FROM: U.S. JUSTICE DEPARTMENT
Monday, February 24, 2014
Government Files Enforcement Action Against Four California Companies and Six Individuals to Stop the Importation of Dangerous Children’s Products
The government has asked a federal court in California to issue an injunction shutting down the importation and sales activities of four California companies and six individuals in connection with their imports of illegal children’s products containing, among other things, lead, phthalates and small parts inappropriate for children under age three. Phthalates are a chemical plasticizer that make certain products flexible, and certain types of phthalates are banned from use in children’s toys and other child care products. The Justice Department filed the injunction action in the Central District of California at the request of the Consumer Product Safety Commission (CPSC).
The defendant companies in the case are Toys Distribution Inc. dba TDI International, S&J Merchandise Inc., BLJ Apparel Inc. and All Season Sales Inc. The defendant individuals are Loan Tuyet Thai, Lan My Lam, Paul Phuong, Cuc T. Thai, Tom Liu and Luan Luu.
“Companies cannot be allowed to import hazardous toys into the United States,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “Parents have a right to feel confident that the toys their children play with are safe.”
The CPSC determined through an investigation that the defendants imported various items into the United States in violation of the Consumer Product Safety Act (CPSA) and the Federal Hazardous Substances Act (FHSA). The violative products that Toys Distribution Inc. imported included: motorized and “pull-back” toy cars with impermissible lead content and small parts hazards, numerous toy musical instruments with small parts hazards, dolls containing impermissible levels of lead and phthalates and rattles that failed to meet the infant rattle standards. S & J Merchandise’s imports of violative products included numerous models of toy cars with impermissible lead content or small parts hazards, a toy telephone with small parts hazards and numerous different plastic dolls with impermissible phthalate levels. The violative products imported by BLJ Apparel included children’s products and toys with illegal levels of total lead content, toys intended for children under three years of age that contained small parts and infant rattles that may cause choking or suffocation. All Season Sales’ violative imports included a children’s kitchen set and police set that both exceeded the lead content limit.
The government also alleged that the defendants’ operations were associated with each other and that the companies share various personal or professional ties that make joining all the conduct into one lawsuit appropriate.
“CPSC and our federal law enforcement partners are committed to keeping dangerous toys out of the marketplace all year long,” said CPSC Acting Chairman Robert Adler. “Manufacturers, importers and retailers need to know that CPSC and the Justice Department are actively enforcing the Consumer Product Safety Improvement Act, a law that has strengthened the nation’s product safety net.”
Defendant companies S&J Merchandise Inc., BLJ Apparel Inc. and All Season Sales Inc., as well as defendant individuals Tom Liu and Luan Luu have agreed to settle the litigation and be bound by a Consent Decree of Permanent Injunction that enjoins them from committing violations of the CPSA and FHSA. The proposed consent decree will be filed shortly with the court for judicial approval. The lawsuit continues against the remaining defendants.
The case is being handled by Patrick Runkle, trial attorney with the Department of Justice’s Consumer Protection Branch, and the U.S. Attorney’s Office for the Central District of California on behalf of the Consumer Product Safety Commission.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
Tuesday, February 25, 2014
FACT SHEET: GLOBAL FUND FOR COMMUNITY ENGAGEMENT AND RESILIENCE
FROM: U.S. STATE DEPARTMENT
Co-Chairs' Fact Sheet: Creating a Global Fund for Community Engagement and Resilience
Fact Sheet
Bureau of Public Affairs, Office of the Spokesperson
Washington, DC
February 21, 2014
Creating a Global Community Engagement and Resilience Fund:
On September 27, 2013, at the Ministerial Plenary meeting of the Global Counterterrorism Forum in New York, the intent to establish a Global Community Engagement and Resilience Fund (GCERF) was announced. GCERF will be the first global effort to harness the skills, capabilities and resources of both the public and private sectors to support local, community-based projects on education, vocational training, civic engagement, media, and women’s advocacy aimed at strengthening resilience against violent extremist agendas, which can create significant barriers to political and economic development. It is anticipated that GCERF will raise more than $200 million over the next ten years for this purpose.
THE CHALLENGE: Terrorism is Global but Starts Local
Terrorism is a transnational and global problem frequently driven by local forces. While military, intelligence and law enforcement operations can help address the threat that terrorists pose, to succeed in the long-term, we must reduce their ability to recruit at the community level by addressing local drivers of radicalization to violence.
THE GAP: Lack of Funding Opportunities for Local Organizations
Many local organizations with innovative project ideas have been unable to get off the ground because of the difficulty of attracting the necessary seed funding. Even where they have grown and had impact, they have faced challenges in securing sufficient funding to sustain their work beyond a single six-month or one-year project cycle. Local entities also often have difficulty navigating the application processes that foundations and large donors have in place. Many donors also prefer recipients from larger organizations, often international NGOs, with proven track records, and lack the broad networks and contacts to find trusted community-based partners in priority locations. As a result, small local organizations, which could have the greatest impact at the community level, struggle to find funding.
THE SOLUTION: A Global Partnership to Bolster Community-Based Efforts
GCERF will be a public-private global partnership offering a unique and practical model to enable the international community to bolster grass-roots efforts where radicalization and recruitment are occurring. It will be an independent institution governed by a mix of government and non-government stakeholders that will fund locally driven projects and thus help close the gap between the needs of local organizations (whether civil society, NGO or local government) and the resources available to support their work. GCERF will include a robust vetting process and monitoring and evaluation mechanism, providing donors with confidence that the projects supported advance the goals that led them to contribute to this fund.
Why is GCERF Different?
What distinguishes GCERF’s objectives from broader development efforts is its emphasis on youth engagement, education, vocational training, and women’s advocacy to promote resilience among at-risk populations. Such initiatives can contribute to economic growth and development in countries where international businesses are active, and provide opportunities to those susceptible to violent extremists’ messages.
Where does the Private Sector Fit In?
Terrorism, and the violent extremism that underpins it, not only destroys innocent lives around the world, it also affects businesses globally. Terrorism disrupts the markets where businesses work, the supply chains that businesses depend on, and the communities that comprise the local labor market. GCERF represents an opportunity for both private sector and government entities to jointly advance the political and economic stability of many of these local, at-risk communities by promoting resilience through positive programs that provide an alternative to violent extremism. GCERF also offers an opportunity to encourage social entrepreneurship and other innovative approaches to local investment.
GCERF Framework
Partners involved in developing GCERF will continue to refine the following principles, scope, and approach over the next several months until GCERF is operational in mid-2014.
• Principles: GCERF would be guided by a series of principles and activities which might include:
Serving as mechanism to raise, disburse, and monitor funds for valuable CVE projects
Ensuring that projects have the requisite political support from national governments as well as contribute to the implementation of the UN Global Counter-Terrorism Strategy
Evaluating proposals through an independent and transparent review process
Complementing and advancing ongoing national, regional, and international efforts
Performing evaluations of projects to ensure funds are being spent effectively and wisely
Encouraging social entrepreneurship and other innovative approaches to investment in grassroots programming
Operating with transparency and accountability
Emphasizing country-led, bottom-up approaches to programming and activities
Supporting projects – particularly at the sub-national level – that offer positive alternative to violent extremism
• Scope: Support from GCERF would complement ongoing efforts of governments and community-based organizations to address violent extremism and build resilience to violent extremist agendas. GCERF will emphasize multi-sectoral participation and results-driven approach to develop solutions to the local drivers of radicalization and recruitment to terrorism. It will allow non-government and municipal government organizations to apply for grants in a range of areas depending upon local requirements/needs. These might include:
Providing life-skills, vocational training, and other alternatives to youth at risk of recruitment and radicalization to extremist violence
Supporting victims and survivors of terrorism, highlighting terrorism’s impact on families, communities, and countries
Providing platforms for community leaders and activities to promote and provide positive alternatives to violent extremism.
Designing education campaigns around messages of pluralism, diversity, and tolerance
Designing and implementing mentorship programs and exchange programs for at-risk youth
• Approach: GCERF will be established as a non-profit foundation in Geneva, Swtizerland. It would be composed of a Secretariat with oversight from a multi-stakeholder governing board that includes a geographically diverse group with representatives of governments, the private sector, foundations, and non-government organizations. The GCERF will engage locally through Country Committee Mechanisms composed of public and private representatives, to help better direct funds to local priorities coordinate transparent proposal reviews.
Support for the GCERF
Meetings on GCERF’s mandate, structure, and legal foundation took place in Lucerne and Geneva, Switzerland in late 2013 and culminated with a final Steering Group meeting in Washington, DC, on February 20, 2014. Carol Bellamy, former UNICEF Executive Director and former Chair of the Global Education Partnership, facilitated the process. In this final meeting, over 35 governments, the United Nations, the World Bank, NGOs, the private sector, and foundation representatives reviewed and refined the mandate and organizational architecture of the GCERF which will be established in Geneva, Switzerland by mid-2014.
Several countries already pledged financial contributions, and a number of others have expressed strong support with contributions expected to follow. Several recipient countries have also indicated an interest in serving as GCERF “pilot” countries whereby local organizations in their countries would benefit from GCERF grants. In addition, several multinational companies and foundations have shown strong interest in contributing expertise and resources to the GCERF.
Co-Chairs' Fact Sheet: Creating a Global Fund for Community Engagement and Resilience
Fact Sheet
Bureau of Public Affairs, Office of the Spokesperson
Washington, DC
February 21, 2014
Creating a Global Community Engagement and Resilience Fund:
On September 27, 2013, at the Ministerial Plenary meeting of the Global Counterterrorism Forum in New York, the intent to establish a Global Community Engagement and Resilience Fund (GCERF) was announced. GCERF will be the first global effort to harness the skills, capabilities and resources of both the public and private sectors to support local, community-based projects on education, vocational training, civic engagement, media, and women’s advocacy aimed at strengthening resilience against violent extremist agendas, which can create significant barriers to political and economic development. It is anticipated that GCERF will raise more than $200 million over the next ten years for this purpose.
THE CHALLENGE: Terrorism is Global but Starts Local
Terrorism is a transnational and global problem frequently driven by local forces. While military, intelligence and law enforcement operations can help address the threat that terrorists pose, to succeed in the long-term, we must reduce their ability to recruit at the community level by addressing local drivers of radicalization to violence.
THE GAP: Lack of Funding Opportunities for Local Organizations
Many local organizations with innovative project ideas have been unable to get off the ground because of the difficulty of attracting the necessary seed funding. Even where they have grown and had impact, they have faced challenges in securing sufficient funding to sustain their work beyond a single six-month or one-year project cycle. Local entities also often have difficulty navigating the application processes that foundations and large donors have in place. Many donors also prefer recipients from larger organizations, often international NGOs, with proven track records, and lack the broad networks and contacts to find trusted community-based partners in priority locations. As a result, small local organizations, which could have the greatest impact at the community level, struggle to find funding.
THE SOLUTION: A Global Partnership to Bolster Community-Based Efforts
GCERF will be a public-private global partnership offering a unique and practical model to enable the international community to bolster grass-roots efforts where radicalization and recruitment are occurring. It will be an independent institution governed by a mix of government and non-government stakeholders that will fund locally driven projects and thus help close the gap between the needs of local organizations (whether civil society, NGO or local government) and the resources available to support their work. GCERF will include a robust vetting process and monitoring and evaluation mechanism, providing donors with confidence that the projects supported advance the goals that led them to contribute to this fund.
Why is GCERF Different?
What distinguishes GCERF’s objectives from broader development efforts is its emphasis on youth engagement, education, vocational training, and women’s advocacy to promote resilience among at-risk populations. Such initiatives can contribute to economic growth and development in countries where international businesses are active, and provide opportunities to those susceptible to violent extremists’ messages.
Where does the Private Sector Fit In?
Terrorism, and the violent extremism that underpins it, not only destroys innocent lives around the world, it also affects businesses globally. Terrorism disrupts the markets where businesses work, the supply chains that businesses depend on, and the communities that comprise the local labor market. GCERF represents an opportunity for both private sector and government entities to jointly advance the political and economic stability of many of these local, at-risk communities by promoting resilience through positive programs that provide an alternative to violent extremism. GCERF also offers an opportunity to encourage social entrepreneurship and other innovative approaches to local investment.
GCERF Framework
Partners involved in developing GCERF will continue to refine the following principles, scope, and approach over the next several months until GCERF is operational in mid-2014.
• Principles: GCERF would be guided by a series of principles and activities which might include:
Serving as mechanism to raise, disburse, and monitor funds for valuable CVE projects
Ensuring that projects have the requisite political support from national governments as well as contribute to the implementation of the UN Global Counter-Terrorism Strategy
Evaluating proposals through an independent and transparent review process
Complementing and advancing ongoing national, regional, and international efforts
Performing evaluations of projects to ensure funds are being spent effectively and wisely
Encouraging social entrepreneurship and other innovative approaches to investment in grassroots programming
Operating with transparency and accountability
Emphasizing country-led, bottom-up approaches to programming and activities
Supporting projects – particularly at the sub-national level – that offer positive alternative to violent extremism
• Scope: Support from GCERF would complement ongoing efforts of governments and community-based organizations to address violent extremism and build resilience to violent extremist agendas. GCERF will emphasize multi-sectoral participation and results-driven approach to develop solutions to the local drivers of radicalization and recruitment to terrorism. It will allow non-government and municipal government organizations to apply for grants in a range of areas depending upon local requirements/needs. These might include:
Providing life-skills, vocational training, and other alternatives to youth at risk of recruitment and radicalization to extremist violence
Supporting victims and survivors of terrorism, highlighting terrorism’s impact on families, communities, and countries
Providing platforms for community leaders and activities to promote and provide positive alternatives to violent extremism.
Designing education campaigns around messages of pluralism, diversity, and tolerance
Designing and implementing mentorship programs and exchange programs for at-risk youth
• Approach: GCERF will be established as a non-profit foundation in Geneva, Swtizerland. It would be composed of a Secretariat with oversight from a multi-stakeholder governing board that includes a geographically diverse group with representatives of governments, the private sector, foundations, and non-government organizations. The GCERF will engage locally through Country Committee Mechanisms composed of public and private representatives, to help better direct funds to local priorities coordinate transparent proposal reviews.
Support for the GCERF
Meetings on GCERF’s mandate, structure, and legal foundation took place in Lucerne and Geneva, Switzerland in late 2013 and culminated with a final Steering Group meeting in Washington, DC, on February 20, 2014. Carol Bellamy, former UNICEF Executive Director and former Chair of the Global Education Partnership, facilitated the process. In this final meeting, over 35 governments, the United Nations, the World Bank, NGOs, the private sector, and foundation representatives reviewed and refined the mandate and organizational architecture of the GCERF which will be established in Geneva, Switzerland by mid-2014.
Several countries already pledged financial contributions, and a number of others have expressed strong support with contributions expected to follow. Several recipient countries have also indicated an interest in serving as GCERF “pilot” countries whereby local organizations in their countries would benefit from GCERF grants. In addition, several multinational companies and foundations have shown strong interest in contributing expertise and resources to the GCERF.
