FROM: THE WHITE HOUSE
Press Briefing by Senior Administration Officials on the Fact Sheet on Strengthening U.S.-China Economic Relations
Aboard Air Force Two
En Route Seoul, South Korea
6:33 P.M. (Local)
SENIOR ADMINISTRATION OFFICIAL: This is SAOs, so everyone knows -- SAOs.
SENIOR ADMINISTRATION OFFICIAL: Okay. Well, I mean, I think you heard the Vice President talk about the importance of the relationship on a whole variety of dimensions. We’ve been talking a lot about the security dimensions during his visit, but of course a very important piece of the agenda is on economic and trade issues. And maybe you’ve heard the Vice President talk about how we have a stake in each other’s success, about the need for practical cooperation that helps demonstrate to the American people and also to the Chinese people that this relationship is working, that this kind of a visit is generating and advancing the kind of cooperation that we’re trying to do across the board, but especially in the economic and trade space.
And in the course of this visit and during the Vice President’s meetings, we’re working on a number of issues on energy, on climate, on food and drug safety. Coming out of these discussions, coming out of some discussions on the sidelines of the visit, we reached agreement on a number of things that my colleague will be able to outline in detail both what they are and the significance of them as you see in the fact sheet.
But I guess the sort of broader point or just the sort of context-setting point is that we’ve been talking a lot on this visit about the ADIZ issue, about some of the security issues in the relationship, but I just sort of want to make the broader point that this is -- that this set of issues is actually a very big piece of business here. And we are constantly trying to use visits like this to advance our agenda on a whole number of aspects. And the economic and trade one is the way that we used part of the Vice President’s time, but also in some of the discussions leading up to this visit.
And this will continue past the visit. We have our Joint Commission on Commerce and Trade, which is where we have our top economic and trade negotiators getting together in just a week or so. So they’re going to continue that. And the Vice President talked about some things with his Chinese counterparts that they’re going to be able to continue to work on over the course of the coming days and weeks.
So why don’t I turn to my colleague to talk a little bit about what we are announcing today.
SENIOR ADMINISTRATION OFFICIAL: Hi. So just to start off on the climate side obviously is the two largest emitters -- we have a special responsibility and opportunity working together. And today, we reaffirmed the agreements on the HFCs that the two presidents had reached in Sunnylands originally, and expanded in St. Petersburg. We also reached agreement that China would work with us to design and then implement much more aggressive emissions controls and standards for vehicles -- low-sulfur fuel and vehicle emissions, known as the China VI standards, which is the first time that they’ve committed to that.
We also reached agreement that there would be effort and resources devoted on both sides to the work of the energy -- the climate -- sorry, the climate working group that was set up, as my colleague mentioned, at the S&ED. And there were five areas in that to be looked at by that working group. And it was agreed today that we would make significant progress, concrete progress by the next S&ED, which is in the summer of 2014. So it’s really giving a push forward to that work.
We also agreed to work together in the UNFCCC negotiations and to work in close cooperation and leader-level discussions. And we’re, as you know, moving towards the 2015 COP in Paris of the UNFCCC, so this is going to be a very important period going forward in the multilateral -- in those multilateral negotiations.
On energy transparency, China agreed today to make important steps towards greater transparency by providing more complete and more frequent data releases on their energy situation -- production, consumption and stocks -- and to have stronger cooperation with this process called JODI, J-O-D-I, which is the Joint Organizations Data Initiative.
Secondly, we reached agreement to information -- to cooperate basically on the management of strategic petroleum reserves with annual meetings and information exchanges. We also -- China agreed to participate in a peer review of fossil-fuel subsidies, which is the next step in the implementation of the G20 commitment to phase out, and they reaffirmed the commitment to phase out inefficient fossil-fuel subsidies. This is all consistent with their move towards better pricing of energy.
And finally, on energy, they agreed -- China agreed to -- we agreed to work with them to open up their shale gas to investment and development.
And then on the food and drug safety and innovation, we import a lot of food from China now and it’s important for both parties that this should be safe, and we have some FDA inspectors on the ground in China, but not enough. And China today agreed to increase the number -- increase the visas supplied for these inspectors, and we’ll reach agreement in January 2014 on how that will be operationalized. But I know that the FDA will be very pleased.
We also reached an important agreement on things called APIs, which are these bulk chemicals that can be used in drug manufacture. And China agreed to begin to develop a framework for -- a regulatory framework for these chemical compounds. And there will be more work on that, but it’s an important step forward in drug safety.
And then finally, on innovation, is this issue about patents for pharmaceuticals, that as technologies change, manufacturers want to add elements to patents. And there was -- China affirmed that this kind of development of patents would be possible now, which supports drug innovation and will be an important win for our industry.
So that’s the main items in those buckets.
Q Could I ask a very general question about TPP that just sort of interests me. Did you get any sense from your conversations that the Chinese are viewing TPP less as a competing regional trade pact than as something that they might find attractive down the road? In other words, has their sentiment toward TPP evolved? Is there any evidence of that?
SENIOR ADMINISTRATION OFFICIAL: We didn’t cover that in our discussions here. There have been statements beforehand, in the recent past, about -- and I think you see in the region more interest, more openness to TPP, obviously with Korea’s announcement of interest and some other countries. So I think that there’s some prospect that there’s more growing acceptance that TPP will be an open architecture agreement that will provide rules and standards for the whole region.
Q Did you guys get into any of the issues, kind of escalating concerns about WTO disputes that both had with each other on trade enforcement? That would be one. And second, since this was a pretty large portfolio being laid out, did you guys consider the sort of old model of what Ron Brown or Al Gore used to do of bringing either business leaders on the trip or NGO leaders? This is a very sizable portfolio, but the constituencies that often were part of these sorts of delegations weren’t on this trip. Had that been part of any calculation?
SENIOR ADMINISTRATION OFFICIAL: Well, let me just say a couple of things about that. I mean, first of all, the Vice President spoke to a large --
Q (Inaudible.)
SENIOR ADMINISTRATION OFFICIAL: -- the AM Cham, the U.S.-China Business Council, two of the main business groups --
Q But you didn’t have, like, the CEO of GE or the CEO of Mylan, or who all are going to benefit from a lot of these -- I mean, I’m not critiquing, I’m just wondering if it had -- it’s not that important, but --
SENIOR ADMINISTRATION OFFICIAL: Yes, I guess I would just say that, I mean, we didn’t -- you’ve seen the delegation that we had on this trip. The focus of these three areas that we’re sort of working on really are sort of focused on regulatory and policy issues with China, and between China and the United States, that will obviously have an impact on our companies trying to do business in China, trying to improve this as --
Q How about the WTO disputes?
SENIOR ADMINISTRATION OFFICIAL: On that, I would say in the discussions that the Vice President had during this trip, he raised a whole range of economic concerns that we have, as well as talked about opportunities for economic cooperation. So the kinds of issues we just made -- we reached agreement on, are the kinds of things that were talked about in the meetings. He also raised a number of other issues and concerns that we have across a range of issues, many of which he talked about in his speech, so I won’t really repeat those. But he talked about interest-rate liberalization, he talked about concerns we have around the WTO and some of the specific cases that we have concerns about. He talked about some of the third plenum reforms that are suggesting things may be going in a positive direction, but the need to speed up implementations.
So that was a kind of type of issues that he was talking about in the economic area across the meetings over the last couple of days.
Q Just on that point, because it interested me in the briefing last night, it sounded like Xi laid out this very ambitious agenda, but said a lot of this won’t really be feasible for 10 or 20 years, and the Vice President said, well, we need things that happen in the here and now. Is that a question of selecting reforms that can be done immediately, or is he just simply saying to the President, you have to move faster, you can’t expect us to wait 10 or 20 years?
SENIOR ADMINISTRATION OFFICIAL: Well, I think there are a number of different areas that they talked about in terms of -- in the context of the third plenum reforms, both what Xi indicated he’s focused on, but also some of the longstanding concerns that we have that the Vice President raised and discussed in his meetings with Xi and other Chinese leaders about some of the areas of reform, the concerns that we have and what we’d like to see going forward.
In terms of the pace, obviously some of the issues on the agenda are large, structural changes that they’re trying to make in terms of rebalancing their economy that are pretty fundamental issues that are going to obviously take a long time to develop. But I guess I’ll turn to my colleagues as well on this.
What we’ve laid out here is an example of the kinds of here-and-now issues that not only address specific concerns that we’re trying to resolve today, but also connect to the larger structural issues that they were discussing in these meetings. So there’s kind of a linkage between the kinds of issues we’re raising, the kinds of issues we’re trying to resolve, the type of cooperation we’re seeking, and the larger reform agenda that the two leaders were discussing in their meetings.
SENIOR ADMINISTRATION OFFICIAL: I agree with that. And I think that I mentioned in the area of energy and climate, and the fossil-fuel subsidy review, and the vehicle-emission standards, part of that is support for the kind of shift in their economy that they’ve laid out and that they want to do, and there are areas where we can work together on that.
Q To dovetail on Mark’s question, the Vice President talked in this trip about the third plenum reforms really being things that the United States would like to see. At the same time, we’re not seeing the kind of commitment by China to make political reforms that the United States perhaps would like to see. Does this administration think that the economic reforms can be carried out without political reforms happening at the same time?
