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.
Friday, December 20, 2013
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.
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)
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
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
FTC OFFICIAL TESTIFIES BEFORE SENATE COMMITTEE REGARDING DATA BROKERS
FROM: U.S. FEDERAL TRADE COMMISSION
FTC Testifies on Data Brokers Before Senate Committee on Commerce, Science and Transportation
The Federal Trade Commission provided information to Congress today on the status of its work regarding companies that collect and aggregate consumers’ information and then resell it, known as data brokers.
Testifying on behalf of the Commission before the Senate Committee on Commerce, Science and Transportation, Bureau of Consumer Protection Director Jessica Rich told lawmakers about the FTC’s past and present efforts related to the privacy practices of the data broker industry.
“Because data brokers generally never interact directly with consumers, consumers are typically unaware of their existence, much less the variety of ways they collect, analyze, and sell consumer data,” the testimony states.
The testimony notes that FTC’s work in the data broker industry is not a recent development, pointing to work done by the Commission in the 1990s looking at the privacy practices of data companies not covered under the Fair Credit Reporting Act (FCRA).
In addition, the testimony points to recommendations made by the Commission in its 2012 report on privacy issues about improving the transparency of data brokers’ practices and giving consumers greater control over how their information is used. The recommendations made in the report included giving consumers reasonable access to the data maintained about them by data brokers. The report also noted that the Commission has long supported legislation both to improve consumers’ access rights to data and to improve the transparency of industry practices.
The testimony goes on to address the Commission’s ongoing initiatives regarding data brokers using a three-pronged strategy made up of enforcement actions, research and reports, and education for consumers and businesses.
In describing the FTC’s enforcement efforts in the data broker industry, the testimony notes that the agency has brought nearly 100 cases and obtained more than $30 million in civil penalties for violations of the FCRA. Among the cases highlighted in the testimony are the Commission’s 2012 consent decree with online data broker Spokeo, its case against app developer Filiquarian, and the Commission’s recent consent decree with Certegy Check Services, which resulted in a $3.5 million FCRA fine.
The testimony describes the Commission’s ongoing study of the data broker industry, conducted under its authority in Section 6(b) of the FTC Act. The study is examining the practices of nine companies, and the Commission expects to issue a report outlining the findings in the coming months. In addition, the testimony notes the FTC’s upcoming series of workshops to be held in 2014 on emerging privacy issues, including alternative scoring products sold by data brokers, which are used to predict trends and behaviors of consumers.
Finally, the testimony addresses the Commission’s work in educating businesses and consumers about privacy issues in the data broker industry. The testimony highlights warning letters sent by Commission staff to data brokers that provided tenant-screening services as well as to to marketers of mobile apps that provide employment screening services.
The testimony also mentions a recent undercover effort by Commission staff to determine if data brokers who said they were not covered under FCRA were willing to sell information for FCRA-covered purposes. As a result, ten warning letters were issued to companies.
“These enforcement, policy, and education efforts demonstrate the Commission’s continued commitment to understanding and addressing consumer privacy issues posed by the data broker industry,” the testimony states.
The Commission vote approving the testimony and its inclusion in the formal record was 4-0.
FTC Testifies on Data Brokers Before Senate Committee on Commerce, Science and Transportation
The Federal Trade Commission provided information to Congress today on the status of its work regarding companies that collect and aggregate consumers’ information and then resell it, known as data brokers.
Testifying on behalf of the Commission before the Senate Committee on Commerce, Science and Transportation, Bureau of Consumer Protection Director Jessica Rich told lawmakers about the FTC’s past and present efforts related to the privacy practices of the data broker industry.
“Because data brokers generally never interact directly with consumers, consumers are typically unaware of their existence, much less the variety of ways they collect, analyze, and sell consumer data,” the testimony states.
The testimony notes that FTC’s work in the data broker industry is not a recent development, pointing to work done by the Commission in the 1990s looking at the privacy practices of data companies not covered under the Fair Credit Reporting Act (FCRA).
In addition, the testimony points to recommendations made by the Commission in its 2012 report on privacy issues about improving the transparency of data brokers’ practices and giving consumers greater control over how their information is used. The recommendations made in the report included giving consumers reasonable access to the data maintained about them by data brokers. The report also noted that the Commission has long supported legislation both to improve consumers’ access rights to data and to improve the transparency of industry practices.
The testimony goes on to address the Commission’s ongoing initiatives regarding data brokers using a three-pronged strategy made up of enforcement actions, research and reports, and education for consumers and businesses.
In describing the FTC’s enforcement efforts in the data broker industry, the testimony notes that the agency has brought nearly 100 cases and obtained more than $30 million in civil penalties for violations of the FCRA. Among the cases highlighted in the testimony are the Commission’s 2012 consent decree with online data broker Spokeo, its case against app developer Filiquarian, and the Commission’s recent consent decree with Certegy Check Services, which resulted in a $3.5 million FCRA fine.
The testimony describes the Commission’s ongoing study of the data broker industry, conducted under its authority in Section 6(b) of the FTC Act. The study is examining the practices of nine companies, and the Commission expects to issue a report outlining the findings in the coming months. In addition, the testimony notes the FTC’s upcoming series of workshops to be held in 2014 on emerging privacy issues, including alternative scoring products sold by data brokers, which are used to predict trends and behaviors of consumers.
Finally, the testimony addresses the Commission’s work in educating businesses and consumers about privacy issues in the data broker industry. The testimony highlights warning letters sent by Commission staff to data brokers that provided tenant-screening services as well as to to marketers of mobile apps that provide employment screening services.
The testimony also mentions a recent undercover effort by Commission staff to determine if data brokers who said they were not covered under FCRA were willing to sell information for FCRA-covered purposes. As a result, ten warning letters were issued to companies.
“These enforcement, policy, and education efforts demonstrate the Commission’s continued commitment to understanding and addressing consumer privacy issues posed by the data broker industry,” the testimony states.
The Commission vote approving the testimony and its inclusion in the formal record was 4-0.
REMARKS BY SECRETARY OF STATE KERRY IN TACLOBAN, PHILIPPIINES
FROM: U.S. STATE DEPARTMENT
Remarks at USAID Tacloban
Remarks
John Kerry
Secretary of State
USAID Tacloban
Tacloban, Philippines
December 18, 2013
AMBASSADOR GOLDBERG: Good morning, everyone. I’m Philip Goldberg, the U.S. Ambassador to the Philippines. I’d like to first thank our distinguished colleagues from the Government of the Philippines who are here, Secretary of Defense Gazmin, Congressman Romualdez, Mayor Romualdez of Tacloban, Ambassador Cuisia, who is here from Washington, and Under Secretary Del Rosario.
So without going any further, let me introduce – we’re very proud and pleased that our Secretary of State is here this morning, and I’ll turn it over to him.
SECRETARY KERRY: Thank you very much, Mr. Ambassador. Before I begin to talk about Tacloban and what we’ve been seeing, I do want to say something about our concerns regarding the violence in South Sudan over the last 48 hours.
The United States believes very strongly that all parties should refrain from any actions that could further escalate the tensions. The people of South Sudan – and I know this well because I was very involved in the efforts to move to a referendum and to see the South become a nation. I saw it firsthand how devoted and dedicated the people of South Sudan were and are, and how they have endured many years of conflict and sacrifice, far too much for their country to now go backwards and descend back into violence. Political differences need to be resolved by peaceful and democratic means, and those have been hard fought for. The government should respect the rule of law, and the people of South Sudan should be able to realize their full potential in peace.
While I’ve been in Asia, I have stayed in very close touch with our team that is working on this issue and closely monitoring the situation in Juba. And the State Department is continuing to stay in close touch and monitor the situation on the ground. The safety and the security of our diplomats is paramount, and we are taking steps at this time in order to guarantee that security.
It’s impossible to have landed here in Tacloban on an airport that was once created by United States Armed Forces at the time of the liberation of the Philippines and not feel the dramatic impact of what is taking place here. It is really quite stunning. It looks like a war zone in every respect. And in many ways, for a lot of people, it is. You’d have to see this to really believe it and feel it and to understand it. You also have to see and feel the remarkable efforts of people coming together in order to try to respond to this. It is the best demonstration of humanity and of common love and sense of responsibility that people feel for each other.
The wreckage that has been left behind by Typhoon Haiyan, or as it’s known here, Typhoon Yolanda, is absolutely staggering. No words can do justice to the level of destruction that you see: the entire community leveled, water that goes up to the second story of an airport tower over there, all of this covered by water; the destruction of the trees all the way up the mountains; the leveling of homes and the taking of life. This is a devastation that is unlike anything I’ve seen at this kind of scale. It’s many tornadoes, that I have seen in America, wrapped into one.
On behalf of President Obama and American people, it’s my privilege to come here today to offer our condolences to the families of the more than 6,000 who perished in the storm, and to wish a very full and speedy recovery to the some-27,000 who were wounded. And we are keeping in our thoughts and prayers the nearly 1,800 people who still remain missing. The United States is committed to doing whatever we can as we go forward to try to help our friends in the Philippines to recover.
Last month’s typhoon broke the world’s heart, but what is certain is it didn’t break the spirit of the people here. The resilience, the courage, the determination to rebuild and to remake what was inspires all of us. And the truth is that what’s been happening here since the moment this storm passed away is inspiring to everybody.
For example, in the immediate wake of the typhoon, one of the most pressing tasks was to coordinate the opening of the city airport, just across the way here. And the logistical challenge of opening that airport was simply overwhelming.
But Philippine Navy SEAL Captain Roy Trinidad and Major Leo Liebreich of the U.S. Army and Major George Apalisok of the U.S. Air Force got right to work. And those three heroes worked and slept side-by-side for 10 days straight to oversee the enormous challenge of off-loading and distributing relief supplies. They spent their nights beneath a makeshift shelter made of nothing more than a tarp, some buckets, and boards. Their efforts saved hundreds of lives, and it inspired thousands of more people to do the same. And it demonstrated the enduring partnership between two allies – not only in good times, but in trying times as well.
USAID, the U.S. military, and the Departments of Defense and State, I can tell you unabashedly and with great pride, have done incredible work here together. And all of that has been done in very close partnership with the Philippine Government. Mr. Defense Minister and Mr. Ambassador to the United States, Mr. Congressman, Mr. Mayor, Mr. Under Secretary, we thank you for your efforts and the close partnership that you’ve demonstrated, and the leadership that you have shown in working to move us forward here.
Private corporations, NGOs, faith-based groups, the diaspora communities have shown a remarkable willingness of leadership and generosity to come together and deal with this catastrophe. And they all deserve an enormous amount of credit for working under the most difficult kinds of circumstances.
I’m proud to announce here in Tacloban today that the United States, through USAID, is providing an additional $24.6 million in humanitarian aid now. And this is on top – (applause). This is on top of the 62 million that we have already provided. And we are mindful that there is a donor conference taking place even as we are here today, and we will watch and work closely with the government to make further determinations as plans are laid out and as the future is defined by the Government of the Philippines.
The new aid is calculated to help ensure that the residents and the relief workers have immediate access to clean water, to sanitation and to hygiene services, and also to make sure that they get the food and the temporary shelter that are essential to being able to continue this work.
USAID, I’m also pleased to say, has also just signed an MOU with Procter & Gamble and Coca-Cola, and they’ve created a public-private partnership that will help more than 2,000 small convenience stores to repair, restock, and rehabilitate their shops.
And the Citi Foundation just announced that it has raised $1 million for the recovery effort, and that it is contributing an addition half-million dollars to help the Philippines to rebuild.
These are just some of the examples of the good citizens of both of our countries who are working together and around the world in helping to step up to this challenge.
Let me single out a couple more people if I can, please. Illac Diaz, who I just was introduced to over here, standing beside his light fixture over there, is not only a brilliant innovator and an entrepreneur, but he is a generous human being. Illac took recycled materials and he made handheld, environmentally friendly, very simple solar lights – turning soda bottles into something that could be useful and a light for people to be able to have in their homes, into lanterns that served not only as the only source of light for Tacloban immediately after the typhoon, but as an important aid for people to be able to continue with their lives. I’m happy to note also – and I say this with some pride – that a few years ago, the U.S. Embassy in Manila gave Mr. Diaz a grant for this project, and we are very proud of the way he has put that funding to good use. In addition – and by the way, he distributes these lights free of charge, an example of the kind of effort that will make all the difference here. Thanks to his hard work and his kindness, a lot more lights will be on their way to reaching people here in this vicinity.
Let me also recognize Dave Bell. He’s an Embassy Warden and an American Legion Vice Commander. I just met him and chatted with him a little bit. He told me about his service out here, 1974 and ’75 was Vietnam, evacuation was taking place. And he has helped to locate veterans after the storm and checked in on survivors. Ken Holubeck, another Embassy Warden, who also served in 1966 and 1970 in Vietnam, is – has brought 56 people to live and find shelter in his damaged home. These are people who have helped to bring people together to clear debris in their neighborhood, and brought food to local workers and medical care to the injured. In addition, there’s another individual here who’s made an enormous difference. Dr. Ronald Arce, who – after losing his own home and two cousins in the storm – has served in the difficult task of being the lead mortician in recovering and identifying more than 2,000 victims. These folks are all of them local heroes, and there are many, many more who aren’t singled out here today. And they have meant – all of them together – the world to so many in such a dark time. They are an incredibly important part of the story of this storm.
And just as there are many examples of individuals stepping up, there is obviously an enormous challenge ahead. I could see that just driving by – the amount of wires and telephone poles and the level of destruction of homes along the way. Local fishermen have been among the hardest hit here. This was an enormous fishing community. Tens of thousands of small boats and fishing gear were destroyed or damaged in the typhoon, and the infrastructure that fishers, fisher people, rely on has been destroyed – the ports, the storage facilities, the markets – all flattened. So rebuilding the fishing industry here in a sustainable way, including by making sure that we’re not worsening the long-term challenge by overfishing, is a top priority and one that we need to all cooperate on.
We also know that while no single storm can be attributed to climate change, we do know to a certainty that rising temperatures will lead to longer and more unpredictable monsoon seasons and will lead to more extreme weather events. So looking around here, you see an unmistakable example of what an extreme weather event looks like, and a reminder of our responsibility to act to protect the future.
Looking around here you can also see how big a challenge remains. There’s no doubt in my mind, given the spirit that has already taken hold here, that we will get this job done. And in the past few weeks, the Philippines and the United States, joining together, have answered one of the worst challenges that Mother Nature provides, and in doing so they have shown the best of humanity.
So in the coming days and weeks and months – however long it takes – the United States will remain committed. We will work closely with our friends in the Philippines to rebuild this region even better and stronger and safer, and I’ve heard some people even talking about building a green community in its fullness. So that is what we will do, and we intend to be here by the side of our friends. Thank you all for your efforts, thank you for letting me come here today to see how we can work together to do better. Thank you. (Applause.)
Remarks at USAID Tacloban
Remarks
John Kerry
Secretary of State
USAID Tacloban
Tacloban, Philippines
December 18, 2013
AMBASSADOR GOLDBERG: Good morning, everyone. I’m Philip Goldberg, the U.S. Ambassador to the Philippines. I’d like to first thank our distinguished colleagues from the Government of the Philippines who are here, Secretary of Defense Gazmin, Congressman Romualdez, Mayor Romualdez of Tacloban, Ambassador Cuisia, who is here from Washington, and Under Secretary Del Rosario.
