REMARKS BY SECRETARY KERRY, GERMAN FOREIGN MINISTER STEINMEIER

 FROM:  STATE DEPARTMENT 
Remarks With German Foreign Minister Frank-Walter Steinmeier After Their Meeting
Remarks
John Kerry
Secretary of State
Berlin Tegel Airport
Berlin, Germany
January 31, 2014

FOREIGN MINISTER STEINMEIER: (Via interpreter) Well, ladies and gentlemen, allow me to bid you a very warm welcome. And let me say that I’m delighted to have my American colleague here today, that I am able to welcome him here to Berlin. It’s more than a stopover on the road towards Munich. We’ll see each other again on the margins of the security conference there.

Dear John, I’m very pleased to have you, delighted to be able to welcome you. The favorable winds across the Atlantic brought you here a little bit earlier than could be expected yesterday night, so this is why our talk here today was a little bit more extensive than we could have hoped for, which is a very good thing. And it’s very important, because as long as politics are made by people, and hopefully this is going to be the case for a very long time, personal contacts among those who are in political responsibility is of the utmost importance. And I think that this was a very good beginning.

We meet at an airport in Berlin. It’s not Tempelhof. Had we met in Tempelhof, we would be able to see the monument that was erected in memory of the airlift, and it would remind of those times. It would remind us of the very close links and bonds that have existed between Germany and the United States of America. We are very much aware here in Germany that a development towards a stable democracy in Germany would not have been possible without the assistance of Americans as well.

And we know that the suffering of the German people, particularly here in Berlin, would have been immeasurable had not America stepped in at the time, recognized clearly, seen its responsibility, and alleviate the suffering of the people who were enclosed.

And well, in a nutshell, ladies and gentlemen, German-American friendship is a reality. That doesn’t exclude that, from time to time, we may see things differently. That became very clear over the last few weeks and months when we were debating the surveillance activities of the NSA. But let me also state quite clearly such a debate, differences of opinion, if they are there and when they are there, must not be allowed to destroy a friendship that has grown over so many decades. And I am sure it won’t destroy this friendship.

It is true we all have to face challenges, but I am absolutely confident that we will be able to weather those challenges, because the debates that we have to make with each other we are able to have on a very firm foundation, on a very firm base as well.

Trust has been lost. I’m confident we will be able to rebuild it, to restore it. We talked about this today in our meeting, how we can actually get again into a bilateral dialogue where we look at those different assessments where we are trying to discuss about how we strike an equitable balance between freedom and security, which is sometimes difficult. We also addressed a number of bilateral issues, as I said. But we also looked a little bit beyond our two nations. The international agenda that will keep us busy also over this weekend in Munich was at the very top of our agenda.

We have just now come back from the Syrian conference. A small step was made in order to prepare to pave the way for an end to the civil strife in Syria and the civil war. Obviously, we are not completely satisfied, cannot be completely satisfied with the state of the negotiations. The only thing that we can safely say and that is positive is that those parties that for three years have been waging war against each other at least agreed at last to be at one at the same negotiating table and one in the same room. Sitting there together today, the first stage of negotiations at working level will end, and I think both of us hope that the delegations from Syria, after an appropriate time, will meet again in order to continue those negotiations.

The incredible suffering in Syria on the ground – death, expulsion, flight – all of that requires a solution where local cessation of hostilities, humanitarian corridors can be established at least as a next step. The crisis in Syria is one where my American colleague is very much engaged on, and I would like to issue a word of respect. It is a very strong attempt of the American Government to bring about also in the vicinity a solution to the Middle East peace – to the Middle East conflict, to find and establish a two-state solution, find a breakthrough there in the negotiations.

We talked about that as well just now, about the ongoing negotiations with the Israelis and the Palestinians. And dear John, I hope that your very good efforts will, in the end, be crowned by success. Wherever we see these attempts, these efforts to finally come to a peaceful solution to the Middle East conflict, wherever we can support that, we will gladly do so. And the same goes for those talks that we’ve had for quite some time already with Iran. It shows how long it may well take until conflicts that have – that are protracted, that have lasted for decades can again be calmed down. More than 30 years of conflict, more than 10 years of negotiations with Iran. Now a first step has been made that seems to be a fairly encouraging one, at least one that encourages us to test whether the Iranians, in that first step of negotiations, have been serious – whether that will be followed up in the next few weeks and months to come so that the long, ongoing dispute over the nuclear ambitions of Iran can be brought to a successful and peaceful settlement.

Tonight and tomorrow, over the weekend, we shall have an opportunity to address the situation in Ukraine repeatedly. The good news is that the last nights were more calm than the previous ones. We did not receive any news of casualties, but we’re far away from a political solution. That is true, too, there have been offers also from Yanukovych. Until this moment, we don’t know whether these offers are actually ones that one can build on that are reliable. In Munich, representatives of the opposition and of the government will be there on the ground. We shall have an opportunity to talk to the representatives of Ukraine, but we will also have an opportunity to talk to other foreign ministers present and try to explore, try to sound out what one can do not only to calm down the situation in Ukraine, but to also lend a helping hand towards enabling this country, Ukraine, to have a free and democratic future.

Thank you very much. Dear John, you have the floor.

SECRETARY KERRY: Well, thank you. You guys alright? (Laughter.)

Thank you, Frank-Walter. (Via interpreter) I am delighted to be back in Germany.

(In English) I’m really happy to be back here in Berlin, where I spent some formative years as a child. I remember Tempelhof. Obviously, we all remember the history of those events. But usually, when I came into Berlin back then, I came on a special military train from Frankfurt, which was an all-night trip. And for a young kid of 11, 12 years-old, it was a great adventure, I can assure you.

It’s special for me to be back here, and I thank my friend, Frank-Walter, for his hospitality and for being willing to meet us here at the airport like this because he has to rush off to open the Munich conference. I get to spend a little more time, and then I will join him in Munich this afternoon for the rest of that conference over the next several days. And we are grateful to Germany for its longtime hosting of this important security gathering.

Almost a year ago, I came here on my first trip as Secretary of State. And I came here – I think this was one of my first stops – because of the value, of the longstanding relationship between the United States and Germany, and particularly, I want to say, with the German people. It’s no secret, and my friend Frank-Walter referred to it, that we’ve been through a rough period in the last months. But I’m pleased to be here to help direct our focus – my focus, that of the United States and of Germany – to the future and to strengthen the trust and the confidence that has always characterized this relationship. A strong U.S.-German partnership is crucial to the long list of global issues that we face. The United States, I want you to know, welcomes Germany’s growing and important role on the world stage.

I was grateful to see Foreign Minister Steinmeier at the Geneva II conference where we had a chance to talk just a couple of weeks ago. And there we reiterated the need for a Syrian-led political solution on the brutal civil war. We’re also working very closely – again, as he discussed – on the P5+1 negotiations with respect to Iran. The international community has expressed its concerns over Iran’s nuclear program through several United Nations resolutions, and obviously, they have been – those concerns have been reinforced through the sanctions regime that has been put in place by the global community – not by one country, but with the support and ratification and affirmation of the United Nations Security Council.

So we are working together, Germany and the United States, on this critical security challenge. We are also working hand-in-hand with respect to Afghanistan, and we are very mindful of the challenges that lie ahead, but also of the deep commitment that exists between us and our important leadership with respect to the other countries involved, so that we can have a successful conclusion to this significant effort and hopefully build a prosperous future for the Afghan people.

We also discussed briefly our ongoing economic relationship. Germany and the United States – Germany is the United States’ largest single European trading partner. And this is a relationship that has meant more jobs, investment, and growth in both of our countries. We believe that much more exciting opportunities lie ahead, and this must be one of the primary areas of focus for both of us.

We are working on the Transatlantic Trade and Investment Partnership – the TTIP, as it is called. And this is a trade arrangement that could result in one of the world’s largest markets being created – the combined market of Europe and the United States – Europe the largest market in the world, the United States the largest single economy in the world. And if we can raise the standards, what we do is help the citizens of both of our countries, and indeed, of the rest of the world to see that the global community is responding in a way that provides opportunity for everybody and helps to raise the standards – the living standards, the labor standards, the trade standards, the product standards – all of the things that benefit our people. So that’s what we’re working for.

When I was here in Berlin last year – and I look forward to coming back here and being able to do this again – I had a really enjoyable, fun session with a group of young people. And we met in a cafe in the city and had a question-and-answer session, an opportunity for me to listen to them, them to listen to me, and just talk. And it was a great opportunity for me to understand better the hopes and aspirations of the next generation, and also to reconnect on a people-to-people level. It really was clear to me that young Germans and young Americans of any persuasion, walk of life, religion, belief all share the same goals, the same aspirations, and the same concerns. They share the same dreams and they share most of the same values.

So it’s our hope that those aspirations for opportunity, for democracy, for liberty, freedom, which have been at the heart of our bilateral relationship, will continue to be the centerpiece of what defines German-American relations. Those values are why both Germany and the United States find the recent events in Ukraine so concerning. We have worked shoulder-to-shoulder. Foreign Minister Steinmeier has talked to the opposition. I have talked to the opposition. We will meet with the opposition and with other leaders in Munich, and we will have an opportunity to be able to press forward in the months ahead to support democracy, freedom, freedom of association, and to support the European aspirations of the Ukrainian people. And together, we join firmly to reject violence. We are encouraging and supporting political dialogue. We hope that together, we can remain committed to helping the Ukrainians end the human rights abuses, get political prisoners released, and see their dignity restored.

So we look forward to continuing to work with Germany very, very closely to make progress on all of these issues, and frankly, just to build on the strength of the relationship that has defined United States-German relations for many decades now. And I look forward to my further meetings on that subject, but most importantly, I look forward to turning a page and getting us focused on the larger, most critical issues that we face together. Thank you.