AG HOLDER WANTS NATIONAL STANDARD FOR REPORTING CYBERATTACKS
FROM: U.S. JUSTICE DEPARTMENT
Monday, February 24, 2014
Attorney General Holder Urges Congress to Create National Standard for Reporting Cyberattacks
In a video message released today, Attorney General Eric Holder called on Congress to create a strong, national standard for quickly alerting consumers whose information may be compromised by cyberattacks. This legislation would strengthen the Justice Department's ability to combat crime, ensure individual privacy, and prevent identity theft, while also helping to bring cybercriminals to justice.
The complete text of the Attorney General’s weekly address is available below:
“Late last year, Target – the second-largest discount retailer in the United States – suffered a massive data breach that may have compromised the personal information of as many as 70 million people, in addition to credit and debit card information of up to 40 million customers. The Department of Justice is currently investigating this breach, in close coordination with the U.S. Secret Service. And we are moving aggressively to respond to hacking, cyberattacks, and other crimes that harm American consumers – and expose personal or financial information to those who would take advantage of their fellow citizens.
"As we’ve seen – especially in recent years – these crimes are becoming all too common. And they have the potential to impact millions of Americans every year. Just days after the Target breach was made public, another major retailer – Neiman Marcus – reported that it also suffered a suspected cyberattack during the holiday season. And although Justice Department officials are working closely with the FBI and prosecutors across the country to bring cyber criminals to justice, it’s time for leaders in Washington to provide the tools we need to do even more: by requiring businesses to notify American consumers and law enforcement in the wake of significant data breaches.
“Today, I’m calling on Congress to create a strong, national standard for quickly alerting consumers whose information may be compromised. This would empower the American people to protect themselves if they are at risk of identity theft. It would enable law enforcement to better investigate these crimes – and hold compromised entities accountable when they fail to keep sensitive information safe. And it would provide reasonable exemptions for harmless breaches, to avoid placing unnecessary burdens on businesses that do act responsibly.
“This legislation would strengthen the Justice Department’s ability to combat crime and ensure individual privacy – while bringing cybercriminals to justice. My colleagues and I are eager to work with Members of Congress to refine and pass this important proposal. And we will never stop working to protect the American people – using every tool and resource we can bring to bear.”
Monday, February 24, 2014
Attorney General Holder Urges Congress to Create National Standard for Reporting Cyberattacks
In a video message released today, Attorney General Eric Holder called on Congress to create a strong, national standard for quickly alerting consumers whose information may be compromised by cyberattacks. This legislation would strengthen the Justice Department's ability to combat crime, ensure individual privacy, and prevent identity theft, while also helping to bring cybercriminals to justice.
The complete text of the Attorney General’s weekly address is available below:
“Late last year, Target – the second-largest discount retailer in the United States – suffered a massive data breach that may have compromised the personal information of as many as 70 million people, in addition to credit and debit card information of up to 40 million customers. The Department of Justice is currently investigating this breach, in close coordination with the U.S. Secret Service. And we are moving aggressively to respond to hacking, cyberattacks, and other crimes that harm American consumers – and expose personal or financial information to those who would take advantage of their fellow citizens.
"As we’ve seen – especially in recent years – these crimes are becoming all too common. And they have the potential to impact millions of Americans every year. Just days after the Target breach was made public, another major retailer – Neiman Marcus – reported that it also suffered a suspected cyberattack during the holiday season. And although Justice Department officials are working closely with the FBI and prosecutors across the country to bring cyber criminals to justice, it’s time for leaders in Washington to provide the tools we need to do even more: by requiring businesses to notify American consumers and law enforcement in the wake of significant data breaches.
“Today, I’m calling on Congress to create a strong, national standard for quickly alerting consumers whose information may be compromised. This would empower the American people to protect themselves if they are at risk of identity theft. It would enable law enforcement to better investigate these crimes – and hold compromised entities accountable when they fail to keep sensitive information safe. And it would provide reasonable exemptions for harmless breaches, to avoid placing unnecessary burdens on businesses that do act responsibly.
“This legislation would strengthen the Justice Department’s ability to combat crime and ensure individual privacy – while bringing cybercriminals to justice. My colleagues and I are eager to work with Members of Congress to refine and pass this important proposal. And we will never stop working to protect the American people – using every tool and resource we can bring to bear.”
Monday, February 24, 2014
PRESIDENT OBAMA, V.P. BIDEN ADDRESS NATIONAL GOVERNORS ASSOCIATION
FROM: THE WHITE HOUSE
Remarks by the President and Vice President at NGA Meeting
State Dining Room
11:15 A.M. EST
THE VICE PRESIDENT: Thank you very much. Thanks for making the Cabinet stand up for me. (Laughter.) I appreciate it.
It’s great to see you all. And I don't know about you all, I had a great time last night and got a chance to actually do what we should be doing more of -- talking without thinking about politics and figuring how we can solve problems.
You’ve observed by now the reason the President and I like doing this every year is it’s nice dealing with people who know they got to get a job done, and they get a job done. And I’ve gotten a chance to work directly with an awful lot of you in the days of the Recovery Act, and even when we were working on the gun violence; rebuilding from that super storm Sandy, which hit my state as well, and tornadoes and floods in a number of your states.
But it never ceases to amaze me how you all mobilize. You just mobilize. When crises hit your states, you mobilize and you rebuild. And you rebuild your infrastructure not to the standards that existed before, but to 21st century standards. You balance your budgets, you save neighborhoods, and you bring back jobs to your communities.
And the other thing I pick up -- and I may be wrong. I’m always labeled as the White House optimist, like I’m the kid who fell off the turnip truck yesterday, but I am the youngest here -- (laughter) -- and new. But it always amazes me your sense of optimism. You’re the one group of folks you go to with all the problems you have that you’re optimistic. You're optimistic about it being able to be done, getting things done. That is not always the mood up in the place where I spent a large portion of my career.
And last night I got to speak to a bunch of you, particularly about the job skills initiative the President asked me to lead, and I had a chance to speak with some of you specifically, and I’m going to ask to -- I’m going to get a chance to see more of you this afternoon. But this is more than just -- at least from the President’s perspective and mine -- more than just a job skills initiative. It’s about literally opening the aperture to the middle class. The middle class has actually shrunk.
And we always have these debates with our economists -- is the middle class $49,820 or $52,000. The middle class to me, and I think to most of you, it’s really a state of mind. It’s about being able to own your home and not have to rent it. It’s about being able to send your kid to a park where you know you can send them out, and they’ll come home safely. It’s about being able to send them to school, that if they do well in the school, they're going to be able to get to something beyond high school if they want to do that. And you’re going to be able to pay for it. And in the meantime, you may be able to take care of your mom and dad who are in tough shape and hope that your kids never have to take care of you. That's the middle class.
And before the Great Recession, it was already beginning to shrink. So together, we got to open -- Mary, you and I have talked about this -- about opening the aperture here for access to the middle class. But we’ll be speaking a lot more about that in the next several months. A couple of you invited me to come out your way, including some of my Republican friends. And I’m going to be working with all of you.
But today I just want to say thank you. Thank you for what you always do. You come to town; you come to town with answers. You come to town with suggestions. You come to town to get things done. And believe me, we need that and the American people are looking for it.
And I want to welcome you back to the White House, and introduce you now to my friend, your President, Barack Obama. (Applause.)
THE PRESIDENT: Thank you, everybody. Thank you. Please, have a seat. Thank you so much.
Welcome to the White House. I know that you’ve already been doing a lot of work, and I’m glad to be able to come here and engage in a dialogue with all of you. I want to thank Mary and John for their leadership at the NGA. I want to thank my outstanding Vice President, Joe Biden, who is very excited I think about the jobs initiative, and is going to be -- the job training initiative, and I think is going to be doing a great job on that.
Michelle and I had a wonderful time hosting you guys last night, and I hope all the spouses enjoyed it. And I know Alex enjoyed it. (Laughter.) One good thing about living here is that you can make all the noise you want and nobody is going to complain. (Laughter.) And I enjoyed watching some of you with your eyes on higher office size up the drapes -- (laughter) --and each other.
We don’t have a lot of time today, so I want to be very brief, go straight to Q&A and discussion. We’re at a moment when our economy is growing; our businesses have now created over 8.5 million new jobs over the past four years. But, as I’ve said several times, the trends that have battered the middle class for a couple of decades now are still there and still have to be addressed. Those at the top are doing very well. Ordinary families still feeling squeezed. Too many Americans are working harder than ever, and just barely getting by.
And reversing these trends are going to require us to work together around what I’m calling an opportunity agenda based on four things. Number one, more good jobs that pay good wages. Number two, training more Americans to be able to take the jobs that are out there right now and the jobs that are created. Number three, guaranteeing access to a world-class education for every American child all across our 50 states and our territories. And making sure that hard work pays off -- with wages that you can live on, savings that you can retire on, health insurance that you can count on.
And all of this is going to take some action. So far, just in the past few weeks, I’ve acted to lift the wages of workers who work for federal contractors to pay their -- make sure their employees are getting paid at least $10.10 an hour. We’ve ordered an across-the-board reform of our job training programs, much of it aligned with some of the work that Mary has done during her tenure as head of the NGA. We directed our Treasury to create a new way for Americans to start saving for retirement. We’ve been able to rally America’s business leaders to help more of the long-term unemployed find work, and to help us make sure that all of our kids have access to high-speed Internet and high-tech learning tools in the classroom.
The point is, this has to be a year of action. And I’m eager to work with Congress wherever I can. My hope is, is that despite this being an election year, that there will be occasions where both parties determine that it makes sense to actually get some things done in this town. But wherever I can work on my own to expand opportunity for more Americans, I’m going to do that. And I am absolutely convinced that the time is right to partner with the states and governors all across the country on these agendas, because I know that you guys are doing some terrific work in your own states.
There may not be much of an appetite in Congress for doing big jobs bills, but we can still grow SelectUSA. Secretary Pritzker’s team has put together a terrific formula where we’re attracting investors from all around the world to see America as an outstanding place to invest. And I mentioned this at the State of the Union: For the first time last year, what we’re seeing is, is that world investors now see America as the number-one place to do business rather than China. And it’s a sign of a lot of things converging, both on the energy front, worker productivity, our innovation, our research, ease of doing business. And a lot of that work is as a consequence of steps we’ve taken not just at the federal level, but also at the state level. So we’ve got to take advantage of that.
Secretary Pritzker has been helping a Belgian company create jobs in Stillwater, Oklahoma; helping an Austrian company create jobs in Cartersville, Georgia. So we can do more of this, and we really want to engage with you over the next several months to find ways that we can help market America and your states to businesses all around the world and bring jobs back.
Since I called on Congress to raise the minimum wage last year, six states have gone ahead and done it on their own. Last month, I asked more business leaders to raise their workers’ wages. Last week, GAP said it would lift wages for about 65,000 of its employees. Several of you are trying to boost wages for your workers. I’m going to do everything I can to support those efforts.
While Congress decides what it’s going to do on making high-quality pre-K available to more kids, there is bipartisan work being done among the folks in this room. You’ve got governors like Robert Bentley and Jack Markell, Susana Martinez, Deval Patrick -- all expanding funding or dedicating funds to make that happen in their states. And we want to partner with you. This year, I’ll pull together a coalition of philanthropists, elected officials and business leaders, all of whom are excited and interested in working with you to help more kids access the high-quality pre-K that they need.
And while Congress talks about repealing the Affordable Care Act or doing this or doing that to it, places like California and Kentucky are going gangbusters and enrolling more Americans in quality, affordable health care plans. You’ve got Republican governors here -- I won’t name them in front of the press, because I don’t want to get you all in trouble -- who have chosen to cover more people through new options under Medicaid. And as a result, millions of people are going to get help.
States that don’t expand Medicaid are going to be leaving up to 5.4 million Americans uninsured. And that doesn’t have to happen. Work with us to get this done. We can provide a lot of flexibility. Folks like Mike Beebe in Arkansas have done some terrific work designing programs that are right for their states but also provide access to care for people who need it. And I think Kathleen Sebelius, a former governor herself, has shown herself willing to work with all of you to try to find ways to get that done.
On the West Coast, you’ve got Governors Brown, Inslee, Kitzhaber who are working together to combat the effects of climate change on their states. We’ve set up a taskforce of governors and mayors and tribal leaders to help communities prepare for what we anticipate are going to be intensifying impacts of climate change. And we’re setting up climate hubs in seven states across the country to help farmers and ranchers adapt their operations to a changing environment.
In the budget that I’ll send to Congress next week, I’m going to propose fundamentally reforming the way federal governments fund wildfire suppression and prevention to make it more stable and secure, and this is an idea that’s supported by both Democrats and Republicans.
And finally, I want to thank those of you who have worked with Michelle and Jill Biden on their Joining Forces initiative to support our military families. At your meeting here two years ago, they asked for your help to make it easier for servicemembers and their spouses to carry licenses for professions like teaching or nursing from state to state, rather than have to get a new one every time they were reassigned. At the time, only 12 states had acted to make this easier for spouses; only nine had acted to make it easier for servicemembers. Today, 42 states have passed legislation to help spouses; 45 states have made it easier for servicemembers. We’ve got a few states remaining. Let’s get it done for everybody, because it’s the right thing to do for those men and women who are working every day to make sure we stay free and secure.
The point is, even when there is little appetite in Congress to move on some of these priorities, at the state level you guys are governed by practical considerations. You want to do right by your people and you see how good policy impacts your citizens, and you see how bad policy impacts your citizens, and that means that there’s less room for posturing and politics, and more room for getting stuff done.
We want to work with you. And I’m committed to making sure that every single member of my Cabinet, every single person in the White House, every single member of my team will be responsive to you. We won’t agree on every single issue every single time, but I guarantee you that we will work as hard as we can to make sure that you succeed -- because when you succeed, the people in your states succeed and America succeeds, and that’s our goal.
So thank you very much, and I look forward to having a great discussion. Thank you, everybody. (Applause.)
END
11:27 A.M. EST
11:27 A.M. EST
DEFENSE SECRETARY HAGEL DISCUSSED AFFECTS OF BUDGET
FROM: U.S. DEFENSE DEPARTMENT
Hagel Outlines Budget Reducing Troop Strength, Force Structure
By Nick Simeone
American Forces Press Service
WASHINGTON, Feb. 24, 2014 – Defense Secretary Chuck Hagel has proposed cuts in military spending that include further reductions in troop strength and force structure in every military service in the coming year as part of an effort to prioritize U.S. strategic interests in the face of reduced resources after more than a decade of war.
At a Pentagon news conference today detailing President Barack Obama’s proposed Pentagon budget for fiscal year 2015, Hagel called the reductions -- including shrinking the Army to its smallest size since before World War II and eliminating an entire fleet of Air Force fighter planes -- “difficult choices” that will change defense institutions for years to come, but designed to leave the military capable of fulfilling U.S. defense strategy and defending the homeland against strategic threats.
Under a Pentagon budget that will shrink by more than $75 billion over the next two years -- with deeper cuts expected if sequestration returns in fiscal year 2016 -- Hagel and other senior defense and military officials acknowledged that some of the budget choices will create additional risks in certain areas.
Some of that risk, Hagel said, is associated with a sharp drawdown in the size of the Army, which the proposed budget calls for reducing to as low as 440,000 active duty soldiers from the current size of 520,000, while ensuring the force remains well trained and equipped.