So without going any further, let me introduce – we’re very proud and pleased that our Secretary of State is here this morning, and I’ll turn it over to him.
SECRETARY KERRY: Thank you very much, Mr. Ambassador. Before I begin to talk about Tacloban and what we’ve been seeing, I do want to say something about our concerns regarding the violence in South Sudan over the last 48 hours.
The United States believes very strongly that all parties should refrain from any actions that could further escalate the tensions. The people of South Sudan – and I know this well because I was very involved in the efforts to move to a referendum and to see the South become a nation. I saw it firsthand how devoted and dedicated the people of South Sudan were and are, and how they have endured many years of conflict and sacrifice, far too much for their country to now go backwards and descend back into violence. Political differences need to be resolved by peaceful and democratic means, and those have been hard fought for. The government should respect the rule of law, and the people of South Sudan should be able to realize their full potential in peace.
While I’ve been in Asia, I have stayed in very close touch with our team that is working on this issue and closely monitoring the situation in Juba. And the State Department is continuing to stay in close touch and monitor the situation on the ground. The safety and the security of our diplomats is paramount, and we are taking steps at this time in order to guarantee that security.
It’s impossible to have landed here in Tacloban on an airport that was once created by United States Armed Forces at the time of the liberation of the Philippines and not feel the dramatic impact of what is taking place here. It is really quite stunning. It looks like a war zone in every respect. And in many ways, for a lot of people, it is. You’d have to see this to really believe it and feel it and to understand it. You also have to see and feel the remarkable efforts of people coming together in order to try to respond to this. It is the best demonstration of humanity and of common love and sense of responsibility that people feel for each other.
The wreckage that has been left behind by Typhoon Haiyan, or as it’s known here, Typhoon Yolanda, is absolutely staggering. No words can do justice to the level of destruction that you see: the entire community leveled, water that goes up to the second story of an airport tower over there, all of this covered by water; the destruction of the trees all the way up the mountains; the leveling of homes and the taking of life. This is a devastation that is unlike anything I’ve seen at this kind of scale. It’s many tornadoes, that I have seen in America, wrapped into one.
On behalf of President Obama and American people, it’s my privilege to come here today to offer our condolences to the families of the more than 6,000 who perished in the storm, and to wish a very full and speedy recovery to the some-27,000 who were wounded. And we are keeping in our thoughts and prayers the nearly 1,800 people who still remain missing. The United States is committed to doing whatever we can as we go forward to try to help our friends in the Philippines to recover.
Last month’s typhoon broke the world’s heart, but what is certain is it didn’t break the spirit of the people here. The resilience, the courage, the determination to rebuild and to remake what was inspires all of us. And the truth is that what’s been happening here since the moment this storm passed away is inspiring to everybody.
For example, in the immediate wake of the typhoon, one of the most pressing tasks was to coordinate the opening of the city airport, just across the way here. And the logistical challenge of opening that airport was simply overwhelming.
But Philippine Navy SEAL Captain Roy Trinidad and Major Leo Liebreich of the U.S. Army and Major George Apalisok of the U.S. Air Force got right to work. And those three heroes worked and slept side-by-side for 10 days straight to oversee the enormous challenge of off-loading and distributing relief supplies. They spent their nights beneath a makeshift shelter made of nothing more than a tarp, some buckets, and boards. Their efforts saved hundreds of lives, and it inspired thousands of more people to do the same. And it demonstrated the enduring partnership between two allies – not only in good times, but in trying times as well.
USAID, the U.S. military, and the Departments of Defense and State, I can tell you unabashedly and with great pride, have done incredible work here together. And all of that has been done in very close partnership with the Philippine Government. Mr. Defense Minister and Mr. Ambassador to the United States, Mr. Congressman, Mr. Mayor, Mr. Under Secretary, we thank you for your efforts and the close partnership that you’ve demonstrated, and the leadership that you have shown in working to move us forward here.
Private corporations, NGOs, faith-based groups, the diaspora communities have shown a remarkable willingness of leadership and generosity to come together and deal with this catastrophe. And they all deserve an enormous amount of credit for working under the most difficult kinds of circumstances.
I’m proud to announce here in Tacloban today that the United States, through USAID, is providing an additional $24.6 million in humanitarian aid now. And this is on top – (applause). This is on top of the 62 million that we have already provided. And we are mindful that there is a donor conference taking place even as we are here today, and we will watch and work closely with the government to make further determinations as plans are laid out and as the future is defined by the Government of the Philippines.
The new aid is calculated to help ensure that the residents and the relief workers have immediate access to clean water, to sanitation and to hygiene services, and also to make sure that they get the food and the temporary shelter that are essential to being able to continue this work.
USAID, I’m also pleased to say, has also just signed an MOU with Procter & Gamble and Coca-Cola, and they’ve created a public-private partnership that will help more than 2,000 small convenience stores to repair, restock, and rehabilitate their shops.
And the Citi Foundation just announced that it has raised $1 million for the recovery effort, and that it is contributing an addition half-million dollars to help the Philippines to rebuild.
These are just some of the examples of the good citizens of both of our countries who are working together and around the world in helping to step up to this challenge.
Let me single out a couple more people if I can, please. Illac Diaz, who I just was introduced to over here, standing beside his light fixture over there, is not only a brilliant innovator and an entrepreneur, but he is a generous human being. Illac took recycled materials and he made handheld, environmentally friendly, very simple solar lights – turning soda bottles into something that could be useful and a light for people to be able to have in their homes, into lanterns that served not only as the only source of light for Tacloban immediately after the typhoon, but as an important aid for people to be able to continue with their lives. I’m happy to note also – and I say this with some pride – that a few years ago, the U.S. Embassy in Manila gave Mr. Diaz a grant for this project, and we are very proud of the way he has put that funding to good use. In addition – and by the way, he distributes these lights free of charge, an example of the kind of effort that will make all the difference here. Thanks to his hard work and his kindness, a lot more lights will be on their way to reaching people here in this vicinity.
Let me also recognize Dave Bell. He’s an Embassy Warden and an American Legion Vice Commander. I just met him and chatted with him a little bit. He told me about his service out here, 1974 and ’75 was Vietnam, evacuation was taking place. And he has helped to locate veterans after the storm and checked in on survivors. Ken Holubeck, another Embassy Warden, who also served in 1966 and 1970 in Vietnam, is – has brought 56 people to live and find shelter in his damaged home. These are people who have helped to bring people together to clear debris in their neighborhood, and brought food to local workers and medical care to the injured. In addition, there’s another individual here who’s made an enormous difference. Dr. Ronald Arce, who – after losing his own home and two cousins in the storm – has served in the difficult task of being the lead mortician in recovering and identifying more than 2,000 victims. These folks are all of them local heroes, and there are many, many more who aren’t singled out here today. And they have meant – all of them together – the world to so many in such a dark time. They are an incredibly important part of the story of this storm.
And just as there are many examples of individuals stepping up, there is obviously an enormous challenge ahead. I could see that just driving by – the amount of wires and telephone poles and the level of destruction of homes along the way. Local fishermen have been among the hardest hit here. This was an enormous fishing community. Tens of thousands of small boats and fishing gear were destroyed or damaged in the typhoon, and the infrastructure that fishers, fisher people, rely on has been destroyed – the ports, the storage facilities, the markets – all flattened. So rebuilding the fishing industry here in a sustainable way, including by making sure that we’re not worsening the long-term challenge by overfishing, is a top priority and one that we need to all cooperate on.
We also know that while no single storm can be attributed to climate change, we do know to a certainty that rising temperatures will lead to longer and more unpredictable monsoon seasons and will lead to more extreme weather events. So looking around here, you see an unmistakable example of what an extreme weather event looks like, and a reminder of our responsibility to act to protect the future.
Looking around here you can also see how big a challenge remains. There’s no doubt in my mind, given the spirit that has already taken hold here, that we will get this job done. And in the past few weeks, the Philippines and the United States, joining together, have answered one of the worst challenges that Mother Nature provides, and in doing so they have shown the best of humanity.
So in the coming days and weeks and months – however long it takes – the United States will remain committed. We will work closely with our friends in the Philippines to rebuild this region even better and stronger and safer, and I’ve heard some people even talking about building a green community in its fullness. So that is what we will do, and we intend to be here by the side of our friends. Thank you all for your efforts, thank you for letting me come here today to see how we can work together to do better. Thank you. (Applause.)
DOCTOR INDICTED FOR ALLEGED ROLE IN $158 MILLION MEDICARE FRAUD
FROM: U.S. JUSTICE DEPARTMENT
Tuesday, December 17, 2013
Houston Doctor Indicted for Her Alleged Role in $158 Million Medicare Fraud Scheme
A Houston doctor has been arrested on charges related to her alleged participation in a $158 million Medicare fraud scheme involving false claims for mental health treatment.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Stephen L. Morris of the FBI’s Houston Field Office, Special Agent in Charge Mike Fields of the Dallas Regional Office of the Department of Health and Human Services Office of the Inspector General (HHS-OIG) and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
Sharon Iglehart, 56, of Houston, was charged in an indictment, filed in the Southern District of Texas and unsealed today, with one count of conspiracy to commit health care fraud and four counts of health care fraud. If convicted, Iglehart faces a maximum penalty of 10 years in prison on each count. Iglehart was arrested on Dec. 16, 2013, and made her initial appearance in federal court in Houston today.
According to the indictment, Iglehart allegedly participated in a scheme to defraud Medicare beginning in 2005 and continuing until May 2012. The defendant allegedly caused the submission of false and fraudulent claims for partial hospitalization program (PHP) services to Medicare through a Houston hospital. A PHP is a form of intensive outpatient treatment for severe mental illness.
The indictment alleges that the defendant and her co-conspirators submitted or caused to be submitted approximately $158 million in claims to Medicare for PHP services purportedly provided by the hospital, when in fact the PHP services were medically unnecessary or never provided.
In February 2012, Mohammad Khan, an assistant administrator at the hospital who managed many of the hospital’s PHPs, was indicted for his role in the scheme. Khan pleaded guilty to one count of conspiracy to commit health care fraud, one count of conspiracy to pay illegal kickbacks, and five counts of paying illegal kickbacks. Khan has not yet been sentenced.
In October 2012, Earnest Gibson III, the administrator of the hospital, along with Earnest Gibson IV, William Bullock III, Robert Ferguson, Regina Askew, Leslie Clark and Robert Crane, were indicted for their roles in the scheme. Leslie Clark pleaded guilty to one count of conspiracy to pay and receive illegal kickbacks. Clark has not yet been sentenced.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI, HHS-OIG, MFCU, Internal Revenue Service’s Houston Field Office, the Chicago Field Office of the Railroad Retirement Board’s Office of Inspector General, and the Office of Personnel Management’s Office of Inspector General and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas. The case is being prosecuted by Assistant Chief Laura M.K. Cordova of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Tuesday, December 17, 2013
Houston Doctor Indicted for Her Alleged Role in $158 Million Medicare Fraud Scheme
A Houston doctor has been arrested on charges related to her alleged participation in a $158 million Medicare fraud scheme involving false claims for mental health treatment.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Stephen L. Morris of the FBI’s Houston Field Office, Special Agent in Charge Mike Fields of the Dallas Regional Office of the Department of Health and Human Services Office of the Inspector General (HHS-OIG) and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
Sharon Iglehart, 56, of Houston, was charged in an indictment, filed in the Southern District of Texas and unsealed today, with one count of conspiracy to commit health care fraud and four counts of health care fraud. If convicted, Iglehart faces a maximum penalty of 10 years in prison on each count. Iglehart was arrested on Dec. 16, 2013, and made her initial appearance in federal court in Houston today.
According to the indictment, Iglehart allegedly participated in a scheme to defraud Medicare beginning in 2005 and continuing until May 2012. The defendant allegedly caused the submission of false and fraudulent claims for partial hospitalization program (PHP) services to Medicare through a Houston hospital. A PHP is a form of intensive outpatient treatment for severe mental illness.
The indictment alleges that the defendant and her co-conspirators submitted or caused to be submitted approximately $158 million in claims to Medicare for PHP services purportedly provided by the hospital, when in fact the PHP services were medically unnecessary or never provided.
In February 2012, Mohammad Khan, an assistant administrator at the hospital who managed many of the hospital’s PHPs, was indicted for his role in the scheme. Khan pleaded guilty to one count of conspiracy to commit health care fraud, one count of conspiracy to pay illegal kickbacks, and five counts of paying illegal kickbacks. Khan has not yet been sentenced.
In October 2012, Earnest Gibson III, the administrator of the hospital, along with Earnest Gibson IV, William Bullock III, Robert Ferguson, Regina Askew, Leslie Clark and Robert Crane, were indicted for their roles in the scheme. Leslie Clark pleaded guilty to one count of conspiracy to pay and receive illegal kickbacks. Clark has not yet been sentenced.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI, HHS-OIG, MFCU, Internal Revenue Service’s Houston Field Office, the Chicago Field Office of the Railroad Retirement Board’s Office of Inspector General, and the Office of Personnel Management’s Office of Inspector General and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas. The case is being prosecuted by Assistant Chief Laura M.K. Cordova of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
al-MULATHAMUN BATTALION RECEIVES TERRORIST DESIGNATION
FROM: U.S. STATE DEPARTMENT
Terrorist Designation of the al-Mulathamun Battalion
Media Note
Office of the Spokesperson
Washington, DC
December 18, 2013
The Department of State has designated the al-Mulathamun Battalion as a Foreign Terrorist Organization (FTO) under Section 219 of the Immigration and Nationality Act and as a Specially Designated Global Terrorist entity under section 1(b) of Executive Order (E.O.) 13224. The consequences of the FTO and E.O. 13224 designations include a prohibition against knowingly providing, or attempting or conspiring to provide, material support or resources to, or engaging in transactions with, the al-Mulathamun Battalion, and the freezing of all property and interests in property of the organization that are in the United States, or come within the United States or the control of U.S. persons. The Department of State took these actions in consultation with the Departments of Justice and Treasury.
Originally part of al-Qa’ida in the Islamic Maghreb (AQIM), the al-Mulathamun Battalion became a separate organization in late 2012 after its leader, Mokhtar Belmokhtar, split from AQIM. In Belmokhtar’s first public statement after the split he threatened to fight against Western interests and announced the creation of the sub-battalion, “Those Who Sign in Blood,” reportedly made up of the organization’s best fighters. Soon after, the sub-battalion claimed responsibility for the January 2013 attack against a gas facility near In-Amenas, Algeria. The four-day siege resulted in the death of at least 38 civilians, including three United States citizens. Seven other Americans escaped the attack.
In May 2013, the al-Mulathamun Battalion cooperated with the E.O. 13224-designated Movement for Unity and Jihad in West Africa (MUJAO) in twin suicide bombings in Niger, which killed at least 20 people. In August 2013, the al-Mulathamun Battalion and MUJAO announced that the two organizations would merge under the name “al-Murabitoun.” The newly formed al-Murabitoun extremist group constitutes the greatest near-term threat to U.S. and Western interests in the Sahel.
Both the “Those Who Sign in Blood” battalion and “al-Murabitoun” are included in the designation as aliases of the al-Mulathamun Battalion, and, as a result, all consequences of these designations will also apply to them.
