 and 2013 missile procurement funds in the amount of $232,545,447 are being obligated at time of award.  This contract is three percent foreign military sales for Finland and Australia.  Air Force Life Cycle Management Center/ EBJK, Eglin Air Force Base, Fla., is the contracting activity (FA8682-14-C-0069).

Lockheed Martin Missiles and Fire Control, Orlando, Fla., has been awarded a $216,475,072 firm-fixed-price and cost-plus-fixed-fee contract for the Joint Air to Surface Standoff Missile (JASSM) Baseline Missiles (150 each) and JASSM Extended Range (ER) Missiles (60 each), ER Avionics Bulkhead Value Engineering Change Proposal - Cost Share Savings, and Obsolescence Management Oversight.  Work will be performed at Orlando, Fla., and Troy, Ala., and expected to be completed by Nov. 30, 2016.   This award is a result of a sole source acquisition and one offer was solicited and one offer was received.  Fiscal 2013 and 2014 missile procurement funds in the amount of $216,475,072 are being obligated at time of award. Air Force Life Cycle Management Center/EBJK, Eglin Air Force Base, Fla., is the contracting activity (FA8682-14-C-0084).

Raytheon Missiles Systems, Tucson Ariz., has been awarded a $40,000,000 indefinite-delivery/indefinite-quantity contract for system improvements to include design, development, and test of the AIM-120D missile.  Work will be performed at Tucson, Ariz., and is expected to be complete by March 31, 2015.  This award is the result of a sole source acquisition.  Fiscal 2013 and 2014 research, development, test and evaluation funds in the amount of $3,993,942 are being obligated at time of award. Air Force Life Cycle Management Center/EBA, Eglin Air Force Base, Fla., is the contracting activity (FA8675-14-D-0082).

Raytheon Network Centric Systems, Aberdeen Proving Ground, Md., has been awarded a $12,878,000, firm-fixed-price contract for Identification Friend or Foe (IFF) AN/APX-114 Interrogators. The contractor will provide 94 IFFs for the Royal Saudi Air Force.  Work will be performed at Largo, Fla., and is expected to be complete Sept. 29, 2017.  This award is the result of a sole-source acquisition. This contract is 100 percent in support of foreign military sales for Saudi Arabia.  Air Force Life Cycle Management Center/WNKCB, Robins AFB, Ga., is the contracting activity. (FA8540-14-C-0002)

Raytheon Network Centric Systems, Aberdeen Proving Ground, Md., has been awarded an $11,662,862 firm-fixed-price contract for identification friend or foe (IFF) AN/APX-119 transponders.  The contractor will provide 94 IFFs for the Royal Saudi Air Force.  Work will be performed at Largo, Fla., and AEC Saudi Arabia, and is expected to be complete July 31, 2017.  This award is the result of a sole source acquisition.  This contract is 100 percent in support of foreign military sales for Saudi Arabia.  Air Force Life Cycle Management Center/WNKCB, Robins Air Force Base, Ga., is the contracting activity. (FA8540-14-C-0003)

Lockheed Martin Missiles and Fire Control, Orlando, Fla., has been awarded an $8,808,979 (not-to-exceed) firm-fixed-price modification (P00004) on an existing contract (FA8540-12-C-0012) for sniper advanced targeting pods (ATP) for the Royal Saudi Air Force.  The contractor will provide compact multiband data link software and firmware configuration support on the RSAF's F-15SA aircraft and provide resources required for the management, fabrication, repair, support, testing and shipping of its non-developmental item sniper ATP system.  Work will be performed at Orlando, Fla., and is expected to be complete by November 2016.  This award is the result of a source directed acquisition and is 100 percent foreign military sales for Saudi Arabia. Air Force Life Cycle Management Center/WNKCB, Robins Air Force Base, Ga., is the contracting activity.

ARMY

General Dynamics C4 Systems Inc., Scottsdale, Ariz., was awarded a $107,309,000 modification (P00402) to contract W15P7T-04-C-E405 to procure 1500 Manpack radio kits and 500 dismount kits.  Fiscal 2014 other procurement, Army funds in the amount of $106,410,000 were obligated at the time of the award.  Estimated completion date is Jan. 30, 2015.  Bids were solicited via the Internet with two received.  Work will be performed in Scottsdale, Ariz.  Army Contracting Command, Aberdeen, Md., is the contracting activity.

