WHITE HOUSE FACT SHEET ON CLIMATE CHANGE

May 06, 2014

FROM:  THE WHITE HOUSE 

FACT SHEET: What Climate Change Means for Regions across America and Major Sectors of the Economy

“…Science, accumulated and reviewed over decades, tells us that our planet is changing in ways that will have profound impacts on all of humankind…those who are already feeling the effects of climate change don’t have time to deny it—they’re busy dealing with it.”

-- President Barack Obama, Remarks at Georgetown University, June 25, 2013.

Today, delivering on a major commitment in the President’s Climate Action Plan, the Obama Administration is unveiling the third U.S. National Climate Assessment—the most comprehensive scientific assessment ever generated of climate change and its impacts across every region of America and major sectors of the U.S. economy.

The findings in this National Climate Assessment underscore the need for urgent action to combat the threats from climate change, protect American citizens and communities today, and build a sustainable future for our kids and grandkids.

Developed over four years by hundreds of the Nation’s top climate scientists and technical experts—and informed by thousands of inputs from the public and outside organizations gathered through town hall meetings, public-comment opportunities, and technical workshops across the country, the third National Climate Assessment represents the most authoritative and comprehensive knowledge base about how climate change is affecting America now, and what’s likely to come over the next century.

And, for the first time, to ensure that American citizens, communities, businesses, and decision makers have easy access to scientific information about climate change impacts that are most relevant to them, the U.S. National Climate Assessment is being released in an interactive, mobile-device-friendly, digital format on www.globalchange.gov.

Today’s announcement is a key deliverable of the Climate Action Plan launched by President Obama last June—which lays out concrete steps to cut carbon pollution, prepare America’s communities for climate-change impacts, and lead international efforts to address this global challenge. The Plan acknowledges that even as we act to reduce the greenhouse-gas pollution that is driving climate change, we must also empower the Nation’s communities, businesses, and individual citizens with the information they need to cope with the changes in climate that are already underway.

Climate-Change Impacts in Regions across America:

• Northeast – Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut, New York, New Jersey, Delaware, Pennsylvania, Maryland, and District of Columbia: “Sixty-four million people are concentrated in the Northeast. The high-density urban coastal corridor from Washington, DC, north to Boston is one of the most developed environments in the world, containing a massive, complex, and long-standing network of supporting infrastructure. The Northeast also has a vital rural component.” Communities in the Northeast “are affected by heat waves, more extreme precipitation events, and coastal flooding due to sea level rise and storm surge.” (NCA Highlights: Northeast; NCA Highlights: Overview)

• Southeast and Caribbean –Virginia, W. Virginia, Kentucky, Tennessee, Georgia, Alabama, Arkansas, S. Carolina, N. Carolina, Mississippi, Florida, Louisiana, and the Caribbean Islands: The Southeast and Caribbean region “is home to more than 80 million people and some of the fastest-growing metropolitan areas… The Gulf and Atlantic coasts are major producers of seafood and home to seven major ports that are also vulnerable. The Southeast is a major energy producer of coal, crude oil, and natural gas.” “Decreased water availability, exacerbated by population growth and land-use change, causes increased competition for water in this region. There are also increased risks associated with extreme events such as hurricanes.” (NCA Highlights: Southeast & Caribbean; NCA Highlights: Overview)

• Midwest – Minnesota, Michigan, Iowa, Indiana, Ohio, Missouri, Illinois, and Wisconsin: “The Midwest’s agricultural lands, forests, Great Lakes, industrial activities, and cities are all vulnerable to climate variability and climate change.” “Longer growing seasons and rising carbon dioxide levels increase yields of some crops, although these benefits have already been offset in some instances by occurrence of extreme events such as heat waves, droughts, and floods.” (NCA Highlights: Midwest; NCA Highlights: Overview

• Great Plains – Wyoming, N. Dakota, S. Dakota, Montana, Nebraska, Kansas, Oklahoma, and Texas: The Great Plains region “experiences multiple climate and weather hazards, including floods, droughts, severe storms, tornadoes, hurricanes, and winter storms. In much of the Great Plains, too little precipitation falls to replace that needed by humans, plants, and animals. These variable conditions already stress communities and cause billions of dollars in damage. Climate change will add to both stress and costs.” “Rising temperatures lead to increased demand for water and energy and impacts on agricultural practices.” (NCA Highlights: Great Plains; NCA Highlights: Overview)

• Southwest – California, Nevada, Arizona, New Mexico, Utah, and Colorado: “The Southwest is the hottest and driest region in the United States. Climate changes pose challenges for an already parched region that is expected to get hotter and, in its southern half, significantly drier. Increased heat and changes to rain and snowpack will send ripple effects throughout the region… and its critical agriculture sector.” “Drought and increased warming foster wildfires and increased competition for scarce water resources for people and ecosystems.” (NCA Highlights: Southwest; NCA Highlights: Overview)

• Northwest – Idaho, Oregon, and Washington: “The Northwest’s economy, infrastructure, natural systems, public health, and agriculture sectors all face important climate change related risks. Impacts on infrastructure, natural systems, human health, and economic sectors, combined with issues of social and ecological vulnerability, will unfold quite differently in largely natural areas, like the Cascade Range, than in urban areas like Seattle and Portland or among the region’s many Native American Tribes.” “Changes in the timing of streamflow related to earlier snowmelt reduce the supply of water in summer, causing far-reaching ecological and socioeconomic consequences.” (NCA Highlights: Northwest; NCA Highlights: Overview)

• Alaska: “Over the past 60 years, Alaska has warmed more than twice as rapidly as the rest of the United States…The state’s largest industries, energy production, mining, and fishing—are all affected by climate change.” “Rapidly receding summer sea ice, shrinking glaciers, and thawing permafrost cause damage to infrastructure and major changes to ecosystems. Impacts on Alaska Native communities increase.” (NCA Highlights: Alaska; NCA Highlights: Overview)

• Hawaii and Pacific Islands: The U.S. Pacific Islands region “includes more than 2,000 islands spanning millions of square miles of ocean. Rising air and ocean temperatures, shifting rainfall patterns, changing frequencies and intensities of storms and drought, decreasing streamflows, rising sea levels, and changing ocean chemistry will threaten the sustainability of globally important and diverse ecosystems…as well as local communities, livelihoods, and cultures.” “Increasingly constrained freshwater supplies, coupled with increased temperatures, stress both people and ecosystems and decrease food and water security.” (NCA Highlights: Hawaii and the Pacific Islands; NCA Highlights: Overview)

• Coasts: “More than 50% of Americans – 164 million people – live in coastal counties, with 1.2 million added each year... Humans have heavily altered the coastal environment through development, changes in land use, and overexploitation of resources. Now, the changing climate is imposing additional stresses...” “Coastal lifelines, such as water supply infrastructure and evacuation routes are increasingly vulnerable to higher sea levels and storm surges, inland flooding, and other climate-related changes.” (NCA Highlights: Coasts; NCA Highlights: Overview)

Climate-Change Impacts on Key Sectors of Society and the U.S. Economy

• Health: “Climate change threatens human health and well-being in many ways, including through impacts from increased extreme weather events, wildfire, decreased air quality, threats to mental health, and illnesses transmitted by food, water, and disease carriers such as mosquitoes and ticks. Some of these health impacts are already underway in the United States. Climate change will, absent other changes, amplify some of the existing health threats the Nation now faces. Certain people and communities are especially vulnerable, including children, the elderly, the sick, the poor, and some communities of color. Public health actions, especially preparedness and prevention, can do much to protect people from some of the impacts of climate change. Early action provides the largest health benefits.” (NCA Highlights: Human Health)

• Transportation: “The impacts from sea level rise and storm surge, extreme weather events, higher temperatures and heat waves, precipitation changes, Arctic warming, and other climatic conditions are affecting the reliability and capacity of the U.S. transportation system in many ways. Sea level rise, coupled with storm surge, will continue to increase the risk of major coastal impacts on transportation infrastructure, including both temporary and permanent flooding of airports, ports and harbors, roads, rail lines, tunnels, and bridges. Extreme weather events currently disrupt transportation networks in all areas of the country; projections indicate that such disruptions will increase. Climate change impacts will increase the total costs to the Nation’s transportation systems and their users, but these impacts can be reduced through rerouting, mode change, and a wide range of adaptive actions.” (NCA Highlights: Transportation)

• Energy: “Extreme weather events are affecting energy production and delivery facilities, causing supply disruptions of varying lengths and magnitudes and affecting other infrastructure that depends on energy supply. The frequency and intensity of certain types of extreme weather events are expected to change. Higher summer temperatures will increase electricity use, causing higher summer peak loads, while warmer winters will decrease energy demands for heating. Net electricity use is projected to increase. Changes in water availability, both episodic and long-lasting, will constrain different forms of energy production. In the longer term, sea level rise, extreme storm surge events, and high tides will affect coastal facilities and infrastructure on which many energy systems, markets, and consumers depend. As new investments in energy technologies occur, future energy systems will differ from today’s in uncertain ways. Depending on the character of changes in the energy mix, climate change will introduce new risks as well as new opportunities.” (NCA Highlights: Energy Supply and Use)

• Water: “Climate change affects water demand and the ways water is used within and across regions and economic sectors. The Southwest, Great Plains, and Southeast are particularly vulnerable to changes in water supply and demand. Changes in precipitation and runoff, combined with changes in consumption and withdrawal, have reduced surface and groundwater supplies in many areas. These trends are expected to continue, increasing the likelihood of water shortages for many uses. Increasing flooding risk affects human safety and health, property, infrastructure, economies, and ecology in many basins across the United States… Increasing resilience and enhancing adaptive capacity provide opportunities to strengthen water resources management and plan for climate-change impacts.”(NCA Highlights: Water)

• Agriculture: “Climate disruptions to agriculture have been increasing and are projected to become more severe over this century. Some areas are already experiencing climate-related disruptions, particularly due to extreme weather events. While some U.S. regions and some types of agricultural production will be relatively resilient to climate change over the next 25 years or so, others will increasingly suffer from stresses due to extreme heat, drought, disease, and heavy downpours. From mid-century on, climate change is projected to have more negative impacts on crops and livestock across the country – a trend that could diminish the security of our food supply… Climate change effects on agriculture will have consequences for food security, both in the U.S. and globally, through changes in crop yields and food prices and effects on food processing, storage, transportation, and retailing. Adaptation measures can help delay and reduce some of these impacts.” (NCA Highlights: Agriculture)

