DEPARTMENT OF DEFENSE CUTTING SPENDING ON TRAVEL AND CONFERENCES

Photo:  Pop-Top Camper and Picnic Table.  Credit:  lcb.
FROM:  AMERICAN FORCES PRESS SERVICE

DOD Tightens Spending on Travel, Conferences

By Cheryl Pellerin

WASHINGTON, June 15, 2012 - In response to a May 11 call to action from the Office of Management and Budget, Deputy Defense Secretary Ashton B. Carter has directed DOD officials and managers to reduce spending on travel, conferences and other agency operations.

"DOD consistently strives to be an excellent steward of taxpayer dollars and has focused on these issues for a number of years," Carter said in a June 3 memo.

Such efforts, he added, include the 2010 Secretary's Efficiency Initiative and implementation of President Barack Obama's June 2011 Campaign to Cut Waste.

In his memo, Carter directs the DOD comptroller to reduce travel expenses for fiscal year 2013 by 30 percent from DOD's fiscal 2010 baseline, excluding national security exemptions and without harming agency missions.

The deputy secretary also directs the undersecretary of defense for personnel and readiness to work with DOD components and services to implement a conference policy that establishes standard, tiered approval levels for conference spending.

Effective immediately, Carter is directing a review of upcoming conferences and temporarily suspending new conference obligations. The deputy secretary will personally review conferences that will cost more than $500,000. The department's Deputy Chief Management Officer Elizabeth McGrath will review conferences whose costs exceed $100,000.

DOD will report back to OMB, the deputy secretary said, on proposed reductions in these areas within 90 days, and in some cases 180 days, of the May 11 memo.

Carter said McGrath would coordinate DOD implementation of OMB's Executive-Branch-wide policies and practices involving travel, conferences, real estate and fleet management.

"Increased scrutiny is being applied to DOD spending," McGrath told American Forces Press Service, "which makes it more important than ever that we continue to instill a culture of cost consciousness and accountability across the Defense enterprise."

The department has always taken its duty to be an excellent steward of taxpayer dollars very seriously, she added.

"The appropriate offices for each of the areas discussed in the memorandum -- travel, conferences, real estate, and fleet management -- will work together to ensure that we are fully complying with the deputy secretary's direction," McGrath said, "and that we are making the best use of government funds."

The deputy chief management officer added, "It is important for us to assess our travel costs and practices to ensure that we maximize alternatives to travel, such as teleconferencing, that we combine trips when possible to minimize the frequency of travel, and that we send the right people to the right events."

McGrath said conferences can serve many important purposes, including training, professional development and continuing education opportunities required for professional accreditation.

As the increased spending efficiencies are put in place, he added, "we must ensure that these cuts do not lead to degradation of mission effectiveness."

FLIGHT INSTRUMENT DELIVERED FOR JAMES WEBB SPACE TELESCOPE

Photo Credit:  NASA
FROM:  NASA
WASHINGTON -- The first of four instruments to fly aboard NASA's James

Webb Space Telescope (Webb) has been delivered to NASA. The
Mid-Infrared Instrument (MIRI) will allow scientists to study cold
and distant objects in greater detail than ever before.

MIRI arrived at NASA's Goddard Space Flight Center in Greenbelt, Md.,
May 29. It has been undergoing inspection before being integrated
into Webb’s science instrument payload known as the Integrated
Science Instrument Module (ISIM).

Assembled at and shipped from the Science and Technology Facilities
Council's Rutherford Appleton Laboratory in the United Kingdom, MIRI
was developed by a consortium of 10 European institutions and NASA's
Jet Propulsion Laboratory (JPL) in Pasadena, Calif., after having
been handed over to the European Space Agency.

MIRI will observe light with wavelengths in the mid-infrared range of
5 microns to 28 microns, which is a longer wavelength than human eyes
can detect. It is the only instrument of the four with this
particular ability to observe the physical processes occurring in the
cosmos.
"MIRI will enable Webb to distinguish the oldest galaxies from more
evolved objects that have undergone several cycles of star birth and
death," said Matt Greenhouse, ISIM project scientist at Goddard.
"MIRI also will provide a unique window into the birth places of
stars which are typically enshrouded by dust that shorter wavelength
light cannot penetrate."

MIRI's sensitive detectors will allow it to observe light, cool stars
in very distant galaxies; unveil newly forming stars within our Milky
Way; find signatures of the formation of planets around stars other
than our own; and take imagery and spectroscopy of planets, comets
and the outermost bits of debris in our solar system. MIRI's images
will enable scientists to study an object’s shape and structure.

The most powerful space telescope ever built, Webb is the successor to
NASA's Hubble Space Telescope. Webb’s four instruments will reveal
how the universe evolved from the Big Bang to the formation of our
solar system. Webb is a joint project of NASA, the European Space
Agency and the Canadian Space Agency.

U.S.-TUVALU RELATIONS

Map Credit:  U.S. State Department.
FROM:  U.S. STATE DEPARTMENT
U.S.-TUVALU RELATIONS
During World War II, several thousand U.S. troops were in Tuvalu (then known as the Ellice Islands). Beginning in 1942, U.S. forces built airbases on the islands of Funafuti, Nanumea, and Nukufetau. Relations were friendly and cooperative between the local people and the troops, mainly U.S. Marines and U.S. Navy SeaBees. The airstrip in the capital of Funafuti, originally built by the U.S. during the war, is still in use, as is the "American Passage" that was blasted through Nanumea's reef by SeaBees assisted by local divers.

Tuvalu became fully independent from the United Kingdom in 1978, and in 1979 it signed a treaty of friendship with the United States, which recognized Tuvalu's possession of four islets formerly claimed by the United States. The two countries have worked as partners on regional and global issues promoting peace and strengthening democracy and security. The partnership looks to curb the effects of climate change, reinforce maritime security, and bolster the countries' economic development programs.

U.S. Assistance to Tuvalu
The United States provided assistance towards the purchase of a new desalination plant for Tuvalu following months of drought in 2011. The United States also signed a ship-rider agreement with Tuvalu in 2011 establishing a partnership to provide security and protect earnings from fishing licenses in Tuvalu’s EEZs.

Bilateral Economic Relations
The United States has no significant trade or investment with Tuvalu.

Tuvalu's Membership in International Organizations
Tuvalu maintains an independent but generally pro-Western foreign policy. Tuvalu and the United States belong to a number of the same international organizations, including the United Nations, International Monetary Fund, and World Bank.

MARINES KEEPING COOL

FROM:  AMERICAN FORCES PRESS SERVICE
Marine Corps Lance Cpl. Joshua Flores replaces a broken conductor on an air conditioning unit at Camp Leatherneck, Afghanistan, May 19, 2012. U.S. Marine Corps photo by Sgt. Marco Gutierrez  

Face of Defense: Marine Keeps Camp Leatherneck Cool
By Marine Corps Sgt. Marco Gutierrez
1st Marine Expeditionary Force
CAMP LEATHERNECK, Afghanistan, June 14, 2012 - Temperatures can reach more than 100 degrees here, but one Marine battles the heat to keep things cool for his fellow service members.

Lance Cpl. Joshua Daniel Flores, a refrigeration mechanic 9th Communication Battalion, 1st Marine Expeditionary Force, works every day to keep his fellow Marines and critical equipment from overheating.

"His mission is important, because he creates a controlled climate environment for the critical communications equipment here, which creates a lot of heat in an already hot environment," said Marine Corps Sgt. Jeremiah Loeffler, the battalion's air conditioning section head and quality control noncommissioned officer.

Flores monitors three sites that contain living spaces, offices and critical communication equipment. He keeps track of more than 170 air conditioning units, performs biweekly preventive maintenance and responds to trouble calls when the units malfunction.
Even though Flores has many people relying on him to get his job done, he always manages to stay upbeat. "He has a good work attitude, likes to learn, and he never does the bare minimum," Loeffler said.

Flores said he enjoys the satisfaction he gets when he repairs an air conditioning unit and knowing his supervisors trust his work.

His biggest challenge is the harsh environment and inclement weather that give the air conditioning units a beating and keep him moving and working. But despite the rigors of his job, he added, keeping Camp Leatherneck running smoothly is all the motivation he needs.

"Biweekly, I go to all my [air conditioning] units," he said. "I do visual inspections, make sure they're good, and clean the dust filters. Right now, I already know just by the wind which ones are dirty."

Even though his job requires him to be out in the blazing hot sun, Flores said, he takes pride in knowing he plays a critical role in helping others keep their cool.