SENIOR ADMINISTRATION OFFICIAL: Well, on that I would just point you to the Vice President’s speech today, where I think he actually spoke directly to that connection and that issue. So I don’t want to go beyond what he said today, because I think he actually laid it out quite well. He talked about the reform agenda, he talked about the kinds of things that have been laid out in the third plenum.
Q But he didn’t talk about whether one can be done without the other.
SENIOR ADMINISTRATION OFFICIAL: Well, I don’t know. I mean, I would go to what he said, because he actually -- I thought he spoke pretty directly.
Q Another question is, during the debt ceiling debate, Chinese government and central bank authorities began to sort of publicly criticize U.S. policy and responsibilities over the reserve currency status of the dollar. Did that kind of thing come up? Or was that a momentary impulse during the debt ceiling debate, and given the spate of things that you guys work on, that Chinese economic authorities didn’t continue that complaint about the dollar and sort of responsible management of it?
SENIOR ADMINISTRATION OFFICIAL: It didn’t come up. I mean, there was general agreement that both economies were doing well, and there was notice that -- the Chinese noticed that our economy was growing, and unemployment was coming down, although of course we have more work to do. So the other issue did not --
Q (Inaudible) tone --
SENIOR ADMINISTRATION OFFICIAL: Absolutely not. Absolutely not.
Q That’s interesting. Thank you.
SENIOR ADMINISTRATION OFFICIAL: Great. Thanks.
Sunday, December 8, 2013
CHEMCAM EXCEEDS 100.000 SHOTS ON MARS
 |
| Curiosity Heads To Mars. Credit: NASA |
Los Alamos’s ChemCam team fills scrapbook from Mars road trip
LOS ALAMOS, N.M., Dec. 5, 2013—The ChemCam laser instrument aboard NASA’s Curiosity rover fired its 100,000th shot recently, chronicling its adventures on Mars with a coffee-table-book’s worth of spectral data that might rival snapshots gathered during a long and satisfying family vacation here on Earth. ChemCam zaps rocks with a high-powered laser to determine their composition and carries a camera that can survey the Martian landscape.
“ChemCam has greatly exceeded our expectations,” said Roger Wiens, Los Alamos National Laboratory planetary scientist and Principal Investigator of the ChemCam Team. “The information we’ve gleaned from the instrument will continue to enhance our understanding of the Red Planet, and will nicely complement information from the other nine instruments aboard Curiosity as we continue our odyssey to Mount Sharp.”
Curiosity landed on Mars at the edge of Gale Crater near the base of Mount Sharp on Aug. 6, 2012. The rover is a rolling laboratory about the size of a small SUV that will roam the Martian landscape for at least another year in search of clues about the planet’s habitability. Using a suite of 10 instruments that can perform diverse and amazing tasks ranging from digging up and baking soil samples, to shooting rocks with pinpoint accuracy with a high-powered laser, Curiosity already has helped show scientists that Mars apparently once had a very wet history and still retains enough moisture in its dust and rocks to quench the thirst of future astronauts.
Curiosity’s laser instrument, ChemCam, fires a short laser burst that packs the wallop of nearly one million light bulbs into a single pinpoint of light to vaporize rock and dust. A camera aboard the instrument reads the spectral signature of the resultant flash and translates the information into the composition of whatever happened to be in ChemCam’s crosshairs at the moment. The instrument also has a camera that scientists have been using to survey the Martian landscape.
The ChemCam concept was developed at Los Alamos National Laboratory, but the instrument aboard Curiosity is a partnership between Los Alamos and the French national space agency, Centre National d'Etudes Spatiales (CNES) and research agency, Centre National de la Recherche Scientifique (CNRS).
The U.S. operations center for the ChemCam team is located in downtown Los Alamos. Wiens said a teleprompter showing the latest slideshows from Mars will soon be erected in downtown Los Alamos for public viewing.
“Like those family slideshows from summer vacations along Route 66, people will be able to enjoy and experience the highlights of our trip,” Wiens said. “ChemCam was designed to fire one million shots, so we’ll have lots of stories to tell later on.”
AG HOLDER'S REMARKS AT CIVIL DIVISION AWARDS CEREMONY
FROM: U.S. JUSTICE DEPARTMENT
Attorney General Eric Holder Delivers Remarks at the Civil Division Awards Ceremony
~ Wednesday, December 4, 2013
Thank you, Stuart [Delery], for those kind words, and for your exceptional leadership as Assistant Attorney General for the Civil Division. It’s a pleasure to share the stage with you today – as we come together to recognize so many dedicated colleagues; as we call attention to the progress that each of them has made possible; and as we thank them for their tireless work over the past year: in support of this Department, in pursuit of justice, and in service of the American people.
It’s a great privilege to join you in congratulating our 2013 Civil Division award recipients. And it’s an honor to help welcome all of the proud family members, friends, and distinguished guests who have taken the time to be here in the Great Hall, and whose support – and sacrifices – have been essential to everything that our awardees have accomplished. Make no mistake: every one of you shares in the recognitions that we are about to bestow.
From the robust enforcement of federal consumer protection laws, to record-setting recoveries under the False Claims Act, this year’s award recipients have secured billions of precious taxpayer dollars through affirmative litigation. By enforcing regulations to ensure the safety of medicines and food products – and by administering essential public health programs – you have helped to protect the American people. By taking on numerous cases concerning sensitive matters related to national security, you’ve fought to keep our nation both safe and strong. And you’ve done it all in a time of unprecedented budgetary difficulties – while contending with the unnecessary cuts imposed by sequestration, and even the personal hardships brought on by a government shutdown.
Despite these obstacles, the award recipients before me – and your colleagues throughout the Civil Division – have achieved extraordinary results. You’ve made your country, your Department – and this Attorney General – proud. And you have risen to the most pressing challenges of our time, confronting some of the most significant and complex legal issues this Department has faced.
Many of your successes have been covered extensively by the press. Others have received less public fanfare, but are no less critical to the operations of the federal government or the well-being of your fellow citizens. From the attorneys and contractors who sift through endless document, record, and data collections in search of crucial evidence; to the paralegals and other support staff members who work late into the night to assist in emergency filings; to the technology experts who address daily concerns and keep this Division working smoothly – every part of this team is essential to its overall mission. And every one of your contributions exemplifies the most rigorous standards of professionalism, reflects the highest integrity – and embodies the very best of what it means to be a public servant.
Of course, I recognize that this hasn’t been easy. And I know you’ve been called upon, on many occasions, to spend long hours in the office, sacrificing time with family and friends in order to advance the critical work with which the American people have entrusted us. So I want you to know how much President Obama and I value your extraordinary work ethic, your surpassing commitment to the mission we share, and your collective dedication to the ideals that have always defined the Department of Justice. I consider it a tremendous honor to count each of you as a colleague – and to serve alongside you as we strive, in every case and circumstance, to fight for the interests of the United States – and to see that justice is done.
Before we begin our formal awards presentations, I’d like to take a moment to congratulate Frankie Free on receiving this year’s Stanley Rose Memorial Award, in recognition of his distinguished service to our country over the last 23 years. Thank you, Frankie, for all that you do.
I’d also like to recognize Robert Kirshman and Mary Mason, the recipients of this year’s Michael Hertz Memorial Award, for their outstanding work. Like many of you, I had the privilege of working with Mike Hertz during his nearly four-decade-long career here at the Department. And although we lost him last year – far too soon – I am deeply gratified to know that the spirit of excellence that defined his work will live on not only in the award that bears his name, but in the efforts of all who continue the tradition of service he established.
It’s clear, as we come together today, that your work has in some ways never been more challenging. But it’s also never been more important. That’s why, as we pause to reflect upon your successes – and to celebrate the achievements of the award recipients who have gone above and beyond the call of duty – we also must recommit ourselves to carrying this work into the future. We must resolve to keep building on the momentum that each of you has set in motion. And we must never stop reaching for, and working toward, the better and brighter future that all of our citizens deserve – a future founded on the enduring promise of equal justice for all.
I congratulate you, once again, on these prestigious and well-deserved awards. I thank you for everything that you do. And I urge you to keep up the great work.
Attorney General Eric Holder Delivers Remarks at the Civil Division Awards Ceremony
~ Wednesday, December 4, 2013
Thank you, Stuart [Delery], for those kind words, and for your exceptional leadership as Assistant Attorney General for the Civil Division. It’s a pleasure to share the stage with you today – as we come together to recognize so many dedicated colleagues; as we call attention to the progress that each of them has made possible; and as we thank them for their tireless work over the past year: in support of this Department, in pursuit of justice, and in service of the American people.
It’s a great privilege to join you in congratulating our 2013 Civil Division award recipients. And it’s an honor to help welcome all of the proud family members, friends, and distinguished guests who have taken the time to be here in the Great Hall, and whose support – and sacrifices – have been essential to everything that our awardees have accomplished. Make no mistake: every one of you shares in the recognitions that we are about to bestow.