• Ecosystems: “Ecosystems and the benefits they provide to society are being affected by climate change. The capacity of ecosystems to buffer the impacts of extreme events like fires, floods, and severe storms is being overwhelmed. Climate change impacts on biodiversity are already being observed in alteration of the timing of critical biological events such as spring bud burst, and substantial range shifts of many species. In the longer term, there is an increased risk of species extinction. Events such as droughts, floods, wildfires, and pest outbreaks associated with climate change (for example, bark beetles in the West) are already disrupting ecosystems. These changes limit the capacity of ecosystems, such as forests, barrier beaches, and wetlands, to continue to play important roles in reducing the impacts of extreme events on infrastructure, human communities, and other valued resources… Whole-system management is often more effective than focusing on one species at a time, and can help reduce the harm to wildlife, natural assets, and human well-being that climate disruption might cause.” (NCA Highlights: Ecosystems)

• Oceans: “Ocean waters are becoming warmer and more acidic, broadly affecting ocean circulation, chemistry, ecosystems, and marine life. More acidic waters inhibit the formation of shells, skeletons, and coral reefs. Warmer waters harm coral reefs and alter the distribution, abundance, and productivity of many marine species. The rising temperature and changing chemistry of ocean water combine with other stresses, such as overfishing and coastal and marine pollution, to alter marine-based food production and harm fishing communities… In response to observed and projected climate impacts, some existing ocean policies, practices, and management efforts are incorporating climate change impacts. These initiatives can serve as models for other efforts and ultimately enable people and communities to adapt to changing ocean conditions.” (NCA Highlights: Oceans)

Climate Trends in America

• Temperature: “U.S. average temperature has increased by 1.3°F to 1.9°F since record keeping began in 1895; most of this increase has occurred since about 1970. The most recent decade was the Nation’s warmest on record. Temperatures in the United States are expected to continue to rise. Because human-induced warming is superimposed on a naturally varying climate, the temperature rise has not been, and will not be, uniform or smooth across the country or over time.” (NCA Highlights: Climate Trends)

• Extreme Weather: “There have been changes in some types of extreme weather events over the last several decades. Heat waves have become more frequent and intense, especially in the West. Cold waves have become less frequent and intense across the Nation. There have been regional trends in floods and droughts. Droughts in the Southwest and heat waves everywhere are projected to become more intense, and cold waves less intense everywhere.” (NCA Highlights: Climate Trends)

• Hurricanes: “The intensity, frequency, and duration of North Atlantic hurricanes, as well as the frequency of the strongest (Category 4 and 5) hurricanes, have all increased since the early 1980s. The relative contributions of human and natural causes to these increases are still uncertain. Hurricane-associated storm intensity and rainfall rates are projected to increase as the climate continues to warm.” (NCA Highlights: Climate Trends)

• Severe Storms: “Winter storms have increased in frequency and intensity since the 1950s, and their tracks have shifted northward over the United States. Other trends in severe storms, including the intensity and frequency of tornadoes, hail, and damaging thunderstorm winds, are uncertain and are being studied intensively.” (NCA Highlights: Climate Trends)

• Precipitation: “Average U.S. precipitation has increased since 1900, but some areas have had increases greater than the national average, and some areas have had decreases. More winter and spring precipitation is projected for the northern United States, and less for the Southwest, over this century.” (NCA Highlights: Climate Trends)

• Heavy Downpours: “Heavy downpours are increasing nationally, especially over the last three to five decades. Largest increases are in the Midwest and Northeast. Increases in the frequency and intensity of extreme precipitation events are projected for all U.S. regions.” (NCA Highlights: Climate Trends)

• Frost-free Season: “The length of the frost-free season (and the corresponding growing season) has been increasing nationally since the 1980s, with the largest increases occurring in the western United States, affecting ecosystems and agriculture. Across the United States, the growing season is projected to continue to lengthen.” (NCA Highlights: Climate Trends)

• Ice Melt: “Rising temperatures are reducing ice volume and surface extent on land, lakes, and sea. This loss of ice is expected to continue. The Arctic Ocean is expected to become essentially ice free in summer before mid-century.” (NCA Highlights: Climate Trends)

• Sea Level: “Global sea level has risen by about 8 inches since reliable record keeping began in 1880. It is projected to rise another 1 to 4 feet by 2100.” (NCA Highlights: Climate Trends)

• Ocean Acidification: “The oceans are currently absorbing about a quarter of the carbon dioxide emitted to the atmosphere annually and are becoming more acidic as a result, leading to concerns about intensifying impacts on marine ecosystems.” (NCA Highlights: Climate Trends)

JUSTICE ANNOUNCES OWNERS LOS ANGELES AMBULANCE COMPANY SENTENCED FOR MEDICARE FRAUD

FROM:  U.S. JUSTICE DEPARTMENT 

Tuesday, May 6, 2014

Owners of Los Angeles Ambulance Company Sentenced for Medicare Fraud Scheme

The owners of Alpha Ambulance Inc. (Alpha), a now-defunct Los Angeles-area ambulance transportation company, have been sentenced in connection with a Medicare fraud scheme.

Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney André Birotte Jr. of the Central District of California, Special Agent in Charge Glenn R. Ferry of the Los Angeles Region of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) and Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office made the announcement.

Aleksey Muratov, aka Russ Muratov, 32, and Alex Kapri, aka Alex Kapriyelov or Alexander Kapriyelov, 56, were sentenced by U.S. District Court Judge Audrey B. Collins in the Central District of California to serve 108 months and 75 months in prison, respectively.   Both Kapri and Muratov pleaded guilty on Oct. 28, 2014, to conspiracy to commit health care fraud.

Muratov and Kapri were owners and operators of Alpha, which specialized in the provision of non-emergency ambulance transportation services to Medicare-eligible beneficiaries, primarily dialysis patients.

According to court documents, Muratov and Kapri knowingly provided non-emergency ambulance transportation to Medicare beneficiaries whose medical condition at that time did not require ambulance transportation.  With Kapri’s knowledge, Muratov and others at Alpha instructed certain Alpha employees to conceal the Medicare beneficiaries’ medical conditions by altering required documents for Medicare reimbursement and creating fraudulent justifications for the transportation.   The defendants caused Alpha to submit claims to Medicare that were fraudulent because the transportation was not medically necessary.

Additionally, as the defendants were submitting these false claims, Medicare notified Alpha that the company would be subject to a Medicare audit.  In response, Muratov instructed Alpha employees – with Kapri’s knowledge – to alter specific documents that would be submitted to Medicare in response to the audit and create false justifications for transportation of the beneficiaries identified.

From at least June 2008 through at least July 2012, Alpha submitted more than $49 million in claims for ambulance transportation.  As a result, Medicare paid Alpha more than $13 million for these claims, many of which were fraudulent.

The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California.  This case was prosecuted by Trial Attorneys Blanca Quintero and Alexander F. Porter and Assistant Chief O. Benton Curtis III of the 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, are taking steps to increase accountability and decrease the presence of fraudulent providers.

NSF: CLIMATE CHANGE MAY WORSEN SUMMERTIME OZONE POLLUTION

FROM:  NATIONAL SCIENCE FOUNDATION 
Climate change may worsen summertime ozone pollution

Americans face 70 percent increase in unhealthy ozone levels by 2050
Ozone pollution across the continental United States will become far more difficult to keep in check as temperatures rise, according to new research results.

The study shows that Americans face the risk of a 70 percent increase in unhealthy summertime ozone levels by 2050.

The results appear online this week in a paper in the Journal of Geophysical Research-Atmospheres, published by the American Geophysical Union.

The work was funded by the National Science Foundation (NSF) and the U.S. Department of Energy.

Warmer temperatures and other changes in the atmosphere related to a changing climate, including higher atmospheric levels of methane, spur chemical reactions that increase overall levels of ozone.

Unlike ozone in the stratosphere, which benefits life on Earth by blocking ultraviolet radiation from the sun, ground-level ozone can trigger a number of health problems.

These range from coughing and throat irritation to more serious aggravation of asthma, bronchitis and emphysema.

Even short periods of unhealthy ozone levels can cause local death rates to rise. Ozone pollution also damages crops and other plants.

Unless emissions of specific pollutants associated with the formation of ozone are sharply cut, most of the continental United States will experience more summer days with unhealthy air by 2050, the research shows.

Heavily polluted locations in parts of the East, Midwest and West Coast, in which ozone already frequently exceeds recommended levels, could face unhealthy summer air in most years.

"It doesn't matter where you are in the United States, climate change has the potential to make your air worse," said National Center for Atmospheric Research (NCAR) scientist Gabriele Pfister, lead scientist on the study.

In addition to NCAR, the paper co-authors are from the Pacific Northwest National Laboratory; University of Colorado, Boulder; and North-West University in South Africa.

"A warming planet doesn't just mean rising temperatures, it also means risking more summertime pollution and the health effects that come with it," said Pfister.

However, the research also showed that a sharp reduction in the emissions of certain pollutants would lead to dramatically decreased levels of ozone even as temperatures warm.

The research is one of the first of its type to be conducted with new, highly advanced geoscience supercomputing capabilities.

"Understanding future changes in surface ozone over the summer has tremendous implications for air quality and human health," said Anjuli Bamzai, a program director in NSF's Division of Atmospheric and Geospace Sciences, which funded the research through NSF's Decadal and Regional Climate Prediction using Earth System Models (EaSM) Program.

"Through a series of 'what if' simulations," said Bamzai, "atmospheric chemists, climate modelers, regional modelers and developers of emissions scenarios demonstrate that a balance of emission controls can counteract the increases in future temperatures, emissions and solar radiation that in turn lead to decreases in surface ozone."

Ozone and heat

Ozone pollution is not emitted directly. It forms as a result of chemical reactions that take place between nitrogen oxides and volatile organic compounds in the presence of sunlight.

These gases come from human activities such as combustion of coal and oil, as well as natural sources such as emissions from plants.

To examine the effects of climate change on ozone pollution, Pfister and colleagues looked at two scenarios.

In one, emissions of nitrogen oxides and volatile organic compounds from human activities would continue at current levels through 2050.

In the other, emissions would be cut by 60-70 percent. Both scenarios assumed continued greenhouse gas emissions with significant warming.

The researchers found that, if emissions continue at present-day rates, the number of eight-hour periods in which ozone would exceed 75 parts per billion (ppb) would jump by 70 percent on average across the United States by 2050.