Terrorist Designation of the al-Mulathamun Battalion
Media Note
Office of the Spokesperson
Washington, DC
December 18, 2013
The Department of State has designated the al-Mulathamun Battalion as a Foreign Terrorist Organization (FTO) under Section 219 of the Immigration and Nationality Act and as a Specially Designated Global Terrorist entity under section 1(b) of Executive Order (E.O.) 13224. The consequences of the FTO and E.O. 13224 designations include a prohibition against knowingly providing, or attempting or conspiring to provide, material support or resources to, or engaging in transactions with, the al-Mulathamun Battalion, and the freezing of all property and interests in property of the organization that are in the United States, or come within the United States or the control of U.S. persons. The Department of State took these actions in consultation with the Departments of Justice and Treasury.
Originally part of al-Qa’ida in the Islamic Maghreb (AQIM), the al-Mulathamun Battalion became a separate organization in late 2012 after its leader, Mokhtar Belmokhtar, split from AQIM. In Belmokhtar’s first public statement after the split he threatened to fight against Western interests and announced the creation of the sub-battalion, “Those Who Sign in Blood,” reportedly made up of the organization’s best fighters. Soon after, the sub-battalion claimed responsibility for the January 2013 attack against a gas facility near In-Amenas, Algeria. The four-day siege resulted in the death of at least 38 civilians, including three United States citizens. Seven other Americans escaped the attack.
In May 2013, the al-Mulathamun Battalion cooperated with the E.O. 13224-designated Movement for Unity and Jihad in West Africa (MUJAO) in twin suicide bombings in Niger, which killed at least 20 people. In August 2013, the al-Mulathamun Battalion and MUJAO announced that the two organizations would merge under the name “al-Murabitoun.” The newly formed al-Murabitoun extremist group constitutes the greatest near-term threat to U.S. and Western interests in the Sahel.
Both the “Those Who Sign in Blood” battalion and “al-Murabitoun” are included in the designation as aliases of the al-Mulathamun Battalion, and, as a result, all consequences of these designations will also apply to them.
SEC ANNOUNCES ENFORCEMENT ACTION RESULTS FOR FISCAL 2013
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
The Securities and Exchange Commission today announced that the agency’s enforcement actions in fiscal year 2013 resulted in a record $3.4 billion in monetary sanctions ordered against wrongdoers.
The SEC filed 686 enforcement actions in the fiscal year that ended in September. The $3.4 billion in disgorgement and penalties resulting from those actions is 10 percent higher than FY 2012 and 22 percent higher than FY 2011, when the SEC filed the most actions in agency history.
“A strong enforcement program helps produce financial markets that operate with integrity and transparency, and reassures investors that they can invest with confidence,” said Mary Jo White, Chair of the SEC. “I am incredibly proud of the dedicated and talented women and men of the Enforcement Division. Our results show that we are prepared to tackle the breadth and complexity of today’s securities markets.”
George S. Canellos, co-director of the SEC’s Division of Enforcement, said, “We are focused on addressing wrongdoing in all corners of the financial industry. Going forward, we will continue to be aggressive but fair in our pursuit of those who violate the securities laws.”
Andrew J. Ceresney, co-director of the SEC’s Division of Enforcement, added, “Numbers tell only a part of the story as we look to bring high-quality enforcement actions that make an impact across the market. We are proud of the terrific results achieved by our hardworking and committed staff and pleased with the strong and robust pipeline of investigations they’ve developed for the year ahead.”
SEC Enforcement in Fiscal Year 2013
Market Structure and Exchanges – The SEC brought several significant actions against stock exchanges and other market participants on issues relating to market structure and fair market access. The SEC obtained its largest-ever penalty against an exchange when NASDAQ agreed to pay a $10 million penalty for its poor systems and decision-making during the Facebook IPO. FY 2013 also included the SEC’s first penalty against an exchange for violations relating to regulatory oversight when the agency charged the Chicago Board Options Exchange (CBOE) and an affiliate for various systemic breakdowns.
Gatekeepers – The SEC is focused on holding accountable accountants, attorneys, and others who have special duties to ensure that the interests of investors are safeguarded. Among actions against auditors, the SEC charged the Chinese affiliates of major accounting firms for refusing to produce documents related to China-based companies being investigated. And the SEC charged trustees and directors for failing to uphold their responsibilities under the securities laws.
Insider Trading – Continuing its pursuit of those who unlawfully trade on material, nonpublic information, the SEC filed multiple actions alleging wrongdoing at S.A.C. Capital Advisors and its affiliates, including an action against Steven Cohen for failing to supervise two senior employees and prevent them from insider trading under his watch.
Municipal Securities – The SEC increased its attention to securities violations by municipalities and other participants in the market for securities of cities and other governmental issuers.
Financial Crisis Enforcement Actions – With several more enforcement cases in FY 2013 against individuals and entities whose actions contributed to the financial crisis, the SEC has now filed enforcement actions against 169 individuals and entities arising from the financial crisis resulting in more than $3 billion in disgorgement, penalties, and other monetary relief for the benefit of harmed investors. The individuals charged include 70 CEOs, CFOs, or other senior executives.
New Admissions Policy – The SEC changed its longstanding settlement policy and now requires admissions of misconduct in a discrete category of cases where heightened accountability and acceptance of responsibility by a defendant are appropriate and in the public interest. The first settlements under the new policy came in actions against Philip A. Falcone and his firm Harbinger Capital Partners, and JPMorgan Chase & Co.
Going to Trial – The SEC continued to aggressively deploy litigation resources to maximize the deterrent impact of enforcement actions. One successful example in FY 2013 is the favorable verdict obtained at trial against former Goldman Sachs Vice President Fabrice Tourre, who was found liable for his role in marketing a CDO. The SEC also obtained a favorable decision after a lengthy trial against optionsXpress and two individuals for engaging in sham transactions to give the illusion of compliance with Reg SHO.
Whistleblower Tips – The SEC’s Office of the Whistleblower received 3,238 tips in the past year and paid more than $14 million to whistleblowers whose information substantially advanced enforcement actions.
New Forward-Looking Initiatives
New Task Forces – The Financial Reporting and Audit (FRAud) Task Force was created to improve the Enforcement Division’s ability to detect and prevent financial statement and other accounting frauds. The new Microcap Task Force brings additional resources and analytical expertise to address fraud in the microcap markets and target gatekeepers.
Consolidated Short Selling Charges – The SEC will continue to conduct streamlined investigations to crack down on violators of Rule 105 of Regulation M. The SEC recently announced actions against 23 firms that resulted in $14.4 million in monetary sanctions.
A Strong Pipeline – The Enforcement Division headed into the next fiscal year well positioned for significant achievements across its program, having opened 908 investigations last year (up 13 percent) and obtained 574 formal orders of investigation (up 20 percent).
Technology Improvements – The Enforcement Division significantly improved its analytical capabilities, including those for forensics analysis and for reviewing and analyzing high volumes of electronic documents. A Center for Risk and Quantitative Analytics was created to coordinate and enhance risk identification, risk assessment, and data analytic activities
The Securities and Exchange Commission today announced that the agency’s enforcement actions in fiscal year 2013 resulted in a record $3.4 billion in monetary sanctions ordered against wrongdoers.
The SEC filed 686 enforcement actions in the fiscal year that ended in September. The $3.4 billion in disgorgement and penalties resulting from those actions is 10 percent higher than FY 2012 and 22 percent higher than FY 2011, when the SEC filed the most actions in agency history.
“A strong enforcement program helps produce financial markets that operate with integrity and transparency, and reassures investors that they can invest with confidence,” said Mary Jo White, Chair of the SEC. “I am incredibly proud of the dedicated and talented women and men of the Enforcement Division. Our results show that we are prepared to tackle the breadth and complexity of today’s securities markets.”
George S. Canellos, co-director of the SEC’s Division of Enforcement, said, “We are focused on addressing wrongdoing in all corners of the financial industry. Going forward, we will continue to be aggressive but fair in our pursuit of those who violate the securities laws.”
Andrew J. Ceresney, co-director of the SEC’s Division of Enforcement, added, “Numbers tell only a part of the story as we look to bring high-quality enforcement actions that make an impact across the market. We are proud of the terrific results achieved by our hardworking and committed staff and pleased with the strong and robust pipeline of investigations they’ve developed for the year ahead.”
SEC Enforcement in Fiscal Year 2013
Market Structure and Exchanges – The SEC brought several significant actions against stock exchanges and other market participants on issues relating to market structure and fair market access. The SEC obtained its largest-ever penalty against an exchange when NASDAQ agreed to pay a $10 million penalty for its poor systems and decision-making during the Facebook IPO. FY 2013 also included the SEC’s first penalty against an exchange for violations relating to regulatory oversight when the agency charged the Chicago Board Options Exchange (CBOE) and an affiliate for various systemic breakdowns.
Gatekeepers – The SEC is focused on holding accountable accountants, attorneys, and others who have special duties to ensure that the interests of investors are safeguarded. Among actions against auditors, the SEC charged the Chinese affiliates of major accounting firms for refusing to produce documents related to China-based companies being investigated. And the SEC charged trustees and directors for failing to uphold their responsibilities under the securities laws.
Insider Trading – Continuing its pursuit of those who unlawfully trade on material, nonpublic information, the SEC filed multiple actions alleging wrongdoing at S.A.C. Capital Advisors and its affiliates, including an action against Steven Cohen for failing to supervise two senior employees and prevent them from insider trading under his watch.
Municipal Securities – The SEC increased its attention to securities violations by municipalities and other participants in the market for securities of cities and other governmental issuers.
Financial Crisis Enforcement Actions – With several more enforcement cases in FY 2013 against individuals and entities whose actions contributed to the financial crisis, the SEC has now filed enforcement actions against 169 individuals and entities arising from the financial crisis resulting in more than $3 billion in disgorgement, penalties, and other monetary relief for the benefit of harmed investors. The individuals charged include 70 CEOs, CFOs, or other senior executives.
New Admissions Policy – The SEC changed its longstanding settlement policy and now requires admissions of misconduct in a discrete category of cases where heightened accountability and acceptance of responsibility by a defendant are appropriate and in the public interest. The first settlements under the new policy came in actions against Philip A. Falcone and his firm Harbinger Capital Partners, and JPMorgan Chase & Co.
Going to Trial – The SEC continued to aggressively deploy litigation resources to maximize the deterrent impact of enforcement actions. One successful example in FY 2013 is the favorable verdict obtained at trial against former Goldman Sachs Vice President Fabrice Tourre, who was found liable for his role in marketing a CDO. The SEC also obtained a favorable decision after a lengthy trial against optionsXpress and two individuals for engaging in sham transactions to give the illusion of compliance with Reg SHO.
Whistleblower Tips – The SEC’s Office of the Whistleblower received 3,238 tips in the past year and paid more than $14 million to whistleblowers whose information substantially advanced enforcement actions.
New Forward-Looking Initiatives
New Task Forces – The Financial Reporting and Audit (FRAud) Task Force was created to improve the Enforcement Division’s ability to detect and prevent financial statement and other accounting frauds. The new Microcap Task Force brings additional resources and analytical expertise to address fraud in the microcap markets and target gatekeepers.
Consolidated Short Selling Charges – The SEC will continue to conduct streamlined investigations to crack down on violators of Rule 105 of Regulation M. The SEC recently announced actions against 23 firms that resulted in $14.4 million in monetary sanctions.
A Strong Pipeline – The Enforcement Division headed into the next fiscal year well positioned for significant achievements across its program, having opened 908 investigations last year (up 13 percent) and obtained 574 formal orders of investigation (up 20 percent).
Technology Improvements – The Enforcement Division significantly improved its analytical capabilities, including those for forensics analysis and for reviewing and analyzing high volumes of electronic documents. A Center for Risk and Quantitative Analytics was created to coordinate and enhance risk identification, risk assessment, and data analytic activities
SEC CHARGES TWO COMPANIES WITH FRAUDULENT OFFER AND SALE OF SECURITIES IN ENERGY VENTURES
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
SEC Charges Texas Oil and Gas Promoters for Securities Fraud
On December 12, 2013, the Securities and Exchange Commission charged Leon Ali Parvizian and his two companies, Arcturus Corporation and Aschere Energy LLC, with the fraudulent offer and sale of securities in the form of interests in oil and gas joint ventures. The Commission also charged promoters Alfredo Gonzalez, AMG Energy, LLC , Robert Balunas, and R. Thomas & Co., LLC with violations of the securities offering and broker-dealer registration provisions of the federal securities laws.
Filed in the United States District Court for the Northern District of Texas, the Commission's complaint alleges that the Parvizian, through Arcturus and Aschere, raised nearly $22 million from at least 380 investors between 2007 and December 2011.The complaint alleges that Parvizian prepared and disseminated to prospective investors offering materials that included material misrepresentations and omissions regarding, among other things, material litigation involving Arcturus and Aschere. According to the complaint, Parvizian, Arcturus and Aschere systematically, and without disclosure to investors, used the offering proceeds to pay the costs of defending and settling the litigation. The complaint further alleges that, among other things, Parvizian prematurely called for completion funds on at least two projects before he had finished drilling and testing the wells because he had already spent the offering proceeds for non-JV related expenses, including legal fees. According to the complaint, Parvizian, Arcturus, and Aschere spent only $7.9 million, or 36 percent, of the money raised to drill oil and gas wells.
The complaint also alleges that the defendants offered and sold the joint venture interests in unregistered securities offerings that were not exempt from the registration requirements of the federal securities laws. In addition, the complaint alleges that Parvizian, Gonzalez, AMG, Balunas, and R. Thomas & Co. acted as unregistered broker-dealers. According to the complaint, Parvizian, Gonzalez, Balunas, AMG Energy, and R. Thomas received transaction-based compensation in the form of sales commissions based upon a percentage of the amount of investor funds raised.
The complaint alleges that Parvizian, Arcturus, and Aschere violated Sections 5(a) and 5(c) and 17(a) of the Securities Act of 1933 ("Securities Act")and Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act"), and Rule 10b-5 thereunder and that Parvizian also violated Section 15(a) of the Exchange Act. Gonzalez, AMG, Balunas, and R. Thomas are charged with violating Section 5(a) and 5(c) of the Securities Act and with Section 15(a) of the Exchange Act. The Commission is seeking permanent injunctions, disgorgement of ill-gotten gains plus prejudgment interest, and civil penalties against each of the defendants.
The SEC's investigation was conducted by Ronda Blair, Ty Martinez, and Barbara Gunn of SEC's Fort Worth Regional Office. The SEC acknowledges the assistance of the Financial Industry Regulatory Authority and the Texas State Securities Board.
SEC Charges Texas Oil and Gas Promoters for Securities Fraud
On December 12, 2013, the Securities and Exchange Commission charged Leon Ali Parvizian and his two companies, Arcturus Corporation and Aschere Energy LLC, with the fraudulent offer and sale of securities in the form of interests in oil and gas joint ventures. The Commission also charged promoters Alfredo Gonzalez, AMG Energy, LLC , Robert Balunas, and R. Thomas & Co., LLC with violations of the securities offering and broker-dealer registration provisions of the federal securities laws.