MODERATOR: (Via interpreter) Questions from the American side, please.

QUESTION: A question for both ministers, please: What can you do to force Syria to meet its chemical weapons obligations on the deadlines that have been laid out? And on Ukraine, President Yanukovych says his government has met its obligations to resolve the crisis. Do you believe that’s true? And what is your message for the Ukrainian opposition leaders that you’ll be meeting in Munich? Thank you.

SECRETARY KERRY: Well – go ahead.

FOREIGN MINISTER STEINMEIER: No.

SECRETARY KERRY: Well, with respect to Ukraine, no. The offers of President Yanukovych have not yet reached an adequate level of reform and an adequate level of sharing of the future so that the opposition can, in fact, feel that it could legitimately come to the table and form some kind of a unity government.

Now, we believe unity is important. And we believe that moving towards that is critical. So our message to the Ukraine opposition – that is certainly my message to them that we meet with today – will be the full support of President Obama and the American people for their efforts. We will reinforce their courage and their need to continue to be unified as they press for an adequate level of a reform agenda. But we will also say to them: If you get that reform agenda, if you are able to secure genuine participation and a genuine ability to bring the country together, then we would urge them to engage in that, because further standoff and further violence – or violence that becomes uncontrollable – is not in anybody’s interest.

We also would say to our friends in Russia: This does not have to be a zero-sum game. This is not something where Ukraine should become a proxy and trapped in some kind of larger ambition for Russia or the United States. That’s not what this is about. This is about the freedom of choice for the people of Ukraine, and their ability to be able to define their future without coercion from outside forces. And that’s what we hope to achieve.

With respect to Syria, let me make it clear that Bashar al-Assad needs to understand that he agreed to an international United Nations Security Council Resolution which has reinforced a requirement that he remove all of those weapons and that he do so in a specific period of time. That was passed by unanimity within the United Nations Security Council. Russia is a partner in this effort. And Russia obviously plays a critical role in helping the Syrians to understand their obligation of compliance.

Now, Bashar al-Assad is not, in our judgment, fully in compliance because of the timing and the delays that have taken place contrary to the OPCW’s judgment that this could move faster. So the options are all the options that originally existed. No option has been taken off the table. We made that clear at the time of the passage of the UN resolution, and I restate that now today. We want the Syrian regime to live up to its obligations. And it is critical that very rapidly all of those chemical weapons be moved from once – from their 12 or so sites to the one site in the port and be prepared for shipment out of Syria all together.

Every indication we have is there is no legitimate reason that that is not happening now. And therefore we call on Bashar al-Assad to live up to his obligations or we will join together with our friends and talk about which, if any, of the options we deem necessary at this point to proceed forward.

FOREIGN MINISTER STEINMEIER: (Via interpreter) Allow me to complement that briefly. I think the importance of this agreement on the destruction of chemical weapons cannot be overestimated. After three years of civil war in Syria, this was the first agreement that allowed at least to prevent a further escalation of the violence. So it is so important therefore that these agreements are abided by. And to complement what Secretary Kerry just said, I think the Syrians and Assad need to be well aware of the fact that they’re not only toying with their own credibility but after the first talks with the Americans, the Russian side was also in on this, so they’re also toying with the credibility of the Russian side. So I very much hope that this is not the end of the debate, but that there will be pressure and adequate pressure on the Syrian side to stand by their commitments. And this is an element also that is part and parcel of how we got to Geneva II in the first place. So the agreement on the destruction of chemical weapons is very important, and if it is not kept, that would have a negative impact on Geneva II.

To complement this even further, we – and I’m saying this for the German side, as the German journalists know – only a few days ago we adopted a decision about correct – the position that we have taken up until now. We have said if the negotiations towards a political solution in Syria are to be injected with at least a glimmer of hope, then we too need to step in and give our contribution to making this possible. And this is why we have decided to be part of the destruction of chemical weapons, and those chemical weapons that are transported out of Syria. And together with American assistance, they are diluted on the Mediterranean and the residual components will then have to be removed. We have the technical possibilities to help with this process in Germany, and we are glad to be of help. So should those chemical weapons be transported from Syria, out of Syria, then about two-thirds of those weapons will be destroyed in Northern Germany.

As to Ukraine, I don’t need to add to what the Secretary has said. My impression is that Yanukovych, up until now, still has not fully understood how serious the situation is, as can clearly be seen by the nature of the offers that have been made. They have been made contingent on a number of conditions. So up until now, we have not – we do not see yet that those offers that have been made to the opposition in the end will really make a crucial difference, politically speaking, on the ground in Ukraine. And we still are not able actually to say to what extent the president is willing and ready to accept a change of his – remit of his competences according to the constitution. And that’s going to be crucial in order to come to an agreement with the opposition.

QUESTION: (Via interpreter) (Inaudible) from the German Press Agency. I have two questions directed to Secretary Kerry. You will soon – you will now also meet Chancellor Merkel, who has apparently been surveyed – eavesdropped on by the secret intelligence service of your country. I would like to know whether you are ready – whether the American side is ready to come to a contractual basis that, in the future, bans such spying – we call it, which is a bit curious, a no-spy agreement? And there are quite a number of people here in Germany who think that actually the United States ought to issue an apology. Would you be ready to do that?

SECRETARY KERRY: Well, look, the United States and Germany enjoy a really long friendship, as we have described here today, and a long history, a long history of great cooperation, and particularly on complicated issues like counterterrorism and national security and defense. As part of our deep relationship, we cooperate very, very significantly on all of the collective security issues of our countries and our citizens. As the foreign minister knows, because he’s been here before, and he’s also been involved in security issues for a long time, none of this is simple. None of this is easy.

And since 9/11, when we were attacked out of nowhere and more lives were lost than at any time since Pearl Harbor, we responded, we think carefully, but in ways that tried to deal with the protection of not just the American people, but of everybody against acts of terrorism. Madrid saw a terrible act of terrorism, London has seen acts of terrorism – Athens, various other places. And we are living in a world where unfortunately some people are willing to strap a pack on their back and walk into a crowded theater or a sports event and just blow people up. So we are trying to respond as intelligently and responsibly of all that.

Now, Chancellor Merkel and President Obama, at their mutual direction – and they’ve had several conversations – we have undertaken a extensive, close consultation with Germany, which we are engaged in on the subject of cooperation and how we move beyond this particular challenge. We now have a better understanding, I think, of the requirements and the concerns of both sides.

So what I can tell you is the consultations will continue between our intelligence services. And we absolutely share a commitment to trying to put this behind us in the appropriate way and to strengthen our practical cooperation going forward. Our consultations right now reflect our close relationship, they reflect the shared threats that we face, and the technical – very complicated technical environment in which we live where the threats to us have changed and become, in many ways, more lethal and harder to discover.

So we will continue to work to protect the privacy interests of all of our citizens. When I was in the United States Senate, John McCain and I are the original authors of the privacy laws and rules for the internet. So we are committed to privacy, and I assure our friends in Germany this will get worked through in the proper channels in the proper way, but most importantly Germany and the United States have very significant issues to continue to work on together and none of us want to let this get in the way of our ability to be able to continue to build our friendship and our cooperation.

Thank you all.

FOREIGN MINISTER STEINMEIER: Thank you.

THREE INDICTED IN $190 MILLION MEDICARE FRAUD CASE

FROM:  JUSTICE DEPARTMENT 
Thursday, January 30, 2014
Three Miami Residents Indicted for Alleged Roles in $190 Million Medicare Fraud Scheme
Three Miami residents have been indicted for their alleged participation in a $190 million Medicare fraud scheme.

Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement after the indictment was unsealed.

On Jan. 28, 2014, a federal grand jury in Miami returned a 10-count indictment charging Nelson Rojas, 43, Roger Bergman, 64, and Rodolfo Santaya, 54, for allegedly participating in a scheme to defraud Medicare by submitting false and fraudulent claims, from approximately December 2002 to October 2010.

Rojas was charged with conspiracy to pay and receive bribes and kickbacks in connection with a federal health care program, conspiracy to commit money laundering, two counts of money laundering and one count of aggravated identity theft.  Bergman and Santaya were each charged with conspiracy to commit health care fraud and wire fraud.  In addition, Bergman was charged with conspiracy to make false statements relating to health care matters.  Santaya was also charged with conspiracy to pay and receive bribes and kickbacks in connection with a federal health care program, as well as two counts of receiving bribes and kickbacks in connection with a federal health care benefit program.

According to the indictment, Rojas, Bergman and Santaya allegedly participated in a scheme orchestrated by the owners and operators of American Therapeutic Corporation (ATC) and its management company, Medlink Professional Management Group Inc.  ATC and Medlink were Florida corporations headquartered in Miami.  ATC operated purported partial hospitalization programs (PHPs), a form of intensive treatment for severe mental illness, in seven different locations throughout South Florida.  Both corporations have been defunct since October 2010.

The indictment alleges that Bergman was a licensed physician’s assistant who participated in the scheme by, among other things, admitting Medicare beneficiaries to ATC facilities for PHP treatment even though they did not quality for such treatment and falsifying patient records to make it appear as though patients needed, qualified for and actually received legitimate PHP treatment when they did not.  The indictment alleges that Santaya served as a patient recruiter who provided ineligible patients to ATC in exchange for kickbacks.  The indictment alleges that Rojas was the co-owner of a check cashing business and that he facilitated the payments of bribes and kickbacks from ATC to various patient recruiters.

ATC, Medlink and various owners, managers, doctors, therapists, patient brokers and marketers of ATC and Medlink have pleaded guilty or have been convicted at trial.  In September 2011, ATC owner Lawrence Duran was sentenced to 50 years in prison for his role in orchestrating and executing the scheme to defraud Medicare.