EGYPT: U.S. STATE DEPARTMENT PROFILE

 FROM:  U.S. STATE DEPARTMENT
Map Credit:  U.S. State Department
Formal Name: Arab Republic of Egypt. 
PROFILE
Geography
Area: 1,001,450 sq. km. (386,000 sq. mi.); approximately equal to Texas and New Mexico combined.
Cities: Capital--Cairo (pop. estimated at 16 million). Other cities--Alexandria (6 million), Aswan, Asyut, Port Said, Suez, Ismailia.
Terrain: Desert plateau, except Nile valley and delta.
Climate: Dry, hot summers; moderate winters.

People
Nationality: Noun and adjective--Egyptian(s).
Population (July 2011 est.): 82,079,636.
Annual population growth rate (2011 est.): 1.96%.
Ethnic groups (2006 census): Egyptian 99.6%, other 0.4%.


Religions: Muslim (mostly Sunni) 90%, Coptic Christian 9%, other Christian 1%.
Languages: Arabic (official), English, French.
Education: Years compulsory--ages 6-15. Literacy--total adult 71.4%.
Health: Infant mortality rate (2011 est.)--25.2 deaths/1,000 live births. Life expectancy (2011 est.)--72.66 years.

Government
Type: Republic.
Independence: 1922.
Constitution: Egypt is operating under a constitutional decree from March 2011. Egypt’s parliament began the process of drafting a new constitution in March 2012.

Branches: Executive—President (The Chairman of the Supreme Council of the Armed Forces has held presidential authority since February 2011 and has pledged to hand over that function to a new president by June 30, 2012), Prime Minister, Cabinet. Legislative--People's Assembly (498 elected members and up to 10 presidentially appointed), and Shura Council (180 elected members, and 90 appointed by the next elected president). The two houses of Egypt’s parliament—the People’s Assembly and the Shura Council—were dissolved in February 2011, but were seated again in 2012 following elections for each house.
Administrative subdivisions: 27 governorates.
Suffrage: Universal at 18.

Economy
GDP (OER) (FY 2010 est.): $218.5 billion.
GDP (PPP) (FY 2010 est.): $497.8 billion.
Annual growth rate (Projected FY 2011 est.): 1.2%.
Per capita GDP (PPP, FY 2010 est.): $6,200.
Natural resources: Petroleum and natural gas, iron ore, phosphates, manganese, limestone, gypsum, talc, asbestos, lead, zinc.
Agriculture: Products--cotton, rice, onions, beans, citrus fruits, wheat, corn, barley, sugar.
Industry: Types--food processing, textiles, tourism, chemicals, petrochemicals, construction, light manufacturing, iron and steel products, aluminum, cement, military equipment.
Trade (FY 2010): Exports--$25.34 billion: petroleum, clothing and textiles, cotton, fruits and vegetables, manufactured goods. Major markets--EU, U.S., Middle East. Imports--$51.54 billion: machinery and transport equipment, petroleum products, livestock, food and beverages, paper and wood products, chemicals. Major suppliers--EU, U.S., China.

Photo Credit:  Wikimedia
PEOPLE AND HISTORY
Egypt is the most populous country in the Arab world and the second-most populous on the African continent. Nearly all of the country's 80 million people live in the following locations: Cairo and Alexandria; elsewhere on the banks of the Nile; in the Nile delta, which fans out north of Cairo; and along the Suez Canal. These regions are among the world's most densely populated, containing an average of over 3,820 persons per square mile (1,540 per sq. km.), as compared to about 200 persons per sq. mi. for the country as a whole.

Small communities spread throughout the desert regions of Egypt are clustered around oases and historic trade and transportation routes. The government has tried with mixed success to encourage migration to newly irrigated land reclaimed from the desert. However, the proportion of the population living in rural areas has continued to decrease as people move to the cities in search of employment and a higher standard of living.

The Egyptians are a fairly homogeneous people of Hamitic origin. Mediterranean and Arab influences appear in the north, and there is some mixing in the south with the Nubians of northern Sudan. Ethnic minorities include a small number of Bedouin Arab nomads in the eastern and western deserts and in the Sinai, as well as some 50,000-100,000 Nubians clustered along the Nile in Upper (southern) Egypt.

The literacy rate is about 71.4% of the adult population. Education is free through university and compulsory from ages 6 through 15. Rates of primary and secondary education have strengthened in recent years. 93% of children enter primary school today, compared with 87% in 1994. Major universities include Cairo University (100,000 students), Alexandria University, and the 1,000-year-old Al-Azhar University, one of the world's major centers of Islamic learning.

Egypt's vast and rich literature constitutes an important cultural element in the life of the country and in the Arab world as a whole. Egyptian novelists and poets were among the first to experiment with modern styles of Arabic literature, and the forms they developed have been widely imitated. Egyptian novelist Naguib Mahfouz was the first Arab to win the Nobel prize for literature. Egyptian books and films are available throughout the Middle East.

Egypt has endured as a unified state for more than 5,000 years, and archeological evidence indicates that a developed Egyptian society has existed for much longer. Egyptians take pride in their "pharaonic heritage" and in their descent from what they consider mankind's earliest civilization. The Arabic word for Egypt is Misr, which originally connoted "civilization" or "metropolis."

Archeological findings show that primitive tribes lived along the Nile long before the dynastic history of the pharaohs began. By 6000 B.C., organized agriculture had appeared.

In about 3100 B.C., Egypt was united under a ruler known as Mena, or Menes, who inaugurated the 30 pharaonic dynasties into which Egypt's ancient history is divided--the Old and the Middle Kingdoms and the New Empire. The pyramids at Giza (near Cairo), which were built in the fourth dynasty, testify to the power of the pharaonic religion and state. The Great Pyramid, the tomb of Pharaoh Khufu (also known as Cheops), is the only surviving monument of the Seven Wonders of the Ancient World. Ancient Egypt reached the peak of its power, wealth, and territorial extent in the period called the New Empire (1567-1085 B.C.).

Persian, Greek, Roman, and Arab Conquerors
In 525 B.C., Cambyses, the son of Cyrus the Great, led a Persian invasion force that dethroned the last pharaoh of the 26th dynasty. The country remained a Persian province until conquered by Alexander the Great in 322 B.C., ushering in Ptolemaic rule in Egypt that lasted for nearly 300 years.

Following a brief Persian reconquest, Egypt was invaded and conquered by Arab forces in 642 A.D. A process of Arabization and Islamization ensued. Although a Coptic Christian minority remained--and constitutes about 10% of the population today--the Arab language inexorably supplanted the indigenous Coptic tongue. For the next 1,300 years, a succession of Arab, Mameluke, and Ottoman caliphs, beys, and sultans ruled the country.

European Influence
The Ottoman Turks controlled Egypt from 1517 until 1882, except for a brief period of French rule under Napoleon Bonaparte. In 1805, Mohammed Ali, commander of an Albanian contingent of Ottoman troops, won autonomy from the Ottoman Empire and founded the dynasty that ruled Egypt until his great-great grandson, Farouk , was overthrown in 1952. Mohammed Ali ruled Egypt until 1848, ushering in the modern history of Egypt. The rapid growth of Cairo as an urban center began in the reign of Ismail (1863-79). Eager to modernize the capital, he ordered the construction of a European-style city to the west of the medieval core. The Suez Canal was completed in Ismail’s reign in 1869, and its completion was celebrated by many events, including the commissioning of Verdi's "Aida" for a new opera house and the building of great palaces, such as the Omar Khayyam (originally constructed to entertain the French Empress Eugenie, and now the central section of the Cairo Marriott Hotel).

In 1882, British expeditionary forces crushed an Egyptian revolt led by Ahmed Orabi Pasha, marking the beginning of British occupation and the virtual inclusion of Egypt within the British Empire. Egypt became independent from the British Empire in 1922. British influence, however, continued to dominate Egypt's political life.

Between 1922 and 1952, three main political forces competed with one another: the Wafd, a broadly-based nationalist political organization strongly opposed to British influence; King Fuad, whom the British had installed during World War I; and the British themselves, who were determined to maintain control over the Suez Canal. Other political forces emerging in this period included the Communist Party (1925) and the Muslim Brotherhood (1928), which eventually became a potent political and religious force.