From the robust enforcement of federal consumer protection laws, to record-setting recoveries under the False Claims Act, this year’s award recipients have secured billions of precious taxpayer dollars through affirmative litigation. By enforcing regulations to ensure the safety of medicines and food products – and by administering essential public health programs – you have helped to protect the American people. By taking on numerous cases concerning sensitive matters related to national security, you’ve fought to keep our nation both safe and strong. And you’ve done it all in a time of unprecedented budgetary difficulties – while contending with the unnecessary cuts imposed by sequestration, and even the personal hardships brought on by a government shutdown.
Despite these obstacles, the award recipients before me – and your colleagues throughout the Civil Division – have achieved extraordinary results. You’ve made your country, your Department – and this Attorney General – proud. And you have risen to the most pressing challenges of our time, confronting some of the most significant and complex legal issues this Department has faced.
Many of your successes have been covered extensively by the press. Others have received less public fanfare, but are no less critical to the operations of the federal government or the well-being of your fellow citizens. From the attorneys and contractors who sift through endless document, record, and data collections in search of crucial evidence; to the paralegals and other support staff members who work late into the night to assist in emergency filings; to the technology experts who address daily concerns and keep this Division working smoothly – every part of this team is essential to its overall mission. And every one of your contributions exemplifies the most rigorous standards of professionalism, reflects the highest integrity – and embodies the very best of what it means to be a public servant.
Of course, I recognize that this hasn’t been easy. And I know you’ve been called upon, on many occasions, to spend long hours in the office, sacrificing time with family and friends in order to advance the critical work with which the American people have entrusted us. So I want you to know how much President Obama and I value your extraordinary work ethic, your surpassing commitment to the mission we share, and your collective dedication to the ideals that have always defined the Department of Justice. I consider it a tremendous honor to count each of you as a colleague – and to serve alongside you as we strive, in every case and circumstance, to fight for the interests of the United States – and to see that justice is done.
Before we begin our formal awards presentations, I’d like to take a moment to congratulate Frankie Free on receiving this year’s Stanley Rose Memorial Award, in recognition of his distinguished service to our country over the last 23 years. Thank you, Frankie, for all that you do.
I’d also like to recognize Robert Kirshman and Mary Mason, the recipients of this year’s Michael Hertz Memorial Award, for their outstanding work. Like many of you, I had the privilege of working with Mike Hertz during his nearly four-decade-long career here at the Department. And although we lost him last year – far too soon – I am deeply gratified to know that the spirit of excellence that defined his work will live on not only in the award that bears his name, but in the efforts of all who continue the tradition of service he established.
It’s clear, as we come together today, that your work has in some ways never been more challenging. But it’s also never been more important. That’s why, as we pause to reflect upon your successes – and to celebrate the achievements of the award recipients who have gone above and beyond the call of duty – we also must recommit ourselves to carrying this work into the future. We must resolve to keep building on the momentum that each of you has set in motion. And we must never stop reaching for, and working toward, the better and brighter future that all of our citizens deserve – a future founded on the enduring promise of equal justice for all.
I congratulate you, once again, on these prestigious and well-deserved awards. I thank you for everything that you do. And I urge you to keep up the great work.
NSF INVESTS IN 3-D PRINTING AND CUSTOM MANUFACTORING
FROM: NATIONAL SCIENCE FOUNDATION
3-D printing and custom manufacturing: from concept to classroom
Strategic investments from NSF help engineers revolutionize the manufacturing process.
Additive manufacturing, the technological innovation behind 3-D printing, has revolutionized the way we conceive of and build everything from electronic devices to jewelry to artificial organs.
It is not surprising that this field has enjoyed enormous economic returns, which are projected to grow over the coming decade. According to a recent industry report prepared by Wohlers Associates, 3-D printing contributed to more than $2.2 billion in global industry in 2012 and is poised to grow to more than $6 billion by 2017.
While both public and private investments contributed to the development of this technology, the National Science Foundation (NSF) provided early funding and continues to provide support for additive manufacturing, totaling approximately $200 million in 2005 adjusted dollars from more than 600 grants awarded from 1986-2012.
Although a wide range of programs across NSF have supported this endeavor, greater than two-thirds of the awards and more than half of the agency's total financial support for additive manufacturing was provided by NSF's Directorate for Engineering, which promotes fundamental and transformative engineering research and education through a broad range of programs and funding mechanisms.
"Additive manufacturing is a great example of how early NSF support for high-risk research can ultimately lead to large-scale changes in a major industry," says Steve McKnight, director of the Engineering Directorate's division of Civil, Mechanical, and Manufacturing Innovation (CMMI).
What is additive manufacturing?
Compared to traditional manufacturing techniques, in which objects are carved out of a larger block of material or cast in molds and dies, additive manufacturing builds objects, layer by layer, according to precise design specifications.
Because there are no dies or molds to be cast, design changes can be made more quickly and at a lower cost than ever before, increasing the level of customization that individuals and businesses can achieve "in house."
"Additive manufacturing technologies have changed the way we think about the manufacturing process," says NSF Assistant Director for Engineering Pramod Khargonekar. "It has reduced the time, cost, and equipment and infrastructure needs that once prevented individuals and small businesses from creating truly customized items, and accelerated the speed at which new products can be brought to market."
Recognizing potential in risky ideas
The Engineering Directorate's Strategic Manufacturing (STRATMAN) Initiative, led by CMMI in the late 1980s and early 1990s, proved pivotal in establishing the foundational technologies of additive manufacturing.
Five awards, totaling nearly $3.5 million in 2005 dollars, were made under this initiative to additive manufacturing-related research projects. Two of the four patents identified as foundational for the field of additive manufacturing were associated with STRATMAN-funded projects.
"The STRATMAN came at an incredibly important time," says University of Texas at Austin mechanical engineer Joseph Beaman. "We had some of the IP [intellectual property] there, but we needed a way to get the basic engineering done to show that we could really make it work."
Beaman and then UT graduate student Carl Deckard were the first to demonstrate and commercialize a process known as selective laser sintering, in which a high powered laser is used to fuse small particles into precise 3-D shapes.
"The purpose of the STRATMAN Initiative was to provide critical early funding to radically new ideas with the potential to impact future manufacturing technology," says Bruce Kramer, the CMMI program officer who made the original award to Beaman. "The research that Joe and Carl did with the STRATMAN hit a home run by laying the foundation for one of the key additive manufacturing technologies in use today."
Setting goals for a fledgling field
In addition to contributing to transformative fundamental research, the Engineering Directorate has supported a number of workshops and conferences designed to establish roadmaps and benchmarks for the field as it evolves.
Together with support from agencies including the Department of Energy, Defense Advanced Research Projects Agency, and the Office of Naval Research (ONR), the Engineering Directorate has sponsored workshops on rapid prototyping, additive and subtractive manufacturing and has consistently provided support for student travel to additive manufacturing conferences.
A 2009 workshop sponsored by NSF and ONR intended to identify the future of freeform processing is widely recognized as having been critical in defining future research directions in the field.
Transitioning research to the marketplace
Initial investments by the Engineering Directorate's Small Business Innovation Research (SBIR) program also were made to two key early firms in the additive manufacturing field including: DTM, acquired by 3D systems and founded by Carl Deckard, to develop the selective laser sintering process and Helisys, formerly Hydronetics and founded by Michael Feygin, to commercialize the sheet lamination process.
"The SBIR program helps scientists, engineers and entrepreneurs at early-stage start-ups mitigate risks, develop the technology into a marketable and scalable product and be better positioned in the marketplace," says Grace Wang, director of the Engineering Directorate's Industrial Innovation and Partnerships division.
While neither firm exists today, their contributions live on in the form of the universal industry standards they helped establish.
Preparing the next-generation workforce
Perhaps one of the greatest impacts additive manufacturing has had is in the realm of education and outreach. With the advent of desktop 3-D printers, students can experience the challenges and opportunities of manufacturing first-hand. The NSF-funded RapidTech Center at the University of California, Irvine, brings additive manufacturing to the classroom, engaging UCI students and students from a number of community college partners in the manufacturing process. Educational programs like RapidTech enhance engineering curriculum and boost interest in engineering as a profession.
"The RapidTech Center has increased the number of students who transfer into UCI Engineering programs and improved current engineering student's performance," says Celeste Carter, a program director in NSF's Directorate for Education and Human Resources. "Programs like this are, and will continue to be, incredibly important in preparing the future engineering workforce."
Looking to the future
As part of the president's plan to catalyze manufacturing innovation, the National Additive Manufacturing Innovation Institute, recently rebranded as "America Makes," was launched in August 2012.
The institute, which was convened on the recommendation of experts from NSF, the Department of Energy, the Department of Defense, National Aeronautics and Space Administration, and the National Institute of Standards and Technology, represents a partnership that includes manufacturing firms, government agencies, universities, community colleges and non-profit organizations. The goal of the institute is to accelerate additive manufacturing innovation by bridging the gap between basic research and scalable technologies.
In addition to contributing oversight and management to the America Makes initiative, NSF has invested in programs designed to facilitate collaboration and engage NSF-sponsored researchers and educational programs in the institute's activities.
"We are only beginning to see what is now possible because of additive manufacturing," Khargonekar says. "The Engineering Directorate is proud to have been among the many public and private organizations to provide early and continued research support leading to this significant and impactful innovation."
3-D printing and custom manufacturing: from concept to classroom
Strategic investments from NSF help engineers revolutionize the manufacturing process.