The cuts assume the United States no longer becomes involved in large, prolonged stability operations overseas on the scale of Iraq and Afghanistan. “An Army of this size is larger than required to meet the demands of our defense strategy,” Hagel said. “It is also larger than we can afford to modernize and keep ready.” But he said the smaller force still would be capable of decisively defeating aggression in one major war “while also defending the homeland and supporting air and naval forces engaged in another theater against an adversary.”
The budget request calls for special operations forces to grow by nearly 4,000 personnel, bringing the total to 69,700, a reflection of the asymmetrical threats the nation is likely to face in the future, Hagel said.
The restructuring and downsizing are in line with a two-year budget agreement that the president and Congress worked out in December, which limits defense spending to $496 billion. But Hagel warned today that if the budget for fiscal year 2016 returns to the steep, automatic spending cuts imposed by sequestration, “we would be gambling that our military will not be required to respond to multiple major contingencies at the same time.”
Asked to define that increased risk, a senior Defense Department official expressed it simply. “If the force is smaller, there’s less margin for error,” the official said. “Let’s face it -- things are pretty uncertain out there.”
The proposed budget also envisions a 5-percent reduction in the Army National Guard and Army Reserve. “While it is true that reserve units are less expensive when they are not mobilized, our analysis shows that a reserve unit is roughly the same cost as an active duty unit when mobilized and deployed,” Hagel said.
In addition, the Army Guard’s Apache attack helicopters would be transferred to the active force, while Black Hawk helicopters would be transferred to the National Guard, part of a broader realignment of Army aviation designed to modernize the fleet and increase capability.
Within the Air Force, the defense budget calls for saving $3.5 billion by retiring the A-10 fleet and replacing it with the F-35 by the early 2020s.
“The A-10 is a 40-year old, single-purpose airplane originally designed to kill enemy tanks on a Cold War battlefield,” Hagel said. “It cannot survive or operate effectively where there are more advanced aircraft or air defenses.” In addition, the service also will retire the 50 year-old U-2 surveillance plane in favor of the unmanned Global Hawk.
Hagel warned that much deeper cuts in Air Force structure and modernization will be necessary if sequestration is not avoided in 2016.
Among other proposals in the budget request:
-- The Army will cancel the Ground Combat Vehicle program;
-- The Navy would be able to maintain 11 carrier strike groups, but any steep future cuts could require mothballing the aircraft carrier USS George Washington;
-- Half of the Navy’s cruiser fleet, 11 ships, will be placed in reduced operating status while they are modernized and given a longer lifespan;
-- The Navy will continue buying two destroyers and attack submarines per year;
-- The Marine Corps will draw down from about 190,000 to 182,000, but would have to shrink further if sequestration returns;
-- An additional 900 Marines will be devoted to securing U.S. embassies;
and
-- The Defense Department is asking Congress for another round of base closings and realignments in 2017.
Hagel said most of the recommendations in the budget were accepted by senior military officers. Addressing reporters alongside him, Army Gen. Martin E. Dempsey, chairman of the Joint Chiefs of Staff, said the spending plan reflects a balancing of the military while ensuring it remains the world’s finest.
“It reflects in real terms how we’re reducing our cost and making sure the force is in the right balance,” Dempsey said.
Dempsey and Hagel will testify on the budget before Congress next week. Lawmakers will have the final say on spending decisions.
“This is the first time in 13 years we will be presenting a budget to Congress that is not a war footing budget,” Hagel noted.
Hagel Outlines Budget Reducing Troop Strength, Force Structure
By Nick Simeone
American Forces Press Service
WASHINGTON, Feb. 24, 2014 – Defense Secretary Chuck Hagel has proposed cuts in military spending that include further reductions in troop strength and force structure in every military service in the coming year as part of an effort to prioritize U.S. strategic interests in the face of reduced resources after more than a decade of war.
At a Pentagon news conference today detailing President Barack Obama’s proposed Pentagon budget for fiscal year 2015, Hagel called the reductions -- including shrinking the Army to its smallest size since before World War II and eliminating an entire fleet of Air Force fighter planes -- “difficult choices” that will change defense institutions for years to come, but designed to leave the military capable of fulfilling U.S. defense strategy and defending the homeland against strategic threats.
Under a Pentagon budget that will shrink by more than $75 billion over the next two years -- with deeper cuts expected if sequestration returns in fiscal year 2016 -- Hagel and other senior defense and military officials acknowledged that some of the budget choices will create additional risks in certain areas.
Some of that risk, Hagel said, is associated with a sharp drawdown in the size of the Army, which the proposed budget calls for reducing to as low as 440,000 active duty soldiers from the current size of 520,000, while ensuring the force remains well trained and equipped.
The cuts assume the United States no longer becomes involved in large, prolonged stability operations overseas on the scale of Iraq and Afghanistan. “An Army of this size is larger than required to meet the demands of our defense strategy,” Hagel said. “It is also larger than we can afford to modernize and keep ready.” But he said the smaller force still would be capable of decisively defeating aggression in one major war “while also defending the homeland and supporting air and naval forces engaged in another theater against an adversary.”
The budget request calls for special operations forces to grow by nearly 4,000 personnel, bringing the total to 69,700, a reflection of the asymmetrical threats the nation is likely to face in the future, Hagel said.
The restructuring and downsizing are in line with a two-year budget agreement that the president and Congress worked out in December, which limits defense spending to $496 billion. But Hagel warned today that if the budget for fiscal year 2016 returns to the steep, automatic spending cuts imposed by sequestration, “we would be gambling that our military will not be required to respond to multiple major contingencies at the same time.”
Asked to define that increased risk, a senior Defense Department official expressed it simply. “If the force is smaller, there’s less margin for error,” the official said. “Let’s face it -- things are pretty uncertain out there.”
The proposed budget also envisions a 5-percent reduction in the Army National Guard and Army Reserve. “While it is true that reserve units are less expensive when they are not mobilized, our analysis shows that a reserve unit is roughly the same cost as an active duty unit when mobilized and deployed,” Hagel said.
In addition, the Army Guard’s Apache attack helicopters would be transferred to the active force, while Black Hawk helicopters would be transferred to the National Guard, part of a broader realignment of Army aviation designed to modernize the fleet and increase capability.
Within the Air Force, the defense budget calls for saving $3.5 billion by retiring the A-10 fleet and replacing it with the F-35 by the early 2020s.
“The A-10 is a 40-year old, single-purpose airplane originally designed to kill enemy tanks on a Cold War battlefield,” Hagel said. “It cannot survive or operate effectively where there are more advanced aircraft or air defenses.” In addition, the service also will retire the 50 year-old U-2 surveillance plane in favor of the unmanned Global Hawk.
Hagel warned that much deeper cuts in Air Force structure and modernization will be necessary if sequestration is not avoided in 2016.
Among other proposals in the budget request:
-- The Army will cancel the Ground Combat Vehicle program;
-- The Navy would be able to maintain 11 carrier strike groups, but any steep future cuts could require mothballing the aircraft carrier USS George Washington;
-- Half of the Navy’s cruiser fleet, 11 ships, will be placed in reduced operating status while they are modernized and given a longer lifespan;
-- The Navy will continue buying two destroyers and attack submarines per year;
-- The Marine Corps will draw down from about 190,000 to 182,000, but would have to shrink further if sequestration returns;
-- An additional 900 Marines will be devoted to securing U.S. embassies;
and
-- The Defense Department is asking Congress for another round of base closings and realignments in 2017.
Hagel said most of the recommendations in the budget were accepted by senior military officers. Addressing reporters alongside him, Army Gen. Martin E. Dempsey, chairman of the Joint Chiefs of Staff, said the spending plan reflects a balancing of the military while ensuring it remains the world’s finest.
“It reflects in real terms how we’re reducing our cost and making sure the force is in the right balance,” Dempsey said.
Dempsey and Hagel will testify on the budget before Congress next week. Lawmakers will have the final say on spending decisions.
“This is the first time in 13 years we will be presenting a budget to Congress that is not a war footing budget,” Hagel noted.
U.S. DEFENSE DEPARTMENT CONTRACTS FOR FEBRUARY 24, 2014
FROM: THE DEFENSE DEPARTMENT
CONTRACTS
NAVY
General Dynamics Electric Boat Corp., Groton, Conn., is being awarded a $36,137,340 cost-plus-fixed-fee modification to previously awarded contract (N00024-13-C-4311) to provide a Nuclear Regional Maintenance Department (NRMD). Under the terms of the contract, Electric Boat will provide NRMD tasks in support of operational nuclear submarines at the Naval Submarine Support Facility, Naval Submarine Base, New London, Conn. The contract will require project management, technical analysis, engineering and planning, training, inspection and nuclear services to accomplish intermediate-level nuclear submarine maintenance, modernization, and repairs in support of operational nuclear submarines, including maintaining and modernizing Government-owned facilities and equipment and providing off-hull support of submarine maintenance. Work will be performed in New London, Conn., and is expected to be completed by March 2015. Fiscal 2014 operations & maintenance, Navy contract funds in the amount of $25,000,000 will be obligated at time of award and will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.
NRG Energy, Inc.*, Princeton, N.J. (N62583-10-D-0326); Chevron Energy Solutions Co., San Francisco, Calif. (N62583-10-D-0327); Solarstar California XV, LLC, Richmond, Calif. (N62583-10-D-0328); Sun Edison LLC*, Beltsville, Md. (N62583-10-D-0329); and SunDurance Energy, LLC*, Edison, N.J. (N62583-10-D-0330), are each being awarded option year four under a previously awarded indefinite-quantity/indefinite-delivery, firm-fixed-price multiple award contract for the purchase of renewable electrical power through power purchase agreements at Naval and Marine Corps installations in the Naval Facilities Engineering Command (NAVFAC) Southwest area of responsibility (AOR). The combined total value for all five contractors is $25,000,000. No task orders are being awarded at this time. The work to be performed provides the generation of electric power from renewable power systems that are constructed, owned, operated, and maintained by the contractor on Government property located within the installation boundaries. The government will procure the power through Power Purchase Agreements. The contract value amount after exercise of this option will be $200,000,000. Work will be performed at various federal sites within the NAVFAC Southwest AOR including but not limited to California (80 percent) and Arizona (20 percent), and work is expected to be completed February 2015. No funds will be obligated with this award. Contract funds will not expire at the end of the current fiscal year. The Naval Facilities Engineering and Expeditionary Warfare Center, Port Hueneme, Calif., is the contracting activity.
Raytheon Co., McKinney, Texas, is being awarded $14,304,303 for firm-fixed-price delivery order 7008 under a previously awarded Basic Ordering Agreement (N00383-11-G-003D) for various quantities of repair parts to support the H-53and V-22 aircraft. Work will be performed in Jacksonville, Fla., and work is expected to be completed by Feb. 28, 2016. Fiscal 2014 Navy working capital funds in the amount of $14,304,303 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 FAR 6.302-1. The NAVSUP Weapon Systems Support, Philadelphia, Pa., is the contracting activity.
Raytheon Co., McKinney, Texas, is being awarded $9,430,218 for ceiling priced delivery order 7009 under a previously awarded basic ordering agreement (N00383-10-G-003D) for the repair of one weapon repairable assembly and four shop replaceable assemblies of the Advanced Targeting Forward Looking Infrared system used in support of the F/A-18 aircraft. Work will be performed in McKinney, Texas, and work is expected to be completed by February 2016. Fiscal 2014 Navy working capital funds in amount of $4,620,806 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 NAVSUP Weapon Systems Support, Philadelphia, Pa., is the contracting activity.
RWT, LLC*, Provo, Utah, is being awarded $7,404,262 for firm-fixed-price task order 00120 under a previously multiple award construction contract (N62478-13-D-4004) to construct a new low pressure air compressor plant at Facility S1161 and install new low pressure air compressors at Building 641, Joint Base Pearl Harbor - Hickam. Work will be performed in Oahu, Hawaii, and is expected to be completed by July 2015. Fiscal 2013 military construction, Defense Agencies contract funds in the amount of $7,404,262 are being obligated on this award and will not expire at the end of the current fiscal year. Seven proposals were received for this task order. The Naval Facilities Engineering Command, Hawaii, Joint Base Pearl Harbor-Hickam, Hawaii, is the contracting activity.
DEFENSE LOGISTICS AGENCY
Alcon Laboratories, Inc., Fort Worth, Texas, has been awarded a maximum $23,485,218 modification (P00005) exercising the first option year on a one-year base contract (SPM2D0-13-D-0004) with seven one-year option periods for various pharmaceutical products. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Location of performance is Texas with a Feb. 26, 2015 performance completion date. Using military services are Army, Navy, Air Force and Marine Corps. Type of appropriation is fiscal 2014 war-stopper funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.
Hitachi Aloka Medical, Ltd., Wallingford, Conn., has been awarded a maximum $14,420,708 modification (P00001) exercising the fifth option year on a one-year base contract (SPM2D1-09-D-8329) with seven one-year option periods for radiology systems, subsystems, accessories, service, manual and repair parts. This is a fixed-price with economic-price adjustment, indefinite-delivery/indefinite-quantity contract. Location of performance is Connecticut with a Feb. 26, 2015 performance completion date. Using military services are Army, Navy, Air Force, Marine Corps and federal civilian agencies. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.
Omega Medical Imaging., Inc.* Sanford, Fla., has been awarded a maximum $14,014,205 modification (P00101) exercising the fifth option year on a one-year base contract (SPM2D1-09-D-8336) with seven one-year option periods for radiology systems, subsystems and components. This is a fixed-price with economic adjustment contract. Location of performance is Florida with a Feb. 24, 2015 performance completion date. Using military services are Army, Navy, Air Force, Marine Corps and federal civilian agencies. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.
FN Manufacturing, Columbia, S.C., has been awarded a maximum $7,620,000 firm-fixed price, indefinite-delivery/indefinite-quantity contract for cartridge receivers for the MK19 grenade launcher. This contract is a competitive acquisition, and four offers were received. This is a three-year base contract. Location of performance is S.C., with a Feb. 24, 2017 performance completion date. Using military service is Army. Type of appropriation is fiscal 2014 Army working capital funds. The contracting activity is the Defense Logistics Agency Land – Warren, Warren, Mich., (SPRDL1-14-D-0022).
M&M Manufacturing, LLC,* Lajas, Puerto Rico., has been awarded a maximum $7,039,102 firm-fixed-price, total set-aside contract for men’s and women’s rip-stop airmen battle uniform coats, trousers, maternity coats and slacks. This is a one-year base contract with four one-year option periods. Location of performance is Puerto Rico with a Feb. 23, 2015 performance completion date. Using military service is Air Force. Type of appropriation is fiscal 2014 through fiscal 2015 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPE1C1-14-D-1015).