During World War II, British troops used Egypt as a base for Allied operations throughout the region. British troops were withdrawn to the Suez Canal area in 1947, but nationalist, anti-British feelings continued to grow after the war. On July 22-23, 1952, a group of disaffected army officers (the "Free Officers") led by Lt. Col. Gamal Abdel Nasser overthrew King Farouk, whom the military blamed for Egypt's poor performance in the 1948 war with Israel. Following a brief experiment with civilian rule, they abrogated the 1923 constitution and declared Egypt a republic on June 19, 1953. Nasser evolved into a charismatic leader, not only of Egypt, but of the Arab world, promoting and implementing "Arab socialism." He nationalized much of Egypt's economy.

Nasser helped establish the Non-Aligned Movement of developing countries in September 1961, and continued to be a leading force in the movement until his death in 1970. When the United States held up military sales in reaction to Egyptian neutrality toward Moscow, Nasser concluded a seminal arms deal with Czechoslovakia in September 1955.

When the U.S. and the World Bank withdrew their offer to help finance the Aswan High Dam in mid-1956, Nasser nationalized the privately owned Suez Canal Company. The crisis that followed, exacerbated by growing tensions with Israel over guerrilla attacks from Gaza and Israeli reprisals, resulted in the invasion of Egypt that October by France, Britain, and Israel; U.S. political intervention helped reverse the invasion, and the Canal remained nationalized.

Nasser's domestic policies were frequently oppressive, yet generally popular. All opposition was stamped out, and opponents of the regime frequently were imprisoned without trial. Nasser's foreign and military policies helped provoke the Israeli attack of June 1967 that virtually destroyed Egypt's armed forces along with those of Jordan and Syria. Israel also occupied the Sinai Peninsula, the Gaza Strip, the West Bank, and the Golan Heights. Nasser, however, was revered by the masses in Egypt and elsewhere in the Arab world until his death in 1970.

After Nasser's death, another of the original "Free Officers," Vice President Anwar el-Sadat, was elected President. In 1971, Sadat concluded a treaty of friendship with the Soviet Union, but a year later, ordered Soviet advisers to leave. In 1973, he launched the October war with Israel, in which Egypt's armed forces achieved initial successes but were driven back by Israeli counterattacks.

Camp David and the Peace Process
In a momentous change from the Nasser era, President Sadat shifted Egypt from a policy of confrontation with Israel to one of peaceful accommodation through negotiations. Following the Sinai Disengagement Agreements of 1974 and 1975, Sadat created a fresh opening for progress by his dramatic visit to Jerusalem in November 1977. This led to President Jimmy Carter's invitation to President Sadat and Prime Minister Begin to join him in trilateral negotiations at Camp David.

The historic Camp David accords were signed by Egypt and Israel and witnessed by the United States on September 17, 1978. The accords led to the March 26, 1979 signing of the Egypt-Israel Treaty of Peace, by which Egypt regained control of the Sinai in May 1982. Throughout this period, U.S.-Egyptian relations steadily improved, but Sadat's willingness to break ranks by making peace with Israel antagonized most other Arab states.

Domestic Politics after Camp David
Sadat introduced greater political freedom and a new economic policy, the most important aspect of which was the “infitah” or "open door." This relaxed government controls over the economy and encouraged private, including foreign, investment. Sadat dismantled much of the existing political machine and brought to trial a number of former government officials accused of criminal excesses during the Nasser era.

On October 6, 1981, Islamic extremists assassinated President Sadat. Hosni Mubarak, Vice President since 1975 and an air force commander during the October 1973 war, was elected President later that month. He was subsequently confirmed by popular referendum for four more 6-year terms; the most recent referendum took place in September 2005. Egypt was readmitted to the Arab League in 1989 after being expelled for reaching a peace agreement with Israel.

Between 1991 and 2011, Egypt undertook a domestic economic reform program to reduce the size of the public sector and expand the role of the private sector. Political reform stalled, however. The government repressed civil society and opposition groups and maintained Egypt’s longstanding state of emergency. The first competitive presidential elections, held in 2005, were marked by low voter turnout and charges of fraud. Parliamentary elections in 2005 saw significant opposition gains but also violence, low turnout, fraud, and vote rigging. In one notable case, Ayman Nour, member of parliament and popular leader of the opposition Al-Ghad (Tomorrow) Party, was arrested in 2005 and ultimately sentenced to five years’ imprisonment. He was released in 2009. Following parliamentary elections in 2010 that saw significant irregularities and pre-election restrictions, the ruling National Democratic Party (NDP) continued to dominate national politics by maintaining an overriding majority in the People’s Assembly and Shura Council.

The Arab Spring in Egypt: Revolution at Tahrir Square
After an 18-day massive, popular revolution centered on Cairo’s Tahrir (Liberation) Square, Hosni Mubarak was forced to resign as the President of Egypt on February 11, 2011. He relinquished the administration of power first to his Vice President and then to a transitional government led by the Egyptian military’s Supreme Council of the Armed Forces (SCAF), which then appointed a civilian prime minister and cabinet to run the Egyptian government.

In a March 19, 2011 referendum, Egyptians voted overwhelmingly to amend Egypt’s constitution, thus setting the legal groundwork for democratic parliamentary and presidential elections. The referendum included amendments that set term limits for the president, affirmed judicial oversight of elections, and prevented the state of emergency from remaining in effect for longer than six months unless approved by a public referendum. It also provided for the establishment of a 100-member constituent assembly to draft a new constitution. On January 23, 2012, Egypt’s newly elected lower house of parliament, the People’s Assembly, convened for the first time; the SCAF transferred legislative authority to the parliament on the same day. The new members of Egypt’s upper house of parliament, the Shura Council, met on February 28, 2012. The SCAF announced that presidential elections will take place on May 23-24, 2012, with a run-off scheduled for June 16-17 if necessary. By June 30, 2012, the SCAF has pledged to transfer executive authority to an elected president.

GOVERNMENT AND POLITICAL CONDITIONS
Egypt’s March 19, 2011 public referendum produced a temporary constitutional framework that empowers the SCAF to govern Egypt in the interim, with the goal of transferring power to a civilian government and drafting a new constitution in 2012.

Egypt’s parliament is made up of a 508-seat People’s Assembly (498 elected) and a 270-seat Shura Council (180 elected). Egyptians now vote in a mixed parallel proportional representation (PR) and individual candidate (IC) system, where two thirds of the parliament is elected by PR party lists and one third is elected by IC districts. Elections to the lower house of parliament took place in three rounds from November 2011-January 2012, while elections to the upper house occurred in two rounds from January-March 2012. Egypt’s March 2011 constitutional declaration stipulates that the next elected president will appoint 90 members of the Shura Council.

Egypt's judicial system is similar to European (primarily French) legal concepts and methods. The courts have demonstrated increasing independence, and the principles of due process and judicial review have gained greater respect since the January 25 Revolution. Egypt’s legal code is derived largely from the Napoleonic Code. Marriage and personal status (family law) are primarily based on the religious law of the individual concerned, which for most Egyptians is Islamic Law (Sharia).

Principal Government Officials
Presidential authority is currently held by Field Marshal Mohamed Hussein Tantawi, Chairman of the Supreme Council of the Armed Forces
Prime Minister—Kamal El Ganzouri
Minister of Foreign Affairs—Mohamed Kamel Amr
Ambassador to the United States—Sameh Shoukry
Permanent Representative to the United Nations--Maged Abdel Fattah Abdelaziz

FORMER CORPORATE VP PLEADS GUILTY TO FOREIGN BRIBERY OFFENCE

FROM:  U.S. DEPARTMENT OF JUSTICE
Friday, June 15, 2012
Former Vice President at California Valve Company Pleads Guilty to Foreign Bribery Offense
WASHINGTON – David Edmonds, the former vice president of worldwide customer service at Rancho Santa Margarita, Calif.-based valve company Control Components Inc. (CCI), pleaded guilty today to violating the Foreign Corrupt Practices Act (FCPA), announced the Justice Department’s Criminal Division, the U.S. Attorney’s Office for the Central District of California and the FBI’s Washington Field Office.

Edmonds, who resides in San Clemente, Calif., pleaded guilty today before U.S. District Judge James V. Selna in Santa Ana, Calif., to a one-count superseding information charging him with making a corrupt payment to a foreign government official in Greece in violation of the FCPA.  According to court documents, CCI designed and manufactured service control valves for use in the nuclear, oil and gas, and power generation industries worldwide.

At sentencing, Edmonds, 59, faces up to 15 months in prison.  Sentencing is scheduled for Nov. 19, 2012.

Edmonds is the seventh former CCI executive to plead guilty to FCPA charges in connection with the company’s bribery scheme:

On May 29, 2012, Paul Cosgrove, CCI’s former head of worldwide sales, pleaded guilty to one count of making a corrupt payment to a foreign government official.
On April 17, 2012, Stuart Carson, CCI’s former president, and Hong “Rose” Carson, CCI’s former director of sales for China and Taiwan, each pleaded guilty to one count of making a corrupt payment to a foreign government official.