Additive manufacturing, the technological innovation behind 3-D printing, has revolutionized the way we conceive of and build everything from electronic devices to jewelry to artificial organs.
It is not surprising that this field has enjoyed enormous economic returns, which are projected to grow over the coming decade. According to a recent industry report prepared by Wohlers Associates, 3-D printing contributed to more than $2.2 billion in global industry in 2012 and is poised to grow to more than $6 billion by 2017.
While both public and private investments contributed to the development of this technology, the National Science Foundation (NSF) provided early funding and continues to provide support for additive manufacturing, totaling approximately $200 million in 2005 adjusted dollars from more than 600 grants awarded from 1986-2012.
Although a wide range of programs across NSF have supported this endeavor, greater than two-thirds of the awards and more than half of the agency's total financial support for additive manufacturing was provided by NSF's Directorate for Engineering, which promotes fundamental and transformative engineering research and education through a broad range of programs and funding mechanisms.
"Additive manufacturing is a great example of how early NSF support for high-risk research can ultimately lead to large-scale changes in a major industry," says Steve McKnight, director of the Engineering Directorate's division of Civil, Mechanical, and Manufacturing Innovation (CMMI).
What is additive manufacturing?
Compared to traditional manufacturing techniques, in which objects are carved out of a larger block of material or cast in molds and dies, additive manufacturing builds objects, layer by layer, according to precise design specifications.
Because there are no dies or molds to be cast, design changes can be made more quickly and at a lower cost than ever before, increasing the level of customization that individuals and businesses can achieve "in house."
"Additive manufacturing technologies have changed the way we think about the manufacturing process," says NSF Assistant Director for Engineering Pramod Khargonekar. "It has reduced the time, cost, and equipment and infrastructure needs that once prevented individuals and small businesses from creating truly customized items, and accelerated the speed at which new products can be brought to market."
Recognizing potential in risky ideas
The Engineering Directorate's Strategic Manufacturing (STRATMAN) Initiative, led by CMMI in the late 1980s and early 1990s, proved pivotal in establishing the foundational technologies of additive manufacturing.
Five awards, totaling nearly $3.5 million in 2005 dollars, were made under this initiative to additive manufacturing-related research projects. Two of the four patents identified as foundational for the field of additive manufacturing were associated with STRATMAN-funded projects.
"The STRATMAN came at an incredibly important time," says University of Texas at Austin mechanical engineer Joseph Beaman. "We had some of the IP [intellectual property] there, but we needed a way to get the basic engineering done to show that we could really make it work."
Beaman and then UT graduate student Carl Deckard were the first to demonstrate and commercialize a process known as selective laser sintering, in which a high powered laser is used to fuse small particles into precise 3-D shapes.
"The purpose of the STRATMAN Initiative was to provide critical early funding to radically new ideas with the potential to impact future manufacturing technology," says Bruce Kramer, the CMMI program officer who made the original award to Beaman. "The research that Joe and Carl did with the STRATMAN hit a home run by laying the foundation for one of the key additive manufacturing technologies in use today."
Setting goals for a fledgling field
In addition to contributing to transformative fundamental research, the Engineering Directorate has supported a number of workshops and conferences designed to establish roadmaps and benchmarks for the field as it evolves.
Together with support from agencies including the Department of Energy, Defense Advanced Research Projects Agency, and the Office of Naval Research (ONR), the Engineering Directorate has sponsored workshops on rapid prototyping, additive and subtractive manufacturing and has consistently provided support for student travel to additive manufacturing conferences.
A 2009 workshop sponsored by NSF and ONR intended to identify the future of freeform processing is widely recognized as having been critical in defining future research directions in the field.
Transitioning research to the marketplace
Initial investments by the Engineering Directorate's Small Business Innovation Research (SBIR) program also were made to two key early firms in the additive manufacturing field including: DTM, acquired by 3D systems and founded by Carl Deckard, to develop the selective laser sintering process and Helisys, formerly Hydronetics and founded by Michael Feygin, to commercialize the sheet lamination process.
"The SBIR program helps scientists, engineers and entrepreneurs at early-stage start-ups mitigate risks, develop the technology into a marketable and scalable product and be better positioned in the marketplace," says Grace Wang, director of the Engineering Directorate's Industrial Innovation and Partnerships division.
While neither firm exists today, their contributions live on in the form of the universal industry standards they helped establish.
Preparing the next-generation workforce
Perhaps one of the greatest impacts additive manufacturing has had is in the realm of education and outreach. With the advent of desktop 3-D printers, students can experience the challenges and opportunities of manufacturing first-hand. The NSF-funded RapidTech Center at the University of California, Irvine, brings additive manufacturing to the classroom, engaging UCI students and students from a number of community college partners in the manufacturing process. Educational programs like RapidTech enhance engineering curriculum and boost interest in engineering as a profession.
"The RapidTech Center has increased the number of students who transfer into UCI Engineering programs and improved current engineering student's performance," says Celeste Carter, a program director in NSF's Directorate for Education and Human Resources. "Programs like this are, and will continue to be, incredibly important in preparing the future engineering workforce."
Looking to the future
As part of the president's plan to catalyze manufacturing innovation, the National Additive Manufacturing Innovation Institute, recently rebranded as "America Makes," was launched in August 2012.
The institute, which was convened on the recommendation of experts from NSF, the Department of Energy, the Department of Defense, National Aeronautics and Space Administration, and the National Institute of Standards and Technology, represents a partnership that includes manufacturing firms, government agencies, universities, community colleges and non-profit organizations. The goal of the institute is to accelerate additive manufacturing innovation by bridging the gap between basic research and scalable technologies.
In addition to contributing oversight and management to the America Makes initiative, NSF has invested in programs designed to facilitate collaboration and engage NSF-sponsored researchers and educational programs in the institute's activities.
"We are only beginning to see what is now possible because of additive manufacturing," Khargonekar says. "The Engineering Directorate is proud to have been among the many public and private organizations to provide early and continued research support leading to this significant and impactful innovation."
Saturday, December 7, 2013
MAN SENTENCED TO 144 MONTHS IN PRISON FOR ROLE IN $270 MILLION INVESTMENT FRAUD SCHEME
FROM: U.S. JUSTICE DEPARTMENT
Friday, December 6, 2013
Virginia Man Sentenced for Conducting $270 Million Investment Fraud Scheme
The owner of a Virginia-based investment firm was sentenced today to serve 144 months in prison for orchestrating a $270 million stock loan scheme that defrauded his clients of more than $35 million.
Acting Assistant Attorney General Mythili Raman of the Department of Justice’s Criminal Division, Acting United States Attorney Dana J. Boente of the Eastern District of Virginia and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office made the announcement after sentencing by U.S. District Judge Gerald Bruce Lee of the Eastern District of Virginia.
William Dean Chapman, 44, of Sterling, Va., pleaded guilty to one count of wire fraud on May 23, 2013. Chapman was the founder and owner of Alexander Capital Markets (ACM), whose primary business was to offer a financial product that provided customers with a purportedly fully hedged loan at an above-market rate of interest against a customer’s securities. This served as collateral for the transaction for a percentage – typically between 85 percent and 90 percent – of the securities’ value. For example, in exchange for a customer’s Apple stock, ACM would provide a cash loan to that customer worth 85 percent or 90 percent of the stock’s value. After a period of time – between two and seven years, and typically three years – the customer could receive back their securities, or the equivalent cash value, if they repaid the balance of the loan plus accrued interest. Alternatively, because the loans were non-recourse, the customer could walk away at the end of the redemption period having already received up to 90 percent of the value of their securities.
ACM’s customers were assured that ACM was engaged in hedging transactions such that ACM would be able to return the full value of the securities, or the cash equivalent, at the end of the contract period. In reality, ACM simply sold the securities upon receipt, remitted up to 90 percent of the sales proceeds to its customers as the loan, and retained the remaining sales proceeds for itself and the parties who sold, marketed or facilitated the product.
Because ACM simply sold the securities upon receipt and no legitimate hedge existed, ACM could not return securities, or the cash equivalent, to the customers at the end of the redemption period unless it had sufficient funds to buy back the securities. By in or about April 2008, ACM was functionally insolvent. ACM did not have – and could not have expected to have – sufficient funds to cover its outstanding liabilities. Nevertheless, Chapman continued to solicit new customers despite knowing that ACM would never be able to fulfill its financial obligations.
Over seven years, Chapman took in more than $270 million in stock, and 122 victims lost more than $35 million as a result of this scheme. At the same time that ACM was amassing massive liabilities and failing to repay its existing clients, Chapman used his clients’ money to support a lavish lifestyle by purchasing a custom-built $3 million home in Great Falls, Va.; condominiums in the Turks & Caicos and Pompano Beach, Fla.; and a Lamborghini and Ferrari.
This case was investigated by the FBI’s Washington Field Office. The Criminal Division and the U.S. Attorney’s Office for the Eastern District of Virginia recognize the substantial assistance of the U.S. Securities and Exchange Commission on this case. Assistant United States Attorney Chad Golder and Trial Attorney Henry Van Dyck of the Criminal Division’s Fraud Section prosecuted the case on behalf of the United States.