The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

The case is being investigated by the FBI and HHS-OIG 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 Florida.  The case is being prosecuted by Assistant Chief Robert A. Zink and Trial Attorney Nicholas E. Surmacz.

Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,700 defendants who collectively have falsely 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.

UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT FOR WEEK ENDING JANUARY 25, 2014

UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT
          SEASONALLY ADJUSTED DATA

In the week ending January 25, the advance figure for seasonally adjusted initial claims was 348,000, an increase of 19,000 from the previous week's revised figure of 329,000. The 4-week moving average was 333,000, an increase of 750 from the previous week's revised average of 332,250.

The advance seasonally adjusted insured unemployment rate was 2.3 percent for the week ending January 18, unchanged from the prior week's unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending January 18 was 2,991,000, a decrease of 16,000 from the preceding week's revised level of 3,007,000. The 4-week moving average was 2,970,250, an increase of 43,500 from the preceding week's revised average of 2,926,750.

UNADJUSTED DATA

The advance number of actual initial claims under state programs, unadjusted, totaled 354,604 in the week ending January 25, a decrease of 59,707 from the previous week. There were 369,480 initial claims in the comparable week in 2013.

The advance unadjusted insured unemployment rate was 2.6 percent during the week ending January 18, a decrease of 0.1 percentage point from the prior week. The advance unadjusted number for persons claiming UI benefits in state programs totaled 3,445,204, a decrease of 60,438 from the preceding week. A year earlier, the rate was 2.9 percent and the volume was 3,678,926.

The total number of people claiming benefits in all programs for the week ending January 11 was 3,583,501, a decrease of 122,586 from the previous week. There were 5,916,993 persons claiming benefits in all programs in the comparable week in 2013.

No state was triggered "on" the Extended Benefits program during the week ending January 11.

Initial claims for UI benefits filed by former Federal civilian employees totaled 1,918 in the week ending January 18, a decrease of 309 from the prior week. There were 2,246 initial claims filed by newly discharged veterans, a decrease of 203 from the preceding week.

There were 23,789 former Federal civilian employees claiming UI benefits for the week ending January 11, an increase of 483 from the previous week. Newly discharged veterans claiming benefits totaled 32,686, an increase of 1,095 from the prior week.

The Emergency Unemployment Compensation (EUC) program expired on January 1, 2014, and under current law no EUC payments will be made for weeks of unemployment after this date.

The highest insured unemployment rates in the week ending January 11 were in Alaska (6.5), Connecticut (4.2), New Jersey (4.2), Puerto Rico (4.0), Pennsylvania (3.9), Rhode Island (3.9), Wisconsin (3.9), Illinois (3.8), Montana (3.7), and West Virginia (3.7).

The largest increases in initial claims for the week ending January 18 were in California (+11,708), Oregon (+1,239), Rhode Island (+304), and Virgin Islands (+7), while the largest decreases were in Pennsylvania (-16,595), Indiana (-10,740), Texas (-8,789), Georgia (-8,119), and Massachusetts (-5,863).

U.S. DEFENSE DEPARTMENT CONTRACTS FOR JANUARY 31, 2014

FROM:  DEFENSE DEPARTMENT 
CONTRACTS
 DEFENSE LOGISTICS AGENCY

Lancair Corporation,* San Diego, Calif., has been awarded a maximum $15,635,562 fixed-price with economic-price-adjustment contract for jet fuel.  This contract is a sole source acquisition.  Location of performance is California with a Mar. 31, 2018 performance completion date.  Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies.  Type of appropriation is fiscal year 2014 through fiscal year 2018 defense working capital funds.  The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Va.; (SP0600-14-D-0008).

Bronze Star Apparel Group, Inc., ** San Juan, Puerto Rico has been awarded a maximum $11,111,611 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for various Navy working uniform blouses and trousers.  This contract is a competitive acquisition and six offers were received.  Location of performance is Puerto Rico with a Jan. 30, 2015 performance completion date.  This is a one-year base contract with four one-year option periods.  Using military service is Navy.  Type of appropriation is fiscal year 2014 through fiscal year 2015 defense working capital funds.  The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.; (SPE1C1-14-D-1014).

Wolverine Services LLC,*** Anchorage, Alaska., has been awarded a maximum $6,769,722 modification (P00010) exercising the second option year on a one-year base contract (SP3300-11-C-0003) with four one-year option periods for facility maintenance and repair.  This is a firm-fixed-price with time and material line items contract.  Locations of performance are Alaska and California with a Jan. 31, 2017 performance completion date.  Using military service is federal civilian agency.  Type of appropriation is fiscal year 2014 defense working capital funds.  The contracting activity is the Defense Logistics Agency Distribution, New Cumberland, Pa.

*Small Business
**Service-Disabled Veteran Owned Small Business
***Small Disadvantaged Business

ARMY

General Dynamics, Sterling Heights, Mich. was awarded a $72,690,235 firm-fixed-price contract for the acquisition of twelve M1A2 System Enhanced Package v2 tanks. Fiscal 2013 other procurement funds in the amount of $15,712,969 were obligated at the time of the award. Estimated completion date is Dec. 31, 2015. One bid was solicited with one received. Work will be performed in Lima, Ohio; Scranton, Pa.; Anniston, Ala.; and Tallahassee, Fla. Army Contracting Command, Warren, Mich. is the contracting activity (W56HZV-14-C-0054).

Conti Federal Services, Inc., Edison, N.J. (W912GB-14-D-0002); Cosmopolitan Inc., Columbia, Md. (W912GB-14-D-0003); CT JV, Bargersville, Ind. (W912GB-14-D-0004); M+W U.S., Inc., Watervliet, N.Y. (W912GB-14-D-0005); Nibor Enterprises, Inc.; North Miami Beach, Fla. (W912GB-14-D-0006); Oxford Construction of Pa. Inc.,  Philadelphia, Pa (W912GB-14-D-0007) were awarded a $24,975,000 firm-fixed-price foreign military sales contract for construction projects in Israel. Funds and work performance location will be determined with each order. Estimated completion date is Jan. 30, 2015. Bids were solicited via the Internet with seven received. Army Corps of Engineers, Europe is the contracting activity.

*Design West Technologies, Inc., Tustin, Calf. was awarded a $21,554,266 firm-fixed-price  indefinite delivery/indefinite quantity contract for fourteen suspension lock-out kits and associated spare parts for the M119 Howitzer. Funding and work performance location will be determined with each o
rder. Estimated completion date is Jan. 31, 2019. Bids were solicited via the Internet with four received. Army Contracting Command, Picatinny Arsenal, N.J. is the contracting activity (W15QKN-14-D-0019).

*Heckler and Koch Defense LLC, Ashburn, Va., was awarded a $19,647,426 firm-fixed-price contract for 12,400 M320 or M320A1 grenade launchers. Fiscal 2010 and 2013 other procurement funds in the amount of $19,647,426 were obligated at the time of the award. Estimated completion date is Jan. 13, 2016. One bid was solicited with one received. Work will be performed Columbus, Ga., Ashburn, Va., and Germany Army Contracting Command, Picatinny Arsenal, N.J. is the contracting activity (W15QKN-14-C-0028).

Booze Allen Hamilton, Inc., McLean, Va. was awarded a $16,080,397 cost-plus-fixed fee contract for system engineering and technical assistance support services for the development5, implementation, and deployment for the integrated personnel and pay system. Fiscal 2013 research, development, test, and evaluation funds in the amount of $14,000,000 were obligated at the time of the award. Estimated completion date is Jan. 31, 2015. Bids were solicited via the internet with one received. Work will be performed in Alexandria, Va. Army Contracting Command - Picatinny Arsenal, N.J. is the contracting activity (W15QKN-14-C-0032).

Mississippi Limestone Corp., Friars Point, Miss. was awarded a $8,751,228 firm-fixed-price contract for casting 94,640 squares of articulated concrete mattress, providing all necessary supplies, labor, and transportation to complete the project. Fiscal 2014 other procurement funds in the amount of $8,751,228 were obligated at the time of the award. Estimated completion date is Dec. 31, 2014. Bids were solicited via the Internet with two received. Work will be performed at Richardson Landing, Tenn. Army Corps of Engineers, Memphis, Tenn. is the contracting activity (W912EQ-14-C-0009).

*small business

AIR FORCE

Lockheed Martin Corporation, Marietta Ga., has been awarded a $105,287,400 (P00026) modification for an existing indefinite-delivery/indefinite quantity contract (FA8504-06-D-0001) for the C-130J Long Term Sustainment Program.  The contract modification provides for the exercise of the third annual option, a two-year ordering period for sustainment services including logistical support, program management support, engineering services, spares, and technical data in support of C-130J sustainment.  Work will be performed at Marietta, Ga., and is expected to be completed by Jan. 31, 2016.  No funds are being obligated at time of award, but will be obligated with each task order.  Air Force Life Cycle Management Center/WLKCA, Robins Air Force Base, Ga., is the contracting activity.