Filed in the United States District Court for the Northern District of Texas, the Commission's complaint alleges that the Parvizian, through Arcturus and Aschere, raised nearly $22 million from at least 380 investors between 2007 and December 2011.The complaint alleges that Parvizian prepared and disseminated to prospective investors offering materials that included material misrepresentations and omissions regarding, among other things, material litigation involving Arcturus and Aschere. According to the complaint, Parvizian, Arcturus and Aschere systematically, and without disclosure to investors, used the offering proceeds to pay the costs of defending and settling the litigation. The complaint further alleges that, among other things, Parvizian prematurely called for completion funds on at least two projects before he had finished drilling and testing the wells because he had already spent the offering proceeds for non-JV related expenses, including legal fees. According to the complaint, Parvizian, Arcturus, and Aschere spent only $7.9 million, or 36 percent, of the money raised to drill oil and gas wells.
The complaint also alleges that the defendants offered and sold the joint venture interests in unregistered securities offerings that were not exempt from the registration requirements of the federal securities laws. In addition, the complaint alleges that Parvizian, Gonzalez, AMG, Balunas, and R. Thomas & Co. acted as unregistered broker-dealers. According to the complaint, Parvizian, Gonzalez, Balunas, AMG Energy, and R. Thomas received transaction-based compensation in the form of sales commissions based upon a percentage of the amount of investor funds raised.
The complaint alleges that Parvizian, Arcturus, and Aschere violated Sections 5(a) and 5(c) and 17(a) of the Securities Act of 1933 ("Securities Act")and Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act"), and Rule 10b-5 thereunder and that Parvizian also violated Section 15(a) of the Exchange Act. Gonzalez, AMG, Balunas, and R. Thomas are charged with violating Section 5(a) and 5(c) of the Securities Act and with Section 15(a) of the Exchange Act. The Commission is seeking permanent injunctions, disgorgement of ill-gotten gains plus prejudgment interest, and civil penalties against each of the defendants.
The SEC's investigation was conducted by Ronda Blair, Ty Martinez, and Barbara Gunn of SEC's Fort Worth Regional Office. The SEC acknowledges the assistance of the Financial Industry Regulatory Authority and the Texas State Securities Board.
Wednesday, December 18, 2013
U.S. DEFENSE DEPARTMENT CONTRACTS FOR DECEMBER 18, 2013
FROM: U.S. DEFENSE DEPARTMENT
CONTRACTS
DEFENSE LOGISTICS AGENCY
Meridian Medical Technologies, Columbia, Md., has been awarded a maximum $123,191,610 modification (P00013) exercising the third one-year option period on a one-year base contract (SPM2DP-11-D-0002) with four one-year option periods for nerve agent antidotes in auto-injectors and services related to basic maintenance and surge readiness. This is a firm-fixed-price contract. Locations of performance are Maryland and Missouri with a Dec. 31, 2014 performance completion date. Using military services are Army, Navy, Air Force, and Marine Corps. Type of appropriation is fiscal 2011 through fiscal 2015 defense working capital and warstopper funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.
NAVY
DZSP 21 LLC, Philadelphia, Pa., is being awarded $85,998,135 modification to previously awarded cost-plus-award-fee contract (N40192-13-C-3001) to exercise the fifth award option period for base operation support services at Joint Region Marianas. The work to be performed provides for general management and administration services; command and staff (public affairs office); public safety; port operations; ordnance; material management; galley; facilities management and engineering services; sustainment, restoration and modernization; facilities services; utilities (electrical, wastewater, steam and demineralized water, and potable water); base support vehicles and equipment; and environmental. After award of this option, the total cumulative contract value will be $799,295,163. Work will be performed at various installations in the U.S. Territory of Guam, and work is expected to be completed December 2014. Fiscal 2014 Navy working capital funds; fiscal 2014 operations an
d maintenance, Navy; fiscal 2014 operation and maintenance, Air Force; fiscal 2014 operations and maintenance, Army Reserve; fiscal 2014 operations and maintenance, Defense agencies; and fiscal 2014 Defense Commissary Agency account contract funds in the amount of $32,853,236 are obligated on this award and will not expire at the end of the current fiscal year. The Naval Facilities Engineering Command, Marianas, Guam, is the contracting activity.
Turner Construction Co., Washington, D.C., is being awarded a $41,407,500 firm-fixed-price contract for the Medical Clinic Replacement at Naval Support Activity Annapolis. The work to be performed provides for the construction of a multi-story, free standing health clinic on the North Severn side of the United States Naval Academy. This new clinic will be a replacement facility for the current health clinic. The new health clinic encompasses primary care, orthopedics, physical therapy, dental, optometry and mental health as well as ancillaries, support and administrative space. The facility also has an emergency response support mission. Supporting facilities construction will include all site utilities, site preparation, site improvements, environmental mitigation, paving (parking and roadways), and access roads. Work will be performed in Annapolis, Md., and is expected to be completed by January 2016. Fiscal 2013 military construction, defense medical contract funds in the amount of $41,407,500 are 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 eight proposals received. The Naval Facilities Engineering Command, Washington, Washington, D.C., is the contracting activity (N40080-14-C-0154).
S. S. Dannaway and Associates Inc.*, Honolulu, Hawaii, is being awarded a maximum $10,000,000 indefinite-delivery/indefinite-quantity contract for architect-engineer services for fire protection and related services at various locations under the Naval Facilities Engineering Command (NAVFAC) Pacific area of responsibility (AOR). The work to be performed provides for services that include design and engineering services for preparation of technical reports including conducting engineering investigations and concept studies; preliminary and final design plans and specifications; construction estimates; operations and maintenance manuals; record drawings; shop drawing reviews; technical review of design plans and specification prepared by A-E firms and government forces; water flow testing; final acceptance testing of all types of installed fire protection systems and other consulting requiring immediate action. Work will be performed at various Navy and Marine Corps facilities and other government facilities within the NAVFAC Pacific AOR including, but not limited to Hawaii (55 percent), Guam (30 percent), and Far East (15 percent). The term of the contract is not to exceed 60 months, with an expected completion date of December 2018. Fiscal 2013 military construction, Navy contract funds in the amount of $10,000 are obligated on this award and will not expire at the end of the current fiscal year. This contract was competitively procured via the Federal Business Opportunities website with seven proposals received. The Naval Facilities Engineering Command, Pacific, Pearl Harbor, Hawaii, is the contracting activity (N62742-14-D-0001).
ARMY
Military Hardware*, Wilmington, N.C., was awarded a $51,952,200 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for improved modular tactical holsters with a minimum order of 100 units and a maximum of 300,000 units. Funding and location will be determined with each order. Estimated completion date is Dec. 16, 2018. Bids were solicited via the Internet with 25 received. Army Contracting Command, Natick, Mass., is the contracting activity (W911QY-14-D-0002).
Atlantic Diving Supply*, Virginia, Beach, Va., was awarded a $24,288,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for improved modular tactical holsters. The contract minimum is 100 units and the contract maximum is not to exceed 300,000 units. Funding and location will be determined with each order. Estimated completion date is Dec. 16, 2018. Bids were solicited via the Internet with 25 received. Army Contracting Command, Natick, Mass., is the contracting activity (W911QY-14-D-0001).
Bell Helicopter Textron Inc., Hurst, Texas, was awarded an $18,556,810 modification (P00009) to contract W58RGZ-12-C-0030 for an undefined contract action for six additional months of contractor logistics support for the Bell 407, Huey, Jet Ranger, and OH-58A&C helicopters in Al Taji, Iraq, in accordance with foreign military sales case IQ-B-UDZ. Fiscal 2014 other procurement funds in the amount of $9,092,838 were obligated at the time of the award. Estimated completion date is Aug. 8, 2014. One bid was solicited with one received. Work will be performed in Iraq and Piney Flats, Tenn. Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity.
American Southwest Electronic*, Las Vegas, Nev., was awarded a $13,087,038 firm-fixed-price contract for the West Bank Mississippi River Levee, Mississippi River and Tributaries Project, Atchafalaya Basin Levee District, Pointe Coupee Seepage Control, New Roads Relief Wells, Pointe Coupee Parish, La. Fiscal 2014 other procurement funds in the amount of $13,087,038 were obligated at the time of the award. Estimated completion date is Dec. 19, 2014. Bids were solicited via the Internet with nine received. Work will be performed in Plaquemines, La. Army Corps of Engineers, New Orleans, La., is the contracting activity (W912P8-14-C-0015).
Structural Assoc. Inc.*, East Syracuse, N.Y., was awarded an $11,163,100 firm-fixed-price contract to design and-build a soldier specialty care clinic at Fort Drum, New York. Fiscal 2014 military construction funds in the amount of $11,163,100 were obligated at the time of the award. Estimated completion date is Dec.17, 2015. Thirty bids were solicited with six received. Work will be performed at Fort Drum, N.Y. Army Corps of Engineers, New York, N.Y., is the contracting activity (W912DS-14-C-0003).
Reema Consulting Services, Gaithersburg, Md., was awarded a $9,900,000 firm-fixed-price contract for operations support services for program management soldier weapons, Picatinny Arsenal, N.J. These services will be for the following: senior and junior operations specialist, computer graphics specialist, public affairs specialist, technical editor specialist and information technology specialist. Funding and location will be determined with each order. Estimated completion date is Dec. 17, 2018. Bids were solicited via the Internet with seven received. Army Contracting Command, Picatinny Arsenal, N.J., is the contracting activity (W15QKN-14-D-0008).
Oracle America, Reston, Va., was awarded a $7,043,216 modification (P00054) to contract N00024-01-C-6110 for Oracle PeopleSoft licenses and maintenance services. Fiscal 2014 research, development, testing and evaluation funds in the amount of $2,297,739 were obligated at the time of the award. Estimated completion date is Dec. 20, 2014. Bids were solicited via the Internet with one received. Work will be performed in Reston, Va. Army Contracting Command, Picatinny Arsenal, N.J., is the contracting activity.
AIR FORCE
Rockwell Collins Inc., Government Systems, Cedar Rapids, Iowa, has been awarded a $46,654,122 cost-plus-incentive-fee contract for B-2 Common Very Low Frequency Receiver Increment 1 Engineering Manufacturing Development (EMD) Effort. The EMD phase includes the modification, qualification, and testing of the system which consists primarily of an existing terminal/receiver design, an antenna, a Human Machine Interface display, power supply, and other ancillary equipment to enable receipt and display of emergency action messages, including a mission planning ground station. Work will be performed at Richardson, Texas, and is expected to be completed by June 28, 2018. This award is the result of a sole-source acquisition. Fiscal 2013 research and development funds in the amount of $4,184,895 are being obligated at time of award. Air Force Life Cycle Management Center/WWZK, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8616-14-C-6061).
The Boeing Co., Seal Beach, Calif., has been awarded a $12,322,017 cost-plus-incentive-fee and cost-plus-fixed-fee modification (P00063) on an existing contract (FA8819-08-C-0006) for the Space Based Space Surveillance Block 10 System. The contract modification is for uninterrupted satellite operations, maintenance, and anomaly resolution of the Space Based Space Surveillance Block 10 System. Fiscal 2014 operations and maintenance funds in the amount of $4,895,000 are being obligated at the time of award. Work will be performed at El Segundo, Calif.; Colorado Springs, Colo.; Shriever Air Force Base, Colo.; and Boulder, Colo.; and is expected to be complete by June 20, 2015. Space and Missile Systems Center, Space Superiority Systems Directorate, El Segundo, Calif., is the contracting activity.
Exelis Inc., Herndon, Va., has been awarded a $10,000,000 indefinite-delivery/indefinite-quantity cost-plus-fixed-fee modification (P00011) for a ceiling increase to an existing contract (FA8750-09-D-0002). The total cumulative face value of the contract is $59,900,000. The contract modification is to maintain support and prevent loss of support for the 120 operationally deployed systems and continue basic development to address operational gaps. The principle purpose is for the research and development, integration, testing, deployment, enhancement, and maintenance of Information Support Server Environment Cross-Domain Sharing capabilities throughout the Air Force, the DoD Intelligence Information Systems community. Work will be performed at Herndon, Va., and is expected to be completed by June 14, 2016. This is a ceiling increase modification and no funding will be obligated at time of award. Air Force Research Laboratory/RIKE, Rome, N.Y., is the contracting activity
Northrop Grumman Systems Corp., NGIS, Herndon, Va., has been awarded an $8,424,108 modification (P00012) for an existing cost-plus-fixed-fee contract (FA8750-13-C-0120) for software enhancement/testing/integration/maintenance. The contract modification is to provide a full spectrum of technical support to the National Air and Space Intelligence Center to maintain, enhance and operate the current infrastructure and applications and incorporate new capabilities required to meet future mission requirements. This is accomplished by performing operations and maintenance, and intelligence production support to operate, maintain, modernize, extend the capabilities of, and utilize NASIC's current functional capabilities to include the Automated Virtual Information Production Support System. Work will be performed at Fairborn, Ohio, and is expected to be completed by Dec. 17, 2014. Fiscal 2014 operations and maintenance funds in the amount of $5,079,000 are being obligated at time of award. Air Force Research Laboratory/RIKE, Rome, N.Y., is the contracting activity.
*Small Business
CONTRACTS
DEFENSE LOGISTICS AGENCY
Meridian Medical Technologies, Columbia, Md., has been awarded a maximum $123,191,610 modification (P00013) exercising the third one-year option period on a one-year base contract (SPM2DP-11-D-0002) with four one-year option periods for nerve agent antidotes in auto-injectors and services related to basic maintenance and surge readiness. This is a firm-fixed-price contract. Locations of performance are Maryland and Missouri with a Dec. 31, 2014 performance completion date. Using military services are Army, Navy, Air Force, and Marine Corps. Type of appropriation is fiscal 2011 through fiscal 2015 defense working capital and warstopper funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.
NAVY
DZSP 21 LLC, Philadelphia, Pa., is being awarded $85,998,135 modification to previously awarded cost-plus-award-fee contract (N40192-13-C-3001) to exercise the fifth award option period for base operation support services at Joint Region Marianas. The work to be performed provides for general management and administration services; command and staff (public affairs office); public safety; port operations; ordnance; material management; galley; facilities management and engineering services; sustainment, restoration and modernization; facilities services; utilities (electrical, wastewater, steam and demineralized water, and potable water); base support vehicles and equipment; and environmental. After award of this option, the total cumulative contract value will be $799,295,163. Work will be performed at various installations in the U.S. Territory of Guam, and work is expected to be completed December 2014. Fiscal 2014 Navy working capital funds; fiscal 2014 operations an
d maintenance, Navy; fiscal 2014 operation and maintenance, Air Force; fiscal 2014 operations and maintenance, Army Reserve; fiscal 2014 operations and maintenance, Defense agencies; and fiscal 2014 Defense Commissary Agency account contract funds in the amount of $32,853,236 are obligated on this award and will not expire at the end of the current fiscal year. The Naval Facilities Engineering Command, Marianas, Guam, is the contracting activity.