The 75 ppb level over eight hours is the threshold that is considered unhealthy by the U.S. Environmental Protection Agency. (The agency is considering tightening the standard to a value between 65 and 70 ppb over eight hours.)

Overall, the study found that, 90 percent of the time, ozone levels would range from 30 to 87 ppb in 2050 compared with an estimated 31 to 79 ppb at present.

Although the range itself shifts only slightly, the result is a much larger number of days above the threshold considered unhealthy.

There are three primary reasons for the increase in ozone with climate change:

Chemical reactions in the atmosphere that produce ozone occur more rapidly at higher temperatures.
Plants emit more volatile organic compounds at higher temperatures, which can increase ozone formation if mixed with pollutants from human sources.
Methane, which is increasing in the atmosphere, contributes to increased ozone globally and will enhance baseline levels of surface ozone across the United States.
In the second scenario, Pfister and colleagues found that sharp reductions in nitrogen oxides and volatile organic compounds could reduce ozone pollution even as the climate warms.

In fact, 90 percent of the time, ozone levels would range from 27 to 55 ppb.

The number of instances when ozone pollution would exceed the 75 ppb level dropped to less than 1 percent of current cases.

"Our work confirms that reducing emissions of ozone precursors would have an enormous effect on the air we all breathe," Pfister said.

Pfister and a nationwide scientific team expect to learn more about the sources, chemistry and movement of air pollutants this summer when they launch a major field experiment known as FRAPPÉ along Colorado's Front Range.

The role of supercomputing

The study was among the first conducted on the new 1.5 petaflops Yellowstone supercomputer. The IBM system, operated by NCAR and supported by funding from NSF and the University of Wyoming, is one of the world's most powerful computers dedicated to research in the atmospheric and related sciences.

"High resolution models can consume significant time and resources on massive computers, but as shown in this research, they're often required for accurate regional ozone projections," said Irene Qualters, division director for Advanced Computing Infrastructure at NSF.

"Running these models wouldn't have been possible without the parallel processing power of the Yellowstone supercomputer, a critical part of NSF's cyberinfrastructure.

"The work will also help other researchers in related climate topics determine scenarios where coarse resolution is sufficient and, conversely, where high resolution is needed."

Thanks to its computing power, the scientists were able to simulate pollution levels hour-by-hour for 39 hypothetical summers.

This allowed the team to account for year-to-year variations in meteorological conditions, such as hot and dry vs. cool and wet, thereby getting a more detailed and statistically significant picture of future pollution levels.

To simulate the interplay of global climate with regional pollution conditions, the scientists turned to two of the world's leading atmospheric models, both based at NCAR and developed through collaborations in the atmospheric sciences community.

They used the Community Earth System Model, funded primarily by the U.S. Department of Energy and NSF, to simulate global climate as well as atmospheric chemistry conditions.

They also used an air chemistry version of the multiagency Weather Research and Forecasting Model to obtain a more detailed picture of regional ozone levels.

Even with Yellowstone's advanced computing speed, it took months to complete the complex simulations.

"This research would not have been possible even just a couple of years ago," said Pfister.

"Without the new computing power made possible by Yellowstone, you cannot depict the necessary detail of future changes in air chemistry over small areas, including the urban centers where most Americans live."

-NSF-

Media Contacts
Cheryl Dybas

U.S. DEFENSE DEPARTMENT CONTRACTS FOR MAY 6, 2014

FROM:  U.S DEFENSE DEPARTMENT 

CONTRACTS

NAVY

Global Technical Systems Inc.*, Virginia Beach, Virginia, is being awarded an $84,900,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for production of the Common Processing System (CPS), spares and associated engineering services. The CPS is a computer processing system based on an open architecture design. CPS consists of the CPS enclosure assembly and three subsystems: the processing subsystem, the storage/extraction subsystem, and the input/output subsystem. It is intended to support the computer requirements of various Navy combat systems. This contract will provide for production, testing and delivery of CPS (both water cooled and air cooled), spares, and associated engineering services. Work will be performed in Virginia Beach, Virginia, and is expected to be completed by May 2018. Fiscal 2014 other procurement, Navy contract funds in the amount of $1,555,308 will be obligated at time of award and will not expire at the end of the current fiscal year. This contract was competitively procured via the Federal Business Opportunities website, with two offers received. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity (N00024-14-D-5213).

Lockheed Martin, Maritime Systems and Sensors, Moorestown, New Jersey, is being awarded a $54,706,543 modification to previously awarded contract (N00024-09-C-5103) to incrementally fund the Aegis Platform Systems Engineering Agent (PSEA) activities and Aegis Modernization Advanced Capability Build engineering. The PSEA manages the in-service combat systems configurations as well as the integration of new or upgraded capability into the CG57 Class of ships and the DDG 51 Class of ships. Work will be performed in Moorestown, New Jersey, and is expected to be completed by September 2015. Fiscal 2014 research, development, test and evaluation; fiscal 2014 operations and maintenance, Navy; fiscal 2014 other procurement, Navy and fiscal 2014 shipbuilding and conversion, Navy funding in the amount of $54,706,543 will be obligated at time of award. Contract funds in the amount of $7,197,483 will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity.

Northrop Grumman Systems Corp., Rolling Meadows, Illinois, is being awarded $17,969,104 for cost-plus-fixed-fee delivery order 0506 against a previously issued basic ordering agreement (N00019-10-G-0004) for non-recurring engineering in support of the MV-22 Integrated Aircraft Survivability Equipment Suite upgrade, including integration of the AN/AAQ-24(V)25 software with an electronic warfare controller and the MV-22 mission computer. Work will be performed in Rolling Meadows, Illinois, and is expected to be completed in April 2016. Fiscal 2014 aircraft procurement, Navy funds in the amount of $7,800,000 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity.

Tyonek Services Corp.*, Anchorage, Alaska, is being awarded a $17,302,958 modification to a previously awarded, cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity contract (N61340-13-D-0005) for depot level maintenance support services for the Fleet Readiness Center South East. Work will be performed at the Naval Air Station Jacksonville, Florida, (81 percent), Marine Corp Air Station Beaufort, South Carolina, (17 percent), and Naval Air Station Oceana, Virginia, (2 percent), and is expected to be completed in December 2014. No funding will be obligated at time of award, funds will be obligated on individual delivery orders as they are issued. The Naval Air Warfare Center Training Systems Division, Orlando, Florida, is the contracting activity.
Lockheed Martin Corp., Owego, New York, is being awarded $6,756,377 for firm-fixed-priced delivery order 7027 under previously awarded basic ordering agreement (N00383-12-G-010F) for the repair of 11 items for the command cockpit used in H-60R/S helicopters. Work will be performed in Owego, New York, (73 percent); Farmingdale, New York, (21.25 percent); Middletown, Connecticut, (2.5 percent); Grand Rapids, Michigan, (3.25 percent); and is expected to be completed by Jan. 30, 2016. Fiscal 2014 Navy working capital funds in the amount of $6,756,377 will be obligated at the time of award and will not expire before the end of the current fiscal year. This requirement was not competitively procured in accordance with 10 U.S.C. 2304(c)(1). NAVSUP Weapon Systems Support, Philadelphia, Pennsylvania, is the contracting activity.

ARMY

BAE Systems, Inc., Nashua, New Hampshire, was awarded a $444,812,310 firm-fixed-price contract for Individual and Enhanced Night Vision Goggle III weapons sights. Funding and work performance location will be determined with each order award. Estimated completion date is May 6, 2019. Bids were solicited via the Internet with five received. Army Contracting Command, Aberdeen, Maryland, is the contracting activity (W91CRB-14-D-0010).

DRS RSTA Inc., Dallas, Texas was awarded a $367,035,238 firm-fixed-price contract for Individual and Enhanced Night Vision Goggle III weapon sights. Funding and work performance location will be determined with each order award. Estimated completion date is May 6, 2019. Bids were solicited via the Internet with five received. Army Contracting Command, Aberdeen, Maryland, is the contracting activity (W91CRB-14-D-0011).

EADS North America, Herndon, Virginia, was awarded a $25,474,389 modification (P00787) to contract W58RGZ-06-C-0194 to increase funds and exercise an option for contractor logistics support on the Lakota Utility Helicopter (UH-72A). Work will be performed in Columbia, Mississippi, with an estimated completion date of Nov. 30, 2015. Fiscal 2014 operations and maintenance Army funds in the amount of $25,472,339 were obligated at the time of the award. Army Contracting Command, Redstone Arsenal, Alabama is the contracting activity.
General Dynamics Ordnance and Tactical Systems, Inc., Saint Petersburg, Florida, was awarded a $12,683,602 modification (P00017) to W52P1J-11-C-0027 for the demilitarization and disposal of 78,000 depleted uranium rounds. Work will be performed in St. Petersburg, Florida, with an estimated completion date of Sept. 30, 2015. Fiscal 2014 other procurement Army funds in the amount of $12,683,580 and fiscal 2013 other procurement Army funds in the amount of $22 were obligated at the time of the award. Army Contracting Command, Rock Island Arsenal, Illinois, is the contracting activity.

Dutra Dredging Co., San Rafael, California, was awarded an $8,000,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for dredge rental with attendant plant and operations for maintenance dredging of the Mobile harbor channel, Mobile, Alabama. Funding and work performance location will be determined with each order. Estimated completion date is July 14, 2015. Bids were solicited via the Internet with two received. Army Corps of Engineers, Mobile, Alabama, is the contracting activity (W91278-14-D-0041).

*Small Business

PRESIDENT OBAMA SENDS WARMEST WISHES TO ISRAELI PEOPLE ON THEIR INDEPENDENCE DAY

FROM:  THE WHITE HOUSE 

Statement by the President on Israeli Independence Day

I send my warmest wishes to the Israeli people as they celebrate their independence.  Generations of Jews dreamed of the day when the Jewish people would have their own state in their historic homeland, and 66 years ago today that dream came true.  Today, Israel thrives as a diverse and vibrant democracy and as a "start-up nation" that celebrates entrepreneurship and innovation.
 
The United States was the first nation to recognize the government of Israel in 1948, and today we are still the first to come to Israel’s defense. The enduring relationship between our two nations, based on shared democratic values and our unwavering commitment to Israel’s security, has never been stronger.  We will continue to work with Israel to support a two-state solution to the decades-old conflict, one that ensures that the Israelis will live alongside their neighbors in peace and with security.
 
On behalf of the American people, I wish President Peres, Prime Minister Netanyahu, and the Israeli people a joyous Yom Ha’atzmaut.