DynCorp International LLC, Fort Worth, Texas, was awarded a $80,333,657 modification (P00008) to contract W58RGZ-13-C-0040 for aviation maintenance supporting Operation Enduring Freedom.  This requirement includes restoring aircraft to fully mission capable status, aircraft modifications, and maintenance support to various Army units and combat aviation brigades.  Fiscal 2014 cost-plus-fixed-fee funds in the amount of $80,333,657 were obligated at the time of the award.  Estimated completion date is Dec. 31, 2014.  Bids were solicited via the Internet with three received.  Work will be performed in Afghanistan.  Army Contracting Command, Redstone Arsenal (Aviation), Ala., is the contracting activity.

Booz Allen Hamilton Inc., McLean, Va., was awarded a $49,916,668 cost-plus-fixed-fee indefinite-delivery/indefinite-quantity contract for the dematerialization-centric intelligence surveillance and reconnaissance effort to perform analyses, assessments, studies, and operational exercises of technologies and systems.  Funding and work location will be determined with each order.  Estimated completion date is Dec. 18, 2016. Bids were solicited via the Internet with 999 received. Army Contracting Command, Adelphi, Md., is the contracting activity (W911QX-14-D-0001).

Kongsberg Defence & Aerospace AS, Kongsberg, Norway, was awarded a $37,872,000 modification (P00048) to contract W15QKN-12-C-0103 for maintenance of the M153 common remotely operated weapon station. Fiscal 2014 operations and maintenance, Army funds in the amount of $37,872,000 were obligated at the time of the award.  Estimated completion date is Aug. 16, 2017.  Bids were solicited via the Internet with two received.  Work will be performed in Johnstown, Pa.  Army Contracting Command, Picatinny Arsenal, N.J., is the contracting activity.

Sundt Construction Inc., Tempe, Ariz., was awarded a $32,787,350 firm-fixed-price contract for runway repair at Minot Air Force Base, N.D.  Fiscal 2014 other procurement funds in the amount of $32,787,350 were obligated at the time of the award.  Estimated completion date is Oct. 15, 2014.  Bids were solicited via the Internet with nine received.  Work will be performed at Minot Air Force Base.  Army Corps of Engineers, Omaha, Neb., is the contracting activity (W9128F-14-C-0003).

King Aerospace Inc., Addison, Texas, was awarded a $32,353,000 modification (P00213) to contract W58RGZ-05-C-0302 for life cycle support for the airborne reconnaissance low DeHaveilland Dash 7 aircraft fleet.  Fiscal 2014 operations and maintenance, Army funds in the amount of $32,353,000 were obligated at the time of the award.  Estimated completion date is Dec. 31, 2014.  One bid was solicited with one received. Work will be performed in El Paso, Texas.  Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity.

L-3 Fuzing and Ordnance Systems Inc., Cincinnati, Ohio, was awarded a $25,938,211 modification (P00024) to contract W15QKN-10-C-0015 for the production of 40,842 M734A1 fuses and 99,791 M783 fuses. Fiscal 2014 other procurement funds in the amount of $25,938,211 were obligated at the time of the award.  Estimated completion date is Oct. 31, 2015.  Bids were solicited via the Internet with one received.  Work will be performed in Cincinnati, Ohio.  Army Contracting Command, Picatinny Arsenal, N.J., is the contracting activity.

Oshkosh Corp., Oshkosh, Wis., was awarded a $21,159,240 modification (0010) to contract W56HZV-12-G-0010 for the procurement of 5,733 tire and engine automatic fire extinguishing system kits for use on the Mine Resistant Ambush Protected all-terrain vehicle.  Fiscal 2014 other procurement Army funds in the amount of $17,197,719 were obligated at the time of the award.  Estimated completion date is Sept. 30 2014.  One bid was solicited with one received.  Work will be performed in Oshkosh, Wis.  Army Contracting Command, Tank and Automotive, Mich., is the contracting activity.

Honeywell International Inc., Aerospace, Phoenix, Ariz., was awarded a $15,795,824 modification (P00012) to contract W56HZV-12-C-0344 for the repair and overhaul of AGT1500 engines used in the Abrams family of vehicles.  Fiscal 2014 other procurement funds in the amount of $15,795,824 were obligated at the time of the award.  Estimated completion date is Dec. 31, 2014.  Bids were solicited via the Internet with one received.  Work will be performed in Phoenix, Ariz., and Aniston, Ala. Army Contracting Command, Tank and Automotive, Warren, Mich., is the contracting activity.

Northrop Grumman, Huntsville, Ala. was awarded a $10,270,794 modification (P00098) to contract W31P4Q-08-C-0418 for Research and Development for Advance Electronic Protect, Integrated Air and Missile Defense System of Systems capability, IAMD Battle Command System (IBCS System Development and Demonstration).  Fiscal 2014 research, development, testing and evaluation funds in the amount of $9,900,000 and fiscal 2014 other procurement funds in the amount of $370,794 were obligated at the time of the award.  Estimated completion date is Sept. 30, 2015.  Two bids were solicited with two received.  Work will be performed in Huntsville, Ala.  Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity.