Lockheed Martin Aeronautics Corp., Marietta, Ga., has been awarded a $48,900,000 ceiling requirements contract for C-130J Long Term Sustainment Support for the Royal Norwegian Air Force.  The estimated value of the first order is $6,908,874.  Contractor will provide the Royal Norwegian Air Force with Return and Repair support, spares support, engineering support, in country representative support, and modification support for their C-130J aircraft platform. Work will be performed at Marietta, Ga. and at Gardermoen Air Station, Norway, and is expected to be completed by Nov. 30, 2018. This award is the result of a sole source acquisition and is 100 percent foreign military sales for Norway.  Air Force Life Cycle Management Center/WLKCB, Robins Air Force Base, Ga., is the contracting activity; (FA8553-14-D-0001)

Harris Corp. Government Communication Systems, Palm Bay, Fla., has been awarded a cost- plus-Award-Fee modification (P00161) for a total face value of $13,693,104 which includes $12,751,762 in estimated cost, $281,963 in base fee, and $659,379 in potential award fee.  This modification is being issued under a previously awarded contract (FA8819-08-C-0001 Space Control Depot Support) for the exercise of an option for additional sustainment labor hours.  These hours will provide uninterrupted Contractor Logistic Support for Space and Missile Systems Center Space Superiority operational Offensive Counterspace and Defensive Counterspace ground-based systems.  The work will be performed at Palm Bay, Fla., and is expected to be completed by Jan. 31, 2015.  Fiscal 2014 Operations and Maintenance funds in the amount of $2,546,846 are being obligated at time of award.  The cumulative face value of this contract is $265,396,292.  Space and Missile Systems Center (SMC)/Space Superiority Systems Directorate, Los Angeles Air Force Base, El Segundo, Calif., is the contracting activity.

Jacobs Technology, Inc., Lincoln, Mass., has been awarded a $10,657,764 modification (P00019) on an existing cost-plus-fixed -fee and cost-reimbursable contract (FA8721-13-C-0006) to continue providing Engineering Technical Assistance Support Services which consists of disciplined systems/specialty engineering and technical/Information Assurance services, support, and products using established government, contractor, and industry processes.  Work will be performed at Lincoln, Mass., and is expected to be completed by May 19, 2014.  DoD Fiscal 2013 Research and Development funds in the amount of $207,000 will be obligated at time of award.  Air Force Life Cycle Management Center/PZM, Hanscom Air Force Base, Mass., is the contracting activity.

Jacobs Technology, Inc., Lincoln, Mass., has been awarded a $7,712,796 modification (P00018) on an existing cost-plus-fixed -fee and cost-reimbursable contract (FA8721-13-C-0002) to continue providing Engineering Technical Assistance Support Services which consists of disciplined systems/specialty engineering and technical/Information Assurance services, support, and products using established government, contractor, and industry processes.  Work will be performed at Hanscom Air Force Base, Mass., Peterson AFB, Colo., and Dahlgren, Va., and is expected to be completed by May 19, 2014. Fiscal 2014 Operations and Maintenance funds in the amount of $926,188.50 Research and Development funds in the amount of $601,677 and Procurement funds in the amount of $633,318 will be obligated at time of award.   Air Force Life Cycle Management Center/PZM, Hanscom AFB, Mass., is the contracting activity.

Texas Department of Assistive & Rehabilitative Services, Austin, Texas, has been awarded a $0 modification (P00025) on an existing indefinite delivery requirements contract (W9124J-09-D-0005) for Food Services. The total cumulative face value of the contract is $75,126,351. The contract modification provides for the increase of additional quantities under the basic requirements contract. A subsequent task order (12) in fiscal 2014 Operations and Maintenance funds will be awarded no later than Jan. 31, 2014 to order additional quantities at an estimated cost of $15,152,144 in under the scope of the basic contract. Work will be performed at Joint Base San Antonio, Texas, and is expected to be completed by Jan. 31, 2015. Fiscal 2014 Operations and Maintenance funds 502 Contracting Squadron, Joint Base San Antonio, Texas, is the contracting activity.

NAVY

CH2M HILL Constructors, Inc., Englewood, Colo., is being awarded $44,240,000 for firm-fixed-price task order JU01 under a previously awarded indefinite-delivery/indefinite-quantity multiple award contract (N62470-13-D-6019) for the design and construction of the Naval Sea Systems Command (NAVSEA) Headquarters Recovery Restoration at Naval Support Activity Washington.  The work to be performed provides for the design and construction to restore the NAVSEA Headquarters building.  The work will provide repurposed and reconfigured areas on multiple floors to improve the efficiency and communication of NAVSEA within the facility.  The task order also contains one unexercised option, which if exercised, would increase cumulative task order value to $67,240,000.  Work will be performed in Washington, D.C., and is expected to be completed by February 2015.  Fiscal 2014 military construction, Navy contract funds in the amount of $44,240,000 are obligated on this award and will not expire at the end of the current fiscal year.  One proposal was received for this task order.  The Naval Facilities Engineering Command, Washington, Washington, D.C., is the contracting activity.

The Boeing Co., St. Louis, Mo., is being awarded $38,103,120 for cost-plus-fixed-fee delivery order 0017 under previously awarded contract (N00383-06-D-001J) for F/A-18E/F logistics support and associated material requirements.  Work will be performed at St. Louis, Mo., and is expected to be completed by Dec. 31, 2015.  Fiscal 2014 Navy working capital funds in the amount of $38,103,120 will be obligated at the time of award, and will not expire at the end of the current fiscal year.  The contract was not competitively procured in accordance with 10 U.S.C. 2304 (c)(1).  The Naval Supply Systems Command, Weapon Systems Support, Philadelphia, Pa., is the contracting activity.

The Boeing Co., St. Louis, Mo., is being awarded $26,836,716 for firm-fixed-price delivery order 0004 under a previously awarded Basic Ordering Agreement (N00383-11-G-001H) for the repair of various parts in support of the F/A-18 aircraft.  Work will be performed at Lemoore, Calif. (55 percent); Cecil Field, Fla. (44 percent); and Philadelphia, Pa. (1 percent), and is expected to be completed by Dec. 31, 2016.  Fiscal 2014 Navy working capital funds in the amount of $26,836,716 will be obligated at the time of award, and will not expire at the end of the current fiscal year.  The contract was not competitively procured in accordance with 10 U.S.C. 2304 (c)(1).  The Naval Supply Systems Command, Weapon Systems Support, Philadelphia, Pa., is the contracting activity.

U.S. EXTENDS BEST WISHES ON THE LUNAR NEW YEAR

FROM:   STATE DEPARTMENT
2014 Lunar New Year
Press Statement
John Kerry
Secretary of State
Washington, DC
January 31, 2014

On behalf of President Obama and the American people, I am delighted to extend best wishes to the many people around the world who celebrate the arrival of the Lunar New Year on January 31.

In this festive time, we should all take a moment to pause and reflect on the shared humanity that ties us together – not just here in America, but around the world.

As a Pacific nation, the United States is deeply committed to strengthening our partnerships throughout the Asia-Pacific.

That’s why President Obama recently announced the Young Southeast Asian Leaders Initiative. That’s why we’re investing in the Fulbright Program. And that’s why we’re deepening our economic cooperation, improving regional security, and advancing mutual understanding across cultures, faiths, and nations.

As millions around the world welcome the Year of the Horse, the United States sends heartfelt wishes for good health and prosperity. May the New Year bring ever greater cooperation in pursuit of our common goals.

U.S. DEFENSE DEPARTMENT CONTRACTS FOR JANUARY 31, 2014

FROM:  DEFENSE DEPARTMENT 
CONTRACTS

DEFENSE LOGISTICS AGENCY

Avfuel Corporation,* Ann Arbor, Mich., has been awarded a maximum $6,985,104 fixed-price with economic-price-adjustment contract for jet fuel. This contract is a competitive acquisition and two offers were received. Locations of performance are Michigan and Washington with a March 31, 2018 performance completion date. Using military services are Army, Navy, Air Force, Marine Corps and federal civilian agencies. Type of appropriation is fiscal 2014 through fiscal 2018 defense working capital funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Va.; (SP0600-14-D-0025).

ARMY

*GTI Systems, Inc., Auburndale, Fla. was awarded a $78,200,000 firm-fixed-price foreign military sales multiyear contract for practice bombs and accoutrements. Funding and work performance location will be determined with each order. Estimated completion date is Sept. 30, 2018. Bids were solicited via the Internet with three received. Army Contracting Command - Rock Island Arsenal Ill, is the contracting activity (W52P1J-14-D-0042).

Employment Source Inc, Fayetteville, N.C. was awarded a $15,755,197 modification (P00002) to contract W91247-D-0007 to provide dining facility attendant services at Ft. Bragg, N.C. Funds and work performance location will be determined with each order. Estimated completion date is Jan. 31, 2015. Army Contracting Command, Ft. Bragg, N.C. is the contracting activity.

Weeks Marine, Inc., Covington, La. was awarded a $10,592,500 firm-fixed-price contract for beach restoration of NASA Wallops Island, Va. Fiscal 2014 other procurement funds in the amount of $10,592,500 were obligated at the time of the award. Estimated completion date is July 18, 2014. Bids were solicited via the Internet with three received. Work will be performed on Wallops Island. Army Corps of Engineers, Norfolk, Va. is the contracting activity (W91236-14-C-0021).

AIR FORCE

Northrop Grumman Information Technology, Inc, Defense Group (formerly Defense Enterprise Solutions), McLean, Va., has been awarded a $26,110,000 modification (P00015) to an existing indefinite-delivery/indefinite-quantity (IDIQ) contract (FA8770-10-D-0001) for Reliability and Maintainability Information Systems (REMIS) Sustainment and Development Services.  The contract modification is to increase the total Not to Exceed Ceiling amount and add Option Period I to extend the ordering period for 24 months on the Basic Contract for legacy Information Technology services for REMIS.  Work will be performed at Beavercreek, Ohio, and is expected to be completed by Jan. 31, 2017.   As this is an extension of an IDIQ that has already met the minimum obligation requirements at the time of initial award, there is no further requirement for a simultaneous obligation of funds, so no funds are being obligated at time of award.  Air Force Life Cycle Management Center/HIAK, Wright-Patterson Air Force Base, Ohio, is the contracting activity.