Turner Construction Co., Washington, D.C., is being awarded a $41,407,500 firm-fixed-price contract for the Medical Clinic Replacement at Naval Support Activity Annapolis. The work to be performed provides for the construction of a multi-story, free standing health clinic on the North Severn side of the United States Naval Academy. This new clinic will be a replacement facility for the current health clinic. The new health clinic encompasses primary care, orthopedics, physical therapy, dental, optometry and mental health as well as ancillaries, support and administrative space. The facility also has an emergency response support mission. Supporting facilities construction will include all site utilities, site preparation, site improvements, environmental mitigation, paving (parking and roadways), and access roads. Work will be performed in Annapolis, Md., and is expected to be completed by January 2016. Fiscal 2013 military construction, defense medical contract funds in the amount of $41,407,500 are 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 eight proposals received. The Naval Facilities Engineering Command, Washington, Washington, D.C., is the contracting activity (N40080-14-C-0154).
S. S. Dannaway and Associates Inc.*, Honolulu, Hawaii, is being awarded a maximum $10,000,000 indefinite-delivery/indefinite-quantity contract for architect-engineer services for fire protection and related services at various locations under the Naval Facilities Engineering Command (NAVFAC) Pacific area of responsibility (AOR). The work to be performed provides for services that include design and engineering services for preparation of technical reports including conducting engineering investigations and concept studies; preliminary and final design plans and specifications; construction estimates; operations and maintenance manuals; record drawings; shop drawing reviews; technical review of design plans and specification prepared by A-E firms and government forces; water flow testing; final acceptance testing of all types of installed fire protection systems and other consulting requiring immediate action. Work will be performed at various Navy and Marine Corps facilities and other government facilities within the NAVFAC Pacific AOR including, but not limited to Hawaii (55 percent), Guam (30 percent), and Far East (15 percent). The term of the contract is not to exceed 60 months, with an expected completion date of December 2018. Fiscal 2013 military construction, Navy contract funds in the amount of $10,000 are obligated on this award and will not expire at the end of the current fiscal year. This contract was competitively procured via the Federal Business Opportunities website with seven proposals received. The Naval Facilities Engineering Command, Pacific, Pearl Harbor, Hawaii, is the contracting activity (N62742-14-D-0001).
ARMY
Military Hardware*, Wilmington, N.C., was awarded a $51,952,200 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for improved modular tactical holsters with a minimum order of 100 units and a maximum of 300,000 units. Funding and location will be determined with each order. Estimated completion date is Dec. 16, 2018. Bids were solicited via the Internet with 25 received. Army Contracting Command, Natick, Mass., is the contracting activity (W911QY-14-D-0002).
Atlantic Diving Supply*, Virginia, Beach, Va., was awarded a $24,288,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for improved modular tactical holsters. The contract minimum is 100 units and the contract maximum is not to exceed 300,000 units. Funding and location will be determined with each order. Estimated completion date is Dec. 16, 2018. Bids were solicited via the Internet with 25 received. Army Contracting Command, Natick, Mass., is the contracting activity (W911QY-14-D-0001).
Bell Helicopter Textron Inc., Hurst, Texas, was awarded an $18,556,810 modification (P00009) to contract W58RGZ-12-C-0030 for an undefined contract action for six additional months of contractor logistics support for the Bell 407, Huey, Jet Ranger, and OH-58A&C helicopters in Al Taji, Iraq, in accordance with foreign military sales case IQ-B-UDZ. Fiscal 2014 other procurement funds in the amount of $9,092,838 were obligated at the time of the award. Estimated completion date is Aug. 8, 2014. One bid was solicited with one received. Work will be performed in Iraq and Piney Flats, Tenn. Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity.
American Southwest Electronic*, Las Vegas, Nev., was awarded a $13,087,038 firm-fixed-price contract for the West Bank Mississippi River Levee, Mississippi River and Tributaries Project, Atchafalaya Basin Levee District, Pointe Coupee Seepage Control, New Roads Relief Wells, Pointe Coupee Parish, La. Fiscal 2014 other procurement funds in the amount of $13,087,038 were obligated at the time of the award. Estimated completion date is Dec. 19, 2014. Bids were solicited via the Internet with nine received. Work will be performed in Plaquemines, La. Army Corps of Engineers, New Orleans, La., is the contracting activity (W912P8-14-C-0015).
Structural Assoc. Inc.*, East Syracuse, N.Y., was awarded an $11,163,100 firm-fixed-price contract to design and-build a soldier specialty care clinic at Fort Drum, New York. Fiscal 2014 military construction funds in the amount of $11,163,100 were obligated at the time of the award. Estimated completion date is Dec.17, 2015. Thirty bids were solicited with six received. Work will be performed at Fort Drum, N.Y. Army Corps of Engineers, New York, N.Y., is the contracting activity (W912DS-14-C-0003).
Reema Consulting Services, Gaithersburg, Md., was awarded a $9,900,000 firm-fixed-price contract for operations support services for program management soldier weapons, Picatinny Arsenal, N.J. These services will be for the following: senior and junior operations specialist, computer graphics specialist, public affairs specialist, technical editor specialist and information technology specialist. Funding and location will be determined with each order. Estimated completion date is Dec. 17, 2018. Bids were solicited via the Internet with seven received. Army Contracting Command, Picatinny Arsenal, N.J., is the contracting activity (W15QKN-14-D-0008).
Oracle America, Reston, Va., was awarded a $7,043,216 modification (P00054) to contract N00024-01-C-6110 for Oracle PeopleSoft licenses and maintenance services. Fiscal 2014 research, development, testing and evaluation funds in the amount of $2,297,739 were obligated at the time of the award. Estimated completion date is Dec. 20, 2014. Bids were solicited via the Internet with one received. Work will be performed in Reston, Va. Army Contracting Command, Picatinny Arsenal, N.J., is the contracting activity.
AIR FORCE
Rockwell Collins Inc., Government Systems, Cedar Rapids, Iowa, has been awarded a $46,654,122 cost-plus-incentive-fee contract for B-2 Common Very Low Frequency Receiver Increment 1 Engineering Manufacturing Development (EMD) Effort. The EMD phase includes the modification, qualification, and testing of the system which consists primarily of an existing terminal/receiver design, an antenna, a Human Machine Interface display, power supply, and other ancillary equipment to enable receipt and display of emergency action messages, including a mission planning ground station. Work will be performed at Richardson, Texas, and is expected to be completed by June 28, 2018. This award is the result of a sole-source acquisition. Fiscal 2013 research and development funds in the amount of $4,184,895 are being obligated at time of award. Air Force Life Cycle Management Center/WWZK, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8616-14-C-6061).
The Boeing Co., Seal Beach, Calif., has been awarded a $12,322,017 cost-plus-incentive-fee and cost-plus-fixed-fee modification (P00063) on an existing contract (FA8819-08-C-0006) for the Space Based Space Surveillance Block 10 System. The contract modification is for uninterrupted satellite operations, maintenance, and anomaly resolution of the Space Based Space Surveillance Block 10 System. Fiscal 2014 operations and maintenance funds in the amount of $4,895,000 are being obligated at the time of award. Work will be performed at El Segundo, Calif.; Colorado Springs, Colo.; Shriever Air Force Base, Colo.; and Boulder, Colo.; and is expected to be complete by June 20, 2015. Space and Missile Systems Center, Space Superiority Systems Directorate, El Segundo, Calif., is the contracting activity.
Exelis Inc., Herndon, Va., has been awarded a $10,000,000 indefinite-delivery/indefinite-quantity cost-plus-fixed-fee modification (P00011) for a ceiling increase to an existing contract (FA8750-09-D-0002). The total cumulative face value of the contract is $59,900,000. The contract modification is to maintain support and prevent loss of support for the 120 operationally deployed systems and continue basic development to address operational gaps. The principle purpose is for the research and development, integration, testing, deployment, enhancement, and maintenance of Information Support Server Environment Cross-Domain Sharing capabilities throughout the Air Force, the DoD Intelligence Information Systems community. Work will be performed at Herndon, Va., and is expected to be completed by June 14, 2016. This is a ceiling increase modification and no funding will be obligated at time of award. Air Force Research Laboratory/RIKE, Rome, N.Y., is the contracting activity
Northrop Grumman Systems Corp., NGIS, Herndon, Va., has been awarded an $8,424,108 modification (P00012) for an existing cost-plus-fixed-fee contract (FA8750-13-C-0120) for software enhancement/testing/integration/maintenance. The contract modification is to provide a full spectrum of technical support to the National Air and Space Intelligence Center to maintain, enhance and operate the current infrastructure and applications and incorporate new capabilities required to meet future mission requirements. This is accomplished by performing operations and maintenance, and intelligence production support to operate, maintain, modernize, extend the capabilities of, and utilize NASIC's current functional capabilities to include the Automated Virtual Information Production Support System. Work will be performed at Fairborn, Ohio, and is expected to be completed by Dec. 17, 2014. Fiscal 2014 operations and maintenance funds in the amount of $5,079,000 are being obligated at time of award. Air Force Research Laboratory/RIKE, Rome, N.Y., is the contracting activity.
*Small Business
TWO REAL INVESTORS PLEAD GUILTY FOR ROLES IN BID RIGGING REAL ESTATE FORECLOSURE AUCTIONS
FROM: U.S. JUSTICE DEPARTMENT
TWO NORTHERN CALIFORNIA REAL ESTATE INVESTORS AGREE TO PLEAD GUILTY TO BID RIGGING AT PUBLIC REAL ESTATE FORECLOSURE AUCTIONS
Investigation Has Yielded 40 Plea Agreements to Date
WASHINGTON — Two Northern California real estate investors have agreed to plead guilty for their roles in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
Felony charges were filed today in the U.S. District Court for the Northern District of California, in San Francisco, against Florence Fung of Sacramento, Calif, and Michael Navone of San Rafael, Calif. Fung and Navone are the 39th and 40th individuals to plead guilty or agree to plead guilty as a result of the department’s ongoing antitrust investigations into bid rigging and fraud at public real estate foreclosure auctions in Northern California.
According to court documents, Fung and Navone conspired with others, for various lengths of time between February 2009 and January 2011, not to bid against one another, but instead to designate a winning bidder to obtain selected properties at public real estate foreclosure auctions in San Mateo County. Fung and Navone also were charged with conspiring to use the mail to carry out schemes to fraudulently acquire title to selected properties sold at public auctions, to make and receive payoffs and to divert money to co-conspirators that would have gone to mortgage holders and others. Navone was also charged with participating in similar conspiracies in San Francisco County beginning as early as October 2009 until about January 2011.
“Instead of competing at real estate foreclosure auctions, the conspirators agreed not to bid against one another and determined among themselves who would submit the winning bid, stifling honest and fair competition,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The Antitrust Division and its partners at the FBI continue to remain committed to holding accountable investors who attempt to subvert the competitiveness of the bidding process.”
The department said that the primary purpose of the conspiracies was to suppress and restrain competition and to conceal payoffs in order to obtain selected real estate offered at San Mateo and San Francisco county public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner. According to court documents, these conspirators paid and received money that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties, and, in some cases, the defaulting homeowner.
“The FBI continues to join the Antitrust Division in holding criminals accountable for bid rigging and fraudulent practices at public real estate foreclosure auctions,” said David J. Johnson, FBI Special Agent in Charge of the San Francisco Field Office. “Anticompetitive practices disrupt a fair marketplace and the FBI will investigate these types of crimes.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for the Sherman Act charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either amount is greater than $1 million. A count of conspiracy to commit mail fraud carries a maximum sentence of 30 years in prison and a $1 million fine. The government can also seek to forfeit the proceeds earned from participating in the conspiracy to commit mail fraud.
Today’s charges are the latest filed by the department in its ongoing investigation into bid rigging and fraud at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa, and Alameda counties, Calif. These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-436-6660, visit www.justice.gov/atr/contact/newcase.html or call the FBI tip line at 415-553-7400.
Today’s charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,900 mortgage fraud defendants.
TWO NORTHERN CALIFORNIA REAL ESTATE INVESTORS AGREE TO PLEAD GUILTY TO BID RIGGING AT PUBLIC REAL ESTATE FORECLOSURE AUCTIONS
Investigation Has Yielded 40 Plea Agreements to Date
WASHINGTON — Two Northern California real estate investors have agreed to plead guilty for their roles in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
Felony charges were filed today in the U.S. District Court for the Northern District of California, in San Francisco, against Florence Fung of Sacramento, Calif, and Michael Navone of San Rafael, Calif. Fung and Navone are the 39th and 40th individuals to plead guilty or agree to plead guilty as a result of the department’s ongoing antitrust investigations into bid rigging and fraud at public real estate foreclosure auctions in Northern California.
According to court documents, Fung and Navone conspired with others, for various lengths of time between February 2009 and January 2011, not to bid against one another, but instead to designate a winning bidder to obtain selected properties at public real estate foreclosure auctions in San Mateo County. Fung and Navone also were charged with conspiring to use the mail to carry out schemes to fraudulently acquire title to selected properties sold at public auctions, to make and receive payoffs and to divert money to co-conspirators that would have gone to mortgage holders and others. Navone was also charged with participating in similar conspiracies in San Francisco County beginning as early as October 2009 until about January 2011.
“Instead of competing at real estate foreclosure auctions, the conspirators agreed not to bid against one another and determined among themselves who would submit the winning bid, stifling honest and fair competition,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The Antitrust Division and its partners at the FBI continue to remain committed to holding accountable investors who attempt to subvert the competitiveness of the bidding process.”
The department said that the primary purpose of the conspiracies was to suppress and restrain competition and to conceal payoffs in order to obtain selected real estate offered at San Mateo and San Francisco county public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner. According to court documents, these conspirators paid and received money that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties, and, in some cases, the defaulting homeowner.
“The FBI continues to join the Antitrust Division in holding criminals accountable for bid rigging and fraudulent practices at public real estate foreclosure auctions,” said David J. Johnson, FBI Special Agent in Charge of the San Francisco Field Office. “Anticompetitive practices disrupt a fair marketplace and the FBI will investigate these types of crimes.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for the Sherman Act charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either amount is greater than $1 million. A count of conspiracy to commit mail fraud carries a maximum sentence of 30 years in prison and a $1 million fine. The government can also seek to forfeit the proceeds earned from participating in the conspiracy to commit mail fraud.
Today’s charges are the latest filed by the department in its ongoing investigation into bid rigging and fraud at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa, and Alameda counties, Calif. These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-436-6660, visit www.justice.gov/atr/contact/newcase.html or call the FBI tip line at 415-553-7400.
Today’s charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,900 mortgage fraud defendants.
W VIRGINIA AWARDED ADDITIONAL $242,000 GRANT FOR HURRICANE SANDY RELIEF
FROM: U.S. LABOR DEPARTMENT HURRICANE
West Virginia awarded additional funding by US Labor Department to assist with continuing recovery efforts following Hurricane Sandy
WASHINGTON — The U.S. Department of Labor today announced a $242,000 National Emergency Grant supplemental award to assist with the continuing cleanup and recovery efforts in the wake of heavy snowfall associated with Hurricane Sandy that affected north-central West Virginia between Oct. 29 and Nov. 8, 2012. The funds are being awarded to WorkForce West Virginia and will provide for the continuation of temporary employment for eligible individuals to assist with the cleanup of affected areas.
"West Virginia has made substantial progress in the recovery efforts; however, the devastating impact of Hurricane Sandy continues to linger," said Eric M. Seleznow, acting assistant secretary of labor for employment and training. "This funding will help with the continuing cleanup of several state parks, while also providing temporary work to those in need of employment."