DynCorp International LLC, Fort Worth, Texas, was awarded a $9,527,589 modification (P00041) to contract W58RGZ-13-C-0042 for aviation maintenance reset, installation of modification work orders, and auxiliary maintenance support.  Fiscal 2014 operations and maintenance, Army funds in the amount of $9,527,589 were obligated at the time of the award.  Estimated completion date is June 30, 2017.  Bids were solicited via the Internet with eight received.  Work will be performed at Fort Hood, Texas.  Army Contracting Command, Redstone Arsenal (Aviation), Ala., is the contracting activity.

Burns & McDonnell Engineering Co., Kansas City, Mo., was awarded a $9,500,000 firm-fixed-price contract for military and civil works projects primarily within the Great Lakes and Ohio River division.  Funding and performance location will be determined by each order.  Estimated completion date is Dec. 12, 2018.  Bids were solicited via the Internet with 35 received.  Army Corps of Engineers, Louisville, Ky., is the contracting activity.

Agate Construction Co., Inc., Clermont, N.J., was awarded a $7,592,200 firm-fixed-price contract for operation and maintenance of Emergency Supplement Project to provide repairs to the North Jetty at Barnegat Inlet, N.J.  Fiscal 2014 other procurement funds in the amount of $7,592,200 were obligated at the time of the award.  Estimated completion date is Sept. 15, 2014.  Bids were solicited via the Internet with four received.  Work will be performed in Toms River, N.J.  Army Corps of Engineers, Philadelphia, Pa., is the contracting activity (W912BU-14-C-0003).

NAVY

Lockheed Martin Corp., Mission Support and Training, Orlando, Fla., is being awarded a $103,865,047 modification to a previously awarded cost-plus-incentive-fee, system design and development contract (N68335-10-C-0225) to exercise two options for the procurement of 36 electronic Consolidated Automated Support System (eCASS) low rate initial production units.  Systems being procured include:  eCASS radio frequency systems (36), self-maintenance and test calibration operational test program sets (10), calibration equipment kits (10), shore installation kits (36), ship installation kits (4), test program set development environment suites (5) and installations (18).  Work will be performed in Orlando, Fla. (33 percent); Hunt Valley, Md. (32 percent); Irvine, Calif. (11 percent); San Diego, Calif. (9 percent); North Reading, Mass. (6 percent); Dallas, Texas (3 percent); Tallman, N.Y. (3 percent); Everett, Wash. (2 percent) and various other locations within the continental United States (1 percent), and is expected to be completed in March 2015.  Fiscal 2013 and 2014 aircraft procurement, Navy contract funds in the amount of $103,865,047 will be obligated at time of award, none of which will expire at the end of the current fiscal year.  The Naval Air Warfare Center Aircraft Division, Lakehurst, N.J., is the contracting activity

Lockheed Martin Corp., Archbald, Pa., is being awarded an $84,500,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for the procurement of Enhanced Laser Guided Training Rounds for the U. S. Navy.  Work will be performed in Archbald, Pa., and is expected to be completed in September 2016.  Fiscal 2013 and 2014 weapons procurement, Navy contract funds in the amount of $18,582,062 are being obligated on this award, none of which will expire at the end of the current fiscal year.  This contract was not competitively procured pursuant to FAR 6.302-1.  The Naval Air Systems Command, Patuxent River, Md., is the contracting activity (N00019-14-D-0008).

Lockheed Martin Space Systems Co., Sunnyvale, Calif., is being awarded a $61,092,053 cost-plus-fixed-fee contract for engineering services and various low-value missile test hardware to support common missile compartment (CMC) strategic weapon systems (SWS) integration and design/development for nozzle shield retention testing and for architectural and engineering services for design and modification services for the SWS Ashore Program.  This contract provides for integrating the Trident II missile and reentry SWS subsystems into the CMC for the Ohio replacement and United Kingdom (UK) successor programs and designing a testing fixture for nozzle shield retention, and designing an integrated test facility that will be compatible with existing and new submarine fleets.  Efforts will address integration impacts to the deployed and expected future configurations of the Trident II SWS.  Work will be performed at Cape Canaveral, Fla. (52 percent); Sunnyvale, Calif. (33 percent); Magna, Utah (7 percent); Groton, Conn. (2 percent); Titusville, Fla. (1 percent); and other locations of less than one percent, with an expected completion date of Dec. 18, 2018.  The maximum dollar value is $61,092,053.  Fiscal 2014, 2015, and 2016 research, development, test and evaluation contract funds in the amounts of $35,219,047, $9,510,217, and $6,711,826 respectively; fiscal 2014 operations and maintenance, Navy contract funds in the amount of $21,100; fiscal 2014 weapons procurement, Navy contract funds in the amount of $3,914,186; and fiscal 2014, 2015, and 2016 United Kingdom contract funds in the amounts of $3,913,228, $1,056,691, and $745,758 respectively are being obligated at time of award.  Contract funds in the amount of $21,100 will expire at the end of the current fiscal year.  This contract was a sole source acquisition in accordance with 10 U.S.C. 2304(c)(1).  Strategic Systems Programs, Washington, D.C., is the contracting activity (N00030-14-C-0013).