Lockheed Martin Corp., MST Missions Systems and Training, Liverpool, N.Y., has been awarded an $8,534,310 modification (P00017) on an existing firm-fixed-price contract (FA8217-11-C-0005) for the modernization of AN/FPS-117 Long Range Radars via the Essential Parts Replacement Program.  This contract modification provides for the exercise of unpriced options for a quantity of 13 Field Maintenance Equipment Kits to provide spare single point failure items in support of the radar site modernizations in Canada, Alaska, Puerto Rico, Hawaii, and Hill Air Force Base, Utah.  Work will be performed at Liverpool, N.Y. with the kits being delivered to the various locations, and work is expected to be completed by July 30, 2015.  Fiscal 2012 procurement funds in the amount of $3,940,649 and Fiscal 2014 procurement funds in the amount of $4,593,661 are being obligated at time of award. Air Force Life Cycle Management Center/PZZKA, Hill Air Force Base, Utah, is the contracting activity.

TASC Inc., Andover, Mass., has been awarded a $6,933,916 cost-plus-fixed-fee contract for Research and Development on the Solid Rocket Motor Modernization Study. The contractor shall conduct a study, which efforts include develop and investigate propulsion options and impacts for replacement or modernization of the Minuteman III fielded force. Contractor will also conduct a trade study on the Stage III Generalized Energy Management Steering versus Thrust Termination, Roll Control trade study, and conduct Mechanistic Aging & Surveillance. Work will be performed at San Bernardino, Calif., and is expected to be complete by July 31, 2015. This award is the result of Broad Agency Announcement.  Fiscal 2013 Research and Development funds in the amount of $6,933,916  are being obligated at time of award.  Air Force Nuclear Weapons Center/PZBA, Hill Air Force Base, Utah, is the contracting activity. (FA8219-14-C-0003)

NAVY

Rolls-Royce Corp., Indianapolis, Ind., is being awarded a $90,164,920 modification to a previously awarded firm-fixed-price contract (N00019-12-C-0007) to exercise an option for the procurement of 40 AE1107C install engines in support of the MV-22 aircraft for the United States Marine Corps.  Work will be performed in Indianapolis, Ind., and is expected to be completed in November 2015.  Fiscal 2013 and 2014 aircraft procurement, Navy funds in the amount of $90,164,920 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.

Jacobs & HDR Joint Venture, Arlington, Va., is being awarded a maximum $60,000,000 indefinite-delivery/indefinite-quantity architect-engineering contract for analysis of Navy and other Department of Defense (DoD) facilities infrastructure for various locations throughout the Naval Facilities Engineering Command's (NAVFAC) area of responsibility (AOR), worldwide.  The work to be performed provides for support of the Navy’s Sustainment, Restoration, and Modernization Program.  No task orders are being issued at this time.  The work will be performed at various Navy and other DoD facilities within the NAVFAC AOR including, but not limited to NAVFAC Mid-Atlantic (20 percent), NAVFAC Southeast (20 percent), NAVFAC Washington (15 percent), NAVFAC Southwest (10 percent), NAVFAC Northwest (10 percent), NAVFAC Midwest (10 percent), NAVFAC Europe Africa Southwest Asia (10 percent) and NAVFAC Pacific AOR (5 percent).  The term of the contract is not to exceed 60 months with an expected completion date of January 2019.  Fiscal 2014 operation and maintenance Navy funds in the amount of $10,000 will be 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 five proposals received.  The Naval Facilities Engineering Command, Atlantic, Norfolk, Va., is the contracting activity (N62470-14-D-3005).

General Dynamics Land Systems - Force Protection, Ladson, S.C., is being awarded a $25,960,947 firm-fixed-price contract for the development, design, and production of 468 Seat Survivability Upgrade (SSU) Kits in support of the Program Executive Office Land Systems, Program Manager, Mine Resistant Ambush Protected Vehicles.  The SSU Kit includes energy absorbing seats, 5-point seatbelts, blast mats, internal crew Automatic Fire Extinguisher System reconfiguration, and driver/co-driver compartment upgrades.  The kit also improves interior vehicle layout, reduces egress impedance, and creates intentional stowage locations.  Work will be performed in Ladson, S.C.  The term of the contract is not to exceed 18 months, with an expected completion date of July 2015.  Fiscal 2012 procurement Marine Corps;  Fiscal 2013 research, development, test & evaluation, Marine Corps; Fiscal 2013 other procurement, Navy, and Fiscal 2013 other procurement, Air Force contract funds in the amount of $25,960,947 will be obligated at time of award and all funds will expire at the end of the fiscal year.  This contract was competitively awarded via the Federal Business Opportunities website, with four offers received.  The Marine Corps Systems Command Quantico, Va., is the contracting activity (M67854-14-C-5500).

Bell-Boeing Joint Project Office, Amarillo, Texas, is being awarded a $10,322,803 modification to a previously awarded cost-plus-incentive-fee contract (N00019-09-D-0008) for additional Joint Performance Based Logistics support for the Marine Corps MV-22, and the Air Force and Special Forces Operations Command CV-22 aircraft.  Work will be performed in Amarillo, Texas (50 percent) and Philadelphia, Pa. (50 percent), and is expected to be completed in February 2014.  Fiscal 2013 defense-wide procurement, Special Operations Command; Fiscal 2013 aircraft procurement, Air Force; Fiscal 2014 aircraft procurement, Navy; Fiscal 2014 operations and maintenance, Air Force, Special Operations Command and Navy funds in the amount of $10,322,803 will be obligated at time of award, $8,376,278 of which will expire at the end of the current fiscal year.  The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.

EJB Facilities Services, Arlington, Va., is being awarded a $7,261,421 modification under a previously awarded firm-fixed-price, indefinite-delivery/indefinite quantity contract for the extension of option award seven for base operations support at various installations in the Naval Facilities Engineering Command (NAVFAC) Northwest area of responsibility (AOR).  The work to be performed provides for, but is not limited to, all management and administration, visual services, security, housing, facilities support (excluding grounds and janitorial services), pavement clearance, utilities, base support vehicles and equipment, and environmental services to provide base operations support services. The total contract amount after exercise of this modification will be $545,540,549.  Work will be performed at various installations in the NAVFAC Northwest AOR including but not limited to, Wash. (95 percent), Alaska (1 percent), Idaho (1 percent), Montana (1 percent), Oregon (1 percent), and Wyoming (1 percent), and work is expected to be completed March 2014.  Fiscal 2014 operation and maintenance, Navy; Fiscal 2014 Navy working capital funds; Fiscal 2014 Defense health program funds; and Fiscal 2014 non-appropriated funds in the amount of $7,261,421are being obligated on this award and will not expire at the end of the current fiscal year.  The Naval Facilities Engineering Command, Northwest, Silverdale, Wash., is the contracting activity (N44255-05-D-5103).

*Small Business

HHS LAUNCHES VIDEO CONTEST TO INFORM YOUNG PEOPLE ABOUT AFFORDABLE CARE ACT

FROM:  HEALTH AND HUMAN SERVICES 
HHS launches partnership and video contest with Young Invincibles

JANUARY 30, 2014

HOUSTON, Texas – Today, Health and Human Services (HHS) Secretary Kathleen Sebelius and Young Invincibles announced the Healthy Young America video contest in an effort to inform young people about health insurance coverage and new options under the Affordable Care Act.

“Health insurance is out of reach for millions of young people today—because it costs too much, or isn’t offered through a job,” Secretary Sebelius said.  “Soon the Health Insurance Marketplace will give uninsured young people the opportunity to enroll in affordable health insurance, and the Healthy Young America video contest will help them tell their stories to other young people.”

The Affordable Care Act is making health care more affordable and accessible for 19 million uninsured young adults across the country.  Three million previously uninsured young adults have joined their parents’ health insurance plan because of the health care law.

“The Millennial generation has always been a creative generation, which is why we are so pleased to partner with HHS in launching the Healthy Young America video contest.  “Educating millions of young people about the changes coming this year is vital to helping them achieve economic security,” Aaron Smith, co-founder and executive director of Young Invincibles. “This competition will engage young people by reaching them through a medium that they prefer to use when sharing and receiving content.”

Young Invincibles is in the midst of a nationwide campaign designed to inform young adults about coming changes and new options.  “The campaign includes health care “train the trainers” to help community leaders be informed about new changes. A website with frequently-asked questions and a mobile app to help consumers learn about their options, find local health care services, and get information on enrollment events this fall are also included in the campaign.

Young people can access a variety of online tools now, through HealthCare.gov, and count on in-person help to get answers to their questions to help them enroll October 1. Young people can use HealthCare.gov to join web chats or call toll free 1-800-318-2596, to get help from a trained customer service representative.

There will also be people in local communities who can provide direct help with their coverage choices. Last week, HHS awarded $67 million to 105 Navigator grant applicants and recognized more than 100 national organizations and businesses who have volunteered to help Americans learn about the Marketplace.  More than 1,200 community health centers across the country are preparing to help enroll uninsured Americans in coverage, and a partnership with the Institute of Museum and Library Services will help trusted local libraries be a resource for consumers who want information on their options.

UTAH MAN PLEADS GUILTY IN GOVERNMENT PROCUREMENT BRIBERY CASE

FROM:  JUSTICE DEPARTMENT DEFENSE DEPARTMENT 
Wednesday, January 29, 2014
Department of Defense Procurement Official Sentenced for His Role in Contract Bribery Scheme

A Utah man was sentenced to serve 24 months in prison for his role in a bribery and fraud scheme involving federal procurement contracts, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney David B. Barlow of the District of Utah.

