Thursday, September 4, 2014

SECRETARY KERRY'S REMARKS AT CEREMONY HONORING SHAARIK ZAFAR

FROM:  U.S. STATE DEPARTMENT 

Remarks at Ceremony in Honor of Special Representative to Muslim Communities Shaarik Zafar

Remarks
John Kerry
Secretary of State
Dean Acheson Auditorium
Washington, DC
September 3, 2014




Well, Shaun, thank you very much for a warm and generous introduction. Good morning to everybody. Assalamu alaikum. Honored to be here with you this morning, and thank you so much for coming to join us on this really, frankly, exciting occasion. It’s my opportunity to be able to welcome and announce at the same time our new Special Representative for Muslim Communities, Shaarik Zafar. And – yes. applause. (Applause.) And I’m especially happy to welcome his parents – his mother, Kausar, and his father, Humayon – thank you – and his wife, Aiysha, with their lovely two children, their daughters, Sophia and Aliza. Thank you. Ladies, thank you for being here. (Applause.)

When Shaarik started drafting the U.S. Strategy on Religious Leader and Faith Community Engagement, he began with two words: “Religion matters.” We’re making that a mantra here at the State Department in our foreign policy, and I see it every single day. And I particularly see it in my multiple engagements in the Far East and South Central Asia, the Middle East, North Africa, and Sub-Sahara Africa.

Let me be really clear as a starting point for today’s conversation: The real face of Islam is not what we saw yesterday, when the world bore witness again to the unfathomable brutality of ISIL terrorist murderers, when we saw Steven Sotloff, an American journalist who left home in Florida in order to tell the story of brave people in the Middle East – we saw him brutally taken from us in an act of medieval savagery by a coward hiding behind a mask.

For so many who worked so long to bring Steven and other Americans home safely, this obviously was not how the story was meant to end. It’s a punch to the gut. And the United States Government, I want you to know, has used every single military, diplomatic, and intelligence tool that we have, and we always will. Our special operations forces bravely risked a military operation in order to save these lives, and we have reached out diplomatically to everyone and anyone who might be able to help. That effort continues, and our prayers remain as they always are, with the families of all of the hostages who remain trapped in Syria today.

Now barbarity, sadly, is not new to our world. Neither is evil. And I can’t think of a more graphic description of evil than what we witnessed yesterday and before that with James Foley and what we see in the unbelievably brutal mass executions of people because of their sectarian or religious affiliation. We have taken the fight to this kind of savagery and evil before, and believe me, we will take it again. We’re doing it today, and when terrorists anywhere around the world have murdered our citizens, the United States held them accountable, no matter how long it took. And those who have murdered James Foley and Steven Sotloff in Syria need to know that the United States will hold them accountable too, no matter how long it takes.

I want to emphasize – (applause) – but here today, what is really important – and I want to take advantage of this podium and of this moment to underscore as powerfully as I know how that the face of Islam is not the butchers who killed Steven Sotloff. That’s ISIL. (Applause.) The face of Islam is not the nihilists who know only how to destroy, not to build. It’s not masked cowards whose actions are an ugly insult to the peaceful religion that they violate every single day with their barbarity and whose fundamental principles they insult with their actions.

The real face of Islam is a peaceful religion based on the dignity of all human beings. It’s one where Muslim communities are leading the fight against poverty. It’s one where Muslim communities are providing basic healthcare and emergency assistance on the front lines of some of our most devastating humanitarian crises. And it is one where Muslim communities are advocating for universal human rights and fundamental freedoms, including the most basic freedom to practice one’s faith openly and freely. America’s faith communities, including American Muslims, are sources of strength for all of us. They’re an essential part of our national fabric, and we are committed to deepening our partnerships with them.

We’re making these efforts to unite religious communities a core mission here at the State Department. That’s what Shaarik is leading as our Special Representative to Muslim Communities. That’s what Ira Forman is leading as our Special Envoy to Monitor and Combat Anti-Semitism. And that’s what David Saperstein is leading; when confirmed, he will be our new Ambassador-at-Large for International Religious Freedom. And that’s what my friend Shaun Casey is doing in his special job in order to have a faith – interfaith office here at the State Department itself.

Now people ask me why. Why now have we made this such a mission at the State Department? Why elevate our engagement at a time when world events to some people seem so hopelessly divided along sectarian lines? And the answer is really very simple: It’s a delusion to think that anyone can just retreat to their own safe space, not when people of all faiths are migrating and mingling as never before in history. The reality is that our faiths and our fates are inextricably linked. And that is profoundly why we must do this now, because they are linked.

Our fates are inextricably linked on any number of things that we must confront and deal with in policy concepts today. Our fates are inextricably linked on the environment. For many of us, respect for God’s creation also translates into a duty to protect and sustain His first creation: Earth, the planet. Before God created man, He created Heavens and Earth. Confronting climate change is, in the long run, one of the greatest challenges that we face, and you can see this duty or responsibility laid down in scriptures, clearly, beginning in Genesis. And Muslim-majority countries are among the most vulnerable. Our response to this challenge ought to be rooted in a sense of stewardship of Earth. And for me and for many of us here today, that responsibility comes from God.

Our fates are also inextricably linked in promoting economic opportunity and justice. When you look at the world today, there are whole countries where there are 60 percent of the population under the age of 30, 50 percent under the age of 21, and 40 percent under the age of 18. We know that all of these young people in today’s interconnected globalized world, with the media that’s available to them – just look at the numbers in sub-Sahara Africa of young people walking around with smart phones. They don’t have a job, they don’t have an education, but they’re connected. And we know that all of them are as a result demanding opportunity and dignity.
We also know that a cadre of extremists – nihilists, people like ISIL – are just waiting to seduce these people into accepting the dead end. And when people don’t have a job, when they can’t get an education, when their voices are silenced by draconian laws or by violence or oppression, we’ve all witnessed the instability that follows from that, from the lack of dignity and respect for the human person. To meet the demands of these populations for dignity and opportunity, frankly, requires new and creative partnerships. That’s why Sean is here. That’s why we’re here today. We need to reach beyond government to include religious leaders and faith communities, entrepreneurs, civil society groups, all of them working together to invest in a future that embraces tolerance and understanding, and yes, even love.

Our fates are also inextricably linked in the fight for pluralism. We know beyond any doubt that the places where people are free not just to develop an idea, but to debate different ideas, those societies are the most successful – not occasionally, but always. It’s not just a lack of jobs and opportunity that give extremists the opening that their recruitment strategies need to exploit. They’re just as content to see corruption and oligarchy and resource exploitation fill the vacuum so they can come in then and prey on the frustration and anger of those young people who were denied real opportunity.

Make no mistake: When you go back and study the major faith traditions, there is one thing that really does leap out at you. I was privileged a number of years ago to speak at an interfaith event at Yale University between a group of – a significant group – some 70 or so evangelicals from across the country, including Dr. Robert Schuller and others, and then a group of mullahs, imams, grand muftis, who had come from around the world to join together in this discussion of interfaith initiative. And I remember then, as I sort of thought about my comments and what to talk about, how it leapt out at me that there is a commonality in the Abrahamic faiths particularly, but in all faiths and in all philosophies of way of life and thinking, even Native Americanism or Confucianism and others, and that is every single one of them contains a fundamental basic notion of the Golden Rule – the importance of charity, compassion, and human improvement.
When Jesus was asked, “Teacher, which is the greatest commandment in the law,” he replied: the first “you shall love the Lord your God” and second “you shall love your neighbor as yourself…In everything, do unto others what you would have them do to you, for this is the Law and the Prophets.”

What prophets was Jesus talking about? He was talking about Moses, or Moshe, or Musa. He was talking about Abraham, or Avraham, or Ibrahim. And ultimately, he was talking about Shalom, Salam: Peace.

As the Talmud says: In Roman times, a nonbeliever approached the famous rabbi, Rabbi Hillel, and challenged him to teach the meaning of the Torah while standing on one leg. Without missing a beat, holding up one foot, Hillel replied: “What is hateful to yourself, do not do to another. That is the whole of the Torah… the rest is commentary.”

The Prophet Muhammad said of loving your brother, “Not one of you truly believes until you wish for others what you wish for yourself.”

Buddhist scriptures teach us to “treat not others in ways that you yourself would find hurtful.” And Hinduism proclaims, “This is the sum of duty: Do not do to others what would cause pain if done to you.” Our faiths teach us that we are more than the sum of our differences. We share a moral obligation to treat one another with dignity and respect. And I am so proud that at the foundation of everything that this Department and that our foreign policy tries to do are those fundamental values.

Today, we need to draw on that common faith and what must be our common hope to work for peace and put our universal commitments and universal beliefs into action. That’s the road ahead, and I am privileged to share that road with Shaarik and with all of you. Thank you. (Applause.)

SEC CHARGES ATTORNEY, WIFE AND LAW PARTNER WITH FRAUD INVOLVING EB-5 IMMIGRANT INVESTOR PROGRAM

 FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 

The Securities and Exchange Commission today charged a Los Angeles-based immigration attorney, his wife, and his law firm partner with conducting an investment scheme to defraud foreign investors trying to come to the U.S. through the EB-5 Immigrant Investor Program.
The SEC alleges that Justin Moongyu Lee along with Rebecca Taewon Lee and Thomas Edward Kent raised nearly $11.5 million from two dozen investors seeking to participate in the EB-5 program, which provides immigrants an opportunity to apply for U.S. residency by investing in a domestic project to create jobs for U.S. workers.  The Lees and Kent informed investors that they would be EB-5 eligible if they invested in an ethanol production plant they would build and operate in Ulysses, Kan.  However, investors’ money was misappropriated for other uses instead of the ethanol plant project.  The plant was never built and the promised jobs never created, yet the Lees and Kent continued to misrepresent to investors that the project was ongoing.