Raytheon Co., Fullerton, Calif., is being awarded a $55,150,107 modification to a previously awarded cost-plus-incentive-fee contract (N00019-08-C-0034) for complete analyses of the Joint Precision Approach and Landing Systems (JPALS) and system requirements definition, development of manufacturing and production strategy, conduct risk reduction activities supporting JPALS requirements, and management and planning of the JPALS program technical and business objectives.  Work will be performed in Fullerton, Calif. (64 percent) and Cedar Rapids, Iowa (36 percent), and is expected to be completed in July 2015.  Fiscal 2014 research, development, test and evaluation, Navy contract funds in the amount of $6,000,000 will be obligated at time of award, none of which will expire at the end of the current fiscal year.  The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.

Teledyne Microwave Solutions, Rancho Cordova, Calif., is being awarded a $49,152,320 firm-fixed-price requirements contract for the repair of 1,600 10 KT traveling wave tubes for the AN-SPY-1 radar program within the AEGIS weapon system.  Work will be performed at the Rancho Cordova, Calif., and work is expected to be completed by Dec. 31, 2020.  Fiscal 2014 Navy working capital funds in the amount of $7,617,812 will be obligated at the time of award, and will not expire before of the current fiscal year.  The contract was not competitively procured (sole source) in accordance with 10 U.S.C. 2304(c)(1).  NAVSUP Weapon Systems Support, Mechanicsburg, Pa., is the contracting activity (N00104-14-D-D002).

Raytheon Co., Integrated Defense Systems, San Diego, Calif., is being awarded a $41,585,979 modification to previously awarded cost-plus-incentive-fee contract (N00024-08-C-5122) for fiscal 2014-2017 continuing platform systems engineering agent support of the Ship Self Defense System MK 2 to complete development of CVN/Amphibious Modernization Advanced Capability Build 12/Technical Insertion 12.  Work will be performed in San Diego, Calif. (99 percent), and Middletown, R.I. (1 percent), and is expected to be completed by September 2017.  Fiscal 2014 research, development, test and evaluation funds in the amount of $13,500,000 will be obligated at time of award and will not expire at the end of the current fiscal year.  The Naval Sea Systems Command, Washington, D.C., is the contracting activity.

EDO Corp., Defense System, North Amityville, N.Y., a subsidiary of Exelis, Inc.*, is being awarded a $39,041,621 firm-fixed-price contract for the procurement of 450 BRU-55A/A bomb racks for the Navy.  Work will be performed in North Amityville, N.J., and is expected to be completed in November 2016.  Fiscal 2013 and 2014 aircraft procurement, Navy contract funds in the amount of $39,041,621 are being obligated on this award, none of which will expire at the end of the current fiscal year.  This contract was not competitively procured pursuant to FAR 6.302-1.  The Naval Air Systems Command, Patuxent River, Md., is the contracting activity (N00019-14-C-0007).

Lockheed Martin Corp., Mission Systems and Training, Moorestown, N.J., is being awarded a $37,089,502 modification to previously awarded contract (N00024-13-C-5116) to exercise options for Aegis combat system engineering agent (CSEA) efforts for the design, development, integration, test and delivery of computer program baselines and associated technology insertion hardware design support for the next/future Advanced Capability Build.  Work will be performed in Moorestown, N.J. (98.9 percent), and Fairfax, Va. (1.1 percent), and is expected to be completed by December 2014.  Fiscal 2014 research, development, test and evaluation and fiscal 2011 shipbuilding and conversion, Navy funding in the amount of $6,701,000 will be obligated at time of award and will not expire at the end of the current fiscal year.  The Naval Sea Systems Command, Washington, D.C., is the contracting activity.