On Oct. 24, 2011, Jose Mendez, 50, of Farr West, Utah, pleaded guilty to conspiracy to commit bribery and procurement fraud, bribery, and procurement fraud.  Mendez was charged in an October 2011 indictment, along with Sylvester Zugrav, 71, and Maria Zugrav, 67, owners of Atlas International Trading Company in Sarasota, Fla.  The Zugravs were sentenced on Jan. 8, 2014.

According to court documents, while Mendez worked as a procurement program manager for the U.S. Air Force at Hill Air Force Base in Ogden, Utah, he conspired to enrich himself and others by exchanging money and other things of value for non-public information and favorable treatment in the procurement process.  Court records state that Mendez was offered approximately $1,240,500 in payments and other things of value throughout the course of the conspiracy.  Mendez admitted that from approximately 2008 to August 2011, he received more than $185,000 in payments and other things of value, with promises of additional bribe payments if Atlas were to receive future contracts from the U.S. government.

In return for the bribes offered and paid, Mendez admitted he gave Atlas and the Zugravs favorable treatment during the procurement process, including disclosing government budget and competitor bid information, which helped Atlas and the Zugravs in winning contracts.

The case was investigated by the FBI and the Air Force Office of Special Investigations. The case was prosecuted by Trial Attorneys Marquest J. Meeks and Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Carlos A. Esqueda of the District of Utah.

RECENT U.S. NAVY PHOTOS

FROM:  DEFENSE DEPARTMENT 

U.S. sailors transit the Arabian Gulf aboard a riverine command boat during a training exercise, Jan. 21, 2014. U.S. Navy photo by Petty Officer 1st Class Michelle L. Turner.

U.S. Navy riverine command boats pass a dhow during a training exercise in the Arabian Gulf, Jan. 21, 2014. The sailors are assigned to Task Group 56.7. U.S. Navy photo by Petty Officer 1st Class Michelle L. Turner.

ATTORNEY GENERAL HOLDER TESTIFIES BEFORE SENATE JUDICIARY COMMITTEE

FROM:  JUSTICE DEPARTMENT 
Attorney General Eric Holder Testifies Before the U.S. Senate Committee on the Judiciary
~ Wednesday, January 29, 2014

Chairman Leahy, Ranking Member Grassley, and Members of the Committee: thank you for the opportunity to appear before you today to discuss the recent achievements and the ongoing priorities of the U.S. Department of Justice.

I would like to thank Members of Congress for coming together earlier this month to pass a bipartisan budget agreement that restores the Department’s funding to pre-sequestration levels.  We are reviewing this legislation to determine its impact on specific programs and components, but we anticipate that it will provide for the hiring of additional federal agents, prosecutors, and other essential staff.  This will allow us to invest in innovative programs, to keep supporting state and local law enforcement agencies, and to continue building upon the outstanding work that my colleagues have made possible over the past year.

As I have often said, the Department’s top priority must always be the protection of the American people from terrorism and other national security threats.  Since I last appeared before this Committee, we have continued to strengthen key intelligence-gathering capabilities; to refine our ability to identify and disrupt potential terrorist plots; and to ensure that those charged with terrorism-related offenses can be held accountable to the fullest extent of the law.  As President Obama noted in a speech at the Justice Department roughly two weeks ago, in carrying out this work it is imperative that we continue striving to protect our national security while upholding the civil liberties we all hold dear.  On Monday, we took a significant step forward in this regard when the Department acted to allow more detailed disclosures about the number of national security orders and requests that are issued to communications providers; the number of customer accounts targeted under those orders and requests; and the underlying legal authorities.

Through these new reporting methods, communications providers will be permitted to disclose more information than ever before to their customers.  Allowing disclosure of this aggregate data will resolve an important area of concern to communications providers and the public.  And in the weeks ahead, as we move forward with the timely implementation of this and other reforms directed by the President, my colleagues and I will work closely with members of this Committee and other Congressional leaders to determine the best path forward.

We also will continue enforcing essential privacy protections and other safeguards concerning data possessed by government as well as the private sector.  The Department of Justice takes seriously reports of any data breach, particularly those involving personally identifiable or financial information, and looks into allegations that are brought to its attention.  While we generally do not discuss specific matters under investigation, I can confirm the Department is investigating the breach involving the U.S. retailer, Target.  And we are committed to working to find not only the perpetrators of these sorts of data breaches – but also any individuals and groups who exploit that data via credit card fraud.

Beyond this important work, the Department will continue to build on the progress we have seen in confronting a wide variety of other threats and challenges – from combating drug and human trafficking, to addressing cyber-attacks, protecting Americans from violent crime, and taking common-sense steps to reduce gun violence.  Earlier this month, the Department strengthened the federal background check system by clarifying federal rules concerning mental health-based prohibitions on firearm purchases.  Under the leadership of our Civil Division, we are working diligently with our federal agency partners to implement the Supreme Court’s ruling, in United States v. Windsor, to make real the promise of equal protection under the law for all American families – and to extend applicable federal benefits to married same-sex couples.  And we are vigorously enforcing federal voting protections – and working with Congressional leaders from both parties to refine and strengthen the proposals that Congress is currently considering – to help ensure that every eligible American has access to the franchise.

In addition, last year – as part of our ongoing efforts to hold accountable those whose conduct sowed the seeds of the mortgage crisis – the Department filed suits against Bank of America and the ratings firm S&P.  In November, the Department reached a $13 billion settlement with JP Morgan Chase & Co. – the largest settlement with any single entity in American history – to resolve federal and state civil claims related to the company’s mortgage securitization process.  These results demonstrate that no firm, no matter how profitable, is above the law.  And they reinforce our commitment to integrity and equal justice in every case, in every circumstance, and in every community.

This commitment is also reflected in the new “Smart on Crime” initiative I announced this past August – to strengthen our federal criminal justice system; to increase our emphasis on proven diversion, rehabilitation, and reentry programs; and to reduce unnecessary collateral consequences for those seeking to rejoin their communities.  As part of the “Smart on Crime” approach, I mandated a significant change to the Justice Department’s charging policies to ensure that people accused of certain low-level federal drug crimes will face sentences appropriate to their individual conduct – and that stringent mandatory minimum sentences will be reserved for the most serious criminals.  Alongside other important reforms, this change will make our criminal justice system not only fairer, but also more efficient.  And it will complement proposals like the bipartisan Smarter Sentencing Act – introduced by Senators Dick Durbin and Mike Lee – which would give judges more discretion in determining appropriate sentences for people convicted of certain federal drug crimes.

I look forward to working with Chairman Leahy, distinguished members of this Committee, and other leaders who have shown a commitment to common-sense sentencing reform – like Senator Rand Paul – to help advance this and other legislation.  I thank you all, once again, for your continued support of the Department of Justice.  And I would be happy to answer any questions you may have.

U.S. STATE DEPARTMENT TO ESTABLISH SPECIAL REPRESENTATIVE FOR ARCTIC REGION

FROM:  U.S. STATE DEPARTMENT 
Secretary Kerry Announces Department Will Establish a Special Representative for the Arctic Region
Press Statement
John Kerry
Secretary of State
Washington, DC
February 14, 2014

The Arctic region is the last global frontier and a region with enormous and growing geostrategic, economic, climate, environment, and national security implications for the United States and the world.

Today I informed my two former Senate colleagues that here at the State Department we will soon have a Special Representative for the Arctic Region, a high-level official of stature who will play a critical role in advancing American interests in the Arctic Region, particularly as we prepare efforts for the United States to Chair the Arctic Council in 2015. President Obama and I are committed to elevating our attention and effort to keep up with the opportunities and consequences presented by the Arctic’s rapid transformation—a very rare convergence of almost every national priority in the most rapidly-changing region on the face of the earth.

The great challenges of the Arctic matter enormously to the United States, and they hit especially close to home for Alaska, which is why it is no wonder that Senator Begich’s very first piece of legislation aimed to create an Arctic Ambassador, or why as Foreign Relations Committee Chairman I enjoyed a close partnership with Senator Murkowski on a treaty vital to energy and maritime interests important to Alaska. Going forward, I look forward to continuing to work closely with Alaska’s Congressional delegation to strengthen America’s engagement in Arctic issues.

3-D CHIPS COULD EXPAND MICROPROCESSOR CAPACITY

FROM:  NATIONAL SCIENCE FOUNDATION 
Scientist developing 3-D chips to expand capacity of microprocessors

Novel design would consume less power and provide higher performance
Many researchers in the field of integrated circuits worry that the fast paced progress of "miniaturization" will start to slow unless they find new ways to expand the capacity of the conventional two-dimensional chips used today in virtually all electronics.

Emre Salman, an assistant professor of computer and electrical engineering at Stony Brook University, is trying to design new technology, circuits and algorithms for the next generation of microprocessors, mobile computing devices and communication chips, in order "to overcome the fundamental limitations of current electronic systems, such as high power consumption," he says.

Specifically, the National Science Foundation (NSF)-funded scientist is working on developing three-dimensional integration, an emerging technology that would vertically stack multiple wafers, a technique with the potential to enhance significantly the capability of the current two-dimensional chips.

"Today's typical electronic system on a circuit board consists of multiple chips connected with wires that are at the millimeter and centimeter scale," he explains. "These bulky connections not only slow down the circuit, but also consume power and reduce the reliability of the system."

In 3-D integration technology, on the other hand, those discrete chips, now called tiers, are stacked on top of each other before they are packaged, he says. "The entire 3-D system is placed in a single package," he says. "Vertical connections that achieve communication among the tiers are now in the micrometer scale, and getting even shorter with advances in 3-D manufacturing technology, thereby consuming less power and providing more performance. Essentially, 3-D technology enables higher and heterogeneous integration at a smaller form factor."

This goal, however, faces any number of challenges. "This expansion comes with a variety of difficulties," says Salman, who also directs Stony Brook's Nanoscale Circuits and Systems (NanoCAS) Laboratory. "For example, it is highly challenging to ensure that the diverse planes of a 3-D chip work in harmony as a single entity."