On April 28, 2011, Flavio Ricotti, CCI’s former vice president of sales for Europe, Africa, and the Middle East, pleaded guilty to one count of conspiring to violate the FCPA.
On Feb. 3, 2009, Richard Morlok, the former CCI finance director, pleaded guilty to one count of conspiracy to violate the FCPA.

On Jan. 8, 2009, Mario Covino, the former director of worldwide factory sales for CCI, pleaded guilty to one count of conspiracy to violate the FCPA.

Stuart and Rose Carson, Cosgrove, Covino, Morlok and Ricotti are scheduled to be sentenced later this year.  FCPA charges brought in April 2009 against Han Yong Kim, the former president of CCI’s Korean office, are pending.  An indictment merely contains allegations and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

On July 31, 2009, CCI pleaded guilty to a three-count criminal information charging the company with conspiracy to violate the FCPA and the Travel Act, and two substantive violations of the FCPA.  CCI was ordered to pay an $18.2 million criminal fine, placed on organizational probation for three years, and ordered to create and implement a compliance program and retain an independent compliance monitor for three years.  CCI admitted that from 2003 through 2007, it made corrupt payments in more than 30 countries, which resulted in net profits to the company of approximately $46.5 million from sales related to those corrupt payments.

The case is being prosecuted by Deputy Chief Charles G. La Bella and Trial Attorney Andrew Gentin of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Douglas McCormick and Gregory Staples of the U.S. Attorney’s Office for the Central District of California.  The case was investigated by the FBI’s Washington Field Office and its team of special agents dedicated to the investigation of foreign bribery cases.

GSA SAYS IT IS MEETING ENERGY AND SUSTAINABILITY GOALS

Photo:  Windmills.  Credit:  Wikimedia.
FROM:  U.S. GENERAL SERVICES ADMINISTRATION
GSA Meets Top Energy and Sustainability Goals
Agency receives top marks on all measured sustainability goals
June 15, 2012
WASHINGTON – Today, the U.S. General Services Administration released its sustainability and energy performance scorecard for Fiscal Year 2011 showing the agency continues to cut costs through energy efficiency and reducing pollution. Using the scorecard as a benchmark, GSA will continue to identify and track the best opportunities to make further progress toward meeting its sustainability and energy performance goals. Under Executive Order 13514, President Barack Obama directed federal agencies to lead by example in clean energy and to meet a range of energy, water, pollution, and waste reduction targets.

“Making buildings more efficient, saving energy, and creating a more fuel efficient fleet is helping government to improve its environmental performance and saves taxpayer dollars,” said Acting Administrator Dan Tangherlini. “GSA is on track to meet its own sustainability goals under the Executive Order, and we are uniquely positioned to help other federal agencies meet their goals as well.”    

GSA, which owns and leases over 9,600 federal buildings nationwide, has partnered with industry to make federal buildings more energy-efficient through the use of innovative technologies such as solar panels, advanced lighting systems, geothermal technology, wind power, and low-flow plumbing systems. As a result in FY 2011, GSA reduced greenhouse gas emissions from federal buildings that it directly pays utilities for by 20.3 percent relative to its FY 2008 baseline, well ahead of its targeted reduction of 10 percent and well on its way to meeting its FY 2020 target of 28.7 percent. GSA now derives 15.8 percent of the electricity used in these facilities from renewable electricity sources, including 2.5 percent from new sources.  Additionally, GSA has reduced water intensity by nearly 13.7 percent against a target of 6 percent, and reduced energy intensity by 19.2 percent against an 18 percent target.

By purchasing more fuel-efficient vehicles, including hybrids, GSA has reduced its agency’s fleet petroleum use by 25.6 percent against a 12 percent target.
GSA also recently released a set of key skills that federal building managers and contractors need to operate federal facilities at peak efficiency. These core competencies ensure that GSA goes beyond buildings themselves to the people that operate them, working with key industry associations and other federal agencies to create a next generation facilities management workforce. Green buildings and their efficient operation are key to achieving GSA’s goal to reduce the operating costs and footprint of the federal government. Federal buildings operations personnel will be required to demonstrate these core competencies by June of 2013.

In addition to being on track to meet its own sustainability goals, GSA procures sustainable products and services to help other federal agencies meet their sustainability goals. GSA assists agencies with incorporating sustainable building practices and procuring fuel-efficient vehicles for agency-owned fleets.

ADM. LOCKLEAR IS IN FAVOR OF THE "LAW OF THE SEA TREATY"

FROM:  AMERICAN FORCES PRESS SERVICE

Locklear Backs Law of the Sea Treaty

By Karen Parrish

WASHINGTON, June 15, 2012 - The Law of the Sea Convention is one avenue toward peacefully resolving competing maritime claims that could otherwise lead to conflict, the leader of U.S. Pacific Command said here today.

Navy Adm. Samuel J. Locklear III spoke to Pentagon reporters following his testimony yesterday as part of a military panel addressing the Senate Foreign Relations Committee on the Law of the Sea Convention.

The United Nations treaty opened for signature in December 1982 and took effect in November 1994, after 60 countries had signed. The United States has not ratified the treaty, but the nation's military leaders have in recent months urged U.S. accession to the agreement.

Locklear told the committee yesterday the convention "is essential to locking in a stable, legal framework for the maritime domain that is favorable to our national interest and preserves our access to this critical region."

As a Pacific power, the United States has defended freedom, enabled prosperity and protected peace in the region for more than six decades, and it must continue to lead security efforts, the admiral said in testimony.

He told senators, "The convention specifically codifies the rights, the freedoms and the uses of the sea that are critical for our forces to transit through and operate in the waters of the Asia-Pacific region."

Population and economic growth in the Asia-Pacific make competing maritime claims both more numerous and more contentious, he said.

"Nowhere is this more prevalent than in the South China Sea, where claimants have asserted broad territorial and sovereignty rights over land features, sea space and resources in the area," Locklear noted.

"The convention is an important component of a rules-based approach that encourages peaceful resolution of these maritime disputes," he said in testimony. "Moreover, the convention codifies an effective balance of coastal state and maritime state rights, a stable legal framework that we help to negotiate that is favorable to our interests and that we should leverage as a check on states that attempt to assert excessive maritime claims."

Because the United States is not a party to the convention, he said, "Our challenges are less credible than they might otherwise be."

Joining the convention would place the United States "in a much stronger position to demand adherence to the rules contained in it -- rules that we have been protecting from the outside since the '80s and before," he said.

Locklear told reporters today the convention and "customary law" set standards for military vessels' passage through territorial waters, archipelagos and major straits.

"There are a number of countries in the world -- I think China being one of them -- who from our perspective place excessive claims and excessive restrictions that are not consistent with international [law] and aren't consistent with Law of the Sea," he added.

Those restrictions, if added together and enacted, would limit international use of roughly a third of the world's ocean area, Locklear said, and would affect every major strait and every "sea line of communication" -- the primary maritime trade, logistics and naval routes between ports.

All nations concerned with shipping access will be "further at risk if these excessive claims aren't resolved," the admiral said.

The Law of the Sea Convention could form the basis for an international forum allowing countries to express competing claims, he noted.

"Then there will have to be some compromise," he added, "because you can't just have continually competing claims that end up causing miscalculation at some point in time, which would lead us to conflict."

Locklear said there are enough maritime resources "for everybody in the world," and competing claims should be resolved peacefully.

Responding to a question on U.S.-China military relations, the PACOM commander said he has been encouraged by the receptiveness he has seen from his Chinese counterparts.

"I look forward to continuing our dialogue and to doing some visits," he added. "I plan to visit [China] within the next several weeks, at their invitation."

That visit will involve discussions about "military claims and all of the other issues that surround that," he said.

A productive partnership between the two nations is "very important" to Asia-Pacific security, the admiral said.

"I think the good news is that ... we're in a position in the coming months and years to continue to have a productive dialogue," he added.