In a parallel action, the U.S. Attorney’s Office for the Central District of California today announced criminal charges against Justin Lee.

“These immigration lawyers exploited a desire by foreign investors to participate in a program that would not only generate them a positive investment return, but also provide them a path to legal residency in the United States,” said Michele Wein Layne, Regional Director of the SEC’s Los Angeles office.  “Long after all construction had ceased, they continued to falsely tell investors that they were building the plant.”

According to the SEC’s complaint filed in U.S. District Court for the Central District of California, the investors defrauded by the Lees and Kent were primarily of Chinese and Korean descent.  Justin Lee and Kent applied to the U.S. Citizenship and Immigration Services (USCIS) in 2006 for designation as a “regional center” under the EB-5 program.  They claimed there would be “substantial economic benefit” and “thousands” of new jobs for this area in southwest Kansas.  However, by mid-2008, construction of an ethanol plant at the site was no longer economically feasible, and the Lees and Kent concealed their failure to generate the jobs required by the EB-5 program by submitting false documents to the USCIS.

Meantime, the SEC alleges, when Justin Lee was running low on cash and having difficulty obtaining financing, he took money out of investor escrow accounts without their knowledge prior to the approval of an investor’s application for residency.  Lee and his wife subsequently misused several million dollars raised from the ethanol plant investors for other undisclosed purposes such as financing an iron ore project in the Philippines and repaying investors in other unrelated offerings.

According to the SEC’s complaint, the Lees set up investor seminars in Los Angeles at which the purported ethanol plant project was the main part of the presentation despite the halt of construction in 2008.  Kent, who visited the site frequently in 2008 and 2009 and knew no construction was taking place, also participated in the seminars.  Investors continued to be misled that the proceeds from their investment were being used to construct an ethanol plant.  In particular, the business plan updated in June 2010 and distributed to investors falsely represented that construction was “ongoing” and the plant would be in operation before November 2011.

The SEC’s complaint charges the Lees, Kent, and five companies founded and controlled by Justin Lee (American Immigrant Investment Fund I, Biofuel Venture IV, Biofuel Venture V, Nexland Investment Group, and Nexsun Ethanol) with violations of Sections 17(a)(1), (2), and (3) of the Securities Act of 1933 and Section 10(b) of the Securities and Exchange Act of 1934 as well as Rule 10b-5(a) and (c).  Justin Lee, Kent, and the entities also are charged with violating Rule 10b-5(b).  The SEC’s complaint seeks disgorgement, prejudgment interest, and penalties along with permanent injunctions.

The SEC’s investigation was conducted by Carol Lally, Roberto Tercero, Roger Boudreau, and Spencer Bendell of the Los Angeles Regional Office.  The SEC’s litigation will be led by Karen Matteson.  The SEC appreciates the assistance of the USCIS, U.S. Attorney’s Office for the Central District of California, Federal Bureau of Investigation, U.S. Department of Homeland Security’s Immigration and Customs Enforcement (ICE), Internal Revenue Service, and State Bar of California.

U.S. SEIZES $500,000 IN ASSETS RELATED TO CORRUPTION BY FORMER REPUBLIC OF KOREA PRESIDENT CHUN

FROM:  U.S. JUSTICE DEPARTMENT 
Wednesday, September 3, 2014
Justice Department Seizes an Additional $500,000 in Corrupt Assets Tied to Former President of Republic of Korea

The Department of Justice has seized approximately $500,000 in assets traceable to corruption proceeds accumulated by Chun Doo Hwan, the former president of the Republic of Korea.   This seizure brings the total value of seized corruption proceeds of President Chun to more than $1.2 million.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI)­­ and Assistant Director Joseph S. Campbell of the FBI’s Criminal Investigative Division made the announcement after the seizure warrant issued by the U.S. District Court for the Eastern District of Pennsylvania was unsealed today.

“Chun Doo Hwan orchestrated a vast campaign of corruption while serving as Korea’s president,” said Assistant Attorney General Caldwell.   “President Chun amassed more than $200 million in bribes while in office, and he and his relatives systematically laundered these funds through a complex web of transactions in the United States and Korea.   Today’s seizure underscores how the Criminal Division’s Kleptocracy Initiative – working in close collaboration with our law enforcement partners across the globe – will use every available means to deny corrupt foreign officials and their relatives safe haven for their assets in the United States.”

“Our country will not be used by corrupt foreign leaders to conceal the illicit profits of their crimes,” said HSI Executive Associate Director Edge.   “We will continue to work with our international law enforcement partners to ensure that such individuals are held accountable and that the assets are returned to their rightful owners.”

“The U.S. will not be a safe repository for assets misappropriated by corrupt foreign leaders,” said FBI Assistant Director Campbell.  “The FBI is committed to working with foreign and domestic partners to identify and return those assets to the legitimate owners, in this case the people of the Republic of Korea.”

The court in the Eastern District of Pennsylvania late yesterday unsealed an application filed on Aug. 22, 2014, by the Justice Department to seize an investment by former President Chun’s daughter-in-law in a Pennsylvania limited partnership worth approximately $500,000.  In February 2014, the department obtained a court order from the Central District of California seizing $726,000 in proceeds from the sale of a residence located in Newport Beach, California, that President Chun’s son, Chun Jae Yong, purchased in 2005 with proceeds allegedly traceable to his father’s corruption.  

As alleged in the government’s application for a seizure warrant and supporting affidavit, President Chun was convicted in Korea in 1997 of receiving more than $200 million in bribes from Korean businesses and companies.  President Chun and his relatives laundered some of these corruption proceeds through a web of nominees and shell companies in both Korea and the United States.

The United States is working closely with the Republic of Korea’s Supreme Prosecutor’s Office—Anti-Corruption Supervisory Division, the Ministry of Justice’s International Criminal Affairs Division and the Seoul Central District Public Prosecutor’s Foreign Criminal Affairs Department to forfeit these corruption proceeds.  

This case was brought under the Kleptocracy Asset Recovery Initiative by a team of dedicated prosecutors in the Criminal Division’s Asset Forfeiture and Money Laundering Section, working in partnership with federal law enforcement agencies to forfeit the proceeds of foreign official corruption and, where appropriate, return those proceeds to benefit the people harmed by these acts of corruption and abuse of office.  Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to kleptocracy@usdoj.gov .

The investigation was conducted jointly by HSI Philadelphia, HSI Attaché Seoul, the FBI Kleptocracy Program of the International Corruption Unit within the Criminal Investigation Division, and the FBI’s West Covina Resident Agency of the Los Angeles Division.  The case is being prosecuted by Trial Attorneys Woo S. Lee and Della Sentilles of the Criminal Division’s Asset Forfeiture and Money Laundering Section, with substantial support from the U.S. Attorney’s Office for the Central District of California, the U.S. Attorney’s Office for the Eastern District of Pennsylvania and the Criminal Division’s Office of International Affairs.

SECRETARY KERRY'S REMARKS REGARDING MURDER OF STEVEN SOTLOFF

FROM:  U.S. STATE DEPARTMENT

Steven Sotloff

Press Statement
John Kerry
Secretary of State
Washington, DC
September 3, 2014


Yesterday, the world bore witness again to the unfathomable brutality of ISIL terrorist murderers when we saw Steven Sotloff, an American journalist who left home in Florida to tell the story of brave people in the Middle East, taken from us in an act of medieval savagery by a coward hiding behind a mask.

There are no words strong enough to express the sorrow we feel for his family, particularly his mother, whose heartbreaking video plea spoke to every single parent who has ever worried about a son or daughter who goes to dangerous places to do the work they love.

This young man was a driven and courageous journalist, reporting from places like Syria, Libya, and Egypt. Steven Sotloff's reporting was as empathetic as his killers are evil. He focused on the stories of average people trapped in war, and documented their day-in and day-out struggle for dignity. Like Martha Gellhorn, he chronicled humanity in the face of inhumanity, and he told the story of enormous generational events as if they were happening to someone you knew from your own life.

For so many who worked so long to bring Steven and the other Americans home safely, this was not how the story should've ended. It's a punch to the gut. The U.S. Government has used every military, diplomatic, and intelligence tool we have, and we always will. Our special operations forces bravely risked a military operation to save these lives, and we've reached out diplomatically to everyone and anyone who might be able to help. That effort continues, and our prayers remain – as they always are – with the families of all hostages who remain trapped in Syria today.


U.S.-COSTCO SETTLE GAS REFRIGERANT EMISSIONS CASE

FROM:  U.S. JUSTICE DEPARTMENT 
Wednesday, September 3, 2014
United States Settles with Costco to Cut Ozone-Depleting and Greenhouse Gas Refrigerant Emissions Nationwide

Costco Wholesale Corporation, one of the nation’s largest retailers, has agreed to cut its emissions of ozone-depleting and greenhouse gases from leaking refrigeration equipment at more than half of its stores nationwide.

In the settlement announced today by the U.S. Environmental Protection Agency and U.S. Department of Justice, Costco will pay $335,000 in penalties for federal Clean Air Act violations and will fix refrigerant leaks and make other improvements at 274 of its stores, which EPA estimates will cost about $2 million over the next three years.

“Compliance with the nation’s Clean Air Act is key to protecting all Americans from air pollution that damages our atmosphere and changes our climate,” said Sam Hirsch, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division.   “Industry needs to lead the way in abandoning harmful chemicals in favor of using and developing greener, environmentally friendly alternatives to protect our health and our climate.”