On Nov. 27, 2012, the Federal Emergency Management Agency declared 18 West Virginia counties eligible for FEMA's Public Assistance Program, following damaged caused by heavy snowfall associated with Hurricane Sandy. This grant serves 5 of those 18 counties: Barbour, Preston, Tucker, Upshur and Webster.
The original National Emergency Grant was approved on Dec. 21, 2012, for $300,000, following the FEMA declaration. This supplemental funding brings the total funds awarded for this project to $542,000.
National Emergency Grants are part of the secretary of labor's discretionary fund and are awarded based on a state's ability to meet specific guidelines.
West Virginia awarded additional funding by US Labor Department to assist with continuing recovery efforts following Hurricane Sandy
WASHINGTON — The U.S. Department of Labor today announced a $242,000 National Emergency Grant supplemental award to assist with the continuing cleanup and recovery efforts in the wake of heavy snowfall associated with Hurricane Sandy that affected north-central West Virginia between Oct. 29 and Nov. 8, 2012. The funds are being awarded to WorkForce West Virginia and will provide for the continuation of temporary employment for eligible individuals to assist with the cleanup of affected areas.
"West Virginia has made substantial progress in the recovery efforts; however, the devastating impact of Hurricane Sandy continues to linger," said Eric M. Seleznow, acting assistant secretary of labor for employment and training. "This funding will help with the continuing cleanup of several state parks, while also providing temporary work to those in need of employment."
On Nov. 27, 2012, the Federal Emergency Management Agency declared 18 West Virginia counties eligible for FEMA's Public Assistance Program, following damaged caused by heavy snowfall associated with Hurricane Sandy. This grant serves 5 of those 18 counties: Barbour, Preston, Tucker, Upshur and Webster.
The original National Emergency Grant was approved on Dec. 21, 2012, for $300,000, following the FEMA declaration. This supplemental funding brings the total funds awarded for this project to $542,000.
National Emergency Grants are part of the secretary of labor's discretionary fund and are awarded based on a state's ability to meet specific guidelines.
SECRETARY OF STATE KERRY'S REMARKS WITH PHILIPPINE FOREIGN SECRETARY ROSARIO
FROM: U.S. STATE DEPARTMENT
Remarks With Philippine Foreign Secretary Albert del Rosario
John Kerry
Secretary of State
Secretary of State
Department of Foreign Affairs
Manila, Philippines
December 17, 2013
MODERATOR: Friends from the media, let us welcome the arrival of the Honorable Foreign Affairs Secretary Albert S. del Rosario and His Excellency, John F. Kerry, Secretary of State of the United States of America.
Ladies and gentlemen, the Honorable Foreign Affairs Secretary Albert S. del Rosario and His Excellency, John F. Kerry, Secretary of State of the United States of America, will now give their respective statements on the results of the bilateral meeting between the two countries.
Secretary del Rosario.
SECRETARY DEL ROSARIO: Good afternoon, ladies and gentlemen. It was my pleasure and privilege to have welcomed the Secretary of State John Kerry and his delegation to the Philippines. John, I’d like to take this opportunity to once again reiterate our deep appreciation for the tremendous assistance and support that we received in the aftermath of Yolanda in terms of expressions of sympathy, and of course the support which was huge, and included the search-and-rescue teams, relief operations, as well logistics, including 50 – over 50 aircraft and sea vessels. And this also reflected itself in terms of 1,000 U.S. soldiers and Marines on the ground who offered direct assistance and without a doubt helped to save many lives.
We are deeply moved by this, John, and I must say to you that we are very grateful, and I also received from the good Secretary the support for the Philippines in terms of the dauntless task that’s ahead for recovery and reconstruction for the Philippines.
Based on our shared history, our shared values, our shared aspirations, John, the Secretary and I continue to work incessantly on promoting the various dimensions of our bilateral relations that extend from political to defense and security, to economic cooperation, to regional and global concerns. We discussed on how we would elevate our alliance to another level, and this came in the form of the framework on increased rotational presence which we are currently negotiating. We discussed the ways on which we will be able to address transnational threats. We discussed how we would address counterterrorism, the securing of our maritime borders. And this is receiving a significant boost from the Global Security Fund that has been made available to us, which essentially assists our coast guard and as well our PNP, Philippine National Police.
We discussed to a large extent economic cooperation, how this will be expanded, and what areas we’re moving towards. We discussed the TPP. We discussed, for example, the Partners For Growth, Millennium Challenge, how that’s progressing. And we looked at this in terms of how we can be helpful to good governance, to inclusive growth, and to (inaudible).
We discussed as well the WPS, our favorite topic, and the ADIZ, and of course the elements on freedom of navigation and of course adherence to the rule of law. We discussed other topics and – which are of mutual interest. And finally, we reiterated the commitment that we will continue to work towards a more effective partnership and as well a closer friendship.
So thank you, Mr. Secretary. Thank you, everyone.
SECRETARY KERRY: Well, thank you very much, Albert. Mangandang hapon. Good afternoon, everybody. I’m very happy to be here. And I want to thank my good friend, Foreign Secretary Albert del Rosario. He is always very generous in his relationships with us, and especially in his welcome to me. We have met now on the side of meetings in Brunei, in Bali, and we have met in Washington, and now I have an opportunity to be able to come here back to Manila. And I’m very, very pleased to be here with you, Albert. I very much look forward later this evening to meeting with President Aquino at the Malacanang Palace.
And for me, it really is a special pleasure to be able to be back in Manila. First of all, there’s such a great energy in the Philippines today. The economy of the Philippines over the course of the last year has been one of the fastest growing in the world. And I know having my previous visit canceled because of a typhoon, a storm, I’m particularly grateful that President Aquino and Foreign Secretary del Rosario gave me the forbearance to be able to reschedule. I said I would come before the end of the year, and I’m glad that I am here before the end of the year.
I have really always marveled at the amazing spirit of the Filipino people, and I’ve come to know it. I know something about it. First of all, we obviously, all of us in the world, marvel at the remarkable resilience and strength of the Filipino people in responding to the terrible devastation of Typhoon Yolanda. Mr. Secretary, the world has seen your strength and the strength of your people, and we admire it.
Since the typhoon hit, I’m proud to say that the United States has worked very, very closely with our partners in the Philippines. And I’m very grateful on behalf of the American people to Secretary del Rosario for his comments of thanks. The American people are proud to help, and the American people, I think, take great pride in the fact that there is a spirit in our country of helping those in distress, but also there is a special affection for the Philippines. We have been tied together for a long time, and in our meeting today, I reassured the Foreign Secretary of the United States’ commitment to stand by the Philippines as they go through the process now of the recovery and the reconstruction.
We have a long tradition of working together on these kinds of things, from countering extremism to strengthening our economic ties, our maritime security, to fighting poverty and creating the conditions for broad-based prosperity and growth. One of the most enduring aspects of our legacy, our partnership, are the binding ties, the personal ties, between our people. More than 300,000 American citizens live in the Philippines, and nearly four million people of Filipino origin live in the United States and contribute in so many ways to America’s diverse cultural heritage.
I’ve had personal connections to the Philippines for a long period of time, but most recently in 1986, I became involved as a young senator in the effort to have an accountable election when President Marcos called a snap election, and to make certain that democracy was restored in the Philippines. I worked with then-to-become President Cory Aquino and with NAMFREL and others, and I’m proud that during that period of time, I got to travel around the Philippines and see people voting. I will never forget being in Danao and then later up here in Manila and watching people stand, thousands at a time in line, for the privilege of voting, of having their fingers stamped and their thumbs, and of standing in the hot sun in order to make democracy work. It was inspiring. And I’ll never forget the look on the faces of people who were voting for the first time, and the yellow shirts and waving their pro-democracy banners. The courage of the Filipino people then lit a spark that actually traveled around the world, and it inspired not just a young freshman senator from Massachusetts, but it inspired popular movements from Eastern Europe to Burma.
The United States is proud of the rich history that we share and our enduring alliance with the Philippines, which is an important democracy and one of America’s key treaty allies in the dynamic Asia Pacific region, one of our five allies. As the foreign secretary and I discussed today, the United States is committed to working with the Philippines to address its most pressing security challenges. That’s why we are negotiating a strong and enduring framework agreement that would enhance defense cooperation under our alliance, including through an increased rotational presence of U.S. forces in Philippines. And that’s why we have committed $40 million for a new initiative to improve the Philippines’s maritime security and maritime domain awareness.
That’s also why we support efforts to reduce tensions surrounding the territorial and maritime disputes in the South China Sea in two important ways – first, we strongly support ASEAN’s efforts with China to move quickly to conclude a code of conduct as a key to reducing the risk of accidents or miscalculation. In that process, we think that claimants have a responsibility to clarify their claims and to align their claims with international law. That is the way to proceed in resolving any disputes over the South China Sea – peacefully, and with international law.
Second, we support internationally recognized dispute resolution mechanisms such as those that are provided in the Law of the Sea Convention. The United States strongly opposes the use of intimidation, coercion, or aggression to advance territorial claims. And I assured the foreign secretary that the United States remains firmly committed to the security of the Philippines and the region. Today, I raised our deep concerns about China’s announcement of an East China Sea Air Defense Identification Zone. I told the foreign secretary that the United States does not recognize that zone and does not accept it. The zone should not be implemented, and China should refrain from taking similar unilateral actions elsewhere in the region, and particularly over the South China Sea.
I am also pleased to announce that the United States and the Philippines have negotiated an MOU to cooperate in the restoration, operation, and maintenance of Clark Veterans Cemetery. This agreement is not just another piece of paper. It’s about upholding a sacred promise to honor those who served and sacrificed on all of our behalf. So I am enormously gratified that we are ensuring that the 8,600 Americans and Filipinos who are buried on the hallow grounds of that cemetery will receive the respect and the dignity that they deserve. And I might add I was honored today to lay a wreath at the cemetery here in Manila where some 17,201 American and Filipino men and women are buried from World War II. That is the largest cemetery in which Americans are buried from World War II, and it is a remarkable place and it is a humbling tribute to the links between us in our struggle for freedom and for democracy and for dignity.
The United States is also one of the Philippines largest trading partners in Asia. Last year, $22 billion crossed between us in two-way trade. So we look forward to working with the Philippines to further deepen our trade relationship, understanding that this benefits both of us, that it creates jobs in America, in the Philippines – puts people to work, it raises the standard of living, but it also raises the standard of doing business, and that works for everybody.
So we discussed today the possibilities of the Philippines interest in joining the Trans-Pacific Partnership, which is a trade pact that will raise standards and increase broad-based sustainable economic growth throughout the region. And we will be welcoming an initial team to engage with us in early January to have technical discussions regarding this possibility.
All of you know that the Philippines is, of course, an ASEAN state. And the Philippines participation in the U.S.-ASEAN Expanded Economic Engagement Initiative is helping to strengthen the relationship of 10 countries of ASEAN, and lay the groundwork for these nations’ future participation in high-standard agreements such as the TPP. Nearly three decades ago, an unassuming political novice, courageous leader by the name of Corazon Aquino rose to the presidency on the top of a wave called People Power.
Just as the United States did then, today we will stand ready to be a partner in helping the Filipino people realize their full promise. As we meet today’s challenges and chart a path forward together, we draw strength from the principle of the foundation of our shared history, and we look forward to strengthening our relationship by bringing you the greetings of President Obama, who looks forward to coming to the region in the spring of next year, and we will continue to be present and accounted for in our relationships and in our efforts in this region.
Thank you, Mr. Secretary.
MODERATOR: Now, Secretary del Rosario and Secretary Kerry are ready to take a few questions from our media friends.
Manny, please.
QUESTION: Good afternoon, sirs. Manny Mogado from Reuters. You mentioned two developments in the South China Sea and the East China Sea – the ADIZ and the new condition of American warship with the Chinese warship. May we know what America is seeking from China, from the certain set of operational norms or rules, to (inaudible) this? And how soon can the two sides settle this issue to avoid miscalculation and accidents?
And can we ask Secretary del Rosario to comment on the issue since there’s a rising tension between China and the U.S., and there’s (inaudible) increased rotational presence of U.S. forces in the Philippines. Is the Philippines concerned about these developments? And what are our – what do we see? How can we be affected by this?
And my second part of the question is on the TPP. You said that there would be a technical team coming to the U.S. next month. How far can we go from here, since the Philippines has yet to amend its constitution to open up its economy? Thank you.
MODERATOR: Secretary Kerry.
SECRETARY KERRY: Well, with respect to China, let me make it very clear. We don’t view the situation as one of rising tensions. That is not the way we view this, and we don’t want rising tensions, and we’re not looking to do anything except continue a process that President Obama initiated a number of years ago when he began the rebalance to Asia. And what we are involved in are normal processes by which we work with other countries in order to raise their maritime protection capacity. We all have interests in preventing smuggling and preventing terrorism and patrolling our borders and so forth.
So we’re not suggesting that we’re doing something out of the ordinary here. We don’t want anything except a rule-of-law approach to the resolution of any issues and conflicts. So when you say what do we want from China, we would hope to continue to work closely with China, as we are on North Korea and other issues – trade and so forth – in an effort to try to resolve these kinds of differences or questions in a peaceful way. We believe there is a structure that exists – the Law of the Sea structure, an arbitration process. We have not taken a position on the particular claims asserted by anybody. We have taken a position on the way that we think they should be resolved. So we support arbitration and we support rule of law. We do not support unilateral actions that have the impact of being provocative and raising the temperature and potential conflict.
So we are not approaching this with any particular view towards China except to say when China makes a unilateral move, we will state our position and make clear what we agree or disagree with, and that’s what we’ve done with respect to the ADIZ. We do not accept it. We think it is – there’s a way to approach it. A country has a right to establish an ADIZ. But it has to be done through a process of consultation, work with the International Aviation Organization, and in a way that other nations are consulted and work with it. And we think that’s the best way to proceed, and I think most countries in the world believe that’s the best way to proceed.
With respect to the TPP and how far can you go, that’s really a decision that the Philippines has to make. We’re here to talk about the possibilities. Your leaders will have to make their own judgments about those possibilities. And we encourage a robust debate. People may see benefits, they may see downsides, and it’s up to your leadership. We’re not going to presume to tell you what you ought to do or suggest anything, but we do think there are benefits in this agreement, and we hope the Philippines will see the benefits and want to seize them. It is completely up to your leaders to make their decisions about where to go.
MODERATOR: Secretary del Rosario.
SECRETARY DEL ROSARIO: I think on the ADIZ, we had stated an official position as far as China’s establishment of an ADIZ over the East China Sea. Our position was the – China, in doing this, effectively is attempting to transform an air zone into its own domestic airspace, and we think that this is – could lead to compromising freedom of flight in terms of civil aviation. It could also compromise, we believe, safety of and security of the affected nations.
We have called on China to ensure that their actions are not – do not jeopardize the regional security and stability, and we have actually taken the position that – of greater concern, we believe, are the announcements being made by the spokesperson of China and the Chinese ambassador to the Philippines that they will consider ADIZs in other areas in due course. Now, that, for us, is – it will be a problem if it is something that involves the South China Sea.
As far as the TPP is concerned, the president is – I believe is – would like us to positively explore to what extent we can participate, and the U.S. has offered guidance, and we are accepting that offer. And as a matter of fact, we have been meeting with USTR, and there is a technical consultation that will take place in January.