U.S.-CAMBODIA RELATIONS

Map Credit:  U.S. State Department Website:
FROM:  U.S. DEPARTMETN OF STATE
U.S. Relations With Cambodia
Bureau of East Asian and Pacific Affairs
Fact Sheet
June 13, 2012
Over the last several decades of the 20th century, the United States and Cambodia established, broke off, and reestablished relations as a result of armed conflict and government changes in Cambodia. Full diplomatic relations were established after the freely elected Royal Government of Cambodia was formed in 1993. In recent years, bilateral relations between the U.S. and Cambodia have deepened and broadened. The two countries have worked together to increase trade and address challenges from promoting regional security and democracy to expanding global health and development. The U.S. supports efforts in Cambodia to combat terrorism, reduce the prevalence of HIV/AIDS, build democratic institutions, promote human rights, foster economic development, eliminate corruption and trafficking in persons, achieve the fullest possible accounting for Americans missing from the Indochina conflict in the 1960s and 1970s, and to bring to justice those most responsible for serious violations of international humanitarian law committed under the 1975-79 Khmer Rouge regime.

U.S. Assistance to Cambodia
Cambodia is at peace after decades of conflict, although important challenges remain. Cambodia relies heavily on foreign assistance--about half of the central government budget depends on donor aid. U.S. assistance makes significant contributions to the country’s development. In 2010, U.S. Agency for International Development (USAID)-administered assistance was approximately $70 million for programs in health, education, governance, and economic growth.

Bilateral Economic Relations
Cambodia's economy suffers from the legacy of decades of war and internal strife. The economy is heavily dollarized; the dollar and riel can be used interchangeably. The U.S. normalized economic relations with the country in 1992 and is one of Cambodia's major trading partners. Manufacturing output is concentrated in the garment sector, and garments dominate Cambodia's exports, especially to the U.S. and the European Union.

Cambodia's Membership in International Organizations
Cambodia became a member of the United Nations in 1955 following independence from France in 1953. Cambodia and the United States belong to a number of the same international organizations, including the UN, International Monetary Fund, World Bank, and World Trade Organization.

ESA Portal - Germany - Untersuchung des Erdinneren aus dem All

ESA Portal - Germany - Untersuchung des Erdinneren aus dem All

COURT ORDERS OWNER AND TRADING COMPANY TO PAY RESTITUTION, CIVIL PENALTIES TO SETTLE CFTC CHARGES

FROM:  U.S. COMMODITY FUTURES TRADING COMMISSION
Federal Court in Illinois Orders Defendants Richard C. Regan and Pro Trading Course, LLC to Pay More than $600,000 in Restitution and Civil Monetary Penalties to Settle CFTC Anti-Fraud Action
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that Judge James B. Zagel, of the U.S. District Court for the Northern District of Illinois, entered an order of default judgment and permanent injunction against defendants Richard C. Regan (Regan) and Pro Trading Course, LLC(PTC), both of La Jolla, Calif.

The court’s order stems from a CFTC enforcement action filed on December 7, 2011, that charged the defendants with fraudulently soliciting members of the public to enroll in a commodity futures training program .

The order, entered on May 29, 2012, requires the defendants jointly and severally to pay a $461,100 civil monetary penalty and restitution of $232,200. The order also imposes permanent trading and registration bans against the defendants and prohibits them from violating the Commodity Exchange Act and CFTC regulations, as charged.

The order finds that PTC, through Regan and its employees, used false and misleading promotional material and sales solicitations, which overstated the advancement opportunity and profit potential of PTC’s commodity futures training program. The defendants also failed to disclose that not one of the 126 clients who completed PTC’s training and became PTC proprietary traders ever advanced beyond Level 1 of the program, according to the order. In addition, no PTC trader ever met the monthly profit targets set by Regan or received profit “payouts” approximating those depicted on the “Payout Charts” Regan prepared, the order finds.

The order further finds that PTC, through Regan and its sales associates, used false and misleading promotional material and sales solicitations to sell access to PTC’s Virtual Trading Room (VTR). This created the impression that VTR sessions involved actual commodity futures trading, but they failed to disclose that Regan and his team placed only simulated trades while conducting VTR sessions.

The CFTC appreciates the assistance of the National Futures Association.

BROOKLYN DOCTOR CONVICTED OF MEDICARE AND INSURANCE FRAUD

FROM:  U.S. DEPARTMENT OF JUSTICE
Friday, June 15, 2012
Brooklyn Doctor Convicted for Role in Medicare and Private Insurance Fraud Scheme
WASHINGTON – A Brooklyn board-certified colorectal surgeon, who owned and operated a New York medical clinic, was convicted for his role in a fraud scheme that billed Medicare and numerous private insurance companies for surgeries and other complex medical procedures that were never performed, the Department of Justice, FBI and Department of Health and Human Services (HHS) announced today.

On Wednesday, June 13, 2012, after a two-week trial in federal court in Brooklyn, a jury found Boris Sachakov, M.D., 43, guilty of one count of health care fraud and five counts of health care false statements.

The trial evidence showed that from January 2008 to January 2010, Sachakov, who owned and operated a clinic called Colon and Rectal Care of New York P.C., defrauded Medicare and private insurance companies by billing for surgeries and medical services that he never provided.  According to trial testimony, several private insurance companies began investigating Sachakov after receiving complaints from patients that Sachakov had submitted claims for surgeries, including hemorrhoidectomies, that he never performed.  

At trial, 11 of Dr. Sachakov’s patients testified that they had not received the surgeries and other medical services for which Sachakov had billed their insurance companies.  The evidence presented at trial showed that the medical records Dr. Sachakov created and maintained on these patients, including letters to the patient’s referring doctors, did not support the extensive billings he submitted.  After Dr. Sachakov was confronted by two insurance companies about complaints of billings for surgeries that did not happen, the evidence at trial showed that Dr. Sachakov sent letters to his patients, asking them to falsely certify in writing that they had received the phony surgeries.

The indictment alleged that Sachakov submitted and caused the submission of over $22.6 million in false and fraudulent claims to Medicare and private insurance companies, and received more than $9 million on those claims.

At sentencing, scheduled for Sept. 24, 2012, Sachakov faces a maximum penalty of 35 years in prison and an $18 million fine.

The charges were announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; Assistant Director-in-Charge Janice K. Fedarcyk of the FBI’s New York field office; and Special Agent-in-Charge Thomas O’Donnell of the HHS Office of Inspector General (HHS-OIG).

The case is being prosecuted by Trial Attorney Sarah M. Hall and Assistant Chief William Pericak of the Criminal Division’s Fraud Section.   The case was investigated by the FBI, HHS, the New York State Office of Medicaid Inspector General and the New York State Department of Financial Services, Criminal Investigative Division.

The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section.   The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.

Since their inception in March 2007, strike force operations in nine districts have charged 1,330 defendants who collectively have falsely billed the Medicare program for more than $4 billion.  In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

CLOUD COMPUTING, THE NEXT IT REVOLUTION

FROM:  U.S. GENERAL SERVICES ADMINISTRATION
Statement of Dr David McClure "The Next IT Revolution? Cloud Computing Opportunities and Challenges"

STATEMENT OF

Dr. David McClure

Associate Administrator

Office of Citizen Services and Innovative Technologies

General Services Administration

BEFORE THE

HOUSE SCIENCE, SPACE AND TECHNOLOGY COMMITTEE

SUBCOMMITTEE ON TECHNOLOGY AND INNOVATION

September 21, 2011
"The Next IT Revolution? Cloud Computing Opportunities and Challenges"
Chairman Quayle and Members of the Subcommittee:
Thank you for the opportunity to appear before you today to discuss the General Service
Administration's (GSA) leadership role in ongoing efforts to enable and accelerate adoption of cloud computing across the federal government. Cloud adoption is a critical component of the Administration’s plan to improve management of the government’s IT resources. The reforms underway are enabling agencies to use information more efficiently and effectively, delivering improved mission results at lower cost.

Cloud computing offers a compelling opportunity to substantially improve the efficiency, agility and performance of the federal information technology portfolio. It allows agencies to pay only for the resources they use in response to fluctuating demand, avoid the expenses of building and maintaining costly IT infrastructure, and control the appropriate level of security for data and applications. Cloud computing is also a key technology for achieving cost effective IT. In fact, agencies have already started to realize numerous benefits as they begin to adopt cloud computing across their programs. These include cost reduction, faster deployment of systems and applications, increased productivity, greater flexibility and scalability and improved self-service capabilities. As agencies consolidate and virtualize their data centers, cloud provides an ideal path forward to achieve needed results while substantially lowering costs – an essential focus given federal budget constraints.

GSA is playing a leadership role in facilitating easy access to cloud-based solutions from
commercial providers that meet federal requirements, enhancing agencies’ capacity to analyze viable cloud computing options that meet their business and technology modernization needs, and reducing barriers to safe and secure cloud computing. We are developing new cloud computing procurement options with proven solutions that leverage the government’s buying power, ensuring effective cloud security and standards are in place to lower risk, and identifying and leveraging government-wide uses of cloud computing solutions such as email.