AIR FORCE
Raytheon Company Missile Systems, Tucson Ariz., has been awarded a $20,000,000 indefinite-delivery/indefinite-quantity contract for support of requirements associated with performance of the AMRAAM Aircraft Integration, aircraft operational testing related activities and flight test support. The primary objective of this effort is to provide the necessary aircraft lab, flight test, flight clearance and simulation support during all aircraft integration efforts. Additionally, it covers the required effort to maintain or repair assets or support equipment needed for direct support to aircraft integration related efforts. This effort includes all necessary troubleshooting, failure analysis or other activities required to understand anomalies or failures that occur during aircraft or AMRAAM missile OT related activities as well as provide needed support during these OT related activities. Work will be performed at Fort Worth, Texas; Eglin Air Force Base, Fla.,; Hill AFB, Utah; Edwards AFB, Calif.; Nellis AFB, Nev.; White Sands Missile Range, N.M.: China Lake/Point Mugu, Calif.; St. Louis, Mo.; Seattle, Wash.: Baltimore, Md., and Tucson, Ariz., and is expected to be completed by September 2019. Fiscal 2013 and 2014 research and development funds totaling $3,062,736 will be obligated for five task orders (TO 0001 Simulation Support, TO 0002 Integration Support, TO 0003 Flight Clearances, TO 0004 Tech Support and TO 0005 Management/Financial Support) at time of award. This award is the result of a sole-source acquisition. Air Force Life Cycle Management Center/EBA, Eglin AFB, Fla., is the contracting activity (FA8675-14-D-0009).
Alliant TechSystems Operations, LLC Defense Electronic Systems Division, Clearwater, Fla., has been awarded an $8,021,810 modification (P00062) on an existing firm-fixed-price contract (FA8626-06-C-2060) for the procurement of various Common Munition Built-in-Test (BIT) Reprogramming Equipment (CMBRE) system components. The contract modification provides for the exercise of an option for the purchase of additional W-17 cables (200 each), ADU 891 V/1E's (34 each), CMBRE Plus' (24 each), and initial spares kits (ten each) under the basic contract in support of U.S. Air Force, Navy and foreign military sales users. Work will be performed at Clearwater, Fla., and is expected to be completed by Feb. 23, 2015. This action relates to unclassified U.S. Air Force and U.S. Navy (20 percent) support as well as unclassified FMS (80 percent) in Australia, Belgium, Canada, Finland, India, Israel, Korea, Netherlands, Oman, Poland, Singapore, and Turkey. Air Force Life Cycle Management Center/WNKBBA, Robins Air Force Base, Ga., is the contracting activity.
ARMY
ATK Tactical Propulsion & Ordinance, Rocket Center, W. Va., was awarded a $10,700,000 firm-fixed-price contract for 60mm high explosive enhanced fragmentation M1061 cartridges. Fiscal 2014 other procurement funds in the amount of $4,300,014 and Fiscal 2013 other procurement funds in the amount of $6,399,986 were obligated at the time of the award. Estimated completion date is Sept. 30, 2015. One bid was solicited and one received. Work will be performed in Rocket Center, W.Va. Army Contracting Command, Picatinny Arsenal, N.J. is the contracting activity (W15QKN-14-C-0035).
Fidelity Technologies Corporation, Reading, Pa., was awarded an $84,400,000 firm-fixed-price contract for the purchase of power distribution illumination system electrical units. Funding and performance location will be determined with each order. Estimated completion date is Feb. 23, 2019. Bids were solicited via the Internet with nine received. Army Contracting Command, Alexandria, Va. is the contracting activity (W909MY-14-D-0005).
CONTRACTS
NAVY
General Dynamics Electric Boat Corp., Groton, Conn., is being awarded a $36,137,340 cost-plus-fixed-fee modification to previously awarded contract (N00024-13-C-4311) to provide a Nuclear Regional Maintenance Department (NRMD). Under the terms of the contract, Electric Boat will provide NRMD tasks in support of operational nuclear submarines at the Naval Submarine Support Facility, Naval Submarine Base, New London, Conn. The contract will require project management, technical analysis, engineering and planning, training, inspection and nuclear services to accomplish intermediate-level nuclear submarine maintenance, modernization, and repairs in support of operational nuclear submarines, including maintaining and modernizing Government-owned facilities and equipment and providing off-hull support of submarine maintenance. Work will be performed in New London, Conn., and is expected to be completed by March 2015. Fiscal 2014 operations & maintenance, Navy contract funds in the amount of $25,000,000 will be obligated at time of award and will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.
NRG Energy, Inc.*, Princeton, N.J. (N62583-10-D-0326); Chevron Energy Solutions Co., San Francisco, Calif. (N62583-10-D-0327); Solarstar California XV, LLC, Richmond, Calif. (N62583-10-D-0328); Sun Edison LLC*, Beltsville, Md. (N62583-10-D-0329); and SunDurance Energy, LLC*, Edison, N.J. (N62583-10-D-0330), are each being awarded option year four under a previously awarded indefinite-quantity/indefinite-delivery, firm-fixed-price multiple award contract for the purchase of renewable electrical power through power purchase agreements at Naval and Marine Corps installations in the Naval Facilities Engineering Command (NAVFAC) Southwest area of responsibility (AOR). The combined total value for all five contractors is $25,000,000. No task orders are being awarded at this time. The work to be performed provides the generation of electric power from renewable power systems that are constructed, owned, operated, and maintained by the contractor on Government property located within the installation boundaries. The government will procure the power through Power Purchase Agreements. The contract value amount after exercise of this option will be $200,000,000. Work will be performed at various federal sites within the NAVFAC Southwest AOR including but not limited to California (80 percent) and Arizona (20 percent), and work is expected to be completed February 2015. No funds will be obligated with this award. Contract funds will not expire at the end of the current fiscal year. The Naval Facilities Engineering and Expeditionary Warfare Center, Port Hueneme, Calif., is the contracting activity.
Raytheon Co., McKinney, Texas, is being awarded $14,304,303 for firm-fixed-price delivery order 7008 under a previously awarded Basic Ordering Agreement (N00383-11-G-003D) for various quantities of repair parts to support the H-53and V-22 aircraft. Work will be performed in Jacksonville, Fla., and work is expected to be completed by Feb. 28, 2016. Fiscal 2014 Navy working capital funds in the amount of $14,304,303 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 FAR 6.302-1. The NAVSUP Weapon Systems Support, Philadelphia, Pa., is the contracting activity.
Raytheon Co., McKinney, Texas, is being awarded $9,430,218 for ceiling priced delivery order 7009 under a previously awarded basic ordering agreement (N00383-10-G-003D) for the repair of one weapon repairable assembly and four shop replaceable assemblies of the Advanced Targeting Forward Looking Infrared system used in support of the F/A-18 aircraft. Work will be performed in McKinney, Texas, and work is expected to be completed by February 2016. Fiscal 2014 Navy working capital funds in amount of $4,620,806 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 NAVSUP Weapon Systems Support, Philadelphia, Pa., is the contracting activity.
RWT, LLC*, Provo, Utah, is being awarded $7,404,262 for firm-fixed-price task order 00120 under a previously multiple award construction contract (N62478-13-D-4004) to construct a new low pressure air compressor plant at Facility S1161 and install new low pressure air compressors at Building 641, Joint Base Pearl Harbor - Hickam. Work will be performed in Oahu, Hawaii, and is expected to be completed by July 2015. Fiscal 2013 military construction, Defense Agencies contract funds in the amount of $7,404,262 are being obligated on this award and will not expire at the end of the current fiscal year. Seven proposals were received for this task order. The Naval Facilities Engineering Command, Hawaii, Joint Base Pearl Harbor-Hickam, Hawaii, is the contracting activity.
DEFENSE LOGISTICS AGENCY
Alcon Laboratories, Inc., Fort Worth, Texas, has been awarded a maximum $23,485,218 modification (P00005) exercising the first option year on a one-year base contract (SPM2D0-13-D-0004) with seven one-year option periods for various pharmaceutical products. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Location of performance is Texas with a Feb. 26, 2015 performance completion date. Using military services are Army, Navy, Air Force and Marine Corps. Type of appropriation is fiscal 2014 war-stopper funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.
Hitachi Aloka Medical, Ltd., Wallingford, Conn., has been awarded a maximum $14,420,708 modification (P00001) exercising the fifth option year on a one-year base contract (SPM2D1-09-D-8329) with seven one-year option periods for radiology systems, subsystems, accessories, service, manual and repair parts. This is a fixed-price with economic-price adjustment, indefinite-delivery/indefinite-quantity contract. Location of performance is Connecticut with a Feb. 26, 2015 performance completion date. Using military services are Army, Navy, Air Force, Marine Corps and federal civilian agencies. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.
Omega Medical Imaging., Inc.* Sanford, Fla., has been awarded a maximum $14,014,205 modification (P00101) exercising the fifth option year on a one-year base contract (SPM2D1-09-D-8336) with seven one-year option periods for radiology systems, subsystems and components. This is a fixed-price with economic adjustment contract. Location of performance is Florida with a Feb. 24, 2015 performance completion date. Using military services are Army, Navy, Air Force, Marine Corps and federal civilian agencies. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.
FN Manufacturing, Columbia, S.C., has been awarded a maximum $7,620,000 firm-fixed price, indefinite-delivery/indefinite-quantity contract for cartridge receivers for the MK19 grenade launcher. This contract is a competitive acquisition, and four offers were received. This is a three-year base contract. Location of performance is S.C., with a Feb. 24, 2017 performance completion date. Using military service is Army. Type of appropriation is fiscal 2014 Army working capital funds. The contracting activity is the Defense Logistics Agency Land – Warren, Warren, Mich., (SPRDL1-14-D-0022).
M&M Manufacturing, LLC,* Lajas, Puerto Rico., has been awarded a maximum $7,039,102 firm-fixed-price, total set-aside contract for men’s and women’s rip-stop airmen battle uniform coats, trousers, maternity coats and slacks. This is a one-year base contract with four one-year option periods. Location of performance is Puerto Rico with a Feb. 23, 2015 performance completion date. Using military service is Air Force. Type of appropriation is fiscal 2014 through fiscal 2015 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPE1C1-14-D-1015).
AIR FORCE
Raytheon Company Missile Systems, Tucson Ariz., has been awarded a $20,000,000 indefinite-delivery/indefinite-quantity contract for support of requirements associated with performance of the AMRAAM Aircraft Integration, aircraft operational testing related activities and flight test support. The primary objective of this effort is to provide the necessary aircraft lab, flight test, flight clearance and simulation support during all aircraft integration efforts. Additionally, it covers the required effort to maintain or repair assets or support equipment needed for direct support to aircraft integration related efforts. This effort includes all necessary troubleshooting, failure analysis or other activities required to understand anomalies or failures that occur during aircraft or AMRAAM missile OT related activities as well as provide needed support during these OT related activities. Work will be performed at Fort Worth, Texas; Eglin Air Force Base, Fla.,; Hill AFB, Utah; Edwards AFB, Calif.; Nellis AFB, Nev.; White Sands Missile Range, N.M.: China Lake/Point Mugu, Calif.; St. Louis, Mo.; Seattle, Wash.: Baltimore, Md., and Tucson, Ariz., and is expected to be completed by September 2019. Fiscal 2013 and 2014 research and development funds totaling $3,062,736 will be obligated for five task orders (TO 0001 Simulation Support, TO 0002 Integration Support, TO 0003 Flight Clearances, TO 0004 Tech Support and TO 0005 Management/Financial Support) at time of award. This award is the result of a sole-source acquisition. Air Force Life Cycle Management Center/EBA, Eglin AFB, Fla., is the contracting activity (FA8675-14-D-0009).
Alliant TechSystems Operations, LLC Defense Electronic Systems Division, Clearwater, Fla., has been awarded an $8,021,810 modification (P00062) on an existing firm-fixed-price contract (FA8626-06-C-2060) for the procurement of various Common Munition Built-in-Test (BIT) Reprogramming Equipment (CMBRE) system components. The contract modification provides for the exercise of an option for the purchase of additional W-17 cables (200 each), ADU 891 V/1E's (34 each), CMBRE Plus' (24 each), and initial spares kits (ten each) under the basic contract in support of U.S. Air Force, Navy and foreign military sales users. Work will be performed at Clearwater, Fla., and is expected to be completed by Feb. 23, 2015. This action relates to unclassified U.S. Air Force and U.S. Navy (20 percent) support as well as unclassified FMS (80 percent) in Australia, Belgium, Canada, Finland, India, Israel, Korea, Netherlands, Oman, Poland, Singapore, and Turkey. Air Force Life Cycle Management Center/WNKBBA, Robins Air Force Base, Ga., is the contracting activity.
ARMY
ATK Tactical Propulsion & Ordinance, Rocket Center, W. Va., was awarded a $10,700,000 firm-fixed-price contract for 60mm high explosive enhanced fragmentation M1061 cartridges. Fiscal 2014 other procurement funds in the amount of $4,300,014 and Fiscal 2013 other procurement funds in the amount of $6,399,986 were obligated at the time of the award. Estimated completion date is Sept. 30, 2015. One bid was solicited and one received. Work will be performed in Rocket Center, W.Va. Army Contracting Command, Picatinny Arsenal, N.J. is the contracting activity (W15QKN-14-C-0035).
Fidelity Technologies Corporation, Reading, Pa., was awarded an $84,400,000 firm-fixed-price contract for the purchase of power distribution illumination system electrical units. Funding and performance location will be determined with each order. Estimated completion date is Feb. 23, 2019. Bids were solicited via the Internet with nine received. Army Contracting Command, Alexandria, Va. is the contracting activity (W909MY-14-D-0005).
U.S. STATEMENT ON NEW LGBT LAW
FROM: THE WHITE HOUSE
Statement by the Press Secretary on Uganda
Instead of standing on the side of freedom, justice, and equal rights for its people, today, regrettably, Ugandan President Museveni took Uganda a step backward by signing into law legislation criminalizing homosexuality. As President Obama has said, this law is more than an affront and a danger to the gay community in Uganda, it reflects poorly on the country's commitment to protecting the human rights of its people and will undermine public health, including efforts to fight HIV/AIDS. We will continue to urge the Ugandan government to repeal this abhorrent law and to advocate for the protection of the universal human rights of LGBT persons in Uganda and around the world.
RECENT DEFENSE DEPARTMENT PHOTOS
FROM: U.S. DEFENSE DEPARTMENT
Navy Petty Officer 2nd Class Daniel Russell, left, watches as Navy Petty Officer 1st Class Nicholas Casamassa jumps from a C2-A Greyhound aircraft during jump requalification in San Diego, Feb. 11, 2014. Requalification included static line and free fall parachute jumps conducted by Explosive Ordinance Disposal Training and Evaluation Unit 1. U.S. Navy photo by Seaman Eric Coffer.
A U.S. Air Force F-16 Fighting Falcon aircraft takes off on a mission at dawn from Bagram Airfield, Afghanistan, Feb. 11, 2014. U.S. Air Force photo by Senior Master Sgt. Gary J. Rihn.
FACT SHEET ON CREATING GLOBAL COMMUNITY ENGAGEMENT AND RESILIENCE FUND (GCERF)
FROM: U.S. STATE DEPARTMENT
Co-Chairs' Fact Sheet: Creating a Global Fund for Community Engagement and Resilience
Fact Sheet
Bureau of Public Affairs, Office of the Spokesperson
Washington, DC
February 21, 2014
Creating a Global Community Engagement and Resilience Fund:
On September 27, 2013, at the Ministerial Plenary meeting of the Global Counterterrorism Forum in New York, the intent to establish a Global Community Engagement and Resilience Fund (GCERF) was announced. GCERF will be the first global effort to harness the skills, capabilities and resources of both the public and private sectors to support local, community-based projects on education, vocational training, civic engagement, media, and women’s advocacy aimed at strengthening resilience against violent extremist agendas, which can create significant barriers to political and economic development. It is anticipated that GCERF will raise more than $200 million over the next ten years for this purpose.