Friday, December 6, 2013
Virginia Man Sentenced for Conducting $270 Million Investment Fraud Scheme
The owner of a Virginia-based investment firm was sentenced today to serve 144 months in prison for orchestrating a $270 million stock loan scheme that defrauded his clients of more than $35 million.
Acting Assistant Attorney General Mythili Raman of the Department of Justice’s Criminal Division, Acting United States Attorney Dana J. Boente of the Eastern District of Virginia and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office made the announcement after sentencing by U.S. District Judge Gerald Bruce Lee of the Eastern District of Virginia.
William Dean Chapman, 44, of Sterling, Va., pleaded guilty to one count of wire fraud on May 23, 2013. Chapman was the founder and owner of Alexander Capital Markets (ACM), whose primary business was to offer a financial product that provided customers with a purportedly fully hedged loan at an above-market rate of interest against a customer’s securities. This served as collateral for the transaction for a percentage – typically between 85 percent and 90 percent – of the securities’ value. For example, in exchange for a customer’s Apple stock, ACM would provide a cash loan to that customer worth 85 percent or 90 percent of the stock’s value. After a period of time – between two and seven years, and typically three years – the customer could receive back their securities, or the equivalent cash value, if they repaid the balance of the loan plus accrued interest. Alternatively, because the loans were non-recourse, the customer could walk away at the end of the redemption period having already received up to 90 percent of the value of their securities.
ACM’s customers were assured that ACM was engaged in hedging transactions such that ACM would be able to return the full value of the securities, or the cash equivalent, at the end of the contract period. In reality, ACM simply sold the securities upon receipt, remitted up to 90 percent of the sales proceeds to its customers as the loan, and retained the remaining sales proceeds for itself and the parties who sold, marketed or facilitated the product.
Because ACM simply sold the securities upon receipt and no legitimate hedge existed, ACM could not return securities, or the cash equivalent, to the customers at the end of the redemption period unless it had sufficient funds to buy back the securities. By in or about April 2008, ACM was functionally insolvent. ACM did not have – and could not have expected to have – sufficient funds to cover its outstanding liabilities. Nevertheless, Chapman continued to solicit new customers despite knowing that ACM would never be able to fulfill its financial obligations.
Over seven years, Chapman took in more than $270 million in stock, and 122 victims lost more than $35 million as a result of this scheme. At the same time that ACM was amassing massive liabilities and failing to repay its existing clients, Chapman used his clients’ money to support a lavish lifestyle by purchasing a custom-built $3 million home in Great Falls, Va.; condominiums in the Turks & Caicos and Pompano Beach, Fla.; and a Lamborghini and Ferrari.
This case was investigated by the FBI’s Washington Field Office. The Criminal Division and the U.S. Attorney’s Office for the Eastern District of Virginia recognize the substantial assistance of the U.S. Securities and Exchange Commission on this case. Assistant United States Attorney Chad Golder and Trial Attorney Henry Van Dyck of the Criminal Division’s Fraud Section prosecuted the case on behalf of the United States.
MEASLES STILL A THREAT 50 YEARS AFTER MEASLES VACCINE APPROVED
FROM: U.S. CENTERS FOR DISEASE CONTROL AND PREVENTION
Press Release Measles Still Threatens Health Security
On 50th Anniversary of Measles Vaccine, Spike in Imported Measles Cases
Fifty years after the approval of an extremely effective vaccine against measles, one of the world’s most contagious diseases, the virus still poses a threat to domestic and global health security.
On an average day, 430 children – 18 every hour – die of measles worldwide. In 2011, there were an estimated 158,000 measles deaths.
In an article published on December 5 by JAMA Pediatrics, CDC’s Mark J. Papania, M.D., M.P.H., and colleagues report that United States measles elimination, announced in 2000, has been sustained through 2011. Elimination is defined as absence of continuous disease transmission for greater than 12 months. Dr. Papania and colleagues warn, however, that international importation continues, and that American doctors should suspect measles in children with high fever and rash, “especially when associated with international travel or international visitors,” and should report suspected cases to the local health department. Before the U.S. vaccination program started in 1963, measles was a year-round threat in this country. Nearly every child became infected; each year 450 to 500 people died each year, 48,000 were hospitalized, 7,000 had seizures, and about 1,000 suffered permanent brain damage or deafness.
People infected abroad continue to spark outbreaks among pockets of unvaccinated people, including infants and young children. It is still a serious illness: 1 in 5 children with measles is hospitalized. Usually there are about 60 cases per year, but 2013 saw a spike in American communities – some 175 cases and counting – virtually all linked to people who brought the infection home after foreign travel.
Press Release Measles Still Threatens Health Security
On 50th Anniversary of Measles Vaccine, Spike in Imported Measles Cases
Fifty years after the approval of an extremely effective vaccine against measles, one of the world’s most contagious diseases, the virus still poses a threat to domestic and global health security.
On an average day, 430 children – 18 every hour – die of measles worldwide. In 2011, there were an estimated 158,000 measles deaths.
In an article published on December 5 by JAMA Pediatrics, CDC’s Mark J. Papania, M.D., M.P.H., and colleagues report that United States measles elimination, announced in 2000, has been sustained through 2011. Elimination is defined as absence of continuous disease transmission for greater than 12 months. Dr. Papania and colleagues warn, however, that international importation continues, and that American doctors should suspect measles in children with high fever and rash, “especially when associated with international travel or international visitors,” and should report suspected cases to the local health department. Before the U.S. vaccination program started in 1963, measles was a year-round threat in this country. Nearly every child became infected; each year 450 to 500 people died each year, 48,000 were hospitalized, 7,000 had seizures, and about 1,000 suffered permanent brain damage or deafness.
People infected abroad continue to spark outbreaks among pockets of unvaccinated people, including infants and young children. It is still a serious illness: 1 in 5 children with measles is hospitalized. Usually there are about 60 cases per year, but 2013 saw a spike in American communities – some 175 cases and counting – virtually all linked to people who brought the infection home after foreign travel.
PRESIDENT OBAMA'S WEEKLY ADDRESS FOR DECEMBER 7, 2013
FROM: THE WHITE HOUSE
Weekly Address: Calling on Congress to Extend Unemployment Benefits this Holiday Season
WASHINGTON, DC—In this week’s address, President Obama said that before Congress leaves for vacation, they should extend unemployment benefits for 1.3 million hardworking Americans who will lose this lifeline at the end of the year. For families, unemployment benefits can mean the difference between hardship and catastrophe, and it is also one of the most effective ways to boost our economy. This holiday season, Congress should do the right thing for the American people and make it easier for our economy to keep growing and adding jobs.
The audio of the address and video of the address will be available online atwww.whitehouse.gov at 6:00 a.m. ET, December 7, 2013.
Remarks of President Barack Obama
Weekly Address
The White House
December 7, 2013
Weekly Address
The White House
December 7, 2013
Hi, everybody. The holiday season is a time for remembering the bonds we share, and our obligations to one another as human beings.
But right now, more than one million of our fellow Americans are poised to lose a vital economic lifeline just a few days after Christmas if Congress doesn’t do something about it.
Our top priority as a country should be restoring opportunity and broad-based economic growth for all Americans. And yesterday, we learned that our businesses created about 200,000 jobs in the month of November. That’s more than 8 million new jobs in the last 45 months. And the unemployment rate fell to its lowest level in five years.
But we need to do everything we can to help businesses create more good jobs that pay good wages even faster. Because the hole that we’re still digging out of means that there are still millions of Americans looking for work – often because they’ve been laid off through no fault of their own.
We also have to look out for the Americans working hard to get those jobs. That’s why, as a country, we offer temporary unemployment insurance – so that job-seekers don’t fall into poverty, and so that when they get that job, they bounce back more quickly.
For many families, it can be the difference between hardship and catastrophe. It makes a difference for a mother who suddenly doesn’t know if she’ll be able to put food on the table for her kids. It makes a difference for a father who lost his job and is looking for a new one. Last year alone, it lifted 2.5 million people out of poverty, and cushioned the blow for many more.
But here’s the thing: if Members of Congress don’t act before they leave on their vacations, 1.3 million Americans will lose this lifeline. These are people we know. They’re our friends and neighbors; they sit next to us in church and volunteer in our communities; their kids play with our kids. And they include 20,000 veterans who’ve served this country with honor.
If Congress refuses to act, it won’t just hurt families already struggling – it will actually harm our economy. Unemployment insurance is one of the most effective ways there is to boost our economy. When people have money to spend on basic necessities, that means more customers for our businesses and, ultimately, more jobs. And the evidence shows that unemployment insurance doesn’t stop people from trying hard to find work.
Just this week, the nonpartisan Congressional Budget Office predicted that allowing benefits to expire will be a drag on our economic growth next year. A report by the Department of Labor and my Council of Economic Advisors estimated that it could cost businesses 240,000 jobs. And without the ability to feed their families or pay the bills, many people currently looking for work could stop looking for good.
So extending unemployment insurance isn’t just the right thing to do for our families – it’s the smart thing to do for our economy. And it shouldn’t be a partisan issue. For decades, Congress has voted to offer relief to job-seekers – including when the unemployment rate was lower than it is today.
But now that economic lifeline is in jeopardy. All because Republicans in this Congress – which is on track to be the most unproductive in history – have so far refused to extend it.