These are highlighted on our web page Info.Apps.gov, which provides useful information about cloud computing and available solutions. The Administration’s efforts to apply rigor to information technology management and foster cloud adoption is framed by several key guidance documents and policies, including the OMB 25 Point Implementation Plan to Reform Federal Information Technology Management and the Federal Cloud Computing Strategy issued by the federal CIO’s office. The initiatives being implemented in response to these documents are making significant progress tackling long standing challenges in the way IT is acquired and managed. These reforms are also meeting the Administration’s goals to make government more responsive, operationally effective, cost efficient, transparent, participatory, collaborative, and innovative for the citizens it serves.

The Subcommittee asked that I address the four questions outlined below.
(1) Please provide an overview of how the General Services Administration (GSA) is
implementing the Office of Management and Budget’s (OMB) 25 Point Implementation
Plan to Reform Federal Information Technology Management, the OMB Federal Data
Center Consolidation Initiative, and the Federal Chief Information Officer’s Federal
Cloud Computing Strategy. GSA plays a central role in realizing the goals set forth in the Administration’s initiatives and strategies to reform IT management, consolidate data centers and implement cloud computing  Below are the primary initiatives underway to achieve the policy goals of Data Center Consolidation, the Cloud Computing Strategy and the specific objectives of the 25 Point Plan. Below is an overview of the work we are conducting to support specific objectives of the Federal IT Reform Strategy. Each objective of the 25 Point IT Reform Plan for which GSA is directlyresponsible is identified in bold; the specific section is in parenthesis.Complete detailed implementation plans to consolidate at least 800 data centers by 2015.

(#1)
Create a government-wide marketplace for data center availability (#2)
The Federal Data Center Consolidation Initiative (FDCCI), managed jointly by GSA and OMB, is charged with reversing the federal government’s explosive data center growth to optimize and improve efficiency of federal IT infrastructure. The FDCCI is chartered to engage with agencies, support and facilitate agency data center consolidation planning, and to provide tools to federal partners.

Under the FDCCI, GSA is accomplishing the following:
Working with a government-wide task force co-chaired by DHS and DOI that meets
monthly and includes representatives from all 24 CFO Act agencies.

Assisting agencies to maximize the return on investments for data centers to remain in
their inventory after consolidation Ensuring consistent data collection of the federal data center inventory by developing
and disseminating standard templates to collect, manage, and analyze agency data
center inventory data.

Collaborating with industry on best practices and solutions for key data center
consolidation issues. Developing a comprehensive data center Total Cost Model for agencies to use to
analyze alternative consolidation scenarios, enable data-driven decision-making for
infrastructure cost and performance optimization.

Pursuing development of a data center marketplace that would help optimize
infrastructure utilization across government by matching agencies with excess
computing capacity with those that have immediate requirements. A working group is
addressing consensus-building, requirements gathering, and other key facets necessary
to ensure the marketplace’s success. Stand up contract vehicles for secure IaaS solutions

(#4)
IT infrastructure represents a multi-billion dollar investment that requires constant maintenance, expensive technology upgrades, and dedication of valuable personnel. Agencies are faced with outdated infrastructure requiring ongoing, major investments to keep pace with growing demand and rapidly changing technology. Servers across both government and industry are highly underutilized. To address these issues, GSA’s Federal Acquisition Service (FAS) established a Blanket Purchase Agreement (BPA) with 12 companies (many with multiple partners) that offer cloud storage, computing power, and cloud-based website hosting as commodity services that enable agencies to optimize their infrastructure and achieve substantial, long-term cost savings.

Under these Infrastructure as a Service (IaaS) contracts, agencies pay only for what they need, define performance requirements, have the flexibility to respond to changing demands, benefit from commodity pricing, and are assured of secure solutions. At present, four contractors are offering services under the BPA, with the remaining completing the security authorization process. DHS has recently awarded a task order under this BPA for the consolidation and migration of its public facing websites to a cloud hosting service. Stand up contract vehicles for commodity services

(#5)
Working closely with email and collaboration experts from across government, GSA developed a government-wide contract vehicle to help agencies move email and collaboration solutions to the cloud. The Email as a Service (EaaS) BPA is an active procurement managed by FAS; responses are currently being evaluated. It will offer federal customers a streamlined procurement vehicle to commercially available cloud email solutions that best fits their agency's needs. Based on information from Forrester Research, average cost savings for agencies migrating to cloud-based email are expected to be $11/mailbox/month, $1 million in annual savings for every 7,500 users, or approximately 44% over existing on-premise email solutions.

The BPA will offer a range of email services in public, private, and highly secured clouds,
making available robust, feature-rich, secure email and collaboration service options similar to those currently being implemented at GSA, USDA, USAID, DOE, and other agencies. It can meet the needs of the 15 agencies that have identified 950,000 e-mail boxes they plan to move to the cloud under the Administration’s IT Reform effort. Launch an interactive platform for pre-RFP agency-industry collaboration

(#25)
To streamline the procurement process and enhance communication with industry, GSA is
establishing "cross-trained" program teams and improving the way requirements are defined. GSA is working to establish an interactive platform for pre-RFP agency-industry collaboration. Based on input from government and industry, alternatives for design and delivery of an online collaboration tool have been examined and rated. Candidates for the tool included existing government systems and commercial collaboration tools.

GSA not only is fostering adoption of cloud computing government-wide, but as required under the Cloud First policy, has recently completed a major cloud migration of our internal email and collaboration solution that demonstrates the significant potential of cloud solutions to achieve substantial cost savings. In approximately seven months, we moved 17,000 users to Google Apps for Government. Savings over the next five years are projected to be over $15M. Not only have we reduced costs, but we have also made significant gains in environmental sustainability – we shut down 45 servers, which is equivalent to taking 60 cars off the road. The lessons learned from our cloud implementation have been captured and are being shared with agencies across the government as they seek to achieve similar success.

2. Please provide an overview of the costs associated with implementing these plans at
GSA, and provide a description of both the short-term and long-term budgetary impacts of these changes. To date, GSA’s Federal Cloud Computing Initiative has been funded under the e-Government program administered by the Federal Chief Information Officer. In FY10 and FY11 GSA’s Federal Cloud Computing Initiative (FCCI) Program Management Office (PMO) budget of $4.8 million was allocated to five primary tasks:

Establish procurement vehicles that allow agencies to purchase IT resources as
commodities - resulting in the award of the Infrastructure as a Service (IaaS) Blanket
Purchase Agreement under GSA Schedule 70.

Address security risks in deploying government information in a cloud environment -
resulting in the development of the Federal Risk Authorization Management Program
(FedRAMP)

Establish a procurement vehicle that allows agencies to purchase cloud-based e-mail
services - resulting in the issuance of the Email as a Service (EaaS) procurement that is
currently underway

Work with agencies to consolidate their data center asset - resulting in the Federal Data
Center Consolidation Initiative that works with agencies to inventory their data center
assets and to identify targets for consolidation and optimization

Create apps.gov, an on-line storefront that provides access to over 3,000 cloud-based
products and services where agencies can research solutions, compare prices and
place on-line orders using GSA’s eBuy system.

This initial funding provided by the e-Gov Fund allowed GSA to accomplish significant results. However, there are key activities that still need to be accomplished to realize the significant, additional potential cost savings and productivity improvements that GSA can help agencies achieve. The continuation of these cost-saving initiatives is dependent on FY12 eGov Fund budget levels and decisions.

3. What cybersecurity steps is the GSA taking to protect federal data and communications in the cloud? To what extent does GSA work with NIST on the development of cybersecurity standards for federal cloud computing use?

The primary goal of the Administration’s Cloud First policy is to achieve widespread practical use of secure cloud computing to improve operational efficiency and effectiveness of government. Currently, each agency typically conducts its own security Certification and Accreditation (C&A) process for every system it acquires, leading to unnecessary expense, duplication and inconsistency. According to the 2009 FISMA report to Congress, agencies reported spending $300M on C&A activities alone. Working in close collaboration with DHS, NIST, DoD and OMB and the Federal CIO Council,
GSA is leading establishment of the Federal Authorization Risk Management Program
(FedRAMP) to accelerate adoption of secure cloud solutions by agencies across government.