“Cutting harmful greenhouse gas emissions is a national priority for EPA, and this settlement will lead to significant reductions of an ozone-depleting gas that is 1,700 times more potent than carbon dioxide,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance.   “Fixing leaks of refrigerants, improving compliance and reducing emissions will make a real difference in protecting us from the dangers of ozone depletion, while reducing the impact on climate change.”

Costco violated the Clean Air Act by failing to promptly repair refrigeration equipment leaks of the refrigerant R-22, a powerful ozone-depleting hydrochlorofluorocarbon, between 2004 and 2007.   Costco also failed to keep adequate records of the servicing of its refrigeration equipment to prevent harmful leaks.   Destroying the ozone layer results in dangerous amounts of cancer-causing ultraviolet solar radiation striking the earth, increasing skin cancers and cataracts.   R-22 is also a potent greenhouse gas with 1,800 times more global warming potential than carbon dioxide or CO2.

The settlement requires Costco to retrofit or replace commercial refrigeration equipment at 30 of its stores to reduce ozone-depleting and greenhouse gas emissions.   Costco must also implement a refrigerant management system to prevent and repair coolant leaks and reduce its corporate-wide average leak rate at least 20 percent by 2017.   In addition, Costco will install and operate environmentally friendly glycol refrigeration systems and centrally monitored refrigerant leak detection systems at all new stores.

Today’s settlement is part of EPA’s national enforcement initiative to control harmful air pollution from the largest sources of emissions.  The Clean Air Act requires owners or operators of commercial refrigeration equipment that use over 50 pounds of ozone-depleting refrigerants and have an annual leak rate over 35 percent to repair all leaks within 30 days.

Corporate commitments to reduce emissions from refrigeration systems have been increasing in recent years.   EPA’s GreenChill Partnership with food retailers reduces refrigerant emissions and decreases their impact on the ozone layer and climate change by transitioning to environmentally friendlier refrigerants, using less refrigerant and eliminating leaks, and adopting green refrigeration technologies.

Costco, headquartered in Issaquah, Washington, operates 466 stores in the U.S. and additional stores worldwide, with revenues of $105.2 billion in 2013.   Today’s settlement covers 274 Costco stores with regulated commercial refrigeration equipment, including 67 stores in California, 14 in Arizona, five in Nevada, and four in Hawaii.

The proposed settlement is subject to a 30-day public comment period and final court approval.

Wednesday, September 3, 2014

U.S. DEFENSE DEPARTMENT CONTRACTS FOR SEPTEMBER 3, 2014

FROM:  U.S. DEFENSE DEPARTMENT

CONTRACTS

ARMY

Sundt Construction, Inc., Tempe, Arizona, was awarded a $107,899,999 firm-fixed-price, design, bid, and build contract for the replacement of a runway at Little Rock Air Force Base, Arkansas. Fiscal 2014 operations and maintenance (Army) funds in the amount of $107,899,999 were obligated at the time of the award, with an estimated completion date of April 4, 2017. Bids were solicited via the Internet with two received. U.S. Army Corps of Engineers Little Rock, Arkansas, is the contracting activity (W9127S-14-C-6003).

EMLS-Future Net Group JV,* Detroit, Michigan, (W912EK-14-D-0004); RB Construction Company,* Sterling Heights, Michigan, (W912EK-14-D-0006); and SAF, Inc.,* Akron, Ohio, (W912EK-14-D-0007), were awarded a $10,000,000 multiple-award, firm-fixed-price contract for maintenance, including general carpentry to doors, windows, roofing, and gutters. The work is also for moisture and thermal protection and masonry, to include rehabilitation of stone structures. The task order contract covers work in Illinois, Indiana, Iowa, Michigan, Minnesota, Missouri, Ohio and Wisconsin. Work and funding will be determined with each order, with an estimated completion date of Sept. 3, 2019. Bids were solicited via the Internet with seven received. U.S. Army Corps of Engineers, Rock Island, Illinois, is the contracting activity.

Facility Support Services, LLC*, Richmond, Virginia, was awarded a $9,949,500 firm-fixed-price contract to repair Reserve forces operations and training facilities. Fiscal 2014 operations and maintenance (Army) funds and fiscal 2014 other (Army) funds in the amount of $9,949,500 were obligated at the time of the award. Work will be performed in Joint Base Andrews, Maryland, with an estimated completion date of Sept. 19, 2016. Bids were solicited via the Internet with eight received. National Guard Bureau, Washington, District of Columbia, is the contracting activity (W912R1-14-C-0007).

L3 Global Communications Solutions, Inc., Victor, New York, was awarded an $8,402,031 undefinitized contract action for sustainment of the Army’s existing combat services support, for very small aperture terminal transmission systems and satellite communications terminals. Fiscal 2014 operations and maintenance (Army) funds in the amount of $4,200,000 were obligated at the time of the award. Work will be performed in Victor, New York, with estimated completion date of Aug. 28, 2016. Bids were solicited with one received. Army Contract Command, Rock Island Arsenal, Illinois, is the contracting activity (W52P1J-14-C-0057).
Johnson Machine Works,* Inc., Chariton, Iowa, was awarded a $7,875,953 firm-fixed-price contract for major maintenance of the Illinois Waterway Mississippi River and replacement of the La Grange Miter Gate and Tainter Gate. Fiscal 2014 operations and maintenance (Army) funds in the amount of $7,875,953 were obligated at the time of the award. Work will be performed in Morris, Illinois ($1,190,330; 15 percent); Versailles, Illinois ($3,548,803; 45 percent); and Dubuque, Iowa ($3,136,820; (40 percent), with an estimated completion date of Sept. 2, 2016. Bids were solicited via the Internet with three received. U.S. Army Corps of Engineers, Rock Island, Illinois is the contracting activity (W912EK-14-C-0084).

NAVY

Raytheon Missile Systems, Tucson, Arizona, is being awarded a $49,482,902 firm-fixed-price contract for the modification of 500 AGM-65A/B guidance control sections to an AGM-65E2 configuration. Work will be performed in Tucson, Arizona (53 percent); Williamsport, Pennsylvania (31 percent); Orlando, Florida (8 percent); Ontario, Canada (4 percent); Joplin, Missouri (3 percent); and Grass Valley, California (1 percent), and work is expected to be completed in January 2017. Fiscal 2014 weapons procurement (Navy) funding in the amount of $49,482,902 is being obligated on this award, none of which will expire at the end of the current fiscal year. This contract was not competitively procured pursuant to FAR 6.302-1. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity (N00019-14-C-0071).

Rolls-Royce Corp., Indianapolis, Indiana, is being awarded a $10,055,878 modification to a previously awarded firm-fixed-price contract (N00019-10-C-0020) for the procurement of MissionCareTM support for the AE1107C engine, including lower power engine removals and repairs for the V-22 aircraft. 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 (Navy) funds in the amount of $10,055,878 are being obligated at the time of 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.

Leidos, Inc., Reston, Virginia, is being awarded a $6,547,341 cost-plus-fixed-fee contract for innovative research and development in the area of Heterogeneous Networking and Advanced Communication Technologies Development and Demonstration. Work will be performed in Reston, Virginia, and is expected to be completed by February 2017. Fiscal 2014 research, development, test and evaluation (Defense Advanced Research Projects Agency) funds in the amount of $1,512,732 will be obligated at the time of award; these funds will not expire at the end of the current fiscal year. This award is the result of a competitive DARPA broad agency announcement, with 28 offers received. Space and Naval Warfare Systems Center Atlantic, Charleston, South Carolina, is the contracting activity (N65236-14-C-2821).

AIR FORCE

Boeing Co., Newark, Ohio, has been awarded a $46,882,260 delivery order on previously awarded contract F42610-99-D-0006-0081 to procure, repair and supply investment material for the Intercontinental Ballistic Missile NS-50 Missile Guidance Set under the Boeing Guidance Repair Center contract. Work will be performed at Newark, Ohio, and is expected to be complete by Sept. 27, 2015. Fiscal 2014 funds in the amount of $17,668,874 are being obligated at the time of award. Ogden Air Logistics Center, Hill Air Force Base, Utah, is the contracting activity.

Space Coast Launch Services, Patrick Air Force Base, Florida, has been awarded a $36,328,456 modification (P00189) on previously awarded contract FA2521-05-C-0008 to exercise an option. Contractor will provide operations, maintenance and engineering support to critical launch, spacecraft and ordnance facilities and support systems owned by the 45th Space Wing. These facilities and systems are vital to the support of Department of Defense, civil and commercial space launch processing at Cape Canaveral Air Force Station, Florida. The Launch Operations Support Contract contractor is responsible for planning and executing all preventive and corrective maintenance and performing configuration changes to LOSC facilities and systems necessary to achieve the greatest operational availability for mission support. Work will be performed at Patrick Air Force Base, Florida, and is expected to be completed by Sept. 30, 2015. No funds are being obligated at the time of award. The 45th Contracting Squadron, Patrick Air Force Base, Florida, is the contracting activity.

Harris IT Services Corp., Dulles, Virginia, has been awarded an $8,207,316 modification (MG0620) to previously awarded contract FA8771-04-D-0003 for network support services. Work will be performed at Los Angeles Air Force Base, California, and is expected to be completed by Aug. 31, 2015. This award is the result of a sole-source acquisition. Fiscal 2014 other procurement; missile procurement; operations and maintenance and research, development, test and evaluation funds in the amount of $2,045,133 are being obligated at the time of award. Space and Missile Systems Center Contracting Directorate, Los Angeles Air Force Base, California, is the contracting activity.