CDC REPORTS THAT DISABLED HAVE LESS ACTIVITY AND MORE CHRONIC DISEASE

FROM:  CENTERS FOR DISEASE CONTROL AND PREVENTION 

Inactivity Related to Chronic Disease in Adults with Disabilities
Half of adults with disability get no aerobic physical activity
Working age adults with disabilities who do not get any aerobic physical activity are 50 percent more likely than their active peers to have a chronic disease such as cancer, diabetes, stroke, or heart disease, according to a Vital Signs report released today by the Centers for Disease Control and Prevention (CDC).
Nearly half (47 percent) of adults with disabilities who are able to do aerobic physical activity do not get any. An additional 22 percent are not active enough. Yet only about 44 percent of adults with disabilities who saw a doctor in the past year got a recommendation for physical activity.

“Physical activity is the closest thing we have to a wonder drug,” said CDC Director Tom Frieden, M.D., M.P.H. “Unfortunately, many adults with disabilities don’t get regular physical activity.  That can change if doctors and other health care providers take a more active role helping their patients with disabilities develop a physical fitness plan that’s right for them.”

Most adults with disabilities are able to participate in some aerobic physical activity which has benefits for everyone by reducing the risk of serious chronic diseases. Some of the benefits from regular aerobic physical activity include increased heart and lung function; better performance in daily living activities; greater independence; decreased chances of developing chronic diseases; and improved mental health.

For this report, CDC analyzed data from the 2009-2012 National Health Interview Survey and focused on the relation between physical activity levels and chronic diseases among U.S. adults aged 18-64 years with disabilities, by disability status and type.  These are adults with serious difficulty walking or climbing stairs; hearing; seeing; or concentrating, remembering, or making decisions. Based on the 2010 data, the study also assessed the prevalence of receiving a health professional recommendation for physical activity and the association with the level of aerobic physical activity.

Key findings include:

Working age adults with disabilities are three times more likely to have heart disease, stroke, diabetes or cancer than adults without disabilities.
Nearly half of adults with disabilities get no aerobic physical activity, an important protective health behavior to help avoid these chronic diseases.
Inactive adults with disabilities were 50 percent more likely to report at least one chronic disease than were active adults with disabilities.
Adults with disabilities were 82 percent more likely to be physically active if their doctor recommended it.

The Physical Activity Guidelines for Americans recommend that all adults, including those with disabilities, get at least 150 minutes (2.5 hours) of moderate – intensity aerobic physical activity each week. If meeting these guidelines is not possible, adults with disabilities should start physical activity slowly based on their abilities and fitness level.

Doctors and other health professionals can recommend physical activity options that match the abilities of adults with disabilities and resources that can help overcome barriers to physical activity. These barriers include limited information about accessible facilities and programs; physical barriers in the built or natural environment; physical or emotional barriers to participating in fitness and recreation activities, and lack of training in accessibility and communication among fitness and recreation professionals.

“It is essential that we bring together adults with disabilities, health professionals and community leaders to address resource needs to increase physical activity for people with disabilities,” said Coleen Boyle, Ph.D., M.S. hyg., director of CDC’s National Center on Birth Defects and Developmental Disabilities.

CDC has set up a dedicated resource page for doctors and other health professionals with information to help them recommend physical activity to their adult patients with disabilities, www.cdc.gov/disabilities/PA.  

Through the Affordable Care Act, more Americans have access to health coverage and to no-cost preventive services. Most health insurance plans cannot deny, limit, or exclude coverage to anyone based on a pre-existing condition, including persons with disabilities. To learn more about the Affordable Care Act, visit Healthcare.gov or call 1-800-318-2596 (TTY/TDD 1-855-889-4325).

Vital Signs is a CDC report that appears on the first Tuesday of the month as part of the CDC journal Morbidity and Mortality Weekly Report, or MMWR. The report provides the latest data and information on key health indicators. These are cancer prevention, obesity, tobacco use, motor vehicle passenger safety, prescription drug overdose, HIV/AIDS, alcohol use, health care-associated infections, cardiovascular health, teen pregnancy, food safety and developmental disabilities.

EXPORT-IMPORT BANK REPORTS U.S. EXPORTS REACH $193.9 BILLION IN MARCH

FROM:  EXPORT-IMPORT BANK 

U.S. Exports Reach $193.9 Billion in March

 Ex-Im Bank Continues to Support U.S. Jobs by Financing U.S. Exports

Washington, D.C. – The United States exported $193.9 billion of goods and services in March 2014, according to data released today by the Bureau of Economic Analysis (BEA) of the U.S. Commerce Department.

“As the numbers prove, consumers around the world favor U.S. goods and services, because they know ‘Made in America’ is the best you can buy,” said Export-Import Bank Chairman and President Fred P. Hochberg. “Ex-Im Bank will continue to support U.S. exporters as they fill orders abroad and support jobs here at home.”

Exports of goods and services over the last twelve months totaled $2.3 trillion, which is 45.1 percent above the level of exports in 2009, and have been growing at an annualized rate of 9.1 percent when compared to 2009.

During the same time period among the major export markets (i.e., markets with at least $6 billion in annual imports of U.S. goods), the countries with the largest annualized increase in U.S. goods purchases, when compared to 2009, were Panama (23.5 percent), Russia (19.4 percent), Peru (18.2 percent), Hong Kong (18.1 percent), Colombia (17.8 percent), Argentina (16.5 percent), Chile (15.9 percent), United Arab Emirates (15.3 percent), China (14.8 percent) and Indonesia (14.7 percent).

NEARLY TWO DOZEN NATIONS TO PARTICIPATE IN RIMPAC EXERCISE

FROM:  U.S. NAVY 

Right:  Official U.S. Navy file photo of the amphibious assault ship USS Essex (LHD 2) entering San Diego Bay as the ship returns home after participating in Rim of the Pacific (RIMPAC) exercise.  U.S. Navy photo by Senior Chief Mass Communication Specialist Joe Kane.


23 Nations to Participate in World's Largest Maritime Exercise
Story Number: NNS140505-18Release 
Date: 5/5/2014 6:13:00 PM 
By Commander, U.S. Third Fleet Public Affairs

SAN DIEGO (NNS) -- Twenty-three nations, 47 ships, six submarines, more than 200 aircraft and 25,000 personnel will participate in the biennial Rim of the Pacific (RIMPAC) exercise scheduled June 26 to Aug. 1, in and around the Hawaiian Islands.

The world's largest international maritime exercise, RIMPAC provides a unique training opportunity that helps participants foster and sustain the cooperative relationships that are critical to ensuring the safety of sea lanes and security on the world's oceans. RIMPAC 2014 is the 24th exercise in the series that began in 1971.

Hosted by U.S. Pacific Fleet, RIMPAC 2014 will be led by U.S. Vice Adm. Kenneth Floyd, commander of the U.S. Third Fleet (C3F), who will serve as the Combined Task Force (CTF) Commander. Royal Australian Navy Rear Adm. Simon Cullen will serve as deputy commander of the CTF, and Japan Maritime Self Defense Force Rear Adm. Yasuki Nakahata as the vice commander. Other key leaders of the multinational force will include Rear Adm. Gilles Couturier of the Royal Canadian Navy, who will command the maritime component, Air Commodore Chris Westwood of the Royal Australian Air Force, who will command the air component, and Marine Corps Maj. Gen. Richard Simcock, who will command the land component. RIMPAC 2014 will also include a special operations component for the first time, to be led by U.S. Navy Capt. William Stevens.

Two nations, Brunei and the People's Republic of China, will participate in RIMPAC for the first time in 2014.

Also new at RIMPAC this year are two hospital ships, USNS Mercy and PLA (N) Peace Ark which will participate in the exercise.

The theme of RIMPAC 2014 is "Capable, Adaptive, Partners." The participating nations and forces will exercise a wide range of capabilities and demonstrate the inherent flexibility of maritime forces. These capabilities range from disaster relief and maritime security operations to sea control and complex warfighting. The relevant, realistic training syllabus includes amphibious operations, gunnery, missile, anti-submarine and air defense exercises as well as counter-piracy, mine clearance operations, explosive ordnance disposal and diving and salvage operations.

This year's exercise includes forces from Australia, Brunei, Canada, Chile, Colombia, France, India, Indonesia, Japan, Malaysia, Mexico, Netherlands, New Zealand, Norway, People's Republic of China, Peru, the Republic of Korea, the Republic of the Philippines, Singapore, Thailand, Tonga, the United Kingdom and the United States.

TEXAS CAMPAIGN WORKER PLEADS GUILTY TO BUYING VOTES IN SCHOOL BOARD ELECTION

FROM:  U.S. JUSTICE DEPARTMENT 

Monday, May 5, 2014

Campaign Worker Pleads Guilty to Buying Votes in a Donna, Texas, School Board Election

A campaign worker pleaded guilty today for paying voters to vote in the November 2012 school board election in Donna, Texas, announced Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.

Diana Balderas Castaneda, 48, of Donna, pleaded guilty to one count of vote-buying before U.S. District Judge Ricardo Hinojosa in the Southern District of Texas.   Sentencing has been scheduled for July 25, 2014.

According to a factual statement read during the plea hearing, a general election was held on Nov. 6, 2012, in Donna for the presidential election, as well as various state, county and local offices, including the Donna School Board.   Balderas assisted in the campaign to elect four candidates to the Donna School Board.   In the course of that work, Balderas knowingly and willfully paid and offered to pay voters for voting in this election.  In addition, at least two campaign managers paid voters in her presence.

Another campaign worker, Rebecca Gonzalez, 44, also of Donna, pleaded guilty to the same charge before U.S. District Judge Randy Crane in the Southern District of Texas on Feb. 14, 2014.   She is scheduled for sentencing on Sept. 16, 2014.

This case was investigated by the FBI.   Trial Attorneys Monique Abrishami and Jennifer Blackwell of the Public Integrity Section in the Justice Department’s Criminal Division and Assistant U.S. Attorney Leo J. Leo of the Southern District of Texas are prosecuting the case.

SECRETARY KERRY'S PRESS AVAILABILITY IN LUANDA, ANGOLA

FROM:  THE STATE DEPARTMENT 

Press Availability in Luanda, Angola

Press Availability

John Kerry

Secretary of State

Luanda, Angola

May 5, 2014

---

SECRETARY KERRY: Good morning, everybody. President Dos Santos and I had a very constructive conversation today. We discussed a broad array of the issues concerning not just the bilateral relationship, but also concerning regional and broader security issues and challenges of the region.