Key benefits include:
Provides a single, consistent security risk assessment and authorization that can be
leveraged across agencies – an "approve once, and use often" approach

Establishes a common set of baseline security assessment and continuous monitoring
requirements using NIST standards

Approves and makes available qualified, independent third party assessors, ensuring
consistent assessment and accreditation of cloud solutions and based on NIST’s proven
conformity assessment approach

Shifts risk management from annual reporting under FISMA to more robust continuous
monitoring, providing real-time detection and mitigation of persistent vulnerabilities and
security incidents.

There is strong support and demand for FedRAMP from agencies seeking to adopt cloud
services, as required by the Administration’s Cloud First policy, and from industry. FedRAMP's processes, policy, governance, and technical security standards have all been arrived at via a consensus-based approach that includes agencies’ Chief Information Security Officers, the Federal CIO Council, National Institute of Standards and Technology (NIST), Department of Homeland Security (DHS), Department of Defense (DoD), National Security Agency (NSA), and numerous industry organizations. This new program is expected to be initially launched this Fall.

4. What other challenges face federal agencies in adopting cloud computing services,
and what steps is the GSA taking to overcome these challenges?
Considerable progress has been made in adopting successful cloud solutions. Cloud computing’ is now an accepted part of the federal IT lexicon. However, there continues to be a need for more thorough understanding of the cloud’s deployment models, unique security implications, and data management challenges. Agency executives should not focus on cloud technology itself; rather, they should focus on the desired outcome driving the need for cloud adoption.

CIOs need to work with their line of business executives and program managers to develop and deploy effective cloud roadmaps that address pressing agency mission needs, taking into account costs savings and expected performance improvements. Agencies should analyze business needs and identify cloud solutions that best fit their requirements by making cloud adoption part of an overall IT portfolio management and sourcing strategy. NIST is currently working on a Cloud Computing Technology Roadmap that will be released in November. If linked to cloud provider products and services, it would greatly assist in this decision-making.

Cultural resistance is also a major challenge. Cloud adoption requires moving away from
managing physical assets to buying services. As GSA’s own experience has shown, these
issues can be effectively addressed. Critical success factors include robust communication,
practical training and emphasis on the benefits of cloud, and especially on the control agencies gain by buying what they need and defining performance metrics that are tied to desired performance results. GSA found that having a group of early adopters fostered buy-in and enthusiasm, and provided a ready corps of skilled users.

Conclusion
Mr. Chairman, General Services Administration is leading the Administration’s charge to make government more open, transparent, and effective for the citizens it serves. In our increasingly data-centric and network-based world and workplace, effective and efficient procurement and implementation of information technology will be paramount in making sure the federal government closes the IT performance gap between it and the private sector. Cloud computing and data center consolidation are key initiatives that should be pursued aggressively to achieve needed costs savings and improve effectiveness of government operations.

Thank you for the opportunity to appear today. I look forward to answering questions from you and members of the Subcommittee.

VICE PRESIDENT JOE BIDEN SALUTES MILITARY FAMILIES AT H.S. GRADUATION

Photo Credit:  U.S. Department of Defense.
FROM:  AMERICAN FORCES PRESS SERVICE
Biden Salutes Military Families at High School Graduation
By Lisa Daniel
WASHINGTON, June 15, 2012 - Vice President Joe Biden yesterday paid tribute to military families at a high school graduation ceremony in Virginia Beach, Va., where many students and staff are connected to the services.

At least 37 graduates of Tallwood High School's 2012 graduating class plan to enlist, Biden said as he gave the commencement address.

"It's great to be in a town that has such respect for our military and such great tradition, and such a wonderful group of graduates," Biden said. He asked the graduates who have military family members to raise their hands and be recognized, then asked those in the audience to stand if they served in the military and served overseas. "We owe you," he said as they stood, "we owe you."

The vice president noted that more than 2.8 million Americans have served in the military since 9/11. More than half "have been in and out of Afghanistan and Iraq, many of them multiple times," he said. "Your parents and siblings put their lives on the line for this country. And they were asked to do so much more than just fight."

"You're inheriting an incredible tradition, because they were asked to take on responsibilities beyond their base or battlefield," he continued. "Young men and women that I have witnessed more than two dozen times, steeped in military doctrine, have had to master the intricacies of tribal politics, deal with issues ranging from lack of electricity to unemployment, to currency exchange to taxation."

Biden saluted the "remarkable, remarkable group of military men and women we have today -- the finest generation of warriors in the history of not only the United States, but the history of the world. So thank you all who have served. "

Biden also thanked the families of those who deployed for their service. He quoted the 17th century British poet, John Milton, who wrote, "They also serve who only stand and wait," and noted his son Beau Biden's year-long deployment to Iraq. "I watched the impact on my grandchildren -- the games missed, the birthdays missed, the Christmases missed, the empty seat at Thanksgiving dinner," he said.

"So from the bottom of my heart, on behalf of a grateful nation, I thank all of you who are the brothers, sisters, mothers, fathers, spouses of those who have put themselves in harm's way in the last decade and beyond," the vice president said. "Thank you, thank you, thank you."

Biden told the graduates that the school, which houses a Global Studies and World Languages Academy, prepared them for more than "just mastering their studies." One thing the students learned, he said, "is that in order for this nation to lead the world and you to be leaders in the world, you have to understand the world. You have to participate in the world."

Biden said he was impressed that 76 graduates took part in the academy, and learned to speak at least one foreign language. "You've had a chance to put those language skills to the test by video-conferencing with others halfway around the world," he said. "And I guarantee you most of you will have a chance to put it to the test on the foreign soil of the language you've mastered. We will need you there."

The graduates studied global governments and cultures, people and their backgrounds, and learned to respect different viewpoints, Biden said. "Most of all, you've gained perspective, whether it's in the service of your family or in participating in a program. And that matters," he said.

"No one can tell you how small the world has become better than those who raised their hands a few moments ago who served abroad," Biden said. "As this world of ours continues to shrink, what happens in a remote province in Pakistan, Nigeria, Brazil, is known around the world in a matter of minutes."

Biden said he had simple advice for the graduates: Think big and imagine. Their greatest challenge, he said, will be in learning how to deploy emerging technologies wisely.
"Deploying it wisely means infusing technology with our oldest values -- values that you have learned here," he said. "The values of tolerance, respect, understanding. These are not some obsolete, old notions that don't matter anymore. The more advanced and shrunk the world becomes, the more critical those values become. They mean more than ever."
The vice president said he is confident in the graduates' abilities to meet U.S. and global challenges head on.

"I am absolutely confident in your ability to meet the challenges I have laid out head on, and to bend them -- to bend them -- to your will in your and our moral precepts," he said. "I'm confident of that because of where you come from, how you were raised, what you learned at this fine school, but most of all because who you are."

FINDING JOBS FOR SERVICE MEMBERS AND VETERANS

FROM:  AMERICAN FORCES PRESS SERVICE
Labor Department Paves Job Path for Service Members, Vets
By Terri Moon Cronk
FORT MEADE, Md., June 14, 2012 - Department of Labor officials are reaching out to let transitioning service members and veterans know about the department's many training programs to give them a successful path to employment.
From workshops to job fairs and one-on-one training, DOL is committed to connecting veterans with jobs, Junior Ortiz, DOL's deputy assistant secretary for Veterans' Employment, told American Forces Press Service.

"We are the employment arm of the government [and] the DOL is charged to take care of employment issues, ... but specifically for our veterans," he said. "We must make sure our veterans are employed."

Labor Secretary Hilda L. Solis is "very committed to making sure that we take care of our veterans," Ortiz said. Solis has said, 'Our veterans have taken care of us. Now it's time for us to take care of them,'" he said.

As many as 1.5 million service members are expected to transition out of the military during the next five years, said Ortiz, a former Marine Corps officer.

"We have a lot of young men and women coming out of the service who are having a hard time finding something," he said, "because they don't realize the resources are out there ... to help them find good opportunities and perhaps great careers."

"We prepare them, we provide the information and skills they need to find good jobs and we protect their rights," he said.

"DOL has so many facilities and so many pieces that help a veteran, it's like being on a military team," he added.

Ortiz outlined just a few of DOL's resources for transitioning service members and veterans:

--The Transition Assistance Program, also known as the Employment Workshop, ensures service members have the information they need to make a successful transition back to civilian life, and helps them determine how their military skills transfer to civilian jobs – something Ortiz says people underestimate.

"That's one of the biggest problems we have," he said of service members who aren't sure how to market themselves for a job. "We teach them how to translate [their military experience] to a resume and their skill sets into viable aspects so they can get a job," he said.

--The One-Stop-Career centers -- 2,800 nationwide -- help people obtain training and other support to secure a job. The center serves as a resource to explore careers, salaries and benefits, obtain education and training, do job searches, learn how to write resumes and do interviews.