THE CHALLENGE: Terrorism is Global but Starts Local
Terrorism is a transnational and global problem frequently driven by local forces. While military, intelligence and law enforcement operations can help address the threat that terrorists pose, to succeed in the long-term, we must reduce their ability to recruit at the community level by addressing local drivers of radicalization to violence.
THE GAP: Lack of Funding Opportunities for Local Organizations
Many local organizations with innovative project ideas have been unable to get off the ground because of the difficulty of attracting the necessary seed funding. Even where they have grown and had impact, they have faced challenges in securing sufficient funding to sustain their work beyond a single six-month or one-year project cycle. Local entities also often have difficulty navigating the application processes that foundations and large donors have in place. Many donors also prefer recipients from larger organizations, often international NGOs, with proven track records, and lack the broad networks and contacts to find trusted community-based partners in priority locations. As a result, small local organizations, which could have the greatest impact at the community level, struggle to find funding.
THE SOLUTION: A Global Partnership to Bolster Community-Based Efforts
GCERF will be a public-private global partnership offering a unique and practical model to enable the international community to bolster grass-roots efforts where radicalization and recruitment are occurring. It will be an independent institution governed by a mix of government and non-government stakeholders that will fund locally driven projects and thus help close the gap between the needs of local organizations (whether civil society, NGO or local government) and the resources available to support their work. GCERF will include a robust vetting process and monitoring and evaluation mechanism, providing donors with confidence that the projects supported advance the goals that led them to contribute to this fund.
Why is GCERF Different?
What distinguishes GCERF’s objectives from broader development efforts is its emphasis on youth engagement, education, vocational training, and women’s advocacy to promote resilience among at-risk populations. Such initiatives can contribute to economic growth and development in countries where international businesses are active, and provide opportunities to those susceptible to violent extremists’ messages.
Where does the Private Sector Fit In?
Terrorism, and the violent extremism that underpins it, not only destroys innocent lives around the world, it also affects businesses globally. Terrorism disrupts the markets where businesses work, the supply chains that businesses depend on, and the communities that comprise the local labor market. GCERF represents an opportunity for both private sector and government entities to jointly advance the political and economic stability of many of these local, at-risk communities by promoting resilience through positive programs that provide an alternative to violent extremism. GCERF also offers an opportunity to encourage social entrepreneurship and other innovative approaches to local investment.
GCERF Framework
Partners involved in developing GCERF will continue to refine the following principles, scope, and approach over the next several months until GCERF is operational in mid-2014.
• Principles: GCERF would be guided by a series of principles and activities which might include:
Serving as mechanism to raise, disburse, and monitor funds for valuable CVE projects
Ensuring that projects have the requisite political support from national governments as well as contribute to the implementation of the UN Global Counter-Terrorism Strategy
Evaluating proposals through an independent and transparent review process
Complementing and advancing ongoing national, regional, and international efforts
Performing evaluations of projects to ensure funds are being spent effectively and wisely
Encouraging social entrepreneurship and other innovative approaches to investment in grassroots programming
Operating with transparency and accountability
Emphasizing country-led, bottom-up approaches to programming and activities
Supporting projects – particularly at the sub-national level – that offer positive alternative to violent extremism
• Scope: Support from GCERF would complement ongoing efforts of governments and community-based organizations to address violent extremism and build resilience to violent extremist agendas. GCERF will emphasize multi-sectoral participation and results-driven approach to develop solutions to the local drivers of radicalization and recruitment to terrorism. It will allow non-government and municipal government organizations to apply for grants in a range of areas depending upon local requirements/needs. These might include:
Providing life-skills, vocational training, and other alternatives to youth at risk of recruitment and radicalization to extremist violence
Supporting victims and survivors of terrorism, highlighting terrorism’s impact on families, communities, and countries
Providing platforms for community leaders and activities to promote and provide positive alternatives to violent extremism.
Designing education campaigns around messages of pluralism, diversity, and tolerance
Designing and implementing mentorship programs and exchange programs for at-risk youth
• Approach: GCERF will be established as a non-profit foundation in Geneva, Swtizerland. It would be composed of a Secretariat with oversight from a multi-stakeholder governing board that includes a geographically diverse group with representatives of governments, the private sector, foundations, and non-government organizations. The GCERF will engage locally through Country Committee Mechanisms composed of public and private representatives, to help better direct funds to local priorities coordinate transparent proposal reviews.
Support for the GCERF
Meetings on GCERF’s mandate, structure, and legal foundation took place in Lucerne and Geneva, Switzerland in late 2013 and culminated with a final Steering Group meeting in Washington, DC, on February 20, 2014. Carol Bellamy, former UNICEF Executive Director and former Chair of the Global Education Partnership, facilitated the process. In this final meeting, over 35 governments, the United Nations, the World Bank, NGOs, the private sector, and foundation representatives reviewed and refined the mandate and organizational architecture of the GCERF which will be established in Geneva, Switzerland by mid-2014.
Several countries already pledged financial contributions, and a number of others have expressed strong support with contributions expected to follow. Several recipient countries have also indicated an interest in serving as GCERF “pilot” countries whereby local organizations in their countries would benefit from GCERF grants. In addition, several multinational companies and foundations have shown strong interest in contributing expertise and resources to the GCERF.
Co-Chairs' Fact Sheet: Creating a Global Fund for Community Engagement and Resilience
Fact Sheet
Bureau of Public Affairs, Office of the Spokesperson
Washington, DC
February 21, 2014
Creating a Global Community Engagement and Resilience Fund:
On September 27, 2013, at the Ministerial Plenary meeting of the Global Counterterrorism Forum in New York, the intent to establish a Global Community Engagement and Resilience Fund (GCERF) was announced. GCERF will be the first global effort to harness the skills, capabilities and resources of both the public and private sectors to support local, community-based projects on education, vocational training, civic engagement, media, and women’s advocacy aimed at strengthening resilience against violent extremist agendas, which can create significant barriers to political and economic development. It is anticipated that GCERF will raise more than $200 million over the next ten years for this purpose.
THE CHALLENGE: Terrorism is Global but Starts Local
Terrorism is a transnational and global problem frequently driven by local forces. While military, intelligence and law enforcement operations can help address the threat that terrorists pose, to succeed in the long-term, we must reduce their ability to recruit at the community level by addressing local drivers of radicalization to violence.
THE GAP: Lack of Funding Opportunities for Local Organizations
Many local organizations with innovative project ideas have been unable to get off the ground because of the difficulty of attracting the necessary seed funding. Even where they have grown and had impact, they have faced challenges in securing sufficient funding to sustain their work beyond a single six-month or one-year project cycle. Local entities also often have difficulty navigating the application processes that foundations and large donors have in place. Many donors also prefer recipients from larger organizations, often international NGOs, with proven track records, and lack the broad networks and contacts to find trusted community-based partners in priority locations. As a result, small local organizations, which could have the greatest impact at the community level, struggle to find funding.
THE SOLUTION: A Global Partnership to Bolster Community-Based Efforts
GCERF will be a public-private global partnership offering a unique and practical model to enable the international community to bolster grass-roots efforts where radicalization and recruitment are occurring. It will be an independent institution governed by a mix of government and non-government stakeholders that will fund locally driven projects and thus help close the gap between the needs of local organizations (whether civil society, NGO or local government) and the resources available to support their work. GCERF will include a robust vetting process and monitoring and evaluation mechanism, providing donors with confidence that the projects supported advance the goals that led them to contribute to this fund.
Why is GCERF Different?
What distinguishes GCERF’s objectives from broader development efforts is its emphasis on youth engagement, education, vocational training, and women’s advocacy to promote resilience among at-risk populations. Such initiatives can contribute to economic growth and development in countries where international businesses are active, and provide opportunities to those susceptible to violent extremists’ messages.
Where does the Private Sector Fit In?
Terrorism, and the violent extremism that underpins it, not only destroys innocent lives around the world, it also affects businesses globally. Terrorism disrupts the markets where businesses work, the supply chains that businesses depend on, and the communities that comprise the local labor market. GCERF represents an opportunity for both private sector and government entities to jointly advance the political and economic stability of many of these local, at-risk communities by promoting resilience through positive programs that provide an alternative to violent extremism. GCERF also offers an opportunity to encourage social entrepreneurship and other innovative approaches to local investment.
GCERF Framework
Partners involved in developing GCERF will continue to refine the following principles, scope, and approach over the next several months until GCERF is operational in mid-2014.
• Principles: GCERF would be guided by a series of principles and activities which might include:
Serving as mechanism to raise, disburse, and monitor funds for valuable CVE projects
Ensuring that projects have the requisite political support from national governments as well as contribute to the implementation of the UN Global Counter-Terrorism Strategy
Evaluating proposals through an independent and transparent review process
Complementing and advancing ongoing national, regional, and international efforts
Performing evaluations of projects to ensure funds are being spent effectively and wisely
Encouraging social entrepreneurship and other innovative approaches to investment in grassroots programming
Operating with transparency and accountability
Emphasizing country-led, bottom-up approaches to programming and activities
Supporting projects – particularly at the sub-national level – that offer positive alternative to violent extremism
• Scope: Support from GCERF would complement ongoing efforts of governments and community-based organizations to address violent extremism and build resilience to violent extremist agendas. GCERF will emphasize multi-sectoral participation and results-driven approach to develop solutions to the local drivers of radicalization and recruitment to terrorism. It will allow non-government and municipal government organizations to apply for grants in a range of areas depending upon local requirements/needs. These might include:
Providing life-skills, vocational training, and other alternatives to youth at risk of recruitment and radicalization to extremist violence
Supporting victims and survivors of terrorism, highlighting terrorism’s impact on families, communities, and countries
Providing platforms for community leaders and activities to promote and provide positive alternatives to violent extremism.
Designing education campaigns around messages of pluralism, diversity, and tolerance
Designing and implementing mentorship programs and exchange programs for at-risk youth
• Approach: GCERF will be established as a non-profit foundation in Geneva, Swtizerland. It would be composed of a Secretariat with oversight from a multi-stakeholder governing board that includes a geographically diverse group with representatives of governments, the private sector, foundations, and non-government organizations. The GCERF will engage locally through Country Committee Mechanisms composed of public and private representatives, to help better direct funds to local priorities coordinate transparent proposal reviews.
Support for the GCERF
Meetings on GCERF’s mandate, structure, and legal foundation took place in Lucerne and Geneva, Switzerland in late 2013 and culminated with a final Steering Group meeting in Washington, DC, on February 20, 2014. Carol Bellamy, former UNICEF Executive Director and former Chair of the Global Education Partnership, facilitated the process. In this final meeting, over 35 governments, the United Nations, the World Bank, NGOs, the private sector, and foundation representatives reviewed and refined the mandate and organizational architecture of the GCERF which will be established in Geneva, Switzerland by mid-2014.
Several countries already pledged financial contributions, and a number of others have expressed strong support with contributions expected to follow. Several recipient countries have also indicated an interest in serving as GCERF “pilot” countries whereby local organizations in their countries would benefit from GCERF grants. In addition, several multinational companies and foundations have shown strong interest in contributing expertise and resources to the GCERF.
JUDGE ORDERS ARREST OF 'CASH GRANT INSTITUTE' ROBOCALLER
FROM: FEDERAL TRADE COMMISSION
FTC Action Leads to Arrest Warrant for ‘Cash Grant Institute’ Robocaller Who Ignored Court Order to Pay More Than $20 Million in Penalties
In a case brought by the Federal Trade Commission, a federal judge ordered the arrest and incarceration of Paul Navestad, known legally as Paul Richard Jones, for violating a court order requiring him to pay more than $20 million for his role in a phony government grant scheme.
The court had ordered Navestad to pay $20 million in civil penalties – the largest civil penalty against a defendant in an FTC case – and give up more than $1.1 million in ill-gotten gains, for making millions of robocalls falsely claiming consumers could get grants from federal, state, and local governments, private foundations, and individuals. At the FTC’s request, the court subsequently found him in contempt for ignoring the order.
Navestad is believed to be residing overseas. The court has ordered his arrest upon his return to the United States and his incarceration until he pays the money due.
The U.S. District Court for the Western District of New York issued the arrest warrant on December 2, 2013.
FTC Action Leads to Arrest Warrant for ‘Cash Grant Institute’ Robocaller Who Ignored Court Order to Pay More Than $20 Million in Penalties
In a case brought by the Federal Trade Commission, a federal judge ordered the arrest and incarceration of Paul Navestad, known legally as Paul Richard Jones, for violating a court order requiring him to pay more than $20 million for his role in a phony government grant scheme.
The court had ordered Navestad to pay $20 million in civil penalties – the largest civil penalty against a defendant in an FTC case – and give up more than $1.1 million in ill-gotten gains, for making millions of robocalls falsely claiming consumers could get grants from federal, state, and local governments, private foundations, and individuals. At the FTC’s request, the court subsequently found him in contempt for ignoring the order.
Navestad is believed to be residing overseas. The court has ordered his arrest upon his return to the United States and his incarceration until he pays the money due.
The U.S. District Court for the Western District of New York issued the arrest warrant on December 2, 2013.
SPA DOCTOR PLEADS GUILTY IN MEDICARE FRAUD SCHEME
FROM: U.S. JUSTICE DEPARTMENT
Friday, February 21, 2014
New Jersey Doctor Who Provided Spa Services Pleads Guilty in Medicare Fraud Scheme
Dr. Chang Ho Lee, 68, of Palisades Park, N.J., pleaded guilty today to health care fraud and agreed to forfeit more than $3.4 million in fraud proceeds.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Loretta Lynch of the Eastern District of New York, Assistant Director in Charge George Venizelos of the FBI’s New York Field Office and Special Agent in Charge Thomas O’Donnell of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
According to court documents, Lee, who is a medical doctor, and two others recruited patients by offering free lunches and recreational classes and provided them with spa services, such as massages and facials, then falsely billed Medicare for more than $13 million using those patients’ Medicare numbers. Lee and the others billed Medicare for physical therapy, lesion removals and other services that were neither medically necessary nor provided. The scheme took place at three clinics: URI Medical Center and Sarang Medical PC in Flushing, N.Y., and 999 Medical Clinic in Brooklyn, N.Y. Lee received more than $3.4 million through the submission of the fraudulent claims.
Lee is scheduled to be sentenced by United States District Judge Raymond J. Dearie of the Eastern District of New York on June 13, 2014. At sentencing, he faces a maximum sentence of 10 years in prison and approximately $3.4 million in mandatory restitution.