I want to emphasize that Angola is a very important partner in the region, and the relations between Angola and the United States are, in fact, moving on an upward trajectory and getting stronger with each meeting that we have. And I was very encouraged today by the discussions we had about enlarging our cooperation, engaging in a security dialogue, and in the near term building on the visit of the African leaders to Washington for the summit with President Obama and engaging in further meetings between ourselves on a bilateral basis during that time.
Over the past few days, I have – oh, excuse me. We have – I’m sorry. We have translation.
Over the past days I’ve spoken often about African leadership and this moment of promise and of decision for Africans. Angola is committed to making the most of this moment increasingly through an important role as a leader in the region and particularly on security issues. Angola is playing a central role – integral role, really – in bringing African nations together and in leading them towards an enduring peace, we hope, in the Great Lakes region. I thank President Dos Santos for his personal work and commitment to that effort, for his leadership, and particularly for the International Conference of the Great Lakes, which Angola is chairing, and which he has committed to continue to try to bring to completion.

Our special envoy to the Great Lakes, Senator Russ Feingold has been to the region nine times prior to coming this time in order to help support that effort. I worked very closely with Russ during our days in the Senate, and then, as now, he is a tireless worker, deeply committed to Africa, knowledgeable about Africa, and ready to try to work with the Angolan Government and help – in an effort to achieve the peace in the Great Lakes region. And I know that President Obama very much appreciates the fact that today President Dos Santos and Foreign Minister Chikoti both committed to continue to work with Senator Feingold and with our team in order to advance the peace process.

I also commended Angola for their commitments in the Central African Republic where the United States has provided $100 million in security assistance to the French and the AU-led forces, and 67 million in humanitarian assistance. And today, President Dos Santos informed us that he intends to remain strongly committed to the Central African Republic initiative and that he will be having meetings shortly in furtherance of that effort.

President Dos Santos and I also discussed the importance of bilateral trade and diversifying the Angolan economy. Angola’s economy has experienced, and continues to enjoy, a remarkable amount of economic growth. We talked today about specific ways in which the United States and Angola can grow the relationship and, in particular, we talked about increased possibilities of cooperation in agriculture, in technology, in energy diversity, and also in infrastructure.

I want to say that we are very pleased to see that growth in the economy now means growth of opportunity for Angolans and more and more – more and more Angolans are participating in the progress that is taking place here and in the vital industries. Yesterday at the port here in Luanda, I had the opportunity to visit General Electric’s operations and also meet with energy company executives who informed me about the numbers of Angolans that they are hiring and training and providing new opportunities to, and we think that is a critical component of any relationship. The people of Angola must receive benefit. We also hope that more Angolans will be able to bring their talents to the use of their country through greater engagement with their government and in a more open and engaged civil society.

I have learned that Angola will be conducting its first-ever national census since gaining independence. The collection of complete information and statistics about a population is a very important step in development and in providing services to citizens. So we wish the Angolan people well in carrying out this important task, and we also look forward to hosting African leaders in August in Washington at President Obama’s U.S. leadership summit. This meeting in Washington will provide one more opportunity for Angola and for its leaders to be able to share with us their successes, as well as to explore the ways in which we can build on our relationship.

I was genuinely impressed by the common agenda that we talked about today and felt as if there is an opportunity for both of us to be able to grow this relationship, and we look forward to continuing our work. We set some specific homework for each of us to do, and we’re going to follow up on it. So I look forward to growing this partnership in a very constructive, productive way.

Thank you. I’m happy to take a couple questions.

MS. PSAKI: The first question is from Phil Stewart of Reuters.

QUESTION: Thank you, Mr. Secretary. South Sudan’s rebel leader Machar has said in an interview that he does not see the point of face-to-face talks at this point and that he didn’t think the transitional government could happen before elections. Have you tried to contact him again since your attempt Friday? Are we safe to assume these talks are not going to happen this week? And if he doesn’t go for face-to-face talks, will the U.S. now finally impose sanctions on him?

Also, on Angola, did you manage to formalize any commitment from Angola to airlift troops to Central African Republic, if needed, or secure any additional security commitments from President Dos Santos?

SECRETARY KERRY: I didn’t hear you. I’m sorry, but that part of the question got swallowed up.

QUESTION: On Angola? Okay, did you manage to secure any additional security commitments from President Dos Santos? You spoke – talked about deepening your security dialogue, and did you manage to secure commitment from them to potentially airlift troops to Central African Republic, if needed, or formalize any of their previous --

SECRETARY KERRY: Yeah. Well, let me – with respect to your question – with respect to Riek Machar, I saw the interview and he left the door open. He expressed some doubts, but he didn’t say he wouldn’t go. And I talked to Prime Minister Hailemariam -- Hailemariam – who made it clear to me that Mr. Machar made a commitment to him that he would come. And he – the Ethiopians will be in touch with him. They said to me they will make the arrangements. In my conversation he expressed some concerns about the logistics, but his wife is in Ethiopia and we are convinced that that is the only way forward.

So he has a fundamental decision to make. If he decides not to or procrastinates, then we have a number of different options that are available to us. We said we are serious. There will be accountability and implications if people do not join into this legitimate effort. Secretary General Ban Ki-moon and I had a conversation yesterday. He will be going to Juba tomorrow, and we talked about the process going ahead.

And let me make it clear that if there is a total refusal by one party or the other to engage in a legitimate promise which they have previously promised they would engage in, not only might sanctions be engaged, but there are other serious implications and possible consequences. So –

The parties need to recognize that they signed a cessation of hostilities agreement – both of them. And the international community is prepared to take steps to see that that is honored by putting additional forces in. I talked with Secretary General Ban Ki-moon about the UN process with respect to that, and he is committed to see to it that we live up to our part of this bargain. So we encourage both leaders to take advantage of this moment to try to make peace with their people, and we’ve made it very clear that there are other choices available to the international community if they do not.

With respect to President Dos Santos’s commitments to the Central African Republic, the answer is yes, he is absolutely committed to further engagement. He will be directly engaged with the leaders in the region and providing additional assistance, as will we. And we agreed that the United States effort is already providing lift and assistance to the French in addition to resources, and I think that Angola’s prepared not only to do the same but to take a leadership role in convening leaders in order to try to diminish the level of violence and protect the civilian population. We did talk about that.

MS. PSAKI: The next question is from Mateus Gaspar.

SECRETARY KERRY: Let me – I didn’t (inaudible).

MS. PSAKI: Oh.

QUESTION: So (inaudible), what are the other possible consequences?

SECRETARY KERRY: Well, you know there are. They’ve been talked about. There’s accountability in the international community for atrocities. There are sanctions. There are possibilities of peacemaking forces. There are any number of possibilities.

MS. PSAKI: The next question is from Mateus Gasper from TPA TV.

QUESTION: (In Portuguese.)

SECRETARY KERRY: Can you hear? You got – a bit closer?

PARTICIPANT: Do you have a mike?

SECRETARY KERRY: He has a mike, yes.

QUESTION: (Via interpreter) The United States and Angola have had diplomatic relations since 1973. They’ve had a strategic agreement since 2009. But really, very little has been done. There have been very few developments. What is the United States’s reason and where do you envision that this relationship will grow and get stronger, and in what areas?

SECRETARY KERRY: Well, thank you very much. You are correct that there was a strategic dialogue agreement signed. And there has not been enough ability to follow up, and some meetings that were supposed to have taken place unfortunately got delayed. That’s why I’m here. I came here specifically because we have a desire to make sure that we build on that dialogue. And I can guarantee that today we laid out a schedule that over the next few months will wind up with our meeting probably in Washington, somewhere maybe even around the President’s summit. We will have our first meeting in order to follow up. We’ve agreed to set a specific timetable and a specific agenda. And that agenda will include a broad array of ways in which we work together. We currently do many – let me let him translate.

We have agreed today that we will continue to work together closely with Senator Feingold and the International Conference on the Great Lakes. We agreed that we will work on the Central African Republic and we will work on other security issues in the region. We agreed we will have an energy dialogue and we will have further discussion about the bilateral business economic relationship, including infrastructure, agriculture, oil and gas, energy, energy diversity.
We agreed we will continue to do the work we do now with respect to health in Angola, work on malaria, tuberculosis, and HIV/AIDS. And we will continue to be engaged in the health sector, and we particularly are excited about the possibilities of working on technology. We agreed to have a specific energy dialogue and we agreed that we will share the agenda with each other in the next days in preparations for the next round of meetings.
Thank you.

MS. PSAKI: Thank you.

SECRETARY KERRY: Thank you all very much.

SEC CHARGES CONSULTANT AND ASSOCIATES FOR ROLES IN REVERSE MERGER STOCK MANIPULATION SCHEMES

FROM:  U.S. SECURITIES AND EXCHANGE 

The Securities and Exchange Commission today charged a Toronto-based consultant and four associates with conducting illegal reverse merger schemes to bring a pair of China-based companies into the U.S. markets so they could manipulate trading and reap millions of dollars in illicit profits.

The SEC alleges that S. Paul Kelley and three of the associates acquired controlling interests in two U.S. public shell companies in order to orchestrate reverse mergers with China Auto Logistics Inc. and Guanwei Recycling Corp.  They then hired stock promoter Shawn A. Becker of Overland Park, Kan., and others to tout the two companies’ unregistered stock to investors.  Kelley and his associates engaged in various forms of manipulative trading in order to further drive up the price and volume of China Auto and Guanwei Recycling stock, and they profited when they dumped their shares into the inflated market they created.

Kelley and two associates – Roger D. Lockhart of Holiday Island, Ark., and Robert S. Agriogianis of Florham Park, N.J. – have agreed to settle the SEC’s charges.  Kelley agreed to pay more than $6 million and will be barred from the securities industry as well as participation in any penny stock offering.  Lockhart agreed to pay more than $3 million and Agriogianis entered into a cooperation agreement.  The SEC’s litigation continues against Becker and another Kelley associate, George Tazbaz of Oakville, Ontario.

“Kelley and his associates concealed their acquisition and control of public shell companies, and they manipulated trading in two China-based companies following reverse mergers with those shells,” said Julie Lutz, director of the SEC’s Denver Regional Office.  “The SEC has exposed their scheme with persistence and the help of fellow regulators.”

According to the SEC’s complaint filed in U.S. District Court for the District of New Jersey, the schemes involving China Auto and Guanwei Recycling occurred in 2008 and 2009.  Becker, Lockhart, and Tazbaz orchestrated manipulative trading in a third China-based issuer Kandi Technologies in 2009 and 2010.