So this holiday season, let’s give our fellow Americans who are desperately looking for work the help they need to keep on looking. Let’s make it easier for businesses to attract more customers, and our economy to grow. And together, let’s keep doing everything we can to make this country a place where anyone who works hard has a chance to get ahead
Thanks, and have a great weekend.
SEC BRINGS CHARGES AGAINST ALLEGED PONZI SCHEMERS INVOLVED WITH OIL AND GAS PROJECTS
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
The Securities and Exchange Commission today announced charges and an emergency asset freeze against the perpetrators of a Texas-based Ponzi scheme involving purported investments in oil and gas projects.
The SEC alleges that Robert A. Helms and Janniece S. Kaelin, who work out of an office in Austin, misled investors about their experience in the oil and gas industry while raising nearly $18 million for supposed purchases of oil and gas royalty interests. Despite representations that nearly all of the money they raised would be used to make oil and gas investments, Helms and Kaelin actually used only a fraction of the offering proceeds for that purpose. Instead, the vast majority of investor funds were used to make Ponzi payments and cover various personal and business expenses.
“Helms and Kaelin pretended to be in the oil and gas business when they were really in the business of fattening their own wallets,” said David R. Woodcock, director of the SEC’s Fort Worth Regional Office. “They lied to investors about the use of offering proceeds, spent investor funds on personal expenses, and made Ponzi payments to give investors the false impression that they were earning returns in a profitable venture.”
The SEC’s complaint unsealed late yesterday in U.S. District Court for the Western District of Texas also charges Deven Sellers of Arvada, Colo., and Roland Barrera of Costa Mesa, Calif., with illegally selling investments for Helms and Kaelin without being registered with the SEC. They also allegedly misled investors about the sales commissions and referral fees they were receiving.
According to the SEC’s complaint, Helms and Kaelin began offering investments in 2011 through Vendetta Royalty Partners, a limited partnership that they control. They have since attracted at least 80 investors in more than a dozen states while promising in offering documents that they would use more than 99 percent of the investment proceeds to acquire a lucrative portfolio of oil and gas royalty interests. The offering documents were fraudulent as Helms and Kaelin invested only 10 percent of the proceeds, and the oil and gas projects in which they actually did invest generated only minuscule returns.
The SEC alleges that Helms and Kaelin directed Vendetta Royalty Partners to make approximately $5.9 million in so-called partnership income distributions to investors. They used money from newer investors to make the distributions to earlier investors. Helms and Kaelin created the illusion that Vendetta Royalty Partners was a profitable enterprise when, in fact, it was a fraudulent Ponzi scheme. Some offering documents touted Helms to have extensive oil-and-gas experience, misrepresenting that he had “worked with various mineral companies over the last 10 years advising management on issues involving the acquisition and management of royalty interests, mineral properties and related legal and financial issues.” In fact, Helms’s oil-and-gas experience came almost entirely from operating Vendetta Royalty Partners and its affiliated or predecessor companies.
The SEC alleges that Helms and Kaelin misled investors about other important matters besides their business background and industry reputation. They failed to disclose the existence of litigation against them and companies they control. They misrepresented the performance of the limited oil-and-gas royalty investments actually under their management. And they failed to inform investors that Vendetta Royalty Partners was behind on its line of credit. The company ultimately defaulted.
According to the SEC’s complaint, Helms and Kaelin along with Sellers and Barrera told potential investors that any commissions or finder’s fees would be small. However, Sellers and Barrera each received more than $200,000 in such fees on one investment alone. Sellers and Barrera regularly solicited investments without being registered as brokers.
At the SEC’s request, the court entered an order temporarily restraining the defendants from further violations of the federal securities laws, freezing their assets, prohibiting the destruction of documents, requiring them to provide an accounting, and authorizing expedited discovery.
The SEC’s complaint alleges that the defendants violated the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. The complaint further alleges that Sellers and Barrera acted as unregistered brokers in violation of Section 15(a) of the Exchange Act. The complaint requests permanent injunctions and the disgorgement of ill-gotten gains plus prejudgment interest and penalties.
The SEC’s investigation was conducted by Chris Davis, Carol Hahn, and Joann Harris of the Fort Worth Regional Office. The SEC’s litigation will be led by Timothy McCole. The SEC appreciates the assistance of the Federal Bureau of Investigation, U.S. Secret Service, and Texas State Securities Board.
The Securities and Exchange Commission today announced charges and an emergency asset freeze against the perpetrators of a Texas-based Ponzi scheme involving purported investments in oil and gas projects.
The SEC alleges that Robert A. Helms and Janniece S. Kaelin, who work out of an office in Austin, misled investors about their experience in the oil and gas industry while raising nearly $18 million for supposed purchases of oil and gas royalty interests. Despite representations that nearly all of the money they raised would be used to make oil and gas investments, Helms and Kaelin actually used only a fraction of the offering proceeds for that purpose. Instead, the vast majority of investor funds were used to make Ponzi payments and cover various personal and business expenses.
“Helms and Kaelin pretended to be in the oil and gas business when they were really in the business of fattening their own wallets,” said David R. Woodcock, director of the SEC’s Fort Worth Regional Office. “They lied to investors about the use of offering proceeds, spent investor funds on personal expenses, and made Ponzi payments to give investors the false impression that they were earning returns in a profitable venture.”
The SEC’s complaint unsealed late yesterday in U.S. District Court for the Western District of Texas also charges Deven Sellers of Arvada, Colo., and Roland Barrera of Costa Mesa, Calif., with illegally selling investments for Helms and Kaelin without being registered with the SEC. They also allegedly misled investors about the sales commissions and referral fees they were receiving.
According to the SEC’s complaint, Helms and Kaelin began offering investments in 2011 through Vendetta Royalty Partners, a limited partnership that they control. They have since attracted at least 80 investors in more than a dozen states while promising in offering documents that they would use more than 99 percent of the investment proceeds to acquire a lucrative portfolio of oil and gas royalty interests. The offering documents were fraudulent as Helms and Kaelin invested only 10 percent of the proceeds, and the oil and gas projects in which they actually did invest generated only minuscule returns.
The SEC alleges that Helms and Kaelin directed Vendetta Royalty Partners to make approximately $5.9 million in so-called partnership income distributions to investors. They used money from newer investors to make the distributions to earlier investors. Helms and Kaelin created the illusion that Vendetta Royalty Partners was a profitable enterprise when, in fact, it was a fraudulent Ponzi scheme. Some offering documents touted Helms to have extensive oil-and-gas experience, misrepresenting that he had “worked with various mineral companies over the last 10 years advising management on issues involving the acquisition and management of royalty interests, mineral properties and related legal and financial issues.” In fact, Helms’s oil-and-gas experience came almost entirely from operating Vendetta Royalty Partners and its affiliated or predecessor companies.
The SEC alleges that Helms and Kaelin misled investors about other important matters besides their business background and industry reputation. They failed to disclose the existence of litigation against them and companies they control. They misrepresented the performance of the limited oil-and-gas royalty investments actually under their management. And they failed to inform investors that Vendetta Royalty Partners was behind on its line of credit. The company ultimately defaulted.
According to the SEC’s complaint, Helms and Kaelin along with Sellers and Barrera told potential investors that any commissions or finder’s fees would be small. However, Sellers and Barrera each received more than $200,000 in such fees on one investment alone. Sellers and Barrera regularly solicited investments without being registered as brokers.
At the SEC’s request, the court entered an order temporarily restraining the defendants from further violations of the federal securities laws, freezing their assets, prohibiting the destruction of documents, requiring them to provide an accounting, and authorizing expedited discovery.
The SEC’s complaint alleges that the defendants violated the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. The complaint further alleges that Sellers and Barrera acted as unregistered brokers in violation of Section 15(a) of the Exchange Act. The complaint requests permanent injunctions and the disgorgement of ill-gotten gains plus prejudgment interest and penalties.
The SEC’s investigation was conducted by Chris Davis, Carol Hahn, and Joann Harris of the Fort Worth Regional Office. The SEC’s litigation will be led by Timothy McCole. The SEC appreciates the assistance of the Federal Bureau of Investigation, U.S. Secret Service, and Texas State Securities Board.
U.S. OFFICIAL'S REMARKS AT ANNUAL CARIBBEAN-UNITED STATES SECURITY COOPERATION DIALOGUE
FROM: U.S. STATE DEPARTMENT
Remarks at the 4th Annual Caribbean-United States Security Cooperation Dialogue
Remarks
William J. Burns
Deputy Secretary of State
Washington, DC
December 6, 2013
Good morning. We gather here this morning on a sorrowful note – mourning with the rest of the world the passing of a truly great man, Nelson Mandela. I ask that all of you join me in a moment of silence to honor Mr. Mandela, and all that he stood for. Thank you.
It is an honor to welcome you back to Washington. I want to thank all of you -- our Caribbean partners and international donors -- for your commitment to an initiative of great importance not only for the Caribbean, but indeed for the entire Western Hemisphere.
Last month, in a speech at the Organization of American States, Secretary Kerry declared that “the era of the Monroe Doctrine is over.” He explained that in this new era, the United States seeks a relationship of equals adhering “not to a doctrine, but to the decisions that we make as partners to advance the values and interests we share.”