The case was investigated by the FBI and HHS-OIG and 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 Eastern District of New York. The case is being prosecuted by Senior Trial Attorney Nicholas Acker and Trial Attorney Bryan D. Fields from the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
Friday, February 21, 2014
New Jersey Doctor Who Provided Spa Services Pleads Guilty in Medicare Fraud Scheme
Dr. Chang Ho Lee, 68, of Palisades Park, N.J., pleaded guilty today to health care fraud and agreed to forfeit more than $3.4 million in fraud proceeds.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Loretta Lynch of the Eastern District of New York, Assistant Director in Charge George Venizelos of the FBI’s New York Field Office and Special Agent in Charge Thomas O’Donnell of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
According to court documents, Lee, who is a medical doctor, and two others recruited patients by offering free lunches and recreational classes and provided them with spa services, such as massages and facials, then falsely billed Medicare for more than $13 million using those patients’ Medicare numbers. Lee and the others billed Medicare for physical therapy, lesion removals and other services that were neither medically necessary nor provided. The scheme took place at three clinics: URI Medical Center and Sarang Medical PC in Flushing, N.Y., and 999 Medical Clinic in Brooklyn, N.Y. Lee received more than $3.4 million through the submission of the fraudulent claims.
Lee is scheduled to be sentenced by United States District Judge Raymond J. Dearie of the Eastern District of New York on June 13, 2014. At sentencing, he faces a maximum sentence of 10 years in prison and approximately $3.4 million in mandatory restitution.
The case was investigated by the FBI and HHS-OIG and 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 Eastern District of New York. The case is being prosecuted by Senior Trial Attorney Nicholas Acker and Trial Attorney Bryan D. Fields from the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
SEC CHARGES INVESTMENT BANKER WITH INSIDER TRADING FOR ALMOST $1 MILLION IN PROFITS
FROM: SECURITIES AND EXCHANGE COMMISSION
The Securities and Exchange Commission today announced an emergency action against a New York City-based investment banker charged with insider trading for nearly $1 million in illicit profits.
The SEC alleges that while working on Wall Street, Frank “Perk” Hixon Jr. regularly logged into the brokerage account of Destiny “Nicole” Robinson, the mother of his young child. He executed trades based on confidential information he obtained on the job, sometimes within minutes of learning it. Illegal trades also were made in his father’s brokerage account. When his firm confronted him about the trading conducted in these accounts, Hixon Jr. pretended not to recognize the names of his father or his child’s mother. However, text messages between Hixon Jr. and Robinson suggest he was generating the illegal proceeds in lieu of formal child support payments.
In a parallel action, the U.S. Attorney’s Office for the Southern District of New York today announced criminal charges against Hixon Jr.
“Hixon Jr. violated the trust of his employer and clients by abusing his special access to nonpublic market-moving information,” said David Woodcock, director of the SEC’s Fort Worth Regional Office. “Hixon Jr. went to great lengths to hide his wrongdoing and even denied knowing his father or the mother of his child.”
A federal judge has granted the SEC’s request and issued an emergency order freezing Robinson’s brokerage account, which the SEC alleges contains the majority of proceeds from Hixon Jr.’s illegal trading with a balance of approximately $1.2 million.
According to the SEC’s complaint unsealed today in federal court in Austin, Texas, Hixon Jr. illegally tipped or traded in the securities of three public companies. He traded ahead of several major announcements by his client Westway Group in 2011 and 2012. He traded based on nonpublic information he learned about potential client Titanium Metals Corporation ahead of its merger announcement in November 2012. And Hixon even illegally traded in the securities of his own firm Evercore Partners prior to its announcement of record earnings in January 2013. Hixon Jr. generated illegal insider trading profits of at least $950,000.
According to the SEC’s complaint, when Hixon Jr.’s employer asked him in 2013 whether he knew anything about suspicious trading in accounts belonging to Destiny Robinson and his father Frank P. Hixon Sr., who lives in suburban Atlanta, Hixon Jr. denied recognizing either name. When later confronted with information that he did in fact know these individuals, Hixon Jr. continued his false claims, saying he didn’t know Robinson as “Destiny” and asserting in a sworn declaration that when approached he didn’t recognize the name of the city where his father lived for more than 25 years. Hixon Jr. was subsequently terminated by his employer.
The SEC’s complaint alleges that Hixon Jr. violated the antifraud provisions of the Securities Exchange Act of 1934. In addition to the asset freeze, the complaint seeks permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, and financial penalties. Hixon Sr. and Robinson have been named as relief defendants for the purposes of recovering the illegal trading profits held in their accounts.
The SEC’s investigation has been conducted by Tamara McCreary, Ty Martinez, and Jonathan Scott of the Fort Worth Regional Office. The SEC's litigation will be led by Timothy Evans and David Reece. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Southern District of New York, Federal Bureau of Investigation, and Financial Industry Regulatory Authority.
The Securities and Exchange Commission today announced an emergency action against a New York City-based investment banker charged with insider trading for nearly $1 million in illicit profits.
The SEC alleges that while working on Wall Street, Frank “Perk” Hixon Jr. regularly logged into the brokerage account of Destiny “Nicole” Robinson, the mother of his young child. He executed trades based on confidential information he obtained on the job, sometimes within minutes of learning it. Illegal trades also were made in his father’s brokerage account. When his firm confronted him about the trading conducted in these accounts, Hixon Jr. pretended not to recognize the names of his father or his child’s mother. However, text messages between Hixon Jr. and Robinson suggest he was generating the illegal proceeds in lieu of formal child support payments.
In a parallel action, the U.S. Attorney’s Office for the Southern District of New York today announced criminal charges against Hixon Jr.
“Hixon Jr. violated the trust of his employer and clients by abusing his special access to nonpublic market-moving information,” said David Woodcock, director of the SEC’s Fort Worth Regional Office. “Hixon Jr. went to great lengths to hide his wrongdoing and even denied knowing his father or the mother of his child.”
A federal judge has granted the SEC’s request and issued an emergency order freezing Robinson’s brokerage account, which the SEC alleges contains the majority of proceeds from Hixon Jr.’s illegal trading with a balance of approximately $1.2 million.
According to the SEC’s complaint unsealed today in federal court in Austin, Texas, Hixon Jr. illegally tipped or traded in the securities of three public companies. He traded ahead of several major announcements by his client Westway Group in 2011 and 2012. He traded based on nonpublic information he learned about potential client Titanium Metals Corporation ahead of its merger announcement in November 2012. And Hixon even illegally traded in the securities of his own firm Evercore Partners prior to its announcement of record earnings in January 2013. Hixon Jr. generated illegal insider trading profits of at least $950,000.
According to the SEC’s complaint, when Hixon Jr.’s employer asked him in 2013 whether he knew anything about suspicious trading in accounts belonging to Destiny Robinson and his father Frank P. Hixon Sr., who lives in suburban Atlanta, Hixon Jr. denied recognizing either name. When later confronted with information that he did in fact know these individuals, Hixon Jr. continued his false claims, saying he didn’t know Robinson as “Destiny” and asserting in a sworn declaration that when approached he didn’t recognize the name of the city where his father lived for more than 25 years. Hixon Jr. was subsequently terminated by his employer.
The SEC’s complaint alleges that Hixon Jr. violated the antifraud provisions of the Securities Exchange Act of 1934. In addition to the asset freeze, the complaint seeks permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, and financial penalties. Hixon Sr. and Robinson have been named as relief defendants for the purposes of recovering the illegal trading profits held in their accounts.
The SEC’s investigation has been conducted by Tamara McCreary, Ty Martinez, and Jonathan Scott of the Fort Worth Regional Office. The SEC's litigation will be led by Timothy Evans and David Reece. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Southern District of New York, Federal Bureau of Investigation, and Financial Industry Regulatory Authority.
Sunday, February 23, 2014
DOJ STATEMENT ON JOAQUIN GUZMAN LOERA CAPTURE
FROM: U.S. JUSTICE DEPARTMENT
Saturday, February 22, 2014
Statement on the Apprehension of Joaquin "Chapo" Guzman Loera
Today Mexican authorities announced the capture of Joaquin "Chapo" Guzman Loera, the alleged leader of the Sinaloa Cartel. The Sinaloa Cartel is designated a Significant Foreign Narcotics Trafficker by the U.S. Government.
Attorney General Holder stated: "Today's apprehension of Joaquin "Chapo" Guzman Loera by Mexican authorities is a landmark achievement, and a victory for the citizens of both Mexico and the United States. Guzman was one of the world's most wanted men and the alleged head of a drug-running empire that spans continents. The criminal activity Guzman allegedly directed contributed to the death and destruction of millions of lives across the globe through drug addiction, violence, and corruption. We salute the Government of Mexico, and the professionalism and courage of the Mexican authorities, for this arrest. We are pleased that we were able to work effectively with Mexico through the cooperative relationship that U.S. law enforcement agencies have with their Mexican counterparts. We look forward to ongoing cooperation, and future successes."
Secretary of Homeland Security Johnson stated: "The operation led by the Mexican government overnight to capture Joaquin "Chapo" Guzman Loera is a significant victory and milestone in our common interest of combating drug trafficking, violence and illicit activity along our shared border. We congratulate our Mexican partners in this achievement and we will continue to work collaboratively with them to ensure a border region that is safe and secure, for the communities and citizens of both our nations."
Saturday, February 22, 2014
Statement on the Apprehension of Joaquin "Chapo" Guzman Loera
Today Mexican authorities announced the capture of Joaquin "Chapo" Guzman Loera, the alleged leader of the Sinaloa Cartel. The Sinaloa Cartel is designated a Significant Foreign Narcotics Trafficker by the U.S. Government.
Attorney General Holder stated: "Today's apprehension of Joaquin "Chapo" Guzman Loera by Mexican authorities is a landmark achievement, and a victory for the citizens of both Mexico and the United States. Guzman was one of the world's most wanted men and the alleged head of a drug-running empire that spans continents. The criminal activity Guzman allegedly directed contributed to the death and destruction of millions of lives across the globe through drug addiction, violence, and corruption. We salute the Government of Mexico, and the professionalism and courage of the Mexican authorities, for this arrest. We are pleased that we were able to work effectively with Mexico through the cooperative relationship that U.S. law enforcement agencies have with their Mexican counterparts. We look forward to ongoing cooperation, and future successes."
Secretary of Homeland Security Johnson stated: "The operation led by the Mexican government overnight to capture Joaquin "Chapo" Guzman Loera is a significant victory and milestone in our common interest of combating drug trafficking, violence and illicit activity along our shared border. We congratulate our Mexican partners in this achievement and we will continue to work collaboratively with them to ensure a border region that is safe and secure, for the communities and citizens of both our nations."
STATEMENT ON ATTACKS BY BOKO HARAM IN NORTHERN NIGERIA
FROM: U.S. STATE DEPARTMENT
Recent Attacks by Boko Haram
John Kerry
Secretary of State
Secretary of State
Washington, DC
February 23, 2014
Unspeakable violence and acts of terror like the ones committed by Boko Haram last week in northern Nigeria are horrific, wrong, and have no place in our world. Last Saturday, a brazen attack on the village of Izge, Nigeria, near the border with Cameroon took the lives of more than one hundred innocent people. Not less than a week had passed before Boko mounted another attack in Bama, setting 1,500 buildings ablaze, killing more than 115 people and leaving many others injured. We support Nigerian authorities' efforts to investigate these cowardly acts and to bring the perpetrators to justice.The people of northern Nigeria deserve to live free from violence and from terror. That’s why the United States is providing counterterrorism assistance to help Nigerian authorities develop a comprehensive approach to combat the threat posed by Boko Haram while protecting civilians and ensuring respect for human rights. We stand with the people of Northern Nigeria in their struggle against violent extremism, and remain a committed partner of the Government of Nigeria as it works to root out Boko Haram and associated groups.
$193.7 MILLION TO BE PAID BY DRUG COMPANIES TO RESOLVE UNAPPROVED MARKETING
FROM: U.S. JUSTICE DEPARTMENT
Friday, February 21, 2014
Endo Pharmaceuticals and Endo Health Solutions to Pay $192.7 Million to Resolve Criminal and Civil Liability Relating to Marketing of Prescription Drug Lidoderm for Unapproved Uses
Pharmaceutical company Endo Health Solutions Inc. and its subsidiary Endo Pharmaceuticals Inc. (Endo) have agreed to pay $192.7 million to resolve criminal and civil liability arising from Endo’s marketing of the prescription drug Lidoderm for uses not approved as safe and effective by the Food and Drug Administration (FDA), the Justice Department announced today. The resolution includes a deferred prosecution agreement and forfeiture totaling $20.8 million and civil false claims settlements with the federal government and the states and the District of Columbia totaling $171.9 million. Endo Pharmaceuticals Inc. is a Delaware corporation headquartered in Malvern, Pa.
“FDA’s drug approval process is designed to ensure that companies market their products for uses that are proven to be safe and effective,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “We will hold accountable those who circumvent that process in pursuit of financial gain.”
In a criminal information filed today in the Northern District of New York, the government charged that, between 2002 and 2006, Endo Pharmaceuticals Inc. introduced into interstate commerce Lidoderm that was misbranded under the Federal Food, Drug and Cosmetic Act (FDCA). The FDCA requires a company, such as Endo Pharmaceuticals Inc., to specify the intended uses of a product in its new drug application to the FDA. Once approved, a drug may not be introduced into interstate commerce for unapproved or “off-label” uses until the company receives FDA approval for the new intended uses. During the period of 2002 to 2006, Lidoderm was approved by the FDA only for the relief of pain associated with post-herpetic neuralgia (PHN), a complication of shingles. The information alleges that, during the relevant time period, the Lidoderm distributed nationwide by Endo Pharmaceuticals Inc. was misbranded because its labeling lacked adequate directions for use in the treatment of non-PHN related pain, including low back pain, diabetic neuropathy and carpal tunnel syndrome. These uses were intended by Endo Pharmaceuticals Inc. but never approved by the FDA. The information further alleges that certain Endo Pharmaceuticals Inc. sales managers provided instruction to certain sales representatives concerning how to expand sales conversations with doctors beyond PHN and encouraged promotion of Lidoderm in workers’ compensation clinics.
In a deferred prosecution agreement to resolve the charge, Endo Pharmaceuticals Inc. admitted that it intended that Lidoderm be used for unapproved indications and that it promoted Lidoderm to health care providers for those unapproved indications. Under the terms of the deferred prosecution agreement, Endo Pharmaceuticals Inc. will pay a total of $20.8 million in monetary penalties and forfeiture. Endo Pharmaceuticals Inc. further agreed to implement and maintain a number of enhanced compliance measures, including making publicly available the results of certain clinical trials and requiring an annual review and certification of its compliance efforts by the Chief Executive Officer of its parent company, Endo Health Solutions. The deferred prosecution agreement will not be final until accepted by the U.S. District Court for the Northern District of New York.
“The safety and efficacy of drugs must be shown by science, not sales pitches,” said U.S. Attorney for the Northern District of New York Richard S. Hartunian. “Drugs marketed for intended uses not approved by the FDA are misbranded because their labeling lacks adequate directions for those uses. This settlement emphasizes that public health is protected by labeling based on product performance, rather than profitability, and promotes enhanced efforts to ensure compliance with all requirements.”
In addition, Endo agreed to settle its potential civil liability in connection with its marketing of Lidoderm. The government alleged that, from March 1999 through December 2007, Endo caused false claims to be submitted to federal health care programs, including Medicaid, a jointly funded federal and state program, by promoting Lidoderm for unapproved uses, some of which were not medically accepted indications and, therefore, were not covered by the federal health care programs. Of the $171.9 million Endo has agreed to pay to resolve these civil claims, Endo will pay $137.7 million to the federal government and $34.2 million to the states and the District of Columbia.