Transitioning service members become part of the DOL's Gold Card Initiative following completion of TAP. The gold card gives them six months of intensive one-on-one work with a veterans outreach program. "The gold card is a great way to get them to a One-Stop-Career center and set them up for a good job," Ortiz said.

-- My Next Move for veterans helps transitioning service members determine their eligibility for jobs. By putting their military occupational specialty into a program to find a civilian-equivalent job, they're coached on how to compete for a job, what it pays, and how and where those particular jobs are available across the country, Ortiz said. The program also allows service members to apply for jobs online.

-- Hiring Our Heroes is a DOL program that partners with the U.S. Chamber of Commerce to conduct job fairs in cities across the country, Ortiz said. Hiring officials from the local area talk to transitioning service members and veterans about their companies, and can interview and even hire them on the spot or later, he said.

-- The Veterans Retraining Assistance Program is training in which DOL, the Veterans Affairs Department and other agencies work together to give veterans' employment "the full push," Ortiz said. DOL and the VA have created a seamless transition in VRAP, he said, to help veterans find jobs. It is open only to veterans who are between the ages of 35 and 60, unemployed and have exhausted all benefits for job training.

Under VRAP, Ortiz said, DOL determines a veteran's eligibility, then VA works with them to decide what abilities they have. The VA also arranges for training and certification in their field, and returns them to DOL to begin looking for work through the One-Stop-Career center program.

Service members have grown up in the military culture of success, and working as a team is their mindset until they look for a job on their own, Ortiz said.

"They don't have that person in front, beside or behind them to protect them anymore," he said. "We train them to be successful. ... We want to transition them and let them know that they, in fact, do have a person in front, right next to them and behind them."
Because service members sometimes struggle to translate military skills into civilian job skills, Ortiz suggests hiring officials put the resume aside in an interview and rely more on talking to the veteran applicant. "Nine times out of ten, what the hiring official is looking for, that individual already has," he said.

"I tell [hiring managers], 'Do you really think an 18-year-old kid who came into the service and learned how to put together and take apart a radar system of an F-18 aircraft really had all those skill sets when he first walked in? He or she had to learn those things. And if they're able to do that, imagine what they'll be able to do in any company.'"
There also are the "intangibles" of employing veterans, he said, such as loyalty, duty, honor, trustworthiness, a solid work ethic, and how as team members, they work under pressure.

"You have someone who will work because it's part of their culture," Ortiz said. "They want to be successful ... and bringing that success in will also build the company up."

ALLEGED CREDIT CARD TRAFFICKER EXTRADITED FROM FRANCE TO THE U.S.

FROM:  U.S. JUSTICE DEPARTMENT
Friday, June 15, 2012
Alleged International Credit Card Trafficker “Badb” Extradited from France to the United States
WASHINGTON – Vladislav Anatolievich Horohorin, aka “BadB” of Moscow, an alleged international credit card trafficker thought to be one of the most prolific sellers of stolen credit card data, has been extradited from France to the United States to face criminal charges filed in the District of Columbia and in the Northern District of Georgia.

The extradition was announced today by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Ronald C. Machen Jr. for the District of Columbia, U.S. Attorney Sally Quillian Yates of the Northern District of Georgia, U.S. Secret Service (USSS) Assistant Director for Investigations David J. O’Connor, and Special Agent in Charge Brian D. Lamkin of the FBI’s Atlanta Field Office.

Horohorin, 27, made his first appearance before U.S. District Judge Ellen Segal Huvelle in the District of Columbia yesterday.  He was extradited to the United States on June 6, 2012, and was arraigned before U.S. Magistrate Judge Alan Kay in the District of Columbia on June 7, 2012.  He was ordered detained pending trial.

“According to the indictment, Mr. Horohorin was one of the most notorious credit card traffickers in the world, transacting in stolen credit information across the globe,” said Assistant Attorney General Breuer.  “Due to our strong relationships with our international law enforcement partners, we secured his extradition to the United States, where he now faces multiple criminal counts in two separate indictments.  We will continue to do everything we can to bring cybercriminals to justice, including those who operate beyond our borders.”

“Our indictment alleges that this young man used his technological savvy to profit by selling stolen credit card information over the Internet on a massive scale,” said U.S. Attorney Machen.  “We are pleased that he has been extradited to the United States to face these criminal charges in a District of Columbia courtroom.  This prosecution demonstrates that those who try to rip off Americans from behind a computer screen across an ocean will not escape American justice.”

“The Secret Service is committed to identifying and apprehending those individuals that continue to attack American financial institutions and we will continue to work through our international and domestic law enforcement partners in order to accomplish this,” said USSS Assistant Director O’Connor.

“International cyber criminals who target American citizens and businesses often believe they are untouchable because they are overseas,” said U.S. Attorney Yates.  “But as this case demonstrates, we will work relentlessly with our law enforcement partners around the world to charge, find and bring those criminals to justice.”

“Horohorin’s extradition to the United States demonstrates the FBI’s expertise in conducting long-term investigations into complex criminal computer intrusions, resulting in bringing the most egregious cyber criminals to justice, even from foreign shores,” said Special Agent in Charge Lamkin.  “The combined efforts of law enforcement agencies to include our international partners around the world will ensure this trend continues.”
Horohorin was indicted by a federal grand jury in the District of Columbia in November 2009 on charges of access device fraud and aggravated identity theft.  In a separate investigation, a federal grand jury in the Northern District of Georgia returned a superseding indictment against Horohorin in August 2010, charging him with conspiracy to commit wire fraud, wire fraud and access device fraud.  In August 2010, French law enforcement authorities, working with the U.S. Secret Service, identified Horohorin in Nice, France, and arrested him as he was attempting to board a flight to return to Moscow.

According to the indictment filed in the District of Columbia, Horohorin was the subject of an undercover investigation by USSS agents.  Horohorin, who is a citizen of Israel, Russia and Ukraine, allegedly used online criminal forums such as “CarderPlanet” and “carder.su” to sell stolen credit card information, known as “dumps,” to online purchasers around the world.  According to the indictment, Horohorin, using the online name “BadB,” advertised the availability of stolen credit card information through these web forums and directed purchasers to create accounts at “dumps.name,” a fully-automated dumps vending website operated by Horohorin and hosted outside the United States.  The website was designed to assist in the exchange of funds for the stolen credit card information.  Horohorin allegedly directed buyers to fund their “dumps.name” account using funds transferred by services including “Webmoney,” an online currency service hosted in Russia.  The purchaser would then access the “dumps.name” website and select the desired stolen credit card data.  Using an online undercover identity, USSS agents negotiated the sale of numerous stolen credit card dumps.

According to the indictment filed in the Northern District of Georgia, Horohorin was one of the lead cashers in an elaborate scheme in which 44 counterfeit payroll debit cards were used to withdraw more than $9 million from over 2,100 ATMs in at least 280 cities worldwide in a span of less than 12 hours.  Computer hackers broke into a credit card processor located in the Atlanta area, stole debit card account numbers, and raised the balances and withdrawal limits on those accounts while distributing the account numbers and PIN codes to lead cashers, like Hororhorin, around the world.

Horohorin faces a maximum penalty of 10 years in prison for each count of access device fraud, 20 years in prison for each count of conspiracy to commit wire fraud and wire fraud and a statutory consecutive penalty of two years in prison for the aggravated identity theft count.

The charges in the indictments are merely allegations and a defendant is presumed innocent until proven guilty.

The District of Columbia case is being prosecuted by Trial Attorneys Carol Sipperly, Ethan Arenson and Corbin Weiss of the Computer Crime and Intellectual Property Section (CCIPS) in the Justice Department’s Criminal Division.  Weiss also serves as a Special Assistant U.S. Attorney for the District of Columbia.  The District of Columbia case is being investigated by USSS.  Key assistance was provided by the French Police Nationale Aux Frontiers and the Netherlands Police Agency National Crime Squad High Tech Crime Unit.  The FBI Atlanta field office provided information helpful to the investigation.
The Northern District of Georgia case is being prosecuted by Assistant U.S. Attorneys Nick Oldham and Lawrence R. Sommerfeld and Trial Attorney Sipperly of CCIPS.  The Atlanta case is being investigated by the FBI.  Assistance was provided by numerous law enforcement partners.  U.S. Secret Service provided information helpful to the investigation.

The Office of International Affairs in the Justice Department’s Criminal Division provided invaluable assistance.

U.S. Department of Defense Armed with Science Update

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