The SEC alleges that Kelley, Tazbaz, Lockhart, and Agriogianis reached secret oral agreements with management at China Auto and Guanwei Recycling in which they covered all of the costs to take the companies public in the U.S. in exchange for approximately 30 to 40 percent of the resulting stock.  Kelley and his associates then acquired controlling interests in the two U.S. public shell companies used to conduct the reverse mergers with China Auto and Guanwei.  They concealed their controlling interest in the public shell companies and the reverse merger transactions by having others create at least nine Hong Kong-based companies to hold their shares.  Despite their concealment efforts, the SEC was able to obtain documents and testimony to corroborate the suspected conduct with assistance from the Ontario Securities Commission.

The SEC’s complaint charges Kelley, Tazbaz, Lockhart, Agriogianis, and Becker with violating the antifraud, securities registration, and securities ownership reporting provisions of the federal securities laws.  Becker is charged with violating the antifraud and securities registration provisions.  Kelley and Becker also are charged with violating the broker-dealer registration provisions.  The SEC’s complaint seeks disgorgement of ill-gotten gains plus prejudgment interest and financial penalties as well as penny stock bars.

In the settlements, Kelley agreed to pay disgorgement of $2,828,353.53, prejudgment interest of $560,812.47, and penalty of $2,828,353.53.  Lockhart agreed to pay disgorgement of $1,819,211.77, prejudgment interest of $332,268.15, and a penalty of $1 million.  Lockhart also consented to a bar from participation in any penny stock offering.  Agriogianis entered into a cooperation agreement with the SEC under terms that reflect his assistance in the investigation and anticipated cooperation in the pending litigation.  Agriogianis agreed to a penny stock bar, and financial sanctions will be determined by the court at a later date upon the SEC’s motion.  Kelley, Lockhart, and Agriogianis consented to the entry of final judgments including permanent injunctions without admitting or denying the allegations.  The settlements are subject to court approval.

The SEC’s investigation was conducted by Jennifer A. Ostrom and Kurt L. Gottschall in the Denver office.  The SEC’s litigation will be led by Leslie J. Hughes and Nicholas Heinke.  The SEC appreciates the assistance of the Ontario Securities Commission.

CHARGES OF RACKETEERING, ATTEMPTED MURDER BROUGHT AGAINST MEMBERS OF NUESTRA FAMILIA GANG

FROM:  U.S. JUSTICE DEPARTMENT 

Monday, May 5, 2014

Federal Racketeering and Attempted Murder Charges Brought Against Leaders and Associates of the Nuestra Familia Gang

A second superseding indictment was unsealed today adding 19 counts including racketeering conspiracy and attempted murder against three defendants for their alleged participation in the violent Nuestra Familia gang, Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division and U.S. Attorney Benjamin B. Wagner announced.

Gary Anthony Romero, 48, of Stockton, Calif., and Joe Anthony Felix, 34, of Modesto, Calif., were first charged with conspiracy to distribute and possess with intent to distribute methamphetamine by a federal grand jury in Fresno, Calif.  The superseding indictment, returned under seal on April 30, 2014, includes all of the charges alleged in the original indictment, as well as new charges against them.   A new defendant, Jesus Gomez Felix, 30, of Modesto, was also charged.

Jesus Felix was arrested today.  Romero and Joe Felix have been in federal custody since March 2013.  Jesus Felix will make his initial appearance in federal court in Fresno today, and Romero and Joe Felix were arraigned on the charges today in Fresno.

According to the superseding indictment, Nuestra Familia is a prison gang that originally formed in the California state prison system in the 1960s.  Nuestra Familia leaders control and direct the gang’s criminal activities both inside and outside of the prison system.

According to the superseding indictment, Romero has been a member of Nuestra Familia for about 20 years and has reached one of the highest levels of authority in Nuestra Familia.  He allegedly ordered various crimes to be committed for the benefit of the gang in Stanislaus County, including attempted murders, assaults, robberies and drug dealing.  Romero is charged with racketeering conspiracy; six counts of attempted murder and six counts of assault with a dangerous weapon, all in aid of racketeering; one count of using and brandishing a firearm during a crime of violence; one count of conspiracy to commit robbery; and one count of conspiracy to distribute methamphetamine.

Joe Felix became a Nuestra Familia leader in Stanislaus County in 2012 and allegedly ordered members of the gang to commit murder and deal drugs in Modesto.   Joe Felix is charged with racketeering conspiracy; one count of attempted murder, one count of conspiracy to commit murder, and one count of assault with a dangerous weapon, all in aid of racketeering; one count of using and discharging a firearm during a crime of violence; and one count of conspiracy to distribute methamphetamine.

Jesus Felix is charged with one count of assault with a dangerous weapon resulting in serious bodily injury in aid of racketeering and one count of using and discharging a firearm during a crime of violence.

This case was investigated by the Central Valley Gang Impact Task Force under the FBI’s Safe Streets Initiative, with the assistance of the Stanislaus County District Attorney’s Office, Stanislaus County Sheriff’s Office, Modesto Police Department, Ceres Police Department, the California Highway Patrol, the California Department of Corrections and Rehabilitation, the Bureau of Prisons and the Stanislaus County Probation Department.

The case is being prosecuted by Trial Attorney Louis A. Crisostomo of the Criminal Division’s Organized Crime and Gang Section and Assistant United States Attorneys Kimberly A. Sanchez and Laurel J. Montoya of the Eastern District of California.

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

MATHEMATICIAN SEEKS TO UNDERSTAND MUDSLIDES

FROM:  NATIONAL SCIENCE FOUNDATION

The uphill challenge

Understanding mudslides and other debris flows through mathematics

Mudslides. Landslides. Volcanic debris flows. Avalanches. Falling rocks...

They can come along so suddenly that people, homes, roads and even towns are buried or destroyed without much warning. Recently, we've had dramatic reminders of this, such as the mudslide in Oso, Wash., where 41 people died; an avalanche on Mt. Everest that killed 13 experienced Sherpas and another landslide event in Jackson, Wyo. And as much as ancient Pompeii serves as the most dramatic, historic reminder of the incredible element of surprise these events can wield, what seems extraordinarily incalculable is becoming...well, calculable.

Maybe that doesn't seem so surprising on the surface as one reminisces about math story problems of long ago, such as, "if an avalanche flow is moving at a rate of 50 meters per second, how long will it take to swallow up a village located 30 kilometers away?" Unfortunately, for geologists and others involved in these issues, the particulars make the solution far from simple algebra.

Earthen, volcanic and snowy materials--all of which can move quickly downhill--do so at varying rates depending on their composition, the composition of the geological features over which they flow, and the weather. The benefit to building forecasting models--showing how the earthen materials are prone to move and where they might go post-volcano or during a particularly wet spring--is that they can assist policymaking, urban planning, insurance risk assessment and, most importantly, public safety risk reduction.

One National Science Foundation (NSF)-funded mathematician, E. Bruce Pitman from the University of Buffalo, has been modeling the dynamics of flowing granular materials since 2001 when engineering and geology colleagues came together to start estimating volcanic flow.

"You see these wonderful volcanic eruptions with the plumes, but gravity currents are going down the mountain even as all this stuff is going up into the air," Pitman said. "It can be very deadly. And depending on the mountain--if there's snow on the mountain--then you have this muddy sort of muck, so it can go even faster downhill."

Volcanic flows and mudslides are examples of what geoscientists call "gravity currents."

According to the Centers for Disease Control and Prevention, "landslides and debris flows result in 25 to 50 deaths each year" in the United States. The U.S. Geological Survey (USGS) reports that "all 50 states and the U.S. territories experience landslides and other ground-failure problems," including 36 states with "moderate to highly severe landslide hazards," which include the Appalachian and Rocky Mountains, Pacific Coast regions and Puerto Rico.

USGS notes that areas denuded because of wildfires or overdevelopment are particularly vulnerable to the whims of what's termed generally as "ground failures."

Pitman has spent the past 13 years studying the flows of the Soufrière Hills volcano on Montserrat, the Colima volcano west of Mexico City and the Ruapehu volcano in New Zealand, among other sites. Working with an engineer whose expertise is in high performance computing, statisticians and several geologists, Pitman studies geophysical mass flows, specifically volcanic avalanches and pyroclastic (hot gas and rock) flows, which are "dry" flows.

"We started modeling volcanic flows as dry volcanic flows, so the equation described the material as each particle frictionally sliding over the next particle," Pitman said. "However, we knew it wasn't only solid particles. There could be air or water too, so we developed another model. This naturally makes the analysis harder. In mudslides, you have to factor in mud, which is a viscoplastic fluid--partly like a fluid but also able to deform like a plastic material and never rebound. In wet or dry materials, you can make some reasonable predictions because flow is more or less the same. It is much harder to do that with mud."

Pitman explained the way a mathematician works to develop a predictive model of a landslide.

"There are three questions," he said. "First, is something going to happen? That is notoriously difficult--what's going on under the ground? Where's the water table? How much moisture is in the soil? What's the structure of the soil? Since we can't look under the ground, we have to make all kinds of assumptions about the ground, which poses difficulties.

"Secondly, if a slide were to occur, what areas are at risk? That's something that with a math model you can hope to explain. OK, is the east, west, north or south slope going to slip? How large a flow? Which areas downstream are at risk?

"Lastly, you have to ask what part of the model do you most care about. This helps you to simplify the modeling. Then you run the what-if scenarios to determine the greatest risk. Is it an area at risk and do mudslides happen regularly?"

According to Michael Steuerwalt, an NSF Division of Mathematical Sciences program director, many would be inclined to think that lava flows are far more complicated to model because of the issues of heat and explosive force. However, a mix of dramatically different particle sizes and shapes--which range from dirt grains to people, cars, houses, boulders and trees--can considerably complicate a slide model.

"If you're trying to deduce, for example, where under this mudslide is the house that used to be way up there (along with its inhabitants), then the model is very complicated indeed," Steuerwalt said. "Math won't solve this problem alone, either. But with topographic data, soil data and predictions of precipitation, one could make assessments of where not to build and estimates of risk. This really is an opportunity for mathematicians coupled not only with statisticians, but also with geographers, geoscientists and engineers."

Ultimately, the process needs good data. But it is also about understanding where the model has simplified the equation and created "errors."

"This may sound odd, but it's not about developing the perfect model," Pitman said. "All models have errors in them because we make simplifications to wrap our brains around the physical processes at work. The key is quantifying those errors."