He points out that many scientists have been working on wafer level 3-D integration for more than a decade. However, "the primary emphasis has been on high performance and somewhat homogeneous chips, such as microprocessors," he says.

On the other hand, citing the 2011 edition of the International Technology Roadmap for Semiconductors (ITRS), an important guide for researchers in the field, "the third phase and long term application of 3-D technology includes highly heterogeneous integration, where sensing and communication planes are stacked with conventional data processing and memory planes," he says.

This means that a single 3-D chip will be able detect data from environment, then process and store this data using advanced algorithms, and then wirelessly transmit these data to a remote center, he says.

Unlike the dominant existing research, this relatively long term application has become his team's primary focus, an approach with the potential to enlarge the three-dimensional domain from high performance computing to relatively low power systems-on-chip (SoCs). These low power SoCs have capabilities beyond the boundaries of traditional general purpose processors, since they integrate multiple functions, including sensing, processing, storage and communication into a single 3-D chip, he says.

"Numerous applications exist in health care, energy efficient mobile computing, and environmental control, since a smaller form factor can be achieved at lower power while offering significant computing resources," he says. "Our fundamental objective is to develop a reliable 3-D analysis and design platform for these applications which will host future electronics systems that are increasingly more portable, can interact with the environment, consume low power, yet still offer significant computing capability."

He is conducting his research under an NSF Faculty Early Career Development (CAREER) award. The award supports junior faculty who exemplify the role of teacher-scholars through outstanding research, excellent education and the integration of education and research within the context of the mission of their organization. NSF is funding his work with $453,809 over five years.

"We are developing design methodologies to reliably distribute power to each tier of a 3-D chip," he says. "We are also exploring novel circuit topologies for 3-D power management, thereby increasing energy efficiency. We are investigating various noise coupling paths within a 3-D system, and finding ways to protect sensitive transistors from noise. All of these activities serve for the common goal of improving power, signal and sensing integrity of a heterogeneous 3-D chip."

At the NanoCAS lab, their workstations are equipped with the latest electronic design automation software that allows the researchers to verify their algorithms, models and design methodologies. "We primarily rely on these state-of-the-art IC simulation tools that the semiconductor industry uses to design and verify their chips," he says.

As part of the grant's educational component, Salman plans to integrate these research activities at the secondary, undergraduate and graduate levels, and will involve the NanoCAS lab in an engineering summer camp for high-school students organized at Stony Brook. The program, organized jointly by the department of electrical and computer engineering and the student branch of IEEE (the Institute of Electrical and Electronics Engineers, a world-wide professional association) at Stony Brook, consists of a two-week residential camp at the university campus.

"While the primary goal is to introduce motivated high school students to the field of electrical engineering through theoretical classes and hands-on projects, the students also have an opportunity to learn and experience the university campus life," Salman says.

"At the NanoCAS lab, we offer an experimental course on fiber optic communication," he adds. "The course starts with an interesting history of communication technologies from prehistoric times to modern day. The students then learn the fundamentals of optical voice link and design their own communication link by soldering electronic components. We believe that an efficient link between education and research is essential for the advancement of science and technology to prevail."

U.S. CONGRATULATES PEOPLE OF REPUBLIC OF NAURU ON THEIR INDEPENDENCE DAY

FROM:  STATE DEPARTMENT
Republic of Nauru's Independence Day
Press Statement
John Kerry
Secretary of State
Washington, DC
January 29, 2014

On behalf of President Obama and the people of the United States, I offer warm congratulations to the people of the Republic of Nauru on the 46th anniversary of your Independence on January 31.

The United States and Nauru work together on a broad range of issues, including strengthening regional security, protecting our natural resources, and addressing the impacts of climate change.

I look forward to forging even closer ties as we build a more secure, prosperous, and sustainable world for future generations.

The United States stands with you in the spirit of our shared values and continuing cooperation.

U.S. NOTES AMENDMENT TO AGREEMENT FOR COOPERATION BETWEEN U.S.-IAEA

FROM:  STATE DEPARTMENT 
Third Amendment to the Agreement for Cooperation Between the United States of America and the International Atomic Energy Agency
Media Note
Office of the Spokesperson
Washington, DC
January 29, 2014

On January 29, 2014, President Obama submitted to Congress for its review a proposed Third Amendment to the Agreement for Cooperation between the United States of America and the International Atomic Energy Agency. The original Agreement entered into force on August 7, 1959, and was amended on May 31, 1974, and May 6, 1980. Under the proposed Amendment, the term of the Agreement would be extended an additional forty (40) years for a total term of ninety-five (95) years.

The newly amended Agreement would allow the United States and IAEA to continue their decades of nuclear cooperation. It would continue to provide a comprehensive framework for peaceful nuclear cooperation with the IAEA and facilitate our mutual objectives related to nonproliferation and the peaceful uses of nuclear energy. The Agreement exemplifies the U.S. Government’s strong support for IAEA peaceful uses activities, and the United States looks forward to expanding these cooperative efforts in the years to come.

DEFENSE SECRETARY HAGEL MEETS WITH NUCLEAR ENTERPRISE LEADERS

FROM:  DEFENSE DEPARTMENT 
Hagel Meets With Leaders of DOD Nuclear Enterprise
By Jim Garamone
American Forces Press Service

WASHINGTON, Jan. 29, 2014 – Defense Secretary Chuck Hagel met with the leaders of the Defense Department’s nuclear enterprise to discuss the health of the force.

Pentagon Press Secretary Navy Rear Adm. John Kirby told reporters Hagel considers the matter “a top national security priority.”

Air Force, Navy and U.S. Strategic Command leaders attended the meeting held in Hagel’s office where leaders addressed the personnel challenges that recently came to light in the nuclear missile force.

“It was a candid and wide-ranging discussion of the types of challenges that are faced by people who work in the nuclear enterprise, and … all the participants found it a very useful discussion,” Kirby said. The secretary directed that these conversations continue in the future, he added.

The leaders had an opportunity to talk about their perspectives on the health of the nuclear enterprise. “There were lots of good ideas floated about things that need to be considered and looked at by everybody, not just by the United States Air Force,” the admiral said.

Hagel called the meeting after revelations that 34 Air Force missile officers were implicated in cheating on qualification tests at Malmstrom Air Force Base, Mont, or knew about the cheating and did not report it. The number of officers being investigated has risen, Kirby said.

“I think the general consensus in the room was that we all need to accept the reality that there probably are systemic issues in the personnel growth and development inside the nuclear mission,” he said. “Now, exactly what they are and how to address them, well, … that's what they spent the bulk of the two hours talking about.”

The meeting looked at whether cultural problems within the missile community have made it easier to cheat or make people feel compelled to cheat, Kirby said.

U.S. STATEMENT ON SYRIA'S COMPLIANCE IN ELIMINATION OF CHEMICAL WEAPONS

FROM:  THE STATE DEPARTMENT 
Statement to the Thirty-Eighth Meeting of the Executive Council

Remarks
Ambassador Robert P. Mikulak, United States Delegation to the Executive Council Organization for the Prohibition of Chemical Weapons
The Hague, Netherlands
January 30, 2014

Mr. Chairman,

Since the last meeting of this Council on January 8th, the effort to remove chemical agent and key precursor chemicals from Syria has seriously languished and stalled. To date, only four percent of the Priority One chemicals declared by the Syrian Arab Republic have been removed, and roughly the same small percentage of the Priority Two chemicals. Let us not forget that this Council on November 15th of last year adopted specific timelines for the elimination of Syria's chemical weapons program, which required that 100 percent of the Priority One chemicals be removed from Syria by 31 December. The United States recognizes that 31 December was an ambitious goal for completing removal of the many tons of Priority One chemicals. However, the Syrian Arab Republic had not even begun the transport of Priority One chemicals to Latakia by 31 December, despite urgings from the Joint Mission Special Coordinator to "intensify" its preparation efforts.

Mr. Chairman,

Today we are one month past the 31 December completion date set by the Council. Almost none of the Priority One chemicals have been removed, and the Syrian government will not commit to a specific schedule for removal. This situation will soon be compounded by Syria's failure to meet the February 5th completion date set by this Council for the removal of all Priority Two chemicals. Syria has said that its delay in transporting these chemicals has been caused by "security concerns" and insisted on additional equipment – armored jackets for shipping containers, electronic countermeasures, and detectors for improvised explosive devices. These demands are without merit, and display a "bargaining mentality" rather than a security mentality.

The Joint Mission and the OPCW Technical Secretariat have rightly concluded that the additional equipment demanded by Syria is not needed for the safe transport of the chemicals to Latakia. And let us not forget that that these chemicals have often been moved during the ongoing conflict without such equipment, demonstrating that Syria has been able to ensure sufficient protection to date with its current capabilities, and without this additional "wish list" of equipment. As Secretary-General Ban said recently, "...the Syrian Arab Republic has sufficient material and equipment necessary to carry out multiple ground movements to ensure the expeditious removal of chemical weapons material." Secretary-General Ban added that "...it is imperative that the Syrian Arab Republic now examines the situation, intensifies its efforts to expedite in-country movements of chemical weapons material, and continues to meet its obligations." under UN Security Council Resolution 2118 and the OPCW Executive Council decisions.

Mr. Chairman,

Syria's requests for equipment and open-ended delaying of the removal operation could ultimately jeopardize the carefully timed and coordinated multi-state removal and destruction effort. For our part, the international community is ready to go, and the international operation to remove the chemicals is fully in place and ready to proceed once Syria fulfills its obligation to transport the chemicals to Latakia. On Monday, the U.S. ship Cape Ray set sail from Norfolk, Virginia, and will be in the Mediterranean shortly. The delay by Syria is increasing the costs to nations that have made donations for shipping, escort, and other services related to the removal effort.