MISSILE DEFENSE AGENCY

Lockheed Martin Mission Systems and Training, Moorestown, New Jersey, has been awarded a $10,330,015 cost-plus-fixed-fee modification to previously awarded contract HQ0276-10-C-0003 for test and engineering support for the Aegis Ashore program. This modification brings the total cumulative face value of the contract to $347,727,974 from $337,397,959. Work will be performed at Moorestown, New Jersey; San Diego, California; Kekaha, Hawaii; and Deveselu, Romania, with an expected completion date of Dec. 31, 2015. Fiscal 2014 and 2015 research, development, test and evaluation funds will be used to fund this effort. The Missile Defense Agency, Dahlgren, Virginia, is the contracting activity.

U.S. TRANSPORTATION COMMAND

Marine Terminals Corporation-East, Savannah, Georgia, was awarded an estimated $6,561,822 modification (P00013), extending the period of performance on previously awarded contract W81GYE-10-D-0002 for stevedoring and related terminal services. This is a fixed-price, indefinite-delivery/indefinite-quantity contract. Work will be performed at the Military Ocean Terminal Sunny Point, North Carolina, with a Feb. 28, 2015, performance completion date. The modification brings the total cumulative face value of the contract to $62,923,529 from $56,361,707. Fiscal 2014 funds will be obligated on individual task orders in the amount of $6,561,822. The U.S. Transportation Command Directorate of Acquisition, Scott Air Force Base, Illinois, is the contracting activity.

REMARKS: PRESIDENT OBAMA AND BALTIC STATE LEADERS REGARDING SECURITY

 FROM:  THE WHITE HOUSE 

Remarks by President Obama and Leaders of Baltic States in Multilateral Meeting

3:22 P.M. EEST

PRESIDENT ILVES:  Let me just say that it has been a genuine honor and pleasure to host this multilateral meeting of President Obama, President GrybauskaitÄ— and President BÄ“rziņš here in Tallinn today, a day before the NATO Summit.  American engagement in our region’s security runs deep.  Twenty years ago, Russian troops left the Baltic states.  Ten years ago, Russian troops left -- or we joined NATO.  And we’ve all -- we’ve reached all of those historic milestones thanks to very strong U.S. support and leadership.

Our defense and security cooperation is extremely close.  We appreciate the immediate steps that the United States has taken to demonstrate solidarity with our three countries, with Poland and Romania.  In the past months, we have seen an increased U.S. air, ground and naval presence in our region as well as an enhancement of scheduled exercises.

The four of us share a common vision and goals for the upcoming NATO Summit.  We face a completely new security situation in Europe and we’re pleased that this is reflected in many of the summit’s documents.  We expect the summit to adopt the readiness action plan that will guide Allied nations for years to come through a set of practical steps and measures of reassurance and deterrence.

We expect it to provide a solid framework for allies to contribute to a stronger NATO presence on its eastern border.  Maintaining a persistent presence in this region should include, among other things, increasing the readiness of the Multinational Corps Northeast, in Poland, and giving it more responsibilities for matters of collective defense.  This would help facilitate NATO’s rapid reaction in our region and bolster security on NATO’s periphery.

A good part of our discussion today obviously focused on Ukraine.  We need to think about what more can be done to support this country.  Estonia has doubled its humanitarian and development assistance, and is looking for ways to do more, including assisting wounded soldiers from Ukraine here in our rehabilitation center.  But we should not forget about the other so-called Eastern Partnership countries.  Countries like Georgia and Moldova should not be left on their own as we focus on Ukraine.  They must have the right to make their own decisions, their own security arrangements and alliances.  Continued U.S. support for these countries’ engagement in the region is of vital importance.

We also believe in maintaining a strong transatlantic link in other areas, such as cyber and energy security.  But over the past year, our cooperation on cyber issues has strengthened and now covers many areas on both civilian and military levels.  I keep no tally of cyber-attacks, hacks and espionage, but it is absolutely clear that cybersecurity has become a concern for all of us to a degree we have never seen before -- a domain of warfare in the same category as land, sea and air.

There is no doubt that the security architecture here in Europe has changed in the past year -- and alas, not for the better.  How it will look in a year is difficult to predict given the unpredictability of so many of the actions we have seen.  But I can confidently predict that whatever the future does hold, the Baltic countries and the United States are working together globally to promote our common values -- democracy, human rights, rule of law, freedom, and especially Internet freedom.

Thank you.

PRESIDENT GRYBAUSKAITÄ–:  So we had important meeting because we do have in our region today American President, and this means a lot not only for our region and security of our region, but a signal before the summit, NATO Summit, for all Europe.

Today what’s happening on Ukraine’s soil, that open aggression from Russian side against sovereign country, means that the recent attack, not only against Ukraine, it is an attack against the peace and borders of Europe after Second World War.

Why?  Today Ukraine is fighting not only for its own freedom, but it’s fighting instead of us, for us.  So why it is so important our full pledge to support Ukrainian sovereignty, support of the fight against aggression?  And, of course, we need to think about further improvement of security in our region.  And we appreciate the United States’ bilateral commitments and NATO’s commitments for our region, for the NATO members, and Article 5 commitments.

Why today standing here?  We very clearly know what we want from NATO Summit tomorrow, what kind of measures improving our security we ask for -- an updated standing defense plans, additional NATO and U.S. presence in our region, rapid reaction force, and other measures necessary to improve and secure our region’s security.

So today and tomorrow, we are talking and solving the future peace and security of Europe.  Why?  Our responsibility lies on our shoulders, not only thinking about our region, about our countries, but also about Ukraine.

Ukraine today is in frontline for all of us, and we need to take this very seriously and responsibly, helping Ukraine in every measure available in our hands.

PRESIDENT BÄ’RZIÅ…Å :  Thank you, President Ilves, for the warm welcome.  President Obama, welcome to the Baltics.  At the beginning, I condemn the killing of American Steven Sotloff, and express my condolences to his family and friends.  We express our support and solidarity with the U.S. in their fight with terrorists in Iraq and elsewhere.

Today’s meeting proves a strategic partnership of the Baltic states and the United States.  Last year we met at the White House.  This meeting should be continued not less than annually.  Security cooperation based on shared values is a foundation of our relations.

I thank President Obama for the American leadership.  Your support, the European reinforcement initiative is very important for our region’s security.  I’m confident that the U.S. Congress will pass it without delay.  I commend the U.S. in providing troop presence in the Baltic region.  We would like to see the U.S. troops and equipment in Latvia as long as necessary.  We support U.S. efforts to consolidate firm international response against Russia’s invasion in Ukraine.  We must realize that to stop further aggression, solidarity in speaking with one voice is a key.

Today, we discussed the NATO Wales Summit.  The summit will need a clear message about reinforcing collective defense.  We’ll accept complete measures to ensure troop presence, infrastructure, and command structure in the Baltic region.

Transatlantic relations and the U.S. presence in Europe is crucial for the Euro-Atlantic security.  Europe, too, has to invest more in defense.  Latvia will increase defense spending to 2 percent of GDP by 2020.  The parliament of Latvia has passed a special law on it.  Answering the challenge of information war, Latvia will host the NATO Center of Excellence for Strategic Communication.

During the summit, we will discuss what NATO can do together to eradicate the greatest source of terrorism in the Middle East -- militant fighters of the Islamic State.

Together, we go ahead with the Baltic-U.S. cybersecurity partnership that we started last year in Washington.  We reaffirm our commitment to the strategic Transatlantic Trade and Investment Partnership negotiations.  We need to work as fast as possible to enable the signing of this agreement.

We wish to develop a real transatlantic bond between Europe and the U.S. on energy.  Recent developments in Ukraine are the further proof of the urgency to reduce dependency on one supply here.  Thereby, the U.S. involvement is very important for our efforts to make strong energy security and develop integrated energy markets in the region.  It would also benefit both the European and American economic interests.

I’d like to convey my gratitude to our friends and partners for the significant contribution and support in opening the OECD membership talks with Latvia.  The Baltic states and the U.S. have a shared interest in supporting economic development and good governance in the EU Eastern Partnership countries and in Central Asia.  This will be main priority during Latvia’s presidency in the Council of the EU next year.

Finally, I would like to stress that the Baltic states and the U.S. are natural partners bound by a shared belief in democratic governance, the rule of law, and respect for human rights and civil liberties.

Thank you.

PRESIDENT OBAMA:  Good afternoon, everybody.  I am the final speaker, so I will be brief.

I want to thank President Ilves for hosting us today, especially in these magnificent surroundings, which speak to the long and diverse history of this country and the endurance of the Estonian people.  And I want to thank my colleagues, Dalia and Andris, for coming here for this important meeting.

As has been indicated already, we last met as a group a year ago, and I was pleased to host our three Baltic allies at the White House.  The four of us spoke more recently to discuss the situation in Ukraine.  And my main message today is the same as it was last year at the White House:  The Baltic nations are among our most reliable Allies in NATO, and the commitment of the United States to their security is rock solid.

More recently, we’ve demonstrated our commitment to the additional American aircraft that have joined NATO’s Baltic air patrols, and we’ve demonstrated our commitment in the additional training exercises that our forces are now conducting.  And we’ve demonstrated our commitment to the additional American forces that are now continuously rotating through Estonia, Latvia and Lithuania.  So here in the Baltics, the United States has stepped up its presence.

And we are working to do even more.  As I announced earlier, the initiative I’ve proposed to bolster the American military presence in Europe would include additional air force units and aircraft for training exercises here in the Nordic-Baltic region -- with all three of these allies.  And the NATO Summit in Wales will be an opportunity to bring the Alliance together around a plan to enhance our readiness even further, including infrastructure and facilities here in the Baltics capable of handling rapid reinforcements.

So the bottom line is this:  As NATO Allies, we will meet our solemn duty, our Article 5 obligation to our collective defense.  And today I want every Estonian and Latvian and Lithuanian to know that you will never stand alone.