So, essentially the mathematician has to know where to simplify the equation, and that too comes with his collaborative approach and working with other experts, such as volcanologists, and then interfacing with public safety officials.

For a guy who "hated" math in the fifth grade and majored in physics initially in college, this work has turned into something he loves, but also something where he feels he makes a difference.

"I love how this work stretches me and my ability to understand other fields," he said. "I get to explore what interests them and what just might be the little hook that allows me to pry apart a problem."

-- Ivy F. Kupec,
Investigators
Abani Patra
Eliza Calder
Marcus Bursik
Puneet Singla
Tarunraj Singh
E. Bruce Pitman
Related Institutions/Organizations
SUNY at Buffalo

CHAIRMAN JOINT CHIEF'S PRAISES NEW COMMANDER OF TRANSCOM

FROM:  U.S. DEFENSE DEPARTMENT 

Dempsey Emphasizes Trust as Selva Succeeds Fraser at Transcom

By Jim Garamone

American Forces Press Service

WASHINGTON, May 5, 2014 – Trust is at the core of any military, and U.S. Transportation Command is part of the glue of that trust, Army Gen. Martin E. Dempsey said at the change of command at U.S. Transportation Command today
Air Force Gen. William M. Fraser III passed the command flag to Air Force Gen. Paul J. Selva during a ceremony on the parade field at Scott Air Force Base, Illinois.

“One of our military’s greatest strengths is that our people know … that when they ask for something, they’re going to get it,” the chairman of the Joint Chiefs of Staff said. “No matter the danger or the circumstance, they trust that what they need is on the way because it’s in the hands of Transportation Command.”

Dempsey told the men and women of Transportation Command that they are what make the U.S. military a global power, noting that once a combatant commander requests a capability, the men and women of Transcom deliver it. “That trust – even more than the materiel you deliver – makes us the strongest military that the world has ever known,” he said.

The chairman praised Fraser for his 40-year military career. “Regardless of the payload, the constant in your diverse career is that you’ve always delivered excellence,” he said. “Your leadership embodies all that we value in the profession: a commitment to the mission, to people, and to families … and to maintaining the delicate balance between mental, physical and spiritual strength.”
The general thanked the Frasers for their work on behalf of military families, especially for wounded warriors.

The chairman said he is pleased that Selva is moving into the job from the top post at Transcom’s Air Force component, Air Mobility Command. “You bring to Transcom a track record of excellence and a clear passion for the mission, the people and their families,” he said.

SECRETARY OF STATE KERRY'S STATEMENT ON NEW MILITARY OFFENSIVES IN SOUTH SUDAN

FROM:  U.S. STATE DEPARTMENT 

U.S. Condemns New Military Offensives in South Sudan

Press Statement

John Kerry

Secretary of State

Washington, DC

May 5, 2014

---

Three years ago, I was in Juba to witness the birth of the world’s newest nation, and last week as I returned to South Sudan I saw how fragile the future can be when old grudges degenerate into violence. The United States condemns in the strongest terms recent offensives by South Sudanese government forces against opposition-held positions in Nassir, Bentiu, and elsewhere in Unity and Jonglei states.

These attacks blatantly violate the January 23 Cessation of Hostilities agreement and contradict commitments President Kiir has made in recent days. We call on all parties to re-dedicate themselves to the agreement, not just in words, but in actions, and to halt all military offensives. The government and opposition forces also must cooperate fully with the Intergovernmental Authority on Development’s Monitoring and Verification Mechanism, and we look forward to the Mechanism’s report on these incidents.

The government and opposition must resolve their differences at the negotiating table, rather than through military action. The United States reiterates our continued support for the IGAD-led talks, and our disappointment with the government delegation’s unwillingness to engage constructively in recent rounds of talks. We call on President Kiir and former Vice President Riek Machar to follow through on their commitments to meet directly in the coming days to end the conflict and initiate discussions on an inclusive political transition.

We again call on both sides of the conflict to ensure humanitarian access for UN agencies and others who are trying to provide life-saving assistance to all in need, and to respect and support the UN Mission in South Sudan as it carries out its mandate to protect civilians.

U.S. DEFENSE DEPARTMENT CONTRACTS FOR MAY 5, 2014

FROM:  U.S. DEFENSE DEPARTMENT 

CONTRACTS

NAVY

Bechtel Plant Machinery Inc., Monroeville, Pennsylvania, is being awarded a $17,792,893 cost-plus-fixed-fee modification to previously awarded contract (N00024-12-C-2106) for naval nuclear propulsion components. Work will be performed in Schenectady, New York (68 percent), and Monroeville, Pennsylvania (32 percent). No completion date or additional information is provided on naval nuclear propulsion program contracts. Fiscal 2014 other procurement, Navy and fiscal 2014 shipbuilding and conversion, Navy contract funds in the amount of $17,792,893 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity.

Lockheed Martin Corp., Mission Systems and Training, Baltimore, Maryland, is being awarded a $10,281,531 cost-plus-fixed-fee contract for MK 41 Vertical Launching System (VLS) electrical design agent, technical and engineering services. The MK 41 VLS provides a missile launching system for CG 47 and DDG 51 class and the ground ballistic missile defense program. The contractor will provide logistics and technical services to support the Life Cycle Support Facility, integration of new missiles into MK 41 VLS, integration of MK 41 VLS into new ships, product improvement engineering, systems engineering, computer program engineering, failure analysis, creation and prototyping of engineering change proposals and production support. This contract includes options which, if exercised, would bring the cumulative value of this contract to $182,068,736. This contract combines purchases for the U.S. Navy (96.3 percent) and the government of Japan (3.7 percent) under the Foreign Military Sales program. Work will be performed in Baltimore, Maryland (93.7 percent), and Ventura, California (6.3 percent), and is expected to be completed by September 2014. Fiscal 2014 research, development, test & evaluation; fiscal 2014 other procurement, Navy; fiscal 2014 FMS; and fiscal 2010, 2011, 2012 and 2013 shipbuilding and conversion, Navy contract funds in the amount of $10,281,531 will be obligated at award and will not expire at the end of the current fiscal year. This contract was not competitively procured in accordance with 10 U.S.C. 2304 (c)(1), as implemented by FAR 6.302-1 - only one responsible source and no other supplies or services will satisfy agency requirements. The Naval Sea Systems Command, Washington District of Columbia, is the contracting activity (N00024-14-C-5317).
Rolls-Royce Corp., Indianapolis, Indiana, is being awarded an $8,021,387 modification to a previously awarded firm-fixed-price contract (N00019-10-C-0020) for Mission CareTM support for the CV-22 AE1107C engine, including lower power engine removals. Work will be performed in Oakland, California (70 percent) and Indianapolis, Indiana (30 percent), and is expected to be completed in February 2015. Fiscal 2014 operations and maintenance, Air Force overseas contingency operations funds in the amount of $8,021,387 are being obligated on this award, all of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity.

AIR FORCE

Sierra Nevada Corp., Sparks, Nevada, has been awarded a $34,425,000 cost-plus-fixed-fee contract for Afghan National Army Special Operations Forces contractor logistics support for fixed-wing aircraft (PC-12) sustainment necessary to perform the maintenance operations and keep the aircraft operational. Work will be performed at Kabul International Airport and Kandahar, Afghanistan, and is expected to be completed by Dec 16, 2014. This urgent 100 percent foreign military sales undefinitized contract for Afghanistan is a sole-source award. The contracting activity is 645 AESG/WIJK, Wright-Patterson Air Force Base, Ohio (FA8620-14-C-3027).

Alliant Techsystems Inc., Fort Worth, Texas, was awarded a maximum $15,167,984 firm-fixed-price undefinitized contract modification (P00039) to FA8106-10-C-0010 to continue contractor logistic support services for the Iraqi Air Force’s Cessna 208s intelligence, surveillance, reconnaissance caravan and the Cessna 208 armed caravan and for aircraft maintenance student training on both aircraft types without a break in service. Work will be performed at Joint Base Balad, Iraq, and is expected to be completed by Dec. 31, 2014. This contract involves 100 percent Foreign Military Sales for Iraq. A maximum of $7,574,242 is obligated at time of award. Air Force Life Cycle Management Center/WLKCL, Tinker Air Force Base, Oklahoma, is the contracting activity.

Hoffman Engineering Corp. Stamford, Connecticut, has been awarded an estimated $6,700,857 firm-fixed-price, requirements type contract for manufacture and delivery of up to 80 each night vision goggle infrared test sets and up to 200 each test set upgrade kits. Work will be performed at Stamford, Connecticut, and will be completed by Sept. 30, 2018. This award is the result of a sole-source acquisition. Foreign Military Sales orders (unclassified) are anticipated to be issued against this contract. FMS countries and the portion of the effort that will support FMS requirements are not known at this time. Funds will be obligated on individual orders issued hereunder. Air Force Life Cycle Management Center/WNKB, Robins Air Force Base, Ga., is the contracting activity (FA8532-14-D-0002).

DEFENSE LOGISTICS AGENCY

Foster Fuels Inc.,* Brookneal, Virginia, has been awarded a minimum $828,799,801 fixed-price with economic-price-adjustment, requirements-type contract for fuel. This is a competitive acquisition, and four offers were received. This is a five-year base contract with no options. Locations of performance are Federal Emergency Management Agency Regions I-X, except Alaska, Hawaii, Puerto Rico and Virgin Islands with a May 31, 2019 performance completion date. Using service is Department of Homeland Security/Federal Emergency Management Agency. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Virginia, (SP0600-14-D-4005) (Awarded May 1, 2014).
Labatt Food Service, San Antonio, Texas, has been awarded a maximum $49,500,000 modification (P00202) exercising the first option period on a one-year base contract (SPM300-13-D-3659) with one one-year option period for prime vendor food and beverage support. This is a fixed-price with economic-price-adjustment based on producer-price-index contract. Location of performance is Texas with a May 4, 2015 performance completion date. Using military services are Army, Navy, Air Force, and Marine Corps. Type of appropriation is fiscal year 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.