“Off-label marketing can undermine the doctor-patient relationship and adversely influence the clear and honest judgment of doctors that their patients rely on and trust,” said U.S. Attorney for the Eastern District of Pennsylvania Zane D. Memeger. “Pharmaceutical companies have a legal obligation to promote their drugs for only FDA-approved uses. This obligation takes precedence over the company’s bottom line.”
“The settlement announced today demonstrates the government’s continued scrutiny of pharmaceutical companies that interfere with FDA’s mission of ensuring that drugs are safe and effective for the American public,” said Special Agent in Charge of the FDA’s Office of Criminal Investigations’ New York Field Office Mark Dragonetti. “We will continue to work with our law enforcement partners to investigate and prosecute pharmaceutical companies that disregard the drug approval process and jeopardize the public health by engaging in the nationwide distribution of misbranded products.”
“Endo Pharmaceutical enriched themselves at the expense of the public,” said Special Agent in Charge Andrew W. Vale of the Albany Division of the Federal Bureau of Investigation. “Patients will search for drug therapies to assist in pain management, and they deserve the right to drugs approved for such use. The FBI will continue to work with our federal partners to investigate companies such as Endo Pharmaceuticals to ensure patients are safe.”
Also as part of the settlement, Endo Pharmaceuticals Inc. has agreed to enter into a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General that requires Endo to implement measures designed to avoid or promptly detect conduct similar to that which gave rise to this resolution. Among other things, the CIA requires Endo to implement an internal risk assessment and mitigation program and requires numerous internal and external reviews of promotional and other practices. The CIA also requires key executives and individual board members to sign certifications about compliance, and it requires the company to publicly report information about its financial arrangements with physicians.
“By marketing Lidoderm for uses not covered by federal health care programs, Endo profited at the expense of taxpayers and could have put patients at risk,” said Inspector General of the U.S. Department of Health and Human Services Daniel R. Levinson. “Under our CIA, Endo agrees to promote its products legally, while board members and top executives are specifically held accountable for compliance.”
The civil settlement resolves three lawsuits pending in federal court in the Eastern District of Pennsylvania under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the government and to share in any recovery. The actions were filed by Peggy Ryan, a former Lidoderm sales representative, Max Weathersby, another former Lidoderm sales representative and Gursheel S. Dhillon, a physician. The whistleblowers’ share of the settlement has not been determined.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Secretary of Health and Human Services Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $19 billion through False Claims Act cases, with more than $13.4 billion of that amount recovered in cases involving fraud against federal health care programs.
The civil settlement was handled by the U.S. Attorney’s Office for the Eastern District of Pennsylvania and the Civil Division’s Commercial Litigation Branch. The criminal case was handled by the U.S. Attorney’s Office for the Northern District of New York and the Civil Division’s Consumer Protection Branch. These matters were investigated by the Federal Bureau of Investigation, the Food and Drug Administration Office of Criminal Investigation, the Department of Health and Human Services Office of Inspector General Office of Investigations, the Defense Criminal Investigative Service of the Department of Defense, the U.S. Postal Service Office of Inspector General and the Office of Personnel Management Office of Inspector General with assistance from the Department of Health and Human Services Office of Counsel to the Inspector General and Office of General Counsel and Center for Medicare and Medicaid Services, the Food and Drug Administration’s Office of Chief Counsel and the National Association of Medicaid Fraud Control Units.
Except as to conduct admitted in connection with the deferred prosecution agreement, the claims settled by the civil agreement are allegations only, and there has been no determination of civil liability. The civil lawsuits are captioned United States ex rel. Ryan v. Endo Pharmaceuticals Inc., Civil Action No. 05-cv-3450, United States ex rel. Weathersby, et al. v. Endo Pharmaceuticals Inc., et al, Civil Action No. 10-cv-2039 and United States ex rel. Dhillon v. Endo Pharmaceuticals, Civil Action No. 11-cv-7767, all docketed in the Eastern District of Pennsylvania.
Friday, February 21, 2014
Endo Pharmaceuticals and Endo Health Solutions to Pay $192.7 Million to Resolve Criminal and Civil Liability Relating to Marketing of Prescription Drug Lidoderm for Unapproved Uses
Pharmaceutical company Endo Health Solutions Inc. and its subsidiary Endo Pharmaceuticals Inc. (Endo) have agreed to pay $192.7 million to resolve criminal and civil liability arising from Endo’s marketing of the prescription drug Lidoderm for uses not approved as safe and effective by the Food and Drug Administration (FDA), the Justice Department announced today. The resolution includes a deferred prosecution agreement and forfeiture totaling $20.8 million and civil false claims settlements with the federal government and the states and the District of Columbia totaling $171.9 million. Endo Pharmaceuticals Inc. is a Delaware corporation headquartered in Malvern, Pa.
“FDA’s drug approval process is designed to ensure that companies market their products for uses that are proven to be safe and effective,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “We will hold accountable those who circumvent that process in pursuit of financial gain.”
In a criminal information filed today in the Northern District of New York, the government charged that, between 2002 and 2006, Endo Pharmaceuticals Inc. introduced into interstate commerce Lidoderm that was misbranded under the Federal Food, Drug and Cosmetic Act (FDCA). The FDCA requires a company, such as Endo Pharmaceuticals Inc., to specify the intended uses of a product in its new drug application to the FDA. Once approved, a drug may not be introduced into interstate commerce for unapproved or “off-label” uses until the company receives FDA approval for the new intended uses. During the period of 2002 to 2006, Lidoderm was approved by the FDA only for the relief of pain associated with post-herpetic neuralgia (PHN), a complication of shingles. The information alleges that, during the relevant time period, the Lidoderm distributed nationwide by Endo Pharmaceuticals Inc. was misbranded because its labeling lacked adequate directions for use in the treatment of non-PHN related pain, including low back pain, diabetic neuropathy and carpal tunnel syndrome. These uses were intended by Endo Pharmaceuticals Inc. but never approved by the FDA. The information further alleges that certain Endo Pharmaceuticals Inc. sales managers provided instruction to certain sales representatives concerning how to expand sales conversations with doctors beyond PHN and encouraged promotion of Lidoderm in workers’ compensation clinics.
In a deferred prosecution agreement to resolve the charge, Endo Pharmaceuticals Inc. admitted that it intended that Lidoderm be used for unapproved indications and that it promoted Lidoderm to health care providers for those unapproved indications. Under the terms of the deferred prosecution agreement, Endo Pharmaceuticals Inc. will pay a total of $20.8 million in monetary penalties and forfeiture. Endo Pharmaceuticals Inc. further agreed to implement and maintain a number of enhanced compliance measures, including making publicly available the results of certain clinical trials and requiring an annual review and certification of its compliance efforts by the Chief Executive Officer of its parent company, Endo Health Solutions. The deferred prosecution agreement will not be final until accepted by the U.S. District Court for the Northern District of New York.
“The safety and efficacy of drugs must be shown by science, not sales pitches,” said U.S. Attorney for the Northern District of New York Richard S. Hartunian. “Drugs marketed for intended uses not approved by the FDA are misbranded because their labeling lacks adequate directions for those uses. This settlement emphasizes that public health is protected by labeling based on product performance, rather than profitability, and promotes enhanced efforts to ensure compliance with all requirements.”
In addition, Endo agreed to settle its potential civil liability in connection with its marketing of Lidoderm. The government alleged that, from March 1999 through December 2007, Endo caused false claims to be submitted to federal health care programs, including Medicaid, a jointly funded federal and state program, by promoting Lidoderm for unapproved uses, some of which were not medically accepted indications and, therefore, were not covered by the federal health care programs. Of the $171.9 million Endo has agreed to pay to resolve these civil claims, Endo will pay $137.7 million to the federal government and $34.2 million to the states and the District of Columbia.
“Off-label marketing can undermine the doctor-patient relationship and adversely influence the clear and honest judgment of doctors that their patients rely on and trust,” said U.S. Attorney for the Eastern District of Pennsylvania Zane D. Memeger. “Pharmaceutical companies have a legal obligation to promote their drugs for only FDA-approved uses. This obligation takes precedence over the company’s bottom line.”
“The settlement announced today demonstrates the government’s continued scrutiny of pharmaceutical companies that interfere with FDA’s mission of ensuring that drugs are safe and effective for the American public,” said Special Agent in Charge of the FDA’s Office of Criminal Investigations’ New York Field Office Mark Dragonetti. “We will continue to work with our law enforcement partners to investigate and prosecute pharmaceutical companies that disregard the drug approval process and jeopardize the public health by engaging in the nationwide distribution of misbranded products.”
“Endo Pharmaceutical enriched themselves at the expense of the public,” said Special Agent in Charge Andrew W. Vale of the Albany Division of the Federal Bureau of Investigation. “Patients will search for drug therapies to assist in pain management, and they deserve the right to drugs approved for such use. The FBI will continue to work with our federal partners to investigate companies such as Endo Pharmaceuticals to ensure patients are safe.”
Also as part of the settlement, Endo Pharmaceuticals Inc. has agreed to enter into a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General that requires Endo to implement measures designed to avoid or promptly detect conduct similar to that which gave rise to this resolution. Among other things, the CIA requires Endo to implement an internal risk assessment and mitigation program and requires numerous internal and external reviews of promotional and other practices. The CIA also requires key executives and individual board members to sign certifications about compliance, and it requires the company to publicly report information about its financial arrangements with physicians.
“By marketing Lidoderm for uses not covered by federal health care programs, Endo profited at the expense of taxpayers and could have put patients at risk,” said Inspector General of the U.S. Department of Health and Human Services Daniel R. Levinson. “Under our CIA, Endo agrees to promote its products legally, while board members and top executives are specifically held accountable for compliance.”
The civil settlement resolves three lawsuits pending in federal court in the Eastern District of Pennsylvania under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the government and to share in any recovery. The actions were filed by Peggy Ryan, a former Lidoderm sales representative, Max Weathersby, another former Lidoderm sales representative and Gursheel S. Dhillon, a physician. The whistleblowers’ share of the settlement has not been determined.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Secretary of Health and Human Services Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $19 billion through False Claims Act cases, with more than $13.4 billion of that amount recovered in cases involving fraud against federal health care programs.
The civil settlement was handled by the U.S. Attorney’s Office for the Eastern District of Pennsylvania and the Civil Division’s Commercial Litigation Branch. The criminal case was handled by the U.S. Attorney’s Office for the Northern District of New York and the Civil Division’s Consumer Protection Branch. These matters were investigated by the Federal Bureau of Investigation, the Food and Drug Administration Office of Criminal Investigation, the Department of Health and Human Services Office of Inspector General Office of Investigations, the Defense Criminal Investigative Service of the Department of Defense, the U.S. Postal Service Office of Inspector General and the Office of Personnel Management Office of Inspector General with assistance from the Department of Health and Human Services Office of Counsel to the Inspector General and Office of General Counsel and Center for Medicare and Medicaid Services, the Food and Drug Administration’s Office of Chief Counsel and the National Association of Medicaid Fraud Control Units.
Except as to conduct admitted in connection with the deferred prosecution agreement, the claims settled by the civil agreement are allegations only, and there has been no determination of civil liability. The civil lawsuits are captioned United States ex rel. Ryan v. Endo Pharmaceuticals Inc., Civil Action No. 05-cv-3450, United States ex rel. Weathersby, et al. v. Endo Pharmaceuticals Inc., et al, Civil Action No. 10-cv-2039 and United States ex rel. Dhillon v. Endo Pharmaceuticals, Civil Action No. 11-cv-7767, all docketed in the Eastern District of Pennsylvania.
DEFENSE DEPARTMENT HAS STRATEGY FOR ELECTROMAGNETIC SPECTRUM
FROM: U.S. DEFENSE DEPARTMENT
IMMEDIATE RELEASE
Release No: NR-091-14
February 20, 2014
DoD Releases Electromagnetic Spectrum Strategy
The Department of Defense announced today the release of its Electromagnetic Spectrum Strategy (EMS) to increase available spectrum in order to meet growing demand from the commercial wireless industry while maintaining critical military capabilities.
“The Department’s Electromagnetic Spectrum Strategy addresses the ever increasing need for spectrum to achieve national security goals,” said Teri Takai, DoD chief information officer. “This strategy also addresses short and long-term spectrum challenges as it relates to the growing US demand for wireless broadband services. To achieve the balance required between national security and economic growth, DoD will continue to work in close collaboration with federal regulatory agencies and policymakers, including the National Telecommunications and Information Administration (NTIA), Federal Communications Commission, and the White House Office of Science and Technology Policy (OSTP), as well as with commercial industry.
Together we must identify ways to make more spectrum available for commercial use, and find technologies that enhance spectrum sharing, all while improving how DoD accesses spectrum, where and when needed to ensure mission success.”
The DoD EMS Strategy and its supporting roadmap and action plan will establish key goals and objectives that focus on developing systems that are efficient, flexible, and adaptable in their use of the spectrum; increasing our operational agility in use of the spectrum; and participating in the development of national and international policies and regulations needed to enable these improvements. The strategy follows the release of a memorandum issued in 2010 by President Obama titled “Unleashing the Wireless Broadband Revolution,” which requires 500 MHz of spectrum be made available for commercial use by 2020 and one issued in June 2013 titled “Expanding America's Leadership in Wireless Innovation” which directed federal agencies and offices to accelerate efforts to allow and encourage shared access to spectrum allocated for federal use. The president mandated that federal agencies free up a significant portion of wireless spectrum so that it can be used by individuals and businesses to spur domestic economic growth and help keep the U.S. on top of the technological hierarchy.
“In order to reach balanced decisions about relocating from or sharing spectrum, we need time, funding and comparable spectrum,” said Ms. Takai. “Through the established goals and objectives of the EMS Strategy and our close work with the White House OSTP, the NTIA and industry partners, we are confident in our ability to meet the requirements set forth by the president while maintaining the needs of our nation’s military requirements.”
IMMEDIATE RELEASE
Release No: NR-091-14
February 20, 2014
DoD Releases Electromagnetic Spectrum Strategy
The Department of Defense announced today the release of its Electromagnetic Spectrum Strategy (EMS) to increase available spectrum in order to meet growing demand from the commercial wireless industry while maintaining critical military capabilities.
“The Department’s Electromagnetic Spectrum Strategy addresses the ever increasing need for spectrum to achieve national security goals,” said Teri Takai, DoD chief information officer. “This strategy also addresses short and long-term spectrum challenges as it relates to the growing US demand for wireless broadband services. To achieve the balance required between national security and economic growth, DoD will continue to work in close collaboration with federal regulatory agencies and policymakers, including the National Telecommunications and Information Administration (NTIA), Federal Communications Commission, and the White House Office of Science and Technology Policy (OSTP), as well as with commercial industry.
Together we must identify ways to make more spectrum available for commercial use, and find technologies that enhance spectrum sharing, all while improving how DoD accesses spectrum, where and when needed to ensure mission success.”