I want to thank all of these leaders for coming here today. I’d close with this observation.  Nearly 100 years ago, the United States recognized the independence of the Baltic nations.  And for 50 years, you’ve endured a brutal Soviet occupation.  In all those years, the United States never recognized that illegal occupation.  All those years -- even as your flags of independence were often banned here at home -- your embassies stayed open in the United States, and your flags flew proudly alongside ours.  They always will.  Because the United States intends to always stand with you.

So thank you very much, everybody.  Thank you.

END
3:40 P.M. EEST

PRESIDENT OBAMA'S REMARKS REGARDING MURDER OF STEVEN SOTLOFF



DOD VIDEO: SEC HAGEL SPEAKS AT SOUTHWESTERN NEW ENGLAND DEFENSE INDUSTRY ALLIANCE


NOAA VIDEO: ROBERT RUTLEDGE - ON MONITORING SPACE WEATHER

AL-SHABAB LEAER TARGET OF U.S. AIRSTRIKE

FROM:  U.S. DEFENSE DEPARTMENT 

Somali Airstrike Targeted al-Shabab Leader, Camp, Official Says

By Claudette Roulo
DoD News, Defense Media Activity

WASHINGTON, Sept. 2, 2014 – Manned and unmanned aircraft operated by U.S. special operations forces participated in an airstrike yesterday in Somalia that destroyed an al-Shabab encampment and a vehicle located at that camp, Pentagon Press Secretary Navy Rear Adm. John Kirby said today.
Kirby said the operation was a direct strike against the al-Shabab network, and specifically, the group's leader, Ahmed Abdi al-Muhammad, also known Ahmed Godane.
The operation was carried out after actionable intelligence was obtained that suggested that Godane was present at the camp, located south of the Somali capital of Mogadishu, the press secretary said. It’s too early to know whether Godane was killed as a result of the airstrikes, Kirby said, adding that if he were, it would be a “very significant blow to their network, to their organization and, we believe, to their ability to continue to conduct terrorist attacks.”
The aircraft fired several Hellfire missiles and laser-guided munitions, he said, noting that the Defense Department is still assessing the results of the operation.
“We certainly believe that we hit what we were aiming at,” the press secretary said. “And based on intelligence that, as I said, we believe was actionable -- in other words, strong enough -- we took this strike.”
No U.S. forces were present on the ground, either before or after the attack, he noted.
Al-Shabab is a jihadist group based in Somalia. It has claimed responsibility for last year’s attack on the Westgate Mall in Nairobi, Kenya, which resulted in more than 70 deaths and 200 injured. The group is also believed to be responsible for many bombings, including suicide attacks in Mogadishu and in central and northern Somalia, the admiral said.
These attacks typically target officials and perceived allies of the current federal government of Somalia and the former transitional federal government of Somalia, Kirby said.
Al-Shabab has occupied most of southern Somalia since 2006, he said. It has claimed responsibility for the deaths of numerous government officials, aid workers, peace activists and journalists and was named as a foreign terrorist organization by the State Department in 2008.
“They've also continued to plan plots targeting Westerners, including U.S. personnel in East Africa,” the press secretary said. “In recent months, al-Shabab claimed responsibility for a suicide bombing in Djibouti that killed a Turkish national and wounded several Western soldiers, as well as a car bomb at the Mogadishu Airport that targeted and killed members of the United Nations convoy.”
The operation is an example of the commitment of the U.S. government and its allies and partners to the people and government of Somalia “to detect, deter, disrupt and defeat violent extremists who threaten progress in the region, as well as threaten to conduct terrorist attacks against innocent people around the world,” Kirby said.
The United States will continue to use all of the tools at its disposal, he said -- including finance, diplomacy, intelligence and military force -- to dismantle al-Shabab and other terrorist groups that threaten U.S. interests and those of U.S. allies and partners.

U.S. AIR FORCE VIDEO: PORTRAITS IN COURAGE IX


SEC ANNOUNCES WHISTLEBLOWER AWARD OF $300,000

 FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION

The Securities and Exchange Commission announced a whistleblower award of more than $300,000 to a company employee who performed audit and compliance functions and reported wrongdoing to the SEC after the company failed to take action when the employee reported it internally.

It’s the first award for a whistleblower with an audit or compliance function at a company.

“Individuals who perform internal audit, compliance, and legal functions for companies are on the front lines in the battle against fraud and corruption.  They often are privy to the very kinds of specific, timely, and credible information that can prevent an imminent fraud or stop an ongoing one,” said Sean McKessy, Chief of the SEC’s Office of the Whistleblower.  “These individuals may be eligible for an SEC whistleblower award if their companies fail to take appropriate, timely action on information they first reported internally.”

This particular whistleblower award recipient reported concerns of wrongdoing to appropriate personnel within the company, including a supervisor.  But when the company took no action on the information within 120 days, the whistleblower reported the same information to the SEC.  The information provided by the whistleblower led directly to an SEC enforcement action.

The SEC’s whistleblower program rewards high-quality, original information that results in an SEC enforcement action with sanctions exceeding $1 million.  Whistleblower awards can range from 10 percent to 30 percent of the money collected in a case.  By law, the SEC must protect the confidentiality of whistleblowers and cannot disclose any information that might directly or indirectly reveal a whistleblower’s identity.

SAILORS, MARINES RESCUED FROM CRASH


FTC ANNOUNCES DO NOT CALL REGISTRY ACCESS FEE INCREASE

FROM:  U.S. FEDERAL TRADE COMMISSION 
FTC Updates Telemarketer Fees for the Do Not Call Registry as of October 1, 2014

The Federal Trade Commission has announced updated fees starting on October 1, 2014, for telemarketers accessing phone numbers on the National Do Not Call Registry.

All telemarketers calling consumers in the United States are required to download the numbers on the Do Not Call Registry to ensure they do not call those who have registered their phone numbers. The first five area codes are free, and organizations that are exempt from the Do Not Call rules, such as some charitable organizations, may obtain the entire list for free. Telemarketers must subscribe each year for access to the Registry numbers.

The access fees for the Registry are being increased as required by the Do‑Not‑Call Registry Fee Extension Act of 2007. Under the Act’s provisions, in fiscal year 2015 (from October 1, 2014 to September 30, 2015), telemarketers will pay $60, an increase of $1, for access to Registry phone numbers in a single area code, up to a maximum charge of $16,482 for all area codes nationwide, an increase from the previous maximum of $16,228. Telemarketers will pay the same as last year for numbers they subscribe to receive during the second half of the 12‑month subscription period, $30 per area code.