Bell Helicopter Textron Inc., Fort Worth, Texas, is being awarded an $11,163,306 modification to a previously awarded advanced acquisition contract (N00019-13-C-0023) for additional logistics products and services in support of the H-1 upgrade effort, including logistic management support, technical material for maintenance planning, design interface, supply/material support, support of support equipment/technical data, distribution and inventory management/packaging, handling storage and transportation, logistics management information, supportability analysis and technical manuals for the Marine Corps.  Work will be performed in Fort Worth, Texas, and is expected to be completed in December 2014. Fiscal 2014 aircraft procurement, Navy contract funds in the amount of $2,790,827 are being obligated on this award, none of which will expire at the end of the current fiscal year.  The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.

Heil Trailer International Co., doing business as Kalyn/Siebert, Gatesville, Texas, is being awarded $10,554,880 for firm-fixed-price delivery order 0016 under a previously awarded indefinite-delivery/indefinite-quantity contract (M67854-10-D-5069) to purchase 76 Flatrack refueling capability (FRC) full rate production units.  The FRC is a self-contained and transportable fueling system.  The FRC fuels tactical vehicles, stationary equipment, and dispense and remove fuel from fixed and rotary wing aircraft.  The primary mission for the FRC will be to distribute fuel in the Marine Air-Ground Task Force Expeditionary and combat environment. Work will be performed in Gatesville, Texas, and is expected to be completed by Sept. 30, 2015.  Fiscal 2013 procurement Marine Corps funds in the amount of $10,554,990 will be obligated at the time of award. Contract funds will not expire at the end of the current fiscal year.  This contract was competitively procured via the Federal Business Opportunities website, withoffers received.  Marine Corps Systems Command, Quantico, Va., is the contracting activity.

Northrop Grumman Guidance and Electronic, Woodland Hills, Calif., is being awarded a $10,551,915 firm-fixed-price contract for the fabrication, test, and delivery of 45 low rate initial production technical refresh AH-1Z and UH-1Y helicopters mission computers in support of Marine Corps helicopters.  Work will be performed in Woodland Hills, Calif., and is expected to be completed in October 2015.  Fiscal 2012 aircraft procurement, Navy contract funds in the amount of $10,551,915 will be obligated at time of award, all of which will expire at the end of the current fiscal year.  This contract was not competitively procured pursuant to FAR 6.302-1.  The Naval Air Warfare Center Weapons Division, China Lake, Calif., is the contracting activity (N68936-14-C-0020).

Intergraph Government Solutions, Madison, Ala., is being awarded a $10,231,549 indefinite-delivery/indefinite-quantity contract for the purchase of ruggedized hardware for multiple ship classes, designed to withstand shipboard environmental qualifications.  This contract contains a six month option, which if exercised, would bring the contract value to $15,347,323. Work will be performed in Madison, Ala., and work is expected to be completed by December 2014.  If the option is exercised, work will be completed June 2015.  No funds will be obligated at the time of award.  Fiscal 2014 Navy working capital funds in the amount of $420,000 will be obligated at the time of award.  Funds will not expire before the end of the current fiscal year.  This contract was not competitively procured (sole source) in accordance with 10 U.S.C. 2304(c)(1).  NAVSUP Fleet Logistics Center Norfolk, Mechanicsburg Site, Mechanicsburg, Pa., is the contracting activity (N00189-14-D-Q003).

MISSILE DEFENSE AGENCY


Raytheon Co., Integrated Defense Systems, Woburn, Mass., is being awarded a $27,230,781 modification (P00017), sole source, firm-fixed-price to contract (HQ0147-12-C-0005), under a foreign military sales (FMS) case to the United Arab Emirates (UAE), to provide initial spares for the AN/TPY-2 radars being delivered as part of a whole FMS case as an element of the Terminal High Altitude Area Defense System.  The value of this contract modification is, increasing the total contract value from $624,603,783 to $651,834,564. The work will be performed in Woburn, Mass., and UAE.  The period of performance is through March 30, 2015.  UAE FMS funds in the amount of $27,230,781 will be used to fund this effort.  The Missile Defense Agency, Huntsville, Ala., is the contracting activity (HQ0147).

WASHINGTON HEADQUARTERS SERVICES

NOVA Corp., Chambersburg, Pa., is being awarded a one year modification on firm-fixed-price contract (HQ0034-12-C-0011) for $6,942,234 to provide information technology support for the Office of Secretary of Defense.  Work will be performed primarily in Arlington, Va. The estimated completion date is Dec. 31, 2014.  Washington Headquarters Services, Washington, D.C. is the contracting activity.

*Small Disadvantaged, In HubZone Business