The DoD EMS Strategy and its supporting roadmap and action plan will establish key goals and objectives that focus on developing systems that are efficient, flexible, and adaptable in their use of the spectrum; increasing our operational agility in use of the spectrum; and participating in the development of national and international policies and regulations needed to enable these improvements. The strategy follows the release of a memorandum issued in 2010 by President Obama titled “Unleashing the Wireless Broadband Revolution,” which requires 500 MHz of spectrum be made available for commercial use by 2020 and one issued in June 2013 titled “Expanding America's Leadership in Wireless Innovation” which directed federal agencies and offices to accelerate efforts to allow and encourage shared access to spectrum allocated for federal use. The president mandated that federal agencies free up a significant portion of wireless spectrum so that it can be used by individuals and businesses to spur domestic economic growth and help keep the U.S. on top of the technological hierarchy.
“In order to reach balanced decisions about relocating from or sharing spectrum, we need time, funding and comparable spectrum,” said Ms. Takai. “Through the established goals and objectives of the EMS Strategy and our close work with the White House OSTP, the NTIA and industry partners, we are confident in our ability to meet the requirements set forth by the president while maintaining the needs of our nation’s military requirements.”
U.S. SENDS CONGRATULATIONS TO PEOPLE OF BRUNEI DARUSSALAM ON THEIR NATIONAL DAY
FROM: U.S. STATE DEPARTMENT
Brunei Darussalam National Day
Press Statement
John Kerry
Secretary of State
Washington, DC
February 20, 2014
On behalf of President Obama and the people of the United States, I send my most heartfelt congratulations to the people of Brunei Darussalam as you celebrate your 30th National Day on February 23.
Our formal diplomatic relations began in 1984, but the friendship between our two countries goes back more than 160 years. The depth and value of this relationship was plain for me to see during my two visits to your wonderful “Abode of Peace” last year. Our excellent cooperation in both bilateral and multilateral settings is vital to the prosperity and stability of the region. Brunei’s chairmanship of the Association of Southeast Asian Nations during 2013 was commendable in every way.
From English language training to energy cooperation, our robust relationship is a force for good in the region. I wish all the people of Brunei the very best on this special anniversary and look forward to many more years of working closely together.
Brunei Darussalam National Day
Press Statement
John Kerry
Secretary of State
Washington, DC
February 20, 2014
On behalf of President Obama and the people of the United States, I send my most heartfelt congratulations to the people of Brunei Darussalam as you celebrate your 30th National Day on February 23.
Our formal diplomatic relations began in 1984, but the friendship between our two countries goes back more than 160 years. The depth and value of this relationship was plain for me to see during my two visits to your wonderful “Abode of Peace” last year. Our excellent cooperation in both bilateral and multilateral settings is vital to the prosperity and stability of the region. Brunei’s chairmanship of the Association of Southeast Asian Nations during 2013 was commendable in every way.
From English language training to energy cooperation, our robust relationship is a force for good in the region. I wish all the people of Brunei the very best on this special anniversary and look forward to many more years of working closely together.
INFLUENZA ACTIVITY AND VACCINE EFFECTIVENESS
FROM: CENTERS FOR DISEASE CONTROL AND PREVENTION
1. Interim Estimates of 2013–14 Seasonal Influenza Vaccine Effectiveness — United States, February 2014
This season’s influenza vaccine reduced the risk for influenza-associated medical visits by approximately 60 percent across all age groups. Children at least 6 months old and older who have not yet received the 2013–14 influenza vaccine should be vaccinated. CDC recommends yearly flu vaccination for children 6 months old or older and adults. Because flu viruses change from season to season, CDC conducts studies each year to determine how well the flu vaccine works against the specific flu viruses that are circulating. This mid-season report presents data on 2,319 children and adults enrolled in the U.S. Flu Vaccine Effectiveness Network from December 2, 2013 to January 23, 2014. The study found that getting flu vaccine this season reduced the risk of flu-related doctor’s visits by 61 percent for all age groups. Influenza vaccination offered substantial protection against the flu virus circulating this season, pH1N1, and the same virus that emerged in 2009 and spread in a worldwide pandemic.
2. Update: Influenza Activity — United States, September 29, 2013–February 8, 2014
This influenza season, characterized as a pH1N1 season, has been more severe for young and middle-aged adults than in the most recent seasons. This is a reminder that influenza can cause severe illness in people of any age and that everyone aged 6 months and older should be vaccinated. When people do get the flu, antiviral treatment can reduce severe outcomes, especially when administered early. Influenza activity in the United States began increasing in mid-November and remained elevated as of February 8; elevated activity will likely continue for several more weeks. Surveillance data provide a reminder that while some age groups are at increased risk of influenza complications every year, influenza can cause severe illness in persons of any age, even in adults 18–64 years.CDC recommends that health-care providers continue to offer vaccine to all unvaccinated persons ≥6 months now and throughout the season.
1. Interim Estimates of 2013–14 Seasonal Influenza Vaccine Effectiveness — United States, February 2014
This season’s influenza vaccine reduced the risk for influenza-associated medical visits by approximately 60 percent across all age groups. Children at least 6 months old and older who have not yet received the 2013–14 influenza vaccine should be vaccinated. CDC recommends yearly flu vaccination for children 6 months old or older and adults. Because flu viruses change from season to season, CDC conducts studies each year to determine how well the flu vaccine works against the specific flu viruses that are circulating. This mid-season report presents data on 2,319 children and adults enrolled in the U.S. Flu Vaccine Effectiveness Network from December 2, 2013 to January 23, 2014. The study found that getting flu vaccine this season reduced the risk of flu-related doctor’s visits by 61 percent for all age groups. Influenza vaccination offered substantial protection against the flu virus circulating this season, pH1N1, and the same virus that emerged in 2009 and spread in a worldwide pandemic.
2. Update: Influenza Activity — United States, September 29, 2013–February 8, 2014
This influenza season, characterized as a pH1N1 season, has been more severe for young and middle-aged adults than in the most recent seasons. This is a reminder that influenza can cause severe illness in people of any age and that everyone aged 6 months and older should be vaccinated. When people do get the flu, antiviral treatment can reduce severe outcomes, especially when administered early. Influenza activity in the United States began increasing in mid-November and remained elevated as of February 8; elevated activity will likely continue for several more weeks. Surveillance data provide a reminder that while some age groups are at increased risk of influenza complications every year, influenza can cause severe illness in persons of any age, even in adults 18–64 years.CDC recommends that health-care providers continue to offer vaccine to all unvaccinated persons ≥6 months now and throughout the season.
SPACE SMART SPHERES
FROM: NASA
Smart SPHERES Are About to Get A Whole Lot Smarter
Smart devices – such as tablets and phones – increasingly are an essential part of everyday life on Earth. The same can be said for life off-planet aboard the International Space Station. From astronaut tweets to Google+ Hangouts, our reliance on these mobile and social technologies means equipment and software upgrades are an everyday occurrence – like buying a new pair of shoes to replace a pair of well-worn ones.
That’s why the Intelligent Robotics Group at NASA’s Ames Research Center in Moffett Field, Calif., with funding from the Technology Demonstration Missions Program in the Space Technology Mission Directorate, is working to upgrade the smartphones currently equipped on a trio of volleyball-sized free-flying satellites on the space station called Synchronized Position Hold, Engage, Reorient, Experimental Satellites (SPHERES). In 2011 on the final flight of space shuttle Atlantis, NASA sent the first smartphone to the station and mounted it to SPHERES.
Each SPHERE satellite is self-contained with power, propulsion, computing and navigation equipment as well as expansion ports for additional sensors and appendages, such as cameras and wireless power transfer systems. This is where the SPHERES' smartphone upgrades are attached.
By connecting a smartphone, the SPHERES become Smart SPHERES. They now are more intelligent because they have built-in cameras to take pictures and video, sensors to help conduct inspections, powerful computing units to make calculations and Wi-Fi connections to transfer data in real time to the computers aboard the space station and at mission control.
"With this latest upgrade, we believe the Smart SPHERES will be a step closer to becoming a ‘mobile assistant' for the astronauts,” said DW Wheeler, lead engineer with SGT Inc. in the Intelligent Robotics Group at Ames. "This ability for Smart SPHERES to independently perform inventory and environmental surveys on the space station can free up time for astronauts and mission control to perform science experiments and other work.”
Later this year, NASA will launch a Project Tango prototype Android smartphone developed by Google’s Advanced Technology and Projects division of Mountain View, Calif. The prototype phone includes an integrated custom 3-D sensor, which means the device is capable of tracking its own position and orientation in real time as well as generating a full 3-D model of the environment.
“The Project Tango prototype incorporates a particularly important feature for the Smart SPHERES – a 3-D sensor,” said Terry Fong, director of the Intelligent Robotics Group at Ames. “This allows the satellites to do a better job of flying around on the space station and understanding where exactly they are.”
Later this month, Ames engineers will fly the prototype phone several times aboard an airplane that is capable of simulating microgravity by performing a parabolic flight path. The team has modified the motion-tracking and positioning code developed by Google that tells the phone where it is to work in the microgravity conditions of the space station. To verify that the phone will work, they must take the phone out of the lab at Ames and test it in a microgravity environment.
The SPHERES facility aboard the space station provides affordable opportunities to test a wide range of hardware and software. It acts as a free-flying platform that can accommodate various mounting features and mechanisms in order to test and examine the physical or mechanical properties of materials in microgravity.
SPHERES also provides a test bed for space applications including physical sciences investigations, free-flying spatial analyses, multi-body formation flying and various multi-spacecraft control algorithm verifications and analyses.
SPHERES also is used for the annual Zero Robotics student software programming competition. Ames operates and maintains the SPHERES facility, which is funded by the Human Exploration and Operations Mission Directorate at NASA Headquarters in Washington.
To date, astronauts have conducted 77 investigations using SPHERES to test techniques to advance automated dockings, satellite servicing, spacecraft assembly and emergency repairs. Now researchers are preparing to control the SPHERES in real time from ground control stations on Earth and from space.
In the long run, free-flying robots like SPHERES could also be used to inspect the exterior of the space station or future deep space vehicles. Robots like the smartphone-enhanced SPHERES and NASA's Robonaut 2, will provide some of the help of another crew member; SPHERES' cameras can act as another set of eyes, while Robonaut 2 literally adds another set of hands to act as an assistant with small and bulky items alike. An added bonus is that robots do not require any additional life support.
As with Robonaut 2, all tests to date have occurred in the safety of the space station's interior. However, in the future, upgraded SPHERES may venture outside the orbiting outpost.
“This is no ordinary upgrade – we’ve customized cutting-edge commercial technologies to help us answer questions like: How can robots help humans live and work in space? What will happen when humans explore other worlds with robots by their side? Can we make this happen sooner, rather than later?" said Fong. "Building on our experience in controlling robots on the space station, one day we'll be able to apply what we've learned and have humans and robots working together everywhere from Earth's orbit, to the moon, asteroids and Mars."
Rachel Hoover
Ames Research Center, Moffett Field, Calif.
Smart SPHERES Are About to Get A Whole Lot Smarter
Smart devices – such as tablets and phones – increasingly are an essential part of everyday life on Earth. The same can be said for life off-planet aboard the International Space Station. From astronaut tweets to Google+ Hangouts, our reliance on these mobile and social technologies means equipment and software upgrades are an everyday occurrence – like buying a new pair of shoes to replace a pair of well-worn ones.
That’s why the Intelligent Robotics Group at NASA’s Ames Research Center in Moffett Field, Calif., with funding from the Technology Demonstration Missions Program in the Space Technology Mission Directorate, is working to upgrade the smartphones currently equipped on a trio of volleyball-sized free-flying satellites on the space station called Synchronized Position Hold, Engage, Reorient, Experimental Satellites (SPHERES). In 2011 on the final flight of space shuttle Atlantis, NASA sent the first smartphone to the station and mounted it to SPHERES.
Each SPHERE satellite is self-contained with power, propulsion, computing and navigation equipment as well as expansion ports for additional sensors and appendages, such as cameras and wireless power transfer systems. This is where the SPHERES' smartphone upgrades are attached.
By connecting a smartphone, the SPHERES become Smart SPHERES. They now are more intelligent because they have built-in cameras to take pictures and video, sensors to help conduct inspections, powerful computing units to make calculations and Wi-Fi connections to transfer data in real time to the computers aboard the space station and at mission control.
"With this latest upgrade, we believe the Smart SPHERES will be a step closer to becoming a ‘mobile assistant' for the astronauts,” said DW Wheeler, lead engineer with SGT Inc. in the Intelligent Robotics Group at Ames. "This ability for Smart SPHERES to independently perform inventory and environmental surveys on the space station can free up time for astronauts and mission control to perform science experiments and other work.”
Later this year, NASA will launch a Project Tango prototype Android smartphone developed by Google’s Advanced Technology and Projects division of Mountain View, Calif. The prototype phone includes an integrated custom 3-D sensor, which means the device is capable of tracking its own position and orientation in real time as well as generating a full 3-D model of the environment.
“The Project Tango prototype incorporates a particularly important feature for the Smart SPHERES – a 3-D sensor,” said Terry Fong, director of the Intelligent Robotics Group at Ames. “This allows the satellites to do a better job of flying around on the space station and understanding where exactly they are.”
Later this month, Ames engineers will fly the prototype phone several times aboard an airplane that is capable of simulating microgravity by performing a parabolic flight path. The team has modified the motion-tracking and positioning code developed by Google that tells the phone where it is to work in the microgravity conditions of the space station. To verify that the phone will work, they must take the phone out of the lab at Ames and test it in a microgravity environment.
The SPHERES facility aboard the space station provides affordable opportunities to test a wide range of hardware and software. It acts as a free-flying platform that can accommodate various mounting features and mechanisms in order to test and examine the physical or mechanical properties of materials in microgravity.
SPHERES also provides a test bed for space applications including physical sciences investigations, free-flying spatial analyses, multi-body formation flying and various multi-spacecraft control algorithm verifications and analyses.
SPHERES also is used for the annual Zero Robotics student software programming competition. Ames operates and maintains the SPHERES facility, which is funded by the Human Exploration and Operations Mission Directorate at NASA Headquarters in Washington.
To date, astronauts have conducted 77 investigations using SPHERES to test techniques to advance automated dockings, satellite servicing, spacecraft assembly and emergency repairs. Now researchers are preparing to control the SPHERES in real time from ground control stations on Earth and from space.
In the long run, free-flying robots like SPHERES could also be used to inspect the exterior of the space station or future deep space vehicles. Robots like the smartphone-enhanced SPHERES and NASA's Robonaut 2, will provide some of the help of another crew member; SPHERES' cameras can act as another set of eyes, while Robonaut 2 literally adds another set of hands to act as an assistant with small and bulky items alike. An added bonus is that robots do not require any additional life support.
As with Robonaut 2, all tests to date have occurred in the safety of the space station's interior. However, in the future, upgraded SPHERES may venture outside the orbiting outpost.
“This is no ordinary upgrade – we’ve customized cutting-edge commercial technologies to help us answer questions like: How can robots help humans live and work in space? What will happen when humans explore other worlds with robots by their side? Can we make this happen sooner, rather than later?" said Fong. "Building on our experience in controlling robots on the space station, one day we'll be able to apply what we've learned and have humans and robots working together everywhere from Earth's orbit, to the moon, asteroids and Mars."
Rachel Hoover
Ames Research Center, Moffett Field, Calif.
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