Tuesday, September 2, 2014

U.S. DEFENSE DEPARTMENT CONTRACTS FOR SEPTEMBER 2, 2014

FROM:  U.S. DEFENSE DEPARTMENT 
CONTRACTS
ARMY
Science Application International Corporation,* McLean, Virginia (W91CRB-11-D-0001); Battelle Memorial Institute,* Columbus, Ohio (W91CRB-11-D-0002); Booz Allen Hamilton, McLean,Virginia (W91CRB-11-D-0003); Exelis Inc., Alexandria, Virginia (W91CRB-11-D-0004); Northrop Grumman Systems Corporation, Herndon, Virginia (W91CRB-11-D-0005); Wintec Arrowmaker, Inc.,* Washington, Maryland (W91CRB-11-D-0006); and Technical and Project Engineering, LLC, Alexandria, Virginia (W91CRB-11-D-0007), were awarded a $150,000,000 cost-plus-fixed-fee modification to increase the contract ceiling for a previously awarded multiple award, indefinite-delivery/indefinite-quantity contract to support the Army Research Lab’s increased mission requirements; this is the third award and raises the contract ceiling to $630,000,000. Work and funding will be determined with each order, with an estimated completion date of Dec. 6, 2015. Army Contracting Command, Triangle Park, North Carolina, is the contracting activity.
Watts Constructors, LLC., Honolulu, Hawaii, was awarded a $38,914,500 firm-fixed-price contract for a satellite communications earth terminal station facility. Fiscal 2014 military construction (Army) funds in the amount of $38,914,500 were obligated at the time of the award. Work will be performed in San Miguel, California, with an estimated completion date of June 27, 2016. Bids were solicited via the Internet with six received. U.S. Army Corps of Engineers, Sacramento, California, is the contracting activity (W9128-14-C-0040).
The University of Alabama in Huntsville, Alabama, was awarded a $12,102,856 modification (P00013) for engineering services to support the engineering directorate on the work statement Advanced Weapon System and Manufacturing Technologies. Work and funding will be determined with each order, with an estimated completion date of Jan. 8, 2015. Bids were solicited and one received. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity (W31P4Q-12-D-0011).
HDR Engineering, Inc., Claremont, California, was awarded a $9,999,900 indefinite-delivery/indefinite-quantity contract for cathodic protection and corrosion control, at various locations worldwide. This contract awards a one year cathodic protection plan with options for up to two additional periods. Work and funding will be determined with each order, with an estimated completion date of Sept. 1, 2017. Bids were solicited via the Internet with six received. U.S. Army Corps of Engineers, Charleston, South Carolina, is the contracting activity (W912HP-14-D-0023).
Bristol Engineering Services Corporation,* Anchorage, Alaska (W912DW-13-D-1015); Cherokee General Corporation,* Federal Way, Washington (W912DW-13-D-1016); CKY, Inc.,* San Pedro, California (W912DW-13-D-1017); Macro-Z-Technology,* Santa Ana, California (W912DW-13-D-1018); and Nordic Industries, Inc.,* Olivehurst, California (W912DW-13-D-1019), were awarded a $9,800,000 modification number (P0001) to exercise option period one on a multiple award task order contract for design-build and horizontal construction work. This work will be performed for the U.S. Army Corps of Engineers, Seattle district, including Washington, Oregon, Idaho, Montana and Northwestern division boundaries. Work and funding will be determined with each order, with an estimated completion date of Sept. 4, 2015. U.S. Army Corps of Engineers Seattle, Washington, is the contracting activity.
BAE Systems Ordnance Systems Inc., Kingsport, Tennessee, was awarded a $9,653,246 modification (P00547) to contract DAAA09-98-E-0006 for a facility use contract requirement for installation of additional anoxic treatment capacity in Building 221, Phase 1. Fiscal 2014 (other) Army funds in the amount of $9,653,246 were obligated at the time of the award. Work will be performed in Kingsport, Tennessee, with an estimated completion date of May 31, 2017. Army Contracting Command, Rock Island Arsenal, Illinois, is the contracting activity.
Heeter*, Spencer, West Virginia was awarded $9,620,766 modification (P00004) to contract W91237-12-C-0006 to exercise option seven for Bluestone Dam safety assurance- Phase 4, anchors, Hinton, West Virginia. This contract will involve the installation of 278 anchors in Bluestone Dam. Fiscal 2014 (other) Army funds in the amount of $9,620,766 were obligated at the time of the award. Work will be performed in Hinton, West Virginia, with an estimated completion of Oct. 16, 2019. Bids were solicited via the Internet with three received. U.S. Army Corps of Engineers, Huntington, West Virginia, is the contracting activity.
A-T Solutions, Inc, Fredericksburg, Virginia, was awarded a $9,016,253 modification (P00005) to contract W911QX-12-C-0174 for freedom of maneuver for the Afghan national security forces programs. These programs will develop and assess a spiral development and prototyping approach to expedite integration of technical and operational information. These programs will also integrate tactical training and technologies for host nation forces that support counter-improvised explosive devices operations in Afghanistan. Fiscal 2013 (other) Army funds in the amount of $9,016,253 were obligated at the time of the award. Work will be performed in Afghanistan ($7,573,652; 84 percent) and Fredericksburg, Virginia ($1,442,600; 16 percent), with an estimated completion date of March 29, 2015. Army Contracting Command, Adelphi, Maryland, is the contracting activity. 
DEFENSE LOGISTICS AGENCY
Propper International, Inc., Mayaguez, Puerto Rico, has been awarded a maximum $124,470,982 modification (P00107) exercising the first option period on a one-year base contract (SPM1C1-13-D-1062), with two one-year option periods. This is a firm-fixed-price contract for modular lightweight load carrying equipment. Location of performance is Puerto Rico with a Sept. 5, 2015, performance completion date. Using military services are Army and Air Force. Type of appropriation is fiscal 2015 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.
NAVY
AH/BC NAVY JV, LLC, Newport News, Virginia, is being awarded a maximum amount $50,000,000 firm-fixed-price, indefinite-delivery/indefinite-quantity, architect-engineering contract for architectural and engineering services for Safe Drinking Water Act and Clean Water Act Environmental Compliance Engineering Support for Navy, Marine Corps and other Department of Defense installations and federal agencies within the Naval Facilities Engineering Command (NAVFAC) Atlantic area of responsibility (AOR) world-wide. Task order 0001 is being awarded at $116,802 for Water Purveyor Drinking Systems Source and Produced Water Surface Water Treatment Rules Monitoring Gap Analysis at Naval Support Activity Naples, Italy. Work on this task order is expected to be completed by December 2015. All work on this contract will be performed at various Navy and Marine Corps facilities and other defense installations and federal agencies within the NAVFAC Atlantic AOR world-wide including, but not limited to, California (25 percent), Europe (20 percent), Southwest Asia (10 percent), Virginia (10 percent), North Carolina (10 percent), Florida (10 percent), North Africa (5 percent), Washington, District of Columbia (5 percent), and Maryland (5 percent). The term of the contract is not to exceed 60 months, with an expected completion date of September 2019. Fiscal 2014 operation and maintenance (Navy) contract funds in the amount of $116,802 are obligated on this award and will expire at the end of the current fiscal year. This contract was competitively procured via the Navy Electronic Commerce Online website, with six proposals received. The Naval Facilities Engineering Command, Atlantic, Norfolk, Virginia, is the contracting activity (N62470-14-D-9022).
Lockheed Martin Mission Systems & Training, Owego, New York, is being awarded $8,879,035 for delivery order 4001 against a previously issued Basic Ordering Agreement (N00019-14-G-0019) for non-recurring efforts for software modifications required for MH-60 Terrain Awareness Warning System (TAWS II) and Automatic Dependent Surveillance – Broadcast enhancements, including integration of the TAWS II software into the 2018 product line. These services are in support of the U.S. Navy and the governments of Australia and Denmark. Work will be performed in Owego, New York, and is expected to be completed in October 2017. Fiscal 2014 research, development, test and evaluation (Navy), 2014 aircraft procurement (Navy) and foreign military sales funds in the amount of $8,353,021 will be obligated at time of award, none of which will expire at the end of the current fiscal year. This contract combines purchases for the U.S. Navy ($8,395,805; 95 percent); and the governments of Denmark ($392,585; 4 percent); and Australia ($90,645; 1 percent) under the Foreign Military Sales program. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity.
Total Concepts of Design Inc., Scottsburg, Indiana, is being awarded a $6,762,400 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for MK 3 MOD 0 and MK 12 MOD 1 metal material handling pallets used to transport different types of munitions in support of U.S. Navy and U.S. Army mission requirements. Work will be performed in Scottsburg, Indiana, and is expected to be completed by September 2019. Fiscal 2012 procurement of ammunition (Navy and Marine Corps) and fiscal 2014 ammunition procurement (Army) contract funds in the amount of $91,461 will be obligated at the time of contract 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 Surface Warfare Center, Crane Division, Crane, Indiana, is the contracting activity (N00164-14-D-JR05).
AIR FORCE
Lockheed Martin Aeronautics Company, Marietta, Georgia, has been awarded a $9,519,633 fixed-price modification (P00257) on existing contract FA8625-07-C-6471 for the C-5 Reliability Enhancement and Re-engining program. The contract modification is for the supply of the C-5 RERP Lot 7 readiness spares package. Fiscal 2012 aircraft procurement funds in the amount of $9,519,633 are being obligated at time of award. Work will be performed at Marietta, Georgia, and is expected to be completed by January 2017. The Air Force Life Cycle Management Center, Wright Patterson Air Force Base, Ohio is the contracting activity.
MISSILE DEFENSE AGENCY
Raytheon Integrated Defense Systems of Woburn, Massachusetts is being awarded a $53,252,500 contract modification (P00023) to a previously awarded firm-fixed-price, cost-plus-fixed-fee contract (HQ0147-12-C-0006). This contract modification is for the production of an ANTPY-2 Float Cooling Equipment Unit #2, Float Electronic Equipment Unit #2, Spares, Reliability Improvements, and Mission Assurance. Work will be performed in Woburn, Massachusetts with an expected completion date of December 2016. Fiscal 2014 procurement funds in the amount of $53,252,500 are being obligated at time of award. The Missile Defense Agency, Huntsville, Alabama is the contracting activity.

*Small business
   

President Obama Delivers a Message to West Africans on Ebola



PRESIDENT OBAMA'S LETTER REGARDING WAR POWERS RESOLUTION

FROM:  THE WHITE HOUSE 

Letter from the President -- War Powers Resolution Regarding Iraq

TEXT OF A LETTER FROM THE PRESIDENT
TO THE SPEAKER OF THE HOUSE OF REPRESENTATIVES
AND THE PRESIDENT PRO TEMPORE OF THE SENATE
September 1, 2014
Dear Mr. Speaker: (Dear Mr. President:)
As I reported on August 8 and 17, 2014, U.S. Armed Forces have conducted targeted airstrikes in Iraq for the limited purposes of stopping the advance on Erbil by the terrorist group Islamic State of Iraq and the Levant (ISIL), supporting civilians trapped on Mount Sinjar, and supporting operations by Iraqi forces to recapture the Mosul Dam. U.S. Armed Forces have also provided humanitarian assistance to the civilians trapped on Mount Sinjar.
On August 28, 2014, I further authorized U.S. Armed Forces to conduct targeted airstrikes in support of an operation to deliver humanitarian assistance to civilians in the town of Amirli, Iraq, which is surrounded and besieged by ISIL. Pursuant to this authorization, on August 30, 2014, U.S. military forces commenced targeted airstrike operations in the vicinity of Amirli, Iraq. These additional operations will be limited in their scope and duration as necessary to address this emerging humanitarian crisis and protect the civilians trapped in Amirli.
I have directed these actions, which are in the national security and foreign policy interests of the United States, pursuant to my constitutional authority to conduct U.S. foreign relations and as Commander in Chief and Chief Executive. These actions are being undertaken in coordination with and at the request of the Iraqi government.
I am providing this report as part of my efforts to keep the Congress fully informed, consistent with the War Powers Resolution (Public Law 93-148). I appreciate the support of the Congress in this action.
Sincerely,
BARACK OBAMA

NASA SAYS ROCKET MADE FOR MARS REVIEW COMPLETED

Image credit: NASA/MSFC
FROM:  NASA 

NASA officials Wednesday announced they have completed a rigorous review of the Space Launch System (SLS) -- the heavy-lift, exploration class rocket under development to take humans beyond Earth orbit and to Mars -- and approved the program's progression from formulation to development, something no other exploration class vehicle has achieved since the agency built the space shuttle.
"We are on a journey of scientific and human exploration that leads to Mars," said NASA Administrator Charles Bolden. "And we’re firmly committed to building the launch vehicle and other supporting systems that will take us on that journey."
For its first flight test, SLS will be configured for a 70-metric-ton (77-ton) lift capacity and carry an uncrewed Orion spacecraft beyond low-Earth orbit. In its most powerful configuration, SLS will provide an unprecedented lift capability of 130 metric tons (143 tons), which will enable missions even farther into our solar system, including such destinations as an asteroid and Mars.