MODERATOR: Thank you, Manny.
Indira.
QUESTION: Thank you. Indira Lakshmanan from Bloomberg News. First question is for Secretary del Rosario and also if Secretary Kerry can add anything to it. Japan has announced its new defense security strategy passed today by the Abe government, and China was quick to denounce it. Do you think that China’s concerns are overblown, or is – or has Japan not even gone far enough in expanding its military considering the constraints? If both of you could address that.
And then Secretary Kerry, on Syria, can you confirm that the U.S. is talking to the Islamic Front? And there were reports that the Islamic Front actually walked out of that meeting today. What do you hope to achieve by it? And also, your close colleague, the French Foreign Minister Fabius, has said that he’s pessimistic about the Geneva II conference actually happening. To get your thoughts on that?
MODERATOR: Secretary del Rosario.
SECRETARY DEL ROSARIO: Yeah. I’m afraid I’ll have to beg for your understanding and pass up that question. I’ve not been briefed on that. That happened this morning, you said. Once I take a look and come to a position, I will send you an email.
MODERATOR: Secretary Kerry.
SECRETARY KERRY: Well, as many of you know, the United States and Japan had what we call a 2+2 meeting a couple of months ago – 2+2 meaning both the Defense Secretary and the Secretary of State, their foreign minister, and their defense secretary, both of us meeting – and we met in Tokyo. And there, we laid out a plan going well into the future. It’s a joint vision of Japan-U.S. cooperation in terms of security for the region and elsewhere. Japan is increasingly playing a responsible, important role in terms of humanitarian assistance, peacekeeping – engagement in seeking peace, the Palestinian-Israeli issue, other issues.
And so our belief is that with respect to the participation in the overall challenges of this region, Japan has an ability to play an increasingly more modern and engaged role. This is something that we have been working on and they have been planning for some period of time. So again, this is not a sudden response to something or anything that anybody should get particularly upset about. It seems to me that we’re only talking about constructive efforts within internationally accepted frameworks, and for peaceful and appropriate purposes. And it is yet to be determined exactly what that role will be or exactly where they will go, but they have an ability to be able to participate more, and we welcome that in the context of our strategic thinking and in terms of our 2+2 engagement. So that is really a reflection, I think, of a path that we’ve been talking about for some period of time, what happened earlier today.
With respect to Syria, the Islamic Front, and Geneva II, the United States has not met yet to date with the Islamic Front. There has not been a discussion, but it’s possible that it could take place. There is an effort afoot among all of the supporter nations of the Syrian opposition, the moderate opposition, to want to broaden the base of moderate opposition and to broaden the base of representation of the Syrian people in the Geneva II negotiation. So there will be some discussions that the UN, Lakhdar Brahimi, the special envoy, and we and others – the UK, France, others in the region – will engage in, in order to make sure that the delegation that goes to Geneva will be as broadly representative as possible of the legitimate oppositionists who could be acceptable at that table. That obviously does not include the radical extremists and the worst elements that are to some degree on the ground.
With respect to Foreign Minister Fabius’s comments, I would just say that we continue to work very, very hard to aim towards Geneva II and the conference. And the reason is very simple – what is the alternative? There’s no alternative other than continued fighting, continued destruction, continued growth in the refugee population, continued potential disintegration of a whole country, and the continued increase of the numbers of radical extremists who are appearing on the scene to fill the void. That is dangerous. We have no choice but to push towards a Geneva conference.
Now, whether it happens, I believe that it can take place in January, but it’s – nobody’s ever suggested it’s going to be easy. Nobody ever suggested that this path is going to suddenly just happen like that and is going to produce an outcome. It is very difficult and it’s not going to happen that rapidly. But the alternative is far worse than fighting to get to the table to have a negotiation and have a negotiated resolution. And I will continue to push for that as well as others because we believe that’s the only solution to the problem of Syria. And so we must find a way to get to that negotiation. Whether it’s difficult or not or whether it has got big hurdles in front of it or not, there is no better alternative than trying to do that.
MODERATOR: Thank you. Next question, Tarra. This is the second to the last question.
QUESTION: Hi, good afternoon, sirs. I’m Tarra from the Philippine Daily Inquirer. Sir, the international community has repeatedly called for sovereignty and rule of law as regards to the situation in South China Sea. But it seems that China has repeatedly taken activities viewed as alarming or provocative, like the ADIZ and the refusal to take part in arbitration. Where do you think is the situation headed, and is there a tipping point, if any at all?
SECRETARY KERRY: Well, I think what’s important, folks, is to lower the intensity, avoid the provocations, work through international law, and for the claimants to stay united and to press international law as the means of resolving this. In my judgment, that is the best way to proceed. And I hope that ultimately, our – that the leaders in China will see the wisdom of engaging in that activity to work through any claims in those institutions and through those laws that were set up specifically to resolve those kinds of claims.
In this day and age, we should be long past the time of unilateral assertion and of coercion as a means of trying to back up that assertion. So our hope is that the parties will come together, continue to proceed through arbitration and international law, and I’m confident that that can ultimately resolve these kinds of questions. And I think we have to have faith in that kind of process. The United States will stand with our friends in this region who are asserting their efforts to try to resolve this through that kind of legal peaceful process. We think that’s the responsible way to proceed, and that’s what the United States will continue to support.
MODERATOR: The last question will come from Keith.
QUESTION: Keith Bradsher, The New York Times. There’s been talk in the Philippines of climate justice following Typhoon Haiyan or Typhoon Yolanda. Do you see the typhoon as a warning of further super-storms? And if it is, does the United States have a moral and/or financial obligation to provide assistance to the extent of its historical carbon emissions? Thank you.
MODERATOR: Secretary del Rosario.
SECRETARY DEL ROSARIO: Well, I think it has been said that the intensity of and force of Typhoon Yolanda could (inaudible) the expectation in the future that possibly Yolanda could be the norm. So I think that climate change should be such. This is, of course, a threat that we must address, and I think every country on its own must be prepared to address the expectation that Yolanda is not a once in a lifetime, that it may happen again. And that’s why the president has come up with a national plan for reconstruction that will actually be unveiled tomorrow.
And the plan calls for a – not only a build back, but a build back better so that we can enable ourselves to be in a position to withstand similar threats in terms of natural catastrophes. I think each country has got to make provisions for itself, and I think the community of nations hopefully will come to the assistance of nations that are – that suffer this misfortune. That’s – we are a village, a global village, and I think we need to help one another. And natural catastrophes do not choose whether you’re a wealthy country or a poor country. I think that is the reality of what’s happening.
And we are – of course, we’ve reached a point in Yolanda where we’re realizing that the outpouring of support, the overwhelming support we’ve received from the international community, is something that we did not expect. And so we see in our neighbors, in the rest of the global community, we see a face of kindness and a spirit of generosity, and we’re ultimately very grateful for that.
MODERATOR: Secretary Kerry.
SECRETARY KERRY: I’ve been involved in this issue since the 1980s, and I believe in the science of climate change. I believe the scientists who tell us that it is happening, that human beings are contributing to it – a significant cause of the increase of emissions which is creating major changes across the planet. And the scientists predict that we will see massive changes in agriculture, in ecosystems, in fisheries, in water supplies, food security, increased heat, fires, and intensity in storms.
Now, having said everything I just said, science cannot prove that Typhoon Yolanda was specifically the result of climate change. It is not possible to make that direct linkage at this point in time, even though they are predicting greater intensity of storms, but over time a pattern will evolve, and that may become more determinative.
Nevertheless, what we face today is sufficient to say that developed nations in the world need to take the lead in order to reduce emissions and begin to deal with this problem that lots of nations, like the Pacific Islands and others who haven’t caused anything, are feeling the consequences of. That is why we have a major emitters forum of the top 20 emitting countries who are working towards taking steps both of mitigation and prevention.
And President Obama has taken the initiative to put in place a climate action plan in the United States, and is trying to achieve by administrative effort what he cannot get through the United States Congress. And we have taken strong measures on automobile efficiency, new standards for tailpipes on power generation, new power plants, and other things. So we are responding.
We have also responded by trying to help other countries to be able to develop their energy programs, to use USAID for clean and alternative energy and renewable energy and other kinds of programs, as well as to engage in some planning for mitigation and to help other countries to be able to do it. Now, what the levels ought to be is going to be subject to a hot and heavy political debate, obviously. But it is clear that this issue is growing in consequence and importance, and it requires governments all over the world to push towards the next Conference of the Parties that will take place under the UN in order to try to come to an agreement about how we are going to avoid the worst consequences of what has already been put into play.
So President Obama and the United States recognize – at least this Administration recognizes and many senators and congressmen join them – in recognizing a responsibility to try to help deal with this. But there is no yet agreed-upon process by which people will actually implement that, and that is really the fight and struggle over the course of the next Conference of the Parties and the future.
MODERATOR: Thank you, Secretary Kerry and Secretary del Rosario. Ladies and gentlemen, that ends our joint press conference.
Ladies and gentlemen, the Honorable Foreign Affairs Secretary Albert S. del Rosario and His Excellency, John F. Kerry, Secretary of State of the United States of America, will now give their respective statements on the results of the bilateral meeting between the two countries.
Secretary del Rosario.
SECRETARY DEL ROSARIO: Good afternoon, ladies and gentlemen. It was my pleasure and privilege to have welcomed the Secretary of State John Kerry and his delegation to the Philippines. John, I’d like to take this opportunity to once again reiterate our deep appreciation for the tremendous assistance and support that we received in the aftermath of Yolanda in terms of expressions of sympathy, and of course the support which was huge, and included the search-and-rescue teams, relief operations, as well logistics, including 50 – over 50 aircraft and sea vessels. And this also reflected itself in terms of 1,000 U.S. soldiers and Marines on the ground who offered direct assistance and without a doubt helped to save many lives.
We are deeply moved by this, John, and I must say to you that we are very grateful, and I also received from the good Secretary the support for the Philippines in terms of the dauntless task that’s ahead for recovery and reconstruction for the Philippines.
Based on our shared history, our shared values, our shared aspirations, John, the Secretary and I continue to work incessantly on promoting the various dimensions of our bilateral relations that extend from political to defense and security, to economic cooperation, to regional and global concerns. We discussed on how we would elevate our alliance to another level, and this came in the form of the framework on increased rotational presence which we are currently negotiating. We discussed the ways on which we will be able to address transnational threats. We discussed how we would address counterterrorism, the securing of our maritime borders. And this is receiving a significant boost from the Global Security Fund that has been made available to us, which essentially assists our coast guard and as well our PNP, Philippine National Police.
We discussed to a large extent economic cooperation, how this will be expanded, and what areas we’re moving towards. We discussed the TPP. We discussed, for example, the Partners For Growth, Millennium Challenge, how that’s progressing. And we looked at this in terms of how we can be helpful to good governance, to inclusive growth, and to (inaudible).
We discussed as well the WPS, our favorite topic, and the ADIZ, and of course the elements on freedom of navigation and of course adherence to the rule of law. We discussed other topics and – which are of mutual interest. And finally, we reiterated the commitment that we will continue to work towards a more effective partnership and as well a closer friendship.
So thank you, Mr. Secretary. Thank you, everyone.
SECRETARY KERRY: Well, thank you very much, Albert. Mangandang hapon. Good afternoon, everybody. I’m very happy to be here. And I want to thank my good friend, Foreign Secretary Albert del Rosario. He is always very generous in his relationships with us, and especially in his welcome to me. We have met now on the side of meetings in Brunei, in Bali, and we have met in Washington, and now I have an opportunity to be able to come here back to Manila. And I’m very, very pleased to be here with you, Albert. I very much look forward later this evening to meeting with President Aquino at the Malacanang Palace.
And for me, it really is a special pleasure to be able to be back in Manila. First of all, there’s such a great energy in the Philippines today. The economy of the Philippines over the course of the last year has been one of the fastest growing in the world. And I know having my previous visit canceled because of a typhoon, a storm, I’m particularly grateful that President Aquino and Foreign Secretary del Rosario gave me the forbearance to be able to reschedule. I said I would come before the end of the year, and I’m glad that I am here before the end of the year.
I have really always marveled at the amazing spirit of the Filipino people, and I’ve come to know it. I know something about it. First of all, we obviously, all of us in the world, marvel at the remarkable resilience and strength of the Filipino people in responding to the terrible devastation of Typhoon Yolanda. Mr. Secretary, the world has seen your strength and the strength of your people, and we admire it.
Since the typhoon hit, I’m proud to say that the United States has worked very, very closely with our partners in the Philippines. And I’m very grateful on behalf of the American people to Secretary del Rosario for his comments of thanks. The American people are proud to help, and the American people, I think, take great pride in the fact that there is a spirit in our country of helping those in distress, but also there is a special affection for the Philippines. We have been tied together for a long time, and in our meeting today, I reassured the Foreign Secretary of the United States’ commitment to stand by the Philippines as they go through the process now of the recovery and the reconstruction.
We have a long tradition of working together on these kinds of things, from countering extremism to strengthening our economic ties, our maritime security, to fighting poverty and creating the conditions for broad-based prosperity and growth. One of the most enduring aspects of our legacy, our partnership, are the binding ties, the personal ties, between our people. More than 300,000 American citizens live in the Philippines, and nearly four million people of Filipino origin live in the United States and contribute in so many ways to America’s diverse cultural heritage.
I’ve had personal connections to the Philippines for a long period of time, but most recently in 1986, I became involved as a young senator in the effort to have an accountable election when President Marcos called a snap election, and to make certain that democracy was restored in the Philippines. I worked with then-to-become President Cory Aquino and with NAMFREL and others, and I’m proud that during that period of time, I got to travel around the Philippines and see people voting. I will never forget being in Danao and then later up here in Manila and watching people stand, thousands at a time in line, for the privilege of voting, of having their fingers stamped and their thumbs, and of standing in the hot sun in order to make democracy work. It was inspiring. And I’ll never forget the look on the faces of people who were voting for the first time, and the yellow shirts and waving their pro-democracy banners. The courage of the Filipino people then lit a spark that actually traveled around the world, and it inspired not just a young freshman senator from Massachusetts, but it inspired popular movements from Eastern Europe to Burma.
The United States is proud of the rich history that we share and our enduring alliance with the Philippines, which is an important democracy and one of America’s key treaty allies in the dynamic Asia Pacific region, one of our five allies. As the foreign secretary and I discussed today, the United States is committed to working with the Philippines to address its most pressing security challenges. That’s why we are negotiating a strong and enduring framework agreement that would enhance defense cooperation under our alliance, including through an increased rotational presence of U.S. forces in Philippines. And that’s why we have committed $40 million for a new initiative to improve the Philippines’s maritime security and maritime domain awareness.
That’s also why we support efforts to reduce tensions surrounding the territorial and maritime disputes in the South China Sea in two important ways – first, we strongly support ASEAN’s efforts with China to move quickly to conclude a code of conduct as a key to reducing the risk of accidents or miscalculation. In that process, we think that claimants have a responsibility to clarify their claims and to align their claims with international law. That is the way to proceed in resolving any disputes over the South China Sea – peacefully, and with international law.