ARMY

TQM Inc.*, doing business as Two Rivers Medical, Saint Charles, Missouri, (W81XWH-14-D-0063); Lighthouse for the Blind, doing business as The LHB Industries, Saint Louis, Missouri, (W81XWH-14-D-0064); MSGI Corp., Tampa, Florida, (W81XWH-14-D-0065) were awarded a $45,000,000 firm-fixed-price indefinite-delivery/indefinite-quantity, multi-year contract to supply complete medical, surgical, pharmaceutical, dental, laboratory, veterinary equipment and materiel sets for the U.S. Army medical units, nonmedical and medical support programs. Funding and work performance location will be determined with each order. Estimated completion date is May 4, 2019. Bids were solicited via the Internet with four received. Army Medical Research Acquisition Activity Frederick, Maryland, is the contracting activity.

*Small Business

.LEADERS OF U.S. AND DJIBOUTI ISSUE JOINT STATEMENT REGARDING RELATIONSHIP

FROM:  THE WHITE HOUSE 

Joint Statement by the Leaders of the United States and the Republic of Djibouti

Today at the White House, President Obama and Djiboutian President Ismail Omar Guelleh pledged to work closely together to advance their shared vision for a secure, stable, and prosperous Horn of Africa and to strengthen and deepen the strategic partnership between our two countries.

Economic, Trade, and Energy Cooperation
President Obama and President Guelleh discussed their shared vision for addressing human capital and economic development challenges in Djibouti.  President Obama noted his strong support for the Djiboutian government’s efforts to achieve its ambitious reform goals and to respond to the needs of Djiboutian citizens.  President Guelleh highlighted the positive impact of U.S. investments in Djiboutian communities, particularly in the areas of health and education, and President Obama commended President Guelleh for his commitment to lowering unemployment, reducing poverty, and improving reliable access to energy, potable water, and health care.

To help grow Djibouti’s economy and assist Djibouti in achieving these goals, the United States pledged to increase technical and financial assistance to the Djiboutian people and to invest in Djibouti’s development priorities.  President Obama pledged to expand U.S.-sponsored workforce education and training to help strengthen Djibouti’s workforce and set a foundation for expanded employment and private sector investment.

President Obama also reaffirmed his strong commitment to expanding reliable access to electricity in Africa.  Given Djibouti’s electricity needs and to enhance its role as a regional commercial hub, the United States plans to provide technical assistance to support Djibouti’s energy sector.  The leaders identified areas for future cooperation on energy, including through the East African Geothermal Partnership.  The United States plans to help build the Government of Djibouti's technical and institutional capacity to leverage greater private sector investment across the energy sector, including working together to catalyze private financing to develop renewable energy in Djibouti.

Regional Integration, Youth Empowerment, and Development
President Obama congratulated President Guelleh on Djibouti’s committed participation and leadership in regional bodies, including as host to and co-founder of the Intergovernmental Authority on Development (IGAD).  President Obama noted his strong support for President Guelleh’s leadership in the Horn of Africa and welcomed his plans for infrastructure development and economic integration across an increasingly vital region.  The two leaders shared their assessments of the pivotal role economic development and democratic governance can play in Djibouti’s future, including in advancing economic and development goals.

President Obama recognized President Guelleh for his commitment to empowering women and girls and promoting increased access to education and health services.  President Obama congratulated President Guelleh on the Djiboutian youth who have been selected to represent Djibouti as participants in the Young African Leaders Initiative.  The leaders emphasized the importance of supporting young entrepreneurs, encouraging youth to engage in public service and invest in the next generation of African leaders.

The Presidents also discussed ways that the U.S. presence at Camp Lemonnier can help further expand economic opportunity for the Djiboutian people, including through the Administration’s work with the U.S. Congress on proposed “Djibouti First” legislation that would that would give preference to Djiboutian products and services in Department of Defense procurements in support of U.S. requirements in Djibouti.  In doing so, the United States seeks to promote stability and economic development beneficial to both countries and to demonstrate our long term commitment to Djibouti’s long term economic growth. 

Defense, Security and Regional Counterterrorism Cooperation
The two leaders discussed their shared commitment to increase security and stability in the Horn of Africa and to prevent al-Qa’ida and al-Shabaab from gaining new footholds.  President Obama and President Guelleh discussed ongoing civilian and military cooperation in the areas of countering terrorism and violent extremism, countering piracy, enhancing maritime security, and securing Djibouti’s borders.  They recognized the important role that U.S.-Djibouti cooperation plays in achieving these goals, and reaffirmed that our shared security priorities remain a central component of our relationship.

The Presidents noted Camp Lemonnier’s critical role as an operational headquarters for regional security and the importance the base plays in protecting Americans and Djiboutians alike from violent extremist individuals and organizations.  President Obama thanked President Guelleh for helping ensure the safety and security of U.S. personnel in Djibouti.

President Obama announced the United States’ intention to provide enhanced security assistance and equipment to Djiboutian security forces to advance these shared regional security and counterterrorism goals, including by providing materiel and assistance to Djiboutian forces deploying to the African Union Mission in Somalia (AMISOM).  The leaders also plan to expand liaison relationships as a critical way to deepen our partnership.

Shared Efforts in Somalia
The Presidents noted that transnational challenges in the Horn of Africa cannot be met by any one country alone.  President Obama commended Djibouti’s important contributions to peace and security in Somalia,  including through its participation in AMISOM operations aimed at defeating al-Shabaab and by organizing a number of reconciliation conferences in support of peacemaking efforts.  Djibouti has also strongly and consistently supported multinational efforts to counter piracy off the coast of Somalia.

President Guelleh noted that Djibouti’s efforts as part of AMISOM have helped provide Somalis with their best chance to achieve security, stability and peace in more than two decades.  The two leaders discussed Djibouti’s experience as a troop-contributing country to AMISOM.  The Presidents highlighted the need to support renewed efforts by AMISOM and the Somali National Army to defeat al-Shabaab and to help bring security and stability to Somalia.  This commitment has not been without burden and cost.  President Obama praised the brave service of Djiboutian soldiers in Somalia and recognized the sacrifices members of the Djiboutian Armed Forces and their families have made to help bring peace to Somalia. 

A Long-Term Strategic Partnership
President Obama and President Guelleh concluded their meeting by reaffirming their shared commitment to the special and longstanding relationship between the United States and the Republic of Djibouti.  The leaders pledged to continue to work to strengthen our strategic partnership and contribute to a more secure world.  To carry this important dialogue forward, they intend to establish a U.S.-Djibouti Binational Forum and to designate senior officials to lead the implementation of the commitments made today in the spirit of building a vibrant 21^stCentury Strategic Partnership grounded in friendship, mutual trust, and common security.

SECRETARY OF DEFENSE HAGEL'S REMARKS ON NATO EXPANSION

FROM:  U.S. DEFENSE DEPARTMENT 

Right:  Defense Secretary Chuck Hagel delivers remarks during the forum "Into the Fold or Out in the Cold? NATO Expansion and European Security After the Cold War," at the Ronald Reagan Building in Washington, D.C., May 2, 2014. DOD photo by Glenn Fawcett. 

Hagel Calls for NATO Meeting on Defense Investment
By Cheryl Pellerin
American Forces Press Service

WASHINGTON, May 2, 2014 – At a Wilson Center forum here this morning on NATO’s 21st-century security challenges, Defense Secretary Chuck Hagel called for the creation of a new NATO ministerial meeting focused on defense investment that includes finance ministers or senior budget officials.

Hagel’s proposal builds on President Barack Obama's March 26 speech in Brussels, and Atlantic Council statements earlier this week by Vice President Joe Biden and Secretary of State John F. Kerry urging every NATO-member state to meet its commitment to the alliance.

Holding such a ministerial meeting would allow finance ministers or senior budget officials “to receive detailed briefings from alliance military leaders on the challenges we face,” Hagel said.

“Leaders across our governments must understand the consequences of current trends in reduced defense spending,” he added, “and help break through the fiscal impasse.”

Since the end of the Cold War, America’s military spending has become increasingly disproportionate within the alliance, the secretary said. Today, America’s gross domestic product is smaller than the combined GDPs of the 27 NATO allies, but America’s defense spending is three times its allies’ combined defense spending, he added.

Over time, such a lopsided burden threatens NATO’s integrity, cohesion and capability, the secretary said, and ultimately, it affects European and transatlantic security.

“Many of NATO’s smaller members have pledged to increase their defense investment, and earlier this week at the Pentagon, I thanked Estonia’s defense minister for his nation’s renewed commitment and investment in NATO,” Hagel told the audience.

“But the alliance cannot afford for Europe’s larger economies and most militarily capable allies not to do the same, particularly as transatlantic economies grow stronger,” he said. “We must see renewed financial commitments from all NATO members.”

Russia’s actions in Ukraine have made NATO’s value abundantly clear, the secretary said, adding that he knows from frequent conversations with NATO defense ministers that they need no convincing.

“Talking amongst ourselves is no longer good enough,” Hagel said. “Having participated in three NATO defense ministerials and having met with all of my NATO counterparts, I have come away recognizing that the challenge is building support for defense investment across our governments, not just in our defense ministries.”

Defense investment must be discussed in the broader context of member nations’ overall fiscal challenges and priorities, he added.

In meeting its global security commitments, the United States must have strong, committed and capable allies, and this year’s Quadrennial Defense Review makes this clear, the secretary said. Going forward, the Defense Department will seek and increasingly rely on closer integration and collaboration with allies, and in ways that will influence U.S. strategic planning and future investments, Hagel said.
From the early days of the Cold War, American defense secretaries have called on European allies to ramp up their defense investment, he noted. In recent years, one of the biggest obstacles to alliance investment has been a sense that the end of the Cold War ushered in an end to insecurity, at least in Europe, from aggression by nation states, the secretary said.

“Russia’s actions in Ukraine shatter that myth and usher in bracing new realities. Even a united and deeply interconnected Europe still lives in a dangerous world,” Hagel said.

“In the short term, the transatlantic alliance has responded to Russian actions with strength and resolve,” he added. “But over the long term, we should expect Russia to test our alliance’s purpose, stamina and commitment. Future generations will note whether, at this moment of challenge, we summoned the will to invest in our alliance.”

NATO should find creative ways to help nations around the world adapt collective security to a rapidly evolving global strategic landscape, the secretary said.

Collective security is not only the anchor of the transatlantic alliance, he added, but also is a model for emerging security institutions around the world, from Africa to the Persian Gulf to Southeast Asia.

“I say this having just convened a forum of [Association of Southeast Asian Nations] defense ministers last month,” Hagel said, “and having called for a Gulf Cooperation Council defense ministerial this year.”

He added, “These institutions bring our people, interests and economies closer together, serving as anchors for stability, security and prosperity. Strengthening these regional security institutions must be a centerpiece of America’s defense policy as we continue investing in NATO.”