The Caribbean Basin Security Initiative offers a vivid example of what that kind of partnership can yield. It is a partnership based on shared responsibility and mutual respect. It is a partnership based on shared approaches to shared challenges. And it is a partnership that is achieving results -- reducing illicit trafficking, increasing public safety, and promoting social justice. But as all of you know, our task is far from complete. There is still much that we can do to build an even more effective partnership. Let me say a few words about the progress we’ve made and how we might build on that progress in the coming year.
First, we are accelerating our efforts to prevent the trafficking of narcotics, weapons, and persons. In part due to progress in other parts of the Hemisphere, the Caribbean is seeing an increase in drug trafficking… an increase in the number of criminal gangs… an increase in the number of weapons… and an increase in violence that is undermining regional stability and economic growth.
In response, we are deepening regional law enforcement cooperation so that Caribbean nations can share fingerprint and other data about suspected criminals that lead to arrests and prosecutions. We are increasing our efforts to stop arms trafficking – destroying nearly 2,000 weapons and three tons of ammunition over the past three years. We are improving maritime security through expanded training exercises with a specific focus on counternarcotics missions. And we are increasing train and equip efforts to build the capacity of law enforcement agencies and security forces throughout the Caribbean. Indeed, thanks in part to the Initiative, drug seizures are up 40-percent in the Dominican Republic and almost 300-percent in Guyana.
But we can do more. The Regional Integrated Ballistic Information Network is operational, but is not fully integrated. We can accomplish that this upcoming year. We can also do a better job of detecting and interdicting threats before they make it to our shores by improving information sharing and our maritime domain awareness.
And with multiyear plans for the maintenance and sustainment of our maritime assets, we can be sure that we will have the means to address this threat not just today or tomorrow, but for many years to come.
Second, we are making strides in our effort to prevent and reduce crime and violence, disrupt and dismantle organized gangs, and improve border security. By pooling our resources and our knowledge, we are helping Caribbean states develop a stronger and more effective justice sector. For example, this past year, Jamaica’s Organized Crime and Anti-Corruption Task Force dismantled a major criminal syndicate, arrested more than 100 suspects, and seized hundreds of vehicles and computers and tens of millions of dollars. We are also making progress in implementing civil asset forfeiture legislation to make sure law enforcement and rule of law agencies have the resources they need to do their job. Indeed, this past September, under its newly passed law, Dominica had its first successful cash seizure.
But here too we can take decisive steps forward this year. We can do a better job of sharing biometric law enforcement data regionally, through efforts like the Advanced Fingerprinting Information System. And by making sure that all Initiative members have the proper legislative authorities for the seizure of assets by all states and investing them in a dedicated security fund, we can support law enforcement efforts in the years to come.
Finally, and most importantly, we are paying special attention to the safety and security of our citizens, especially the young people who represent our hopes and dreams for the future of the Caribbean. Our main approach is prevention – making sure that we offer opportunities and services to youth so they avoid entering the juvenile justice system. To date, more than 52,000 young people have participated in Initiative programs in education and workforce development across the Caribbean. They are learning critical life and job skills, contributing positively to their communities, and working together with law enforcement to help resolve local conflicts and reduce violence.
To succeed, we need to work more closely with the private sector and our community leaders to develop the employment skills of at-risk youth and to provide them with sufficient opportunities to apply those skills. And we can work together to make sure alternative sentencing for youth is a routine practice of courts throughout the Caribbean region. This too will require building stronger connections among law enforcement, civil society, and business leaders.
We came together this year committed to building a more effective partnership. I am confident that with continued political will, and sustained focus on implementation, our partnership will only grow stronger. And as it does, we can all be certain that we will be building a more peaceful and prosperous Caribbean Basin and contributing to a more peaceful and prosperous Western Hemisphere.
Thank you all very much.
Remarks at the 4th Annual Caribbean-United States Security Cooperation Dialogue
Remarks
William J. Burns
Deputy Secretary of State
Washington, DC
December 6, 2013
Good morning. We gather here this morning on a sorrowful note – mourning with the rest of the world the passing of a truly great man, Nelson Mandela. I ask that all of you join me in a moment of silence to honor Mr. Mandela, and all that he stood for. Thank you.
It is an honor to welcome you back to Washington. I want to thank all of you -- our Caribbean partners and international donors -- for your commitment to an initiative of great importance not only for the Caribbean, but indeed for the entire Western Hemisphere.
Last month, in a speech at the Organization of American States, Secretary Kerry declared that “the era of the Monroe Doctrine is over.” He explained that in this new era, the United States seeks a relationship of equals adhering “not to a doctrine, but to the decisions that we make as partners to advance the values and interests we share.”
The Caribbean Basin Security Initiative offers a vivid example of what that kind of partnership can yield. It is a partnership based on shared responsibility and mutual respect. It is a partnership based on shared approaches to shared challenges. And it is a partnership that is achieving results -- reducing illicit trafficking, increasing public safety, and promoting social justice. But as all of you know, our task is far from complete. There is still much that we can do to build an even more effective partnership. Let me say a few words about the progress we’ve made and how we might build on that progress in the coming year.
First, we are accelerating our efforts to prevent the trafficking of narcotics, weapons, and persons. In part due to progress in other parts of the Hemisphere, the Caribbean is seeing an increase in drug trafficking… an increase in the number of criminal gangs… an increase in the number of weapons… and an increase in violence that is undermining regional stability and economic growth.
In response, we are deepening regional law enforcement cooperation so that Caribbean nations can share fingerprint and other data about suspected criminals that lead to arrests and prosecutions. We are increasing our efforts to stop arms trafficking – destroying nearly 2,000 weapons and three tons of ammunition over the past three years. We are improving maritime security through expanded training exercises with a specific focus on counternarcotics missions. And we are increasing train and equip efforts to build the capacity of law enforcement agencies and security forces throughout the Caribbean. Indeed, thanks in part to the Initiative, drug seizures are up 40-percent in the Dominican Republic and almost 300-percent in Guyana.
But we can do more. The Regional Integrated Ballistic Information Network is operational, but is not fully integrated. We can accomplish that this upcoming year. We can also do a better job of detecting and interdicting threats before they make it to our shores by improving information sharing and our maritime domain awareness.
And with multiyear plans for the maintenance and sustainment of our maritime assets, we can be sure that we will have the means to address this threat not just today or tomorrow, but for many years to come.
Second, we are making strides in our effort to prevent and reduce crime and violence, disrupt and dismantle organized gangs, and improve border security. By pooling our resources and our knowledge, we are helping Caribbean states develop a stronger and more effective justice sector. For example, this past year, Jamaica’s Organized Crime and Anti-Corruption Task Force dismantled a major criminal syndicate, arrested more than 100 suspects, and seized hundreds of vehicles and computers and tens of millions of dollars. We are also making progress in implementing civil asset forfeiture legislation to make sure law enforcement and rule of law agencies have the resources they need to do their job. Indeed, this past September, under its newly passed law, Dominica had its first successful cash seizure.
But here too we can take decisive steps forward this year. We can do a better job of sharing biometric law enforcement data regionally, through efforts like the Advanced Fingerprinting Information System. And by making sure that all Initiative members have the proper legislative authorities for the seizure of assets by all states and investing them in a dedicated security fund, we can support law enforcement efforts in the years to come.
Finally, and most importantly, we are paying special attention to the safety and security of our citizens, especially the young people who represent our hopes and dreams for the future of the Caribbean. Our main approach is prevention – making sure that we offer opportunities and services to youth so they avoid entering the juvenile justice system. To date, more than 52,000 young people have participated in Initiative programs in education and workforce development across the Caribbean. They are learning critical life and job skills, contributing positively to their communities, and working together with law enforcement to help resolve local conflicts and reduce violence.
To succeed, we need to work more closely with the private sector and our community leaders to develop the employment skills of at-risk youth and to provide them with sufficient opportunities to apply those skills. And we can work together to make sure alternative sentencing for youth is a routine practice of courts throughout the Caribbean region. This too will require building stronger connections among law enforcement, civil society, and business leaders.
We came together this year committed to building a more effective partnership. I am confident that with continued political will, and sustained focus on implementation, our partnership will only grow stronger. And as it does, we can all be certain that we will be building a more peaceful and prosperous Caribbean Basin and contributing to a more peaceful and prosperous Western Hemisphere.
Thank you all very much.
VICE PRESIDENT BIDEN'S REMARKS TO AMERICAN CHAMBER OF COMMERCE IN CHINA AND U.S.-CHINA BUSINESS COUNCIL
FROM: THE WHITE HOUSE
Remarks by the Vice President at a Breakfast with the American Chamber of Commerce in Beijing and the U.S.-China Business Council
St. Regis Hotel
Beijing, People's Republic of China
10:12 A.M. (Local)
THE VICE PRESIDENT: (Applause.) Thank you very much. And I'm so late you probably thought you were going to hear from the 48th Vice President of the United States. (Laughter.) I apologize. I always, when I’m late at home, always blame it on the President. But I can’t do that today, and I apologize for keeping you waiting.
I remember 220 years ago, when I was in college, you only had to wait 10 minutes for a professor, 20 minutes for a full professor. The only full professor in the Biden family is my wife -- you didn’t have to wait this long. But thank you so much for giving me the opportunity to speak with you all.