This decision comes after a thorough review known as Key Decision Point C (KDP-C), which provides a development cost baseline for the 70-metric ton version of the SLS of $7.021 billion from February 2014 through the first launch and a launch readiness schedule based on an initial SLS flight no later than November 2018.

Conservative cost and schedule commitments outlined in the KDP-C align the SLS program with program management best practices that account for potential technical risks and budgetary uncertainty beyond the program's control.
“Our nation is embarked on an ambitious space exploration program, and we owe it to the American taxpayers to get it right,” said Associate Administrator Robert Lightfoot, who oversaw the review process. “After rigorous review, we’re committing today to a funding level and readiness date that will keep us on track to sending humans to Mars in the 2030s – and we’re going to stand behind that commitment.”

"The Space Launch System Program has done exemplary work during the past three years to get us to this point," said William Gerstenmaier, associate administrator for the Human Explorations and Operations Mission Directorate at NASA Headquarters in Washington. "We will keep the teams working toward a more ambitious readiness date, but will be ready no later than November 2018.”
The SLS, Orion, and Ground Systems Development and Operations programs each conduct a design review prior to each program’s respective KDP-C, and each program will establish cost and schedule commitments that account for its individual technical requirements.

"We are keeping each part of the program -- the rocket, ground systems, and Orion -- moving at its best possible speed toward the first integrated test launch,” said Bill Hill, director Exploration Systems Development at NASA. "We are on a solid path toward an integrated mission and making progress in all three programs every day."

“Engineers have made significant technical progress on the rocket and have produced hardware for all elements of the SLS program,” said SLS program manager Todd May. “The team members deserve an enormous amount of credit for their dedication to building this national asset.”

The program delivered in April the first piece of flight hardware for Orion’s maiden flight, Exploration Flight Test-1 targeted for December. This stage adapter is of the same design that will be used on SLS’s first flight, Exploration Mission-1.

Michoud Assembly Facility in New Orleans has all major tools installed and is producing hardware, including the first pieces of flight hardware for SLS. Sixteen RS-25 engines, enough for four flights, currently are in inventory at Stennis Space Center, in Bay St. Louis, Mississippi, where an engine is already installed and ready for testing this fall. NASA contractor ATK has conducted successful test firings of the five-segment solid rocket boosters and is preparing for the first qualification motor test.

SLS will be the world's most capable rocket. In addition to opening new frontiers for explorers traveling aboard the Orion capsule, the SLS may also offer benefits for science missions that require its use and can’t be flown on commercial rockets.
The next phase of development for SLS is the Critical Design Review, a programmatic gate that reaffirms the agency's confidence in the program planning and technical risk posture.

FINAL ORDER APPROVED BY FTC OVER DIETARY SUPPLEMENT'S MEMORY IMPROVEMENT CLAIMS

FROM:  U.S. FEDERAL TRADE COMMISSION 
FTC Approves Final Order Settling Charges that “BrainStrong Adult” Supplement Marketers Made Deceptive Memory Improvement Claims

Following a public comment period, the Federal Trade Commission has approved a final order settling charges that supplement marketers i-Health, Inc. and Martek Biosciences made deceptive claims while advertising their BrainStrong Adult dietary supplement.

The FTC’s complaint against i-Health and Martek, announced in June 2014, charges that the two companies, which sold the supplement at major retail stores, including CVS Pharmacy, Walmart, Walgreens, and Rite Aid, as well as online through drugstore.com and Amazon.com falsely claimed that they had clinical proof that BrainStrong Adult improves adult memory.

The final order bars the companies from claiming that any dietary supplement, food, drug, or product promoted to prevent cognitive decline or improve memory or containing DHA can prevent cognitive decline or improve memory in adults, unless the claim is truthful and supported by clinical testing. It also bars the companies from making claims about the health benefits, performance, safety, or effectiveness of such products, unless the claims are supported by competent and reliable scientific evidence.  Finally, the companies cannot claim they have clinical proof when they do not.

The Commission vote approving the administrative final order and responses to members of the public who submitted comments was 3-1-1, with Commissioner Maureen K. Ohlhausen voting no, and Commissioner Terrell McSweeny not participating. (FTC File No. 132-3067).

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FORMER EXEC SENTENCED TO PRISON FOR INVOLVEMENT IN $750 MILLION SECURITIES FRAUD SCHEME

FROM:  U.S. JUSTICE DEPARTMENT 
Friday, August 29, 2014
Former Arthrocare Executives Sentenced for Orchestrating $750 Million Securities Fraud Scheme
Former CEO and CFO Sentenced to 20 Years in Prison and 10 Years in Prison, Respectively

The former chief executive officer (CEO) of ArthroCare Corporation was sentenced to serve 20 years in prison, and the former chief financial officer (CFO) was sentenced to serve 10 years in prison today for their leading roles in a $750 million securities fraud scheme.   Two other former senior vice presidents of ArthroCare were also sentenced to prison terms for their roles in the scheme.  

Principal Deputy Assistant Attorney General Marshall L. Miller of the Department of Justice’s Criminal Division and Special Agent in Charge Christopher H. Combs of the FBI’s San Antonio Field Office made the announcement.   U.S. District Judge Sam Sparks in the Western District of Texas imposed the sentences.

“Earlier today, in federal court in Austin, Texas, we witnessed the culmination of an epic tale of greed,” said Principal Deputy Assistant Attorney General Miller.  “The CEO, CFO and two vice presidents of ArthroCare sentenced today ran a successful business, but they wanted more.  Their greed led to fraud, and their fraud caused investors to lose hundreds of millions of dollars.   At the Criminal Division of the Department of Justice, we are committed to prosecuting individuals who commit crimes to make money, whether they do so on street corners or in corner offices.  The aggressive pursuit of corporate executives  who commit fraud is at the core of our mission to  pursue justice and protect the American public.”

“This scheme of betrayal and deceit was carried out by the defendants without regard to the deep-reaching and irreparable harm their actions caused to thousands of victims, here in Texas, and throughout the United States,” said FBI Special Agent in Charge Combs.   “While it is important to recognize the financial losses sustained by all victims, which includes individual investors and institutional investment firms, many of the victims will never recover from the financial ruin caused by the defendants’ greed.  Many of the victims worked hard their entire lives, saving money for retirement or their children’s’ college funds.  Some were already living on fixed incomes and are now struggling to make ends meet.  The FBI will continue to aggressively work to uncover these fraud schemes in an effort to prevent future victimization and to protect the integrity of the securities and commodities market.”

On June 2, 2014, former ArthroCare’s CEO Michael Baker, 55, and former CFO Michael Gluk, 56, were convicted by a jury of wire fraud, securities fraud, and conspiracy to commit wire and securities fraud; Baker was also convicted of making false statements.   On June 24, 2013, John Raffle, 46, the former Vice President of Strategic Business Units, pleaded guilty to conspiracy to commit securities, mail and wire fraud, and two false statements charges.  On May 9, 2013, David Applegate, 55, the former Senior Vice President of the Spine Division, pleaded guilty to conspiracy to commit securities, mail and wire fraud, and a false statements charge.   At sentencing, the court found that investors lost approximately $756 million as a result of the defendants’ scheme to artificially inflate the share price of ArthroCare stock through sham transactions.

According to court documents, between 2005 and 2009, Baker, Gluk, Raffle and Applegate executed a scheme to artificially inflate sales and revenue through a series of end-of-quarter transactions involving several of ArthroCare’s distributors.  Products were shipped to distributors at quarter end based on ArthroCare’s need to meet Wall Street analyst forecasts, rather than distributors’ actual orders.  ArthroCare then fraudulently reported these shipments as sales in its quarterly and annual filings at the time of the shipment, enabling the company to appear to meet or exceed internal and external earnings forecasts.  ArthroCare’s distributors agreed to accept these shipments of millions of dollars of excess inventory in exchange for lucrative concessions from ArthroCare, such as upfront cash commissions, extended payment terms, and the ability to return products.  In some cases, like that of ArthroCare’s largest distributor, DiscoCare, the defendants agreed ArthroCare would acquire the distributor and the inventory so that the distributor would not have to pay ArthroCare for the products at all.  

Between December 2005 and February 2009, ArthroCare’s shareholders held more than 25 million shares of ArthroCare stock.   On July 21, 2008, after ArthroCare announced publicly that it would be restating its previously reported financial results to reflect the results of an internal investigation and account for the defendants’ fraud, the price of ArthroCare shares dropped from $40.03 to $23.21 per share.   On Dec.19, 2008, ArthroCare again announced publicly that it had identified more accounting errors and possible irregularities related to the defendants’ fraud.   That day, the price of ArthroCare shares dropped from approximately $16.23 to approximately $5.92 per share.

In addition to the underlying conduct, Baker was convicted of lying to the U.S. Securities and Exchange Commission during its investigation of the conduct.   The court further found, as part of sentencing, that Baker and Gluk each lied under oath during their trial testimony, in which they attempted to escape responsibility for their actions.

In addition to their prison terms, Baker and Gluk were sentenced to serve five years of supervised release.   In addition, the court ordered Gluk and Baker to forfeit $22,165,030, the amount of their profits from the scheme.