Second, we support internationally recognized dispute resolution mechanisms such as those that are provided in the Law of the Sea Convention. The United States strongly opposes the use of intimidation, coercion, or aggression to advance territorial claims. And I assured the foreign secretary that the United States remains firmly committed to the security of the Philippines and the region. Today, I raised our deep concerns about China’s announcement of an East China Sea Air Defense Identification Zone. I told the foreign secretary that the United States does not recognize that zone and does not accept it. The zone should not be implemented, and China should refrain from taking similar unilateral actions elsewhere in the region, and particularly over the South China Sea.
I am also pleased to announce that the United States and the Philippines have negotiated an MOU to cooperate in the restoration, operation, and maintenance of Clark Veterans Cemetery. This agreement is not just another piece of paper. It’s about upholding a sacred promise to honor those who served and sacrificed on all of our behalf. So I am enormously gratified that we are ensuring that the 8,600 Americans and Filipinos who are buried on the hallow grounds of that cemetery will receive the respect and the dignity that they deserve. And I might add I was honored today to lay a wreath at the cemetery here in Manila where some 17,201 American and Filipino men and women are buried from World War II. That is the largest cemetery in which Americans are buried from World War II, and it is a remarkable place and it is a humbling tribute to the links between us in our struggle for freedom and for democracy and for dignity.
The United States is also one of the Philippines largest trading partners in Asia. Last year, $22 billion crossed between us in two-way trade. So we look forward to working with the Philippines to further deepen our trade relationship, understanding that this benefits both of us, that it creates jobs in America, in the Philippines – puts people to work, it raises the standard of living, but it also raises the standard of doing business, and that works for everybody.
So we discussed today the possibilities of the Philippines interest in joining the Trans-Pacific Partnership, which is a trade pact that will raise standards and increase broad-based sustainable economic growth throughout the region. And we will be welcoming an initial team to engage with us in early January to have technical discussions regarding this possibility.
All of you know that the Philippines is, of course, an ASEAN state. And the Philippines participation in the U.S.-ASEAN Expanded Economic Engagement Initiative is helping to strengthen the relationship of 10 countries of ASEAN, and lay the groundwork for these nations’ future participation in high-standard agreements such as the TPP. Nearly three decades ago, an unassuming political novice, courageous leader by the name of Corazon Aquino rose to the presidency on the top of a wave called People Power.
Just as the United States did then, today we will stand ready to be a partner in helping the Filipino people realize their full promise. As we meet today’s challenges and chart a path forward together, we draw strength from the principle of the foundation of our shared history, and we look forward to strengthening our relationship by bringing you the greetings of President Obama, who looks forward to coming to the region in the spring of next year, and we will continue to be present and accounted for in our relationships and in our efforts in this region.
Thank you, Mr. Secretary.
MODERATOR: Now, Secretary del Rosario and Secretary Kerry are ready to take a few questions from our media friends.
Manny, please.
QUESTION: Good afternoon, sirs. Manny Mogado from Reuters. You mentioned two developments in the South China Sea and the East China Sea – the ADIZ and the new condition of American warship with the Chinese warship. May we know what America is seeking from China, from the certain set of operational norms or rules, to (inaudible) this? And how soon can the two sides settle this issue to avoid miscalculation and accidents?
And can we ask Secretary del Rosario to comment on the issue since there’s a rising tension between China and the U.S., and there’s (inaudible) increased rotational presence of U.S. forces in the Philippines. Is the Philippines concerned about these developments? And what are our – what do we see? How can we be affected by this?
And my second part of the question is on the TPP. You said that there would be a technical team coming to the U.S. next month. How far can we go from here, since the Philippines has yet to amend its constitution to open up its economy? Thank you.
MODERATOR: Secretary Kerry.
SECRETARY KERRY: Well, with respect to China, let me make it very clear. We don’t view the situation as one of rising tensions. That is not the way we view this, and we don’t want rising tensions, and we’re not looking to do anything except continue a process that President Obama initiated a number of years ago when he began the rebalance to Asia. And what we are involved in are normal processes by which we work with other countries in order to raise their maritime protection capacity. We all have interests in preventing smuggling and preventing terrorism and patrolling our borders and so forth.
So we’re not suggesting that we’re doing something out of the ordinary here. We don’t want anything except a rule-of-law approach to the resolution of any issues and conflicts. So when you say what do we want from China, we would hope to continue to work closely with China, as we are on North Korea and other issues – trade and so forth – in an effort to try to resolve these kinds of differences or questions in a peaceful way. We believe there is a structure that exists – the Law of the Sea structure, an arbitration process. We have not taken a position on the particular claims asserted by anybody. We have taken a position on the way that we think they should be resolved. So we support arbitration and we support rule of law. We do not support unilateral actions that have the impact of being provocative and raising the temperature and potential conflict.
So we are not approaching this with any particular view towards China except to say when China makes a unilateral move, we will state our position and make clear what we agree or disagree with, and that’s what we’ve done with respect to the ADIZ. We do not accept it. We think it is – there’s a way to approach it. A country has a right to establish an ADIZ. But it has to be done through a process of consultation, work with the International Aviation Organization, and in a way that other nations are consulted and work with it. And we think that’s the best way to proceed, and I think most countries in the world believe that’s the best way to proceed.
With respect to the TPP and how far can you go, that’s really a decision that the Philippines has to make. We’re here to talk about the possibilities. Your leaders will have to make their own judgments about those possibilities. And we encourage a robust debate. People may see benefits, they may see downsides, and it’s up to your leadership. We’re not going to presume to tell you what you ought to do or suggest anything, but we do think there are benefits in this agreement, and we hope the Philippines will see the benefits and want to seize them. It is completely up to your leaders to make their decisions about where to go.
MODERATOR: Secretary del Rosario.
SECRETARY DEL ROSARIO: I think on the ADIZ, we had stated an official position as far as China’s establishment of an ADIZ over the East China Sea. Our position was the – China, in doing this, effectively is attempting to transform an air zone into its own domestic airspace, and we think that this is – could lead to compromising freedom of flight in terms of civil aviation. It could also compromise, we believe, safety of and security of the affected nations.
We have called on China to ensure that their actions are not – do not jeopardize the regional security and stability, and we have actually taken the position that – of greater concern, we believe, are the announcements being made by the spokesperson of China and the Chinese ambassador to the Philippines that they will consider ADIZs in other areas in due course. Now, that, for us, is – it will be a problem if it is something that involves the South China Sea.
As far as the TPP is concerned, the president is – I believe is – would like us to positively explore to what extent we can participate, and the U.S. has offered guidance, and we are accepting that offer. And as a matter of fact, we have been meeting with USTR, and there is a technical consultation that will take place in January.
MODERATOR: Thank you, Manny.
Indira.
QUESTION: Thank you. Indira Lakshmanan from Bloomberg News. First question is for Secretary del Rosario and also if Secretary Kerry can add anything to it. Japan has announced its new defense security strategy passed today by the Abe government, and China was quick to denounce it. Do you think that China’s concerns are overblown, or is – or has Japan not even gone far enough in expanding its military considering the constraints? If both of you could address that.
And then Secretary Kerry, on Syria, can you confirm that the U.S. is talking to the Islamic Front? And there were reports that the Islamic Front actually walked out of that meeting today. What do you hope to achieve by it? And also, your close colleague, the French Foreign Minister Fabius, has said that he’s pessimistic about the Geneva II conference actually happening. To get your thoughts on that?
MODERATOR: Secretary del Rosario.
SECRETARY DEL ROSARIO: Yeah. I’m afraid I’ll have to beg for your understanding and pass up that question. I’ve not been briefed on that. That happened this morning, you said. Once I take a look and come to a position, I will send you an email.
MODERATOR: Secretary Kerry.
SECRETARY KERRY: Well, as many of you know, the United States and Japan had what we call a 2+2 meeting a couple of months ago – 2+2 meaning both the Defense Secretary and the Secretary of State, their foreign minister, and their defense secretary, both of us meeting – and we met in Tokyo. And there, we laid out a plan going well into the future. It’s a joint vision of Japan-U.S. cooperation in terms of security for the region and elsewhere. Japan is increasingly playing a responsible, important role in terms of humanitarian assistance, peacekeeping – engagement in seeking peace, the Palestinian-Israeli issue, other issues.
And so our belief is that with respect to the participation in the overall challenges of this region, Japan has an ability to play an increasingly more modern and engaged role. This is something that we have been working on and they have been planning for some period of time. So again, this is not a sudden response to something or anything that anybody should get particularly upset about. It seems to me that we’re only talking about constructive efforts within internationally accepted frameworks, and for peaceful and appropriate purposes. And it is yet to be determined exactly what that role will be or exactly where they will go, but they have an ability to be able to participate more, and we welcome that in the context of our strategic thinking and in terms of our 2+2 engagement. So that is really a reflection, I think, of a path that we’ve been talking about for some period of time, what happened earlier today.
With respect to Syria, the Islamic Front, and Geneva II, the United States has not met yet to date with the Islamic Front. There has not been a discussion, but it’s possible that it could take place. There is an effort afoot among all of the supporter nations of the Syrian opposition, the moderate opposition, to want to broaden the base of moderate opposition and to broaden the base of representation of the Syrian people in the Geneva II negotiation. So there will be some discussions that the UN, Lakhdar Brahimi, the special envoy, and we and others – the UK, France, others in the region – will engage in, in order to make sure that the delegation that goes to Geneva will be as broadly representative as possible of the legitimate oppositionists who could be acceptable at that table. That obviously does not include the radical extremists and the worst elements that are to some degree on the ground.
With respect to Foreign Minister Fabius’s comments, I would just say that we continue to work very, very hard to aim towards Geneva II and the conference. And the reason is very simple – what is the alternative? There’s no alternative other than continued fighting, continued destruction, continued growth in the refugee population, continued potential disintegration of a whole country, and the continued increase of the numbers of radical extremists who are appearing on the scene to fill the void. That is dangerous. We have no choice but to push towards a Geneva conference.
Now, whether it happens, I believe that it can take place in January, but it’s – nobody’s ever suggested it’s going to be easy. Nobody ever suggested that this path is going to suddenly just happen like that and is going to produce an outcome. It is very difficult and it’s not going to happen that rapidly. But the alternative is far worse than fighting to get to the table to have a negotiation and have a negotiated resolution. And I will continue to push for that as well as others because we believe that’s the only solution to the problem of Syria. And so we must find a way to get to that negotiation. Whether it’s difficult or not or whether it has got big hurdles in front of it or not, there is no better alternative than trying to do that.
MODERATOR: Thank you. Next question, Tarra. This is the second to the last question.
QUESTION: Hi, good afternoon, sirs. I’m Tarra from the Philippine Daily Inquirer. Sir, the international community has repeatedly called for sovereignty and rule of law as regards to the situation in South China Sea. But it seems that China has repeatedly taken activities viewed as alarming or provocative, like the ADIZ and the refusal to take part in arbitration. Where do you think is the situation headed, and is there a tipping point, if any at all?
SECRETARY KERRY: Well, I think what’s important, folks, is to lower the intensity, avoid the provocations, work through international law, and for the claimants to stay united and to press international law as the means of resolving this. In my judgment, that is the best way to proceed. And I hope that ultimately, our – that the leaders in China will see the wisdom of engaging in that activity to work through any claims in those institutions and through those laws that were set up specifically to resolve those kinds of claims.
In this day and age, we should be long past the time of unilateral assertion and of coercion as a means of trying to back up that assertion. So our hope is that the parties will come together, continue to proceed through arbitration and international law, and I’m confident that that can ultimately resolve these kinds of questions. And I think we have to have faith in that kind of process. The United States will stand with our friends in this region who are asserting their efforts to try to resolve this through that kind of legal peaceful process. We think that’s the responsible way to proceed, and that’s what the United States will continue to support.
MODERATOR: The last question will come from Keith.
QUESTION: Keith Bradsher, The New York Times. There’s been talk in the Philippines of climate justice following Typhoon Haiyan or Typhoon Yolanda. Do you see the typhoon as a warning of further super-storms? And if it is, does the United States have a moral and/or financial obligation to provide assistance to the extent of its historical carbon emissions? Thank you.
MODERATOR: Secretary del Rosario.
SECRETARY DEL ROSARIO: Well, I think it has been said that the intensity of and force of Typhoon Yolanda could (inaudible) the expectation in the future that possibly Yolanda could be the norm. So I think that climate change should be such. This is, of course, a threat that we must address, and I think every country on its own must be prepared to address the expectation that Yolanda is not a once in a lifetime, that it may happen again. And that’s why the president has come up with a national plan for reconstruction that will actually be unveiled tomorrow.
And the plan calls for a – not only a build back, but a build back better so that we can enable ourselves to be in a position to withstand similar threats in terms of natural catastrophes. I think each country has got to make provisions for itself, and I think the community of nations hopefully will come to the assistance of nations that are – that suffer this misfortune. That’s – we are a village, a global village, and I think we need to help one another. And natural catastrophes do not choose whether you’re a wealthy country or a poor country. I think that is the reality of what’s happening.
And we are – of course, we’ve reached a point in Yolanda where we’re realizing that the outpouring of support, the overwhelming support we’ve received from the international community, is something that we did not expect. And so we see in our neighbors, in the rest of the global community, we see a face of kindness and a spirit of generosity, and we’re ultimately very grateful for that.
MODERATOR: Secretary Kerry.
SECRETARY KERRY: I’ve been involved in this issue since the 1980s, and I believe in the science of climate change. I believe the scientists who tell us that it is happening, that human beings are contributing to it – a significant cause of the increase of emissions which is creating major changes across the planet. And the scientists predict that we will see massive changes in agriculture, in ecosystems, in fisheries, in water supplies, food security, increased heat, fires, and intensity in storms.
Now, having said everything I just said, science cannot prove that Typhoon Yolanda was specifically the result of climate change. It is not possible to make that direct linkage at this point in time, even though they are predicting greater intensity of storms, but over time a pattern will evolve, and that may become more determinative.
Nevertheless, what we face today is sufficient to say that developed nations in the world need to take the lead in order to reduce emissions and begin to deal with this problem that lots of nations, like the Pacific Islands and others who haven’t caused anything, are feeling the consequences of. That is why we have a major emitters forum of the top 20 emitting countries who are working towards taking steps both of mitigation and prevention.
And President Obama has taken the initiative to put in place a climate action plan in the United States, and is trying to achieve by administrative effort what he cannot get through the United States Congress. And we have taken strong measures on automobile efficiency, new standards for tailpipes on power generation, new power plants, and other things. So we are responding.
We have also responded by trying to help other countries to be able to develop their energy programs, to use USAID for clean and alternative energy and renewable energy and other kinds of programs, as well as to engage in some planning for mitigation and to help other countries to be able to do it. Now, what the levels ought to be is going to be subject to a hot and heavy political debate, obviously. But it is clear that this issue is growing in consequence and importance, and it requires governments all over the world to push towards the next Conference of the Parties that will take place under the UN in order to try to come to an agreement about how we are going to avoid the worst consequences of what has already been put into play.
So President Obama and the United States recognize – at least this Administration recognizes and many senators and congressmen join them – in recognizing a responsibility to try to help deal with this. But there is no yet agreed-upon process by which people will actually implement that, and that is really the fight and struggle over the course of the next Conference of the Parties and the future.
MODERATOR: Thank you, Secretary Kerry and Secretary del Rosario. Ladies and gentlemen, that ends our joint press conference.
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