Mr. Chairman,

The United States is deeply concerned about the failure of the Government of Syria to transport to Latakia all of the chemical agent and precursors as mandated by OPCW Executive Council decisions.

After missing the December 31, 2013, target date, the first movement of chemical agents took place on January 7, 2014. It took another three weeks, until January 27, 2014, for another shipment to take place. Syria must immediately take the necessary actions to comply with its obligations under the Chemical Weapons Convention, Executive Council decisions, and UN Security Council Resolution 2118.

It is imperative that the removal effort be conducted with regularity, rather than after long intervals. In order for obligations to be kept, it is essential that the Syrian government establish a plan that will give the international community confidence that movements will be made regularly. There should be no doubt that responsibility for the lack of progress and increasing costs rests solely with Syria. In the report for this meeting, the Council should express "deep concern" over Syria's delays in implementation of its chemical weapons elimination obligations and call for the transport of all chemicals to Latakia for removal without any further delay.

Mr. Chairman,

At this meeting, there is yet another serious issue involving the Syrian Arab Republic which must be addressed by this Council – the destruction of Syrian chemical weapons production facilities. Syria has proposed that seven hardened aircraft hangars and five underground structures previously used in connection with the production of its chemical weapons be "inactivated" and rendered inaccessible, for example, by welding doors shut and constructing interior obstacles. These proposed measures are readily reversible within days and clearly do not meet the requirement of "physically destroyed" as provided for by the Convention and the precedents for implementing that requirement.

Mr. Chairman,

With respect to the hangars, the United States is willing to explore an approach which would entail collapsing the roof, rendering them "physically destroyed" in line with the Convention.

The tunnels are a more challenging destruction problem that is complicated by Syria's revision of its initial declaration. In its conversion proposal, Syria declared the entire interior space of the tunnel as a CWPF. When its conversion proposal was rightfully rejected by this Council, Syria revised its declaration to encompass only a small fraction of the interior space of the tunnels. It is clear that Syria got it right the first time and its revised declaration lacks credibility. With respect to meeting the requirement for physical destruction, the United States has concluded that the entire tunnel need not be collapsed or filled. Instead, we would propose that the tunnel portals be collapsed and the overall structural integrity of the tunnels be compromised at key junctures.

This Council must reject Syria's proposal to "inactivate" its hangar and tunnel CWPFs, rather than physically destroying them as the CWC requires. The United States invites Council members to review the analysis and proposals contained in our recently circulated national paper.

Mr. Chairman,

This Council has before it several important decisions that once again underline the commitment of the international community to make an extraordinary effort to destroy Syrian chemical weapons. One is to approve a Model Agreement produced by the Technical Secretariat related to contract arrangements with commercial companies selected for the destruction of Syrian chemicals outside Syria. My delegation supports the Decision.

The selection of the companies will be soon completed by the Technical Secretariat on the basis of a tender process conducted in accordance with international bidding standards. To further support the Technical Secretariat's efforts, the decision before us also gives formal and specific authority to the Director General to conclude, in consultation with the relevant States Parties, commercial contracts for the destruction of the chemicals. This authorization is fully consistent with the Council's wishes, previously recorded in EC-M-34/Dec.1 and EC-M-36/Dec.2.

The Council also has before it a request for the approval of the verification measures for the destruction of isopropanol in Syria, as called for in EC-M-34/Dec.1. My delegation supports the verification plan as submitted.

Mr. Chairman,

In closing, let me thank you and the Technical Secretariat, Special Coordinator Kaag and the Joint Mission, and all of the States Parties that are participating directly in, or contributing to, the operation to remove and destroy Syrian chemical weapons agents and precursors. Thanks to these extraordinary efforts the international community is ready and poised to do its part in successfully implementing the decisions of this Council and the UN Security Council. The spotlight now is on Syria to proceed without further delay to comply with its obligations and make this effort a success.

The 27 September decision of this Council and UN Security Council resolution 2118 will be judged to be historic only if they succeed in eliminating the Syrian chemical weapons program. The eyes of the world remain upon us to achieve the promise of this effort. Today let us make clear to the Syrian Arab Republic that the eyes of this Council remain upon them.

I request that this statement be made an official document of the meeting.

Thank you, Mr. Chairman.

1ST LABOR AFFAIRS COUNCIL MEETING UNDER U.S.-PANAMA TRADE PROMOTION AGREEMENT

FROM:  LABOR DEPARTMENT 
US Department of Labor officials attend first Labor Affairs Council meeting 
under US-Panama Trade Promotion Agreement

WASHINGTON — Senior officials from the U.S. Department of Labor and the Office of the U.S. Trade Representative and their Government of Panama counterparts today concluded the first Labor Affairs Council meeting under the U.S.-Panama Trade Promotion Agreement in Panama City, Panama. During the Jan. 27-28 meetings, officials reaffirmed their commitments under the Labor Chapter of the TPA and discussed:

possible areas for future cooperation;
activities to strengthen institutional capacity and labor law enforcement and compliance;

child labor and youth employment; and areas of common interest, such as the use of temporary contracts and processes for union registration.

The council is responsible for overseeing the implementation and review of progress under the Labor Chapter of the TPA. Eric Biel, acting associate deputy undersecretary for international labor affairs at the Labor Department, and Carlos Romero, deputy assistant U.S. Trade Representative, led the U.S. delegation at the meetings, which included a public session with workers, employers, civil society organizations and the general public, attracting a crowd of more than 50 participants. Along with their counterparts from the Ministry of Labor and the Ministry of Commerce and Industry of Panama, U.S. officials issued a joint statement at the conclusion of the meetings.

"A sustained, transparent, inclusive dialogue is crucial to full implementation of the Labor Chapter," said Biel. "To that end, we are pleased that the Government of Panama has demonstrated a clear commitment to continue to work together with us to ensure that respect for labor rights is a meaningful part of this important bilateral agreement."

The joint statement is available at the department's Bureau of International Labor Affairs' in Panama page.

PIRANHA IMPORTER PLEADS GUILTY TO IMPORT VIOLATIONS

FROM:  JUSTICE DEPARTMENT
Wednesday, January 29, 2014
Tropical Fish Importer Pleads Guilty in New York Federal Court to Piranha Import Violations

Joel Rakower, along with his solely-owned corporation, Transship Discounts Ltd., pleaded guilty today in federal court in Brooklyn, N.Y., to violating the Lacey Act by mislabeling imported piranhas, announced Acting Assistant Attorney General Robert G. Dreher for the Environment and Natural Resources Division of the Department of Justice and Queens County District Attorney Richard A. Brown.

In the plea agreement, Rakower admitted that his company purchased piranhas from a Hong Kong tropical fish supplier and imported them to Queens, N.Y.   Each such import must be accompanied by a packing list describing what wildlife is contained in the package being imported, and the importer must provide this packing list to the United States Fish and Wildlife Service upon import for inspection.   In March of 2011, shortly after New York City prohibited possession of piranhas, Rakower instructed the foreign supplier to falsely label the piranhas on packing lists as silver tetras, a common and unaggressive aquarium fish.   Over the course of 2011 and 2012, Transship submitted packing lists to the Fish and Wildlife Service containing false identifications of 39,548 piranhas, worth approximately $37,376, which Transship then sold to fish retailers in several states.

“Rakower flouted federal laws meant to protect people and the environment from the illegal trade in wildlife species,” said Acting Assistant Attorney General Dreher.  “Mislabeling imported wildlife presents dangers to the public and the environment and we will continue to prosecute these cases.”

Under the plea agreements, Rakower agreed to pay a $3,000 fine.   Transship agreed to  serve a two-year period of probation, pay a $35,000 fine and pay $35,000 in restitution to the State of New York’s Department of Environmental Conservation Division of Law Enforcement.  Both parties will be sentenced on April 24, 2014.

Piranhas are freshwater fish originating from South American rivers such as the Amazon, Orinoco, Guyana and the Sao Francisco river systems.  Piranhas are extremely aggressive and territorial, feeding on insects, fish, and larger prey such as amphibians, reptiles and mammals.  As a result of piranhas’ aggressiveness, 25 states have either banned or regulated piranhas, making them illegal to own or sell.  Piranhas, an injurious species, could pose a serious risk if they escaped into native water systems, potentially damaging ecosystems through aggressive predation or injuring people or pets.  Tropical fish enthusiasts can contribute to this possibility by releasing piranhas into the wild when they grow too large for a tank.  Although piranhas originate from tropical waters, they are able to withstand much cooler water temperatures, creating fear that they may even become established in more northern US waters.   Effective regulation of piranha possession and sales within the United States depends on accurate reporting of piranha imports; concealing the fish upon import facilitates their entry into the black market in states that have banned or strictly regulated piranhas to protect state waters and ecosystems.

“Driven by greed and without regard for the health and safety of people or the environment, the defendant and his company illegally trafficked in piranha by falsely labeling the imported predatory freshwater fish as being silver tetras, a far more benign fish often kept in home aquariums and having a far less street value than piranha,” said District Attorney Brown.  “I thank the New York State Department of Environmental Conservation and our federal colleagues – the U.S. Fish and Wildlife Service and the United States Department of Justice’s Environment and Natural Resources Division – for providing a reasonable and appropriate resolution of the case.”

This case was investigated by the United States Fish and Wildlife Service in conjunction with the New York State Department of Environmental Conservation Division of Law Enforcement, and is being prosecuted by Cassandra Barnum, a trial attorney in the Environmental Crimes Section of the U.S. Department of Justice’s Environment and Natural Resources Division.