John Raffle was sentenced to serve 80 months in prison followed by three years of supervised release.   David Applegate was sentenced to serve 60 months in prison followed by three years of supervised release.

The case was investigated by the FBI’s San Antonio Field Office.  The case was prosecuted by Deputy Chief Benjamin D. Singer and Trial Attorneys Henry P. Van Dyck and William S.W. Chang of the Criminal Division’s Fraud Section.   The Department recognizes the substantial assistance of the Criminal Division’s Asset Forfeiture and Money Laundering Section and the U.S. Securities and Exchange Commission, as well as the critical role of the U.S. Attorney’s Office for the Western District of Texas, which provided invaluable support to the prosecution team during all phases of the litigation.

CHRISTOPHER KLEIN'S REMARKS TO UN ON INTERIM ADMINISTRATION MISSION IN KOSOVO

FROM:  U.S. STATE DEPARTMENT 
Remarks by Christopher Klein, Political Minister Counselor, U.S. Mission to the United Nations, at a Security Council Open Debate on the United Nations Interim Administration Mission in Kosovo
Christopher Klein, Political Minister Counselor
New York, NY
August 29, 2014
AS DELIVERED

Thank you, Mr. President, and thank you, Special Representative Zarif for your briefing. I would also like to thank Foreign Minister Dacic and Foreign Minister Hoxhaj for your remarks.

Mr. President, the United States notes and welcomes Kosovo’s continued steps toward full integration within the international community. We commend the governments of the Solomon Islands and Togo for their recognition of Kosovo as a sovereign, independent state. We are also very pleased about Kosovo’s acceptance into the Venice Commission of the Council of Europe as its 60th member state. These steps further cement Kosovo’s place within the international community, strengthening Kosovo, the region, and international cooperation.

The United States praises both Serbia and Kosovo for their continued dedication to the EU-facilitated Kosovo-Serbia Dialogue and the implementation of the April 2013 agreement to normalize relations. While the next high-level meetings await government formation in Kosovo, we are encouraged that working level discussions continue, including a planned meeting on September 4 to carry forward the work on integrated border management. Both governments have made difficult but necessary decisions to advance the Dialogue, which remains integral to a stable, peaceful, and prosperous region. We are further heartened by the recent public statements by Serbian officials reaffirming that stability is Belgrade’s key interest in Kosovo.

The process of government formation in Kosovo is underway following successful parliamentary elections in June. We are encouraged by the positive reports from local and international observers on the smooth and orderly conduct of the election and broad participation throughout Kosovo. As Kosovo’s political and party leaders work to form the next government, it is important that the process proceed in line with Kosovo’s laws and constitution; the July 1 and August 26 rulings by Kosovo’s constitutional court should serve as guidelines in this regard. We urge the leaders, parties and Kosovo Assembly members to move lawfully and quickly toward formation of the new government, so that the important work of strengthening Kosovo’s multiethnic democracy can continue. We also welcome the formation of municipal assemblies and the Kosovo Ministry of Local Government Administration’s certification in May of municipal statutes for the four municipalities in the Serb-majority North.

Mr. President, the United States supports freedom of expression and universal human rights, and we denounce those who would turn to violence to sow discord and unrest within their communities. We condemn the violence that occurred during the South Mitrovica demonstration on June 22 regarding barriers on the Austerlitz Bridge. The security services, including the Kosovo police, EULEX, and KFOR, merit praise for their swift and appropriate response, which prevented further escalation. The violence and tensions over the Mitrovica bridge underscore the enduring sensitivity of these issues and the need for continued, constructive dialogue to resolve differences.

In a broader context, stability and security – both regionally and globally – benefit from rule of law and strong, democratic institutions in Kosovo. Mr. Zarif, you mentioned interconnectedness. We commend Kosovo authorities for their efforts to address the problems of violent extremism and the initiative of the Kosovo police and judiciary in apprehending suspected foreign fighters and their supporters in June and August. President Jahjaga has publicly reinforced that Kosovo will not become a terrorist haven, and that Kosovo institutions will not permit terrorists to endanger peace, stability, and constitutional order. We welcome the initiative of several countries in the region, including Kosovo and Serbia, to put in place legislation penalizing the recruitment and participation of its citizens in foreign armed conflicts. We call on all states in the region to cooperate more closely on countering the common threat of violent extremism.

Finally, Mr. President, we are pleased with the agreement between the European Union and Kosovo to extend the mandate of the European Union Rule of Law Mission in Kosovo until June 2016. EULEX and KFOR continue to make essential contributions to the international community’s work in Kosovo.

Thank you.

U.S. CONGRATULATES PEOPLE OF VIETNAM ON THEIR NATIONAL DAY

FROM:  U.S. STATE DEPARTMENT 

Vietnam's National Day

Press Statement
John Kerry
Secretary of State
Washington, DC
August 29, 2014




On behalf of President Obama and the people of the United States, I am delighted to congratulate the people of Vietnam as you celebrate your National Day on September 2.
Our relationship has grown in ways many would never have predicted. We have moved past war and division. In the years since the embargo was lifted and we achieved normalization and trade, Vietnam has become a modern nation and an important partner for the United States. Vietnam is a country on the move and Vietnam’s moving.

My own journey with Vietnam came full circle when I visited Vietnam last December for my first time as Secretary of State. To know a country as a diplomat which I first knew as a combatant in a war is an experience that says so much about the progress we have made. On my trip, I met with Deputy Prime Minister and Foreign Minister Pham Binh Minh to discuss the work ahead as we deepen the U.S.-Vietnam Comprehensive Partnership on everything from trade and investment to our growing people-to-people ties. I’m proud to have led the efforts as a Senator to create a Fulbright Economics Teaching Program in Ho Chi Minh City, and I am equally proud that we are now working with the Vietnamese Government to establish a Fulbright University in the near future.

Over these last 19 years, Vietnam has taken a long journey. And as Vietnam has grown, so has our partnership. It has been moving and rewarding to be a partner to the Vietnamese people in that effort, and I look forward to celebrating the 20th anniversary of diplomatic ties next year.

Monday, September 1, 2014

SECRETARY KERRY CONGRATULATES NEW PRESIDENT OF EUROPEAN UNION DONALD TUSK

FROM:  U.S. STATE DEPARTMENT 

Statement on New European Council President and High Representative

Press Statement
John Kerry
Secretary of State
Washington, DC
August 31, 2014


I want to congratulate Polish Prime Minister Donald Tusk on his election as President of the European Council, and Italian Foreign Minister Federica Mogherini on her appointment as High Representative for Foreign Affairs and Security Policy.

The Prime Minister was a warm host when I visited Warsaw last November, and when President Obama and I returned earlier this year. The Polish people are strong and rightly proud of their country, and I know the Prime Minister will carry his leadership to the Council.
I have met with Foreign Minister Mogherini several times, most recently in Paris last month, and I value the collegial rapport we have developed as we work on a range of challenging issues.
I look forward to working closely together with both leaders to overcome the stark challenges we face to security, democracy, and freedom in Europe’s east, the Middle East, and throughout the world – and to defend and achieve our common vision of a Europe whole, free, and at peace.

I also want to salute President Van Rompuy and especially High Representative Ashton, my close colleague and partner on the full range of global security issues, for their dedicated and indispensable work helping to steer the European Union through the last years.
The United States and Europe share deep common commitments to freedom, security, democracy, human rights, the rule of law, and open markets. We are joined by enduring links of culture and commerce, by our shared history and our common hopes for the future.

As the European Union names its new leaders and moves to confirm a new Commission, I look forward to continuing our work together to build an ever stronger transatlantic relationship, and a safer, more prosperous world for future generations.

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DOJ SETTLES KICKBACK ALLEGATIONS CASE WITH MEDICAL DEVICE COMPANY AND SURGEON FOR $2.6 MILLION

FROM:  U.S. JUSTICE DEPARTMENT 
Friday, August 29, 2014

Manufacturer of Spinal Devices and Surgeon to Pay United States $2.6 Million to Settle Alleged Kickback Scheme Omni Surgical L.P., doing business as Spine 360, a manufacturer of devices used in spinal surgery, and Dr. Jamie Gottlieb, an Indiana spinal surgeon, have agreed to pay $2.6 million to the United States to settle allegations that Spine 360 paid illegal kickbacks to Gottlieb to induce him to use the company’s products.  Spine 360 is based in Austin, Texas.

“The Department of Justice has longstanding concerns about improper financial relationships between health care providers and their referral sources, because such relationships can alter a physician’s judgment about the patient's true health care needs and drive up health care costs for everybody,” said Assistant Attorney General Stuart F. Delery for the Justice Department’s Civil Division.   “In addition to yielding a recovery for taxpayers, this settlement should deter similar conduct in the future and help make health care more affordable.”

The Anti-Kickback Statute restricts the financial relationships that medical device manufacturers may have with doctors who use or prescribe their products.  It is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based upon the best interests of the patient.

The settlement announced today involved payments that Spine 360 made between 2007 and 2009 to an entity controlled by Gottlieb.  Although the payments were purportedly made pursuant to a series of intellectual property agreements, the United States contended that those agreements were shams, and that the payments were intended to compensate Gottlieb for using Spine 360 products in his surgeries.

This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services.  The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in this effort is the False Claims Act.  Since January 2009, the Justice Department has recovered a total of more than $22.4 billion through False Claims Act cases, with more than $14.2 billion of that amount recovered in cases involving fraud against federal health care programs.

The case was handled by the Commercial Litigation Branch of the department’s Civil Division , the U.S. Attorney’s Office for the Northern District of Indiana and the U.S. Department of Health and Human Services-Office of Inspector General.  The claims settled by this agreement are allegations only, and there has been no determination of liability.

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