Let me begin by saying one thing about competition. I’ve told this to Vice President Xi and then President Xi, in all the time I had to spend with him, is that one of the things that has happened in the last 20 years, as the world has become more competitive, it’s awakened the competitive spirit in the United States. Competition is stamped into our DNA. And if there’s anything remotely approaching a level playing field, we’ll do just fine -- just fine.
And so I want to thank the American Chamber of Commerce and the U.S. Business Council for inviting me here today. You are living the U.S.-China relationship every single day, and you know the opportunities, but you also know the obstacles. And it’s great to be back together one last time here in Beijing with our Ambassador, Gary Locke. I say one last time because he is going to be heading back to his home state of Washington after a very distinguished career, which I don’t think is anywhere near ended, as both governor, member of the Cabinet, as well as the Ambassador.
And Gary and I were speaking this morning as I was -- there was a telephone call, they said I’m required upstairs. And one of the things I like about Gary -- there’s no member of -- no governor or member of Cabinet that I have enjoyed working with more, because Gary speaks English. By that, I mean not English versus Chinese; I mean plain versus complicated. (Laughter.) And so when Gary speaks, everyone understands exactly what he means.
And as you know better than I, communication is the currency, and particularly the currency that is needed most here in China. He’s been an Ambassador to the Chinese government, but also to the Chinese people, and he will be missed. I remember, I was here shortly after Gary arrived and every newspaper you’d pick, even though I don’t read Chinese, I’d see Gary’s picture -- because he connected. He connected immediately with the Chinese people as a representative of our country and knowing -- the Chinese people knowing he was reaching out not just to the government, but to them.
I had a chance since I’ve been here -- it’s been a very rapid visit, and it’s been 14-hour days, but very useful -- I had a chance to talk with Vice President Li, and I will spend several hours -- and I spent I guess almost four and a half hours with President Xi. And I’m honored that he would give me the time to go into such detail, both in a private bilat with him as well as an expanded, as well as a lovely dinner he hosted for me and a few of my colleagues. Later, I’ll be meeting with Premier Li.
And I want to talk to you about much of what -- some of what I’ve talked to all of them about and what I believe to be are next steps in the U.S.-China relationship.
We’re trying to build a new kind of relationship between major powers, one that’s different, one that is defined by constructive cooperation, healthy competition, and a shared respect for an agreed upon new set of rules of the road and international norms for the 21st century.
After World II, our grandfathers and fathers and mothers put in place a structure that accommodated the economic change that took place in the world and set up a new set of rules of the road for the remainder of the 20th century. We’re in a different place now. You all know it better than I do. We use the phrase in colloquial conversation in all our countries that it’s a “global economy.” But it’s truly a global economy -- a global economy.
My colleagues always kid me about quoting Irish poets all the time. They think I do it because I’m Irish. I do it because they’re the best poets. (Laughter.) And William Butler Yeats wrote a poem called Easter Sunday 1916, about the first rising in Ireland in the 20th century. And he had a line in it that better describes, I would argue, the Pacific Basin in the year 2013 than it did in his Ireland in 1916. He said, "All is changed, changed utterly, a terrible beauty has been born."
We’re at a moment, a window, as they say, of opportunity. How long it will remain open remains to be seen -- where we can potentially establish a set of rules of the road that provide for mutual benefit and growth of both our countries and the region, that set down sort of the tracks for progress in the 21st century. I think it is that profound. I think that’s the place, that’s the inflection point we are at in our relationship now -- not only with China but the entire region.
And so the only path to realizing this vision for the future is through tangible, practical cooperation and managing our differences effectively. We’ve not tried this before. We’ve not tried this before. This is going to be difficult. But if we get it right, the outcome for our children and grandchildren can be profound -- profoundly positive.
But to move this relationship forward, there is no substitute for direct and personal engagement between leaders. President Xi pointed out to me, because I had an opportunity when he was vice president to spend some considerable time with him at the request of President Hu and then -- and President Obama. He made indirect reference to -- there was a famous American politician named Tip O’Neill, who I admired a great deal and was sort of a mentor when I was a young 29-year-old senator coming into Congress. And he’s famous for having said all politics is local. Well, I believe all politics is personal, including international politics.
Personal relationships are the only vehicle by which you build trust. It doesn’t mean you agree, but trust to know that the man or woman on the other side of the table is telling you precisely what they mean, even if you don’t want to hear it. That’s why President Obama asked me to make this visit, and that’s why President Xi and I spent so much time together yesterday discussing in great detail a whole range of issues we face together that are difficult for both of us to navigate in our own political system.
These were very candid conversations. I know it shocks you to think I would be candid. I know that’s a shocking assertion. No one has doubted that I mean exactly what I say. The problem is I sometimes tend to say all that I mean. (Laughter.) But because our relationship is so complex, getting it right isn’t going to be easy, and it’s going to require direct straightforwardness with one another about our interests, our concerns and, quite frankly, our expectations. And that was the nature of the discussion yesterday.
Let me start with economics, not because this is a business audience, but because ultimately what matters most on both sides is our ability to deliver better for our people without it being viewed as a zero-sum game. I have said since I met with Deng Xiaoping as a young senator, with very senior senators, that China’s economic growth is very much in the interest of the United States of America -- very much in our interest. In my meetings with President Xi, he and I spent a good deal of our time discussing the outcomes of China’s third plenum. China’s leaders have stated their ambition to move China toward a system where the market plays a “decisive role.” That is a very, very big order that will require on the part of -- and I’m confident he possesses it -- the leadership of this country and the President.
But, in fact, many of the reforms China’s leaders are proposing actually match the priorities we have raised with China over the years. Leveling the playing field for private and foreign-owned companies -- it’s going to be a difficult, difficult transition. Protecting intellectual property and trade secrets, which is essential. It’s not a surprise that a number of American companies are coming home in their manufacturing. Why? Well, we have very productive workers, but also we have court systems that are totally transparent. Intellectual property is protected. It matters. And I think it’s becoming apparent to our competitors around the world that it matters for their own economic growth. Opening service sectors to private and foreign investment and moving to market -- to a market-demand exchange rate.
These are welcome steps, but they will be difficult steps, and there’s no need to wait till 2020. Again, the Chinese leadership in private has been very candid with me about the difficulty, but the determination they have to meet this, by any standard, very ambitious goal. Of course, what matters most at the end of the day will be implementation. There’s an old Saxon expression -- the proof of the pudding is in the eating. The proof of the pudding is in the eating. But I have no doubt that President Xi and his leadership and his primary advisors intend on, mean to, are committed to making the third plenum a reality. But it is going to require substantial commitment and follow-through.
Reform anywhere is challenging. There are always intense interests. I know you all are so happy about our views on Wall Street reform -- not easy, but a minor -- a minor -- change compared to what the Chinese leadership has taken on. But the more China delivers on its proposed reforms the strong our bilateral trade and investment relationship will be.
And there's a lot of work to do, and I know that many of you have concerns that need to be dealt with in the process. There are a number of areas where, in the next two years, we can and should make progress immediately. We have an opportunity to improve intellectual property protection, resolve outstanding trade disputes that are holding us back. We have an opportunity to significantly expand our cooperation on energy and climate change -- where we have overwhelmingly mutual interest. Helping China achieve new vehicle emission standards and energy-transparent goals is that we committed to this week.
Implementing our agreement on HFCs -- we have an opportunity to protect the health and well-being of our people by increasing the safety of food and drugs. And today we've agreed on increase of the number of U.S. inspectors who are operating in China.
We have an opportunity in the months ahead to make significant progress in negotiating a bid, a bilateral investment treaty and much more.
The third plenum also speaks to social and political reform and identifies some important near-term steps that they want to implement -- an end to China's program of reeducation through forced labor, easing the one-child policy, a commitment to deeper judicial and legal reforms. Any major economic power in the 21st century, these are all going to become essential requirements in order to sustain growth, in my humble opinion, through the first half of the 21st century.
As was pointed out yesterday by the President, quoting back to me, I always say I never tell another man his business, or suggest to another leader what's in the interests of his country. But the interests laid out in the third plenum seem to be very much in our mutual interest. There are many more steps China can take to open its politics and society as well as its economy. And as I've said before, this is actually, from our perspective, in China's interest, notwithstanding it's for them to determine their interest. Because history tells us that innovation is the currency of 21st century success. Innovation thrive where people breathe freely, speak freely, are able to challenge orthodoxy, where newspapers can report the truth without fear of consequences.
We have many disagreements, and some profound disagreements, on some of those issues right now, in the treatment of U.S. journalists. But I believe China will be stronger and more stable and more innovative if it respects universal human rights.
I was asked why we always talk about human rights. The point I try to make wherever I go in the world when that discussion comes up is we are a nation of immigrants. The vast majority of your ancestors who came to America came because their human rights were being violated. It is stamped into the DNA of Americans. No President, no matter how much he or she would like to avoid speaking to it, is able to remain silent without suffering consequences from the American public. It is who we are. Not that we're the citadel of human rights; we have much progress to make ourselves.
As businesses know well, prosperity critically depends upon predictability and stability. The United States and our allies have guaranteed peace and security in this region for more than 60 years, providing the conditions for the remarkable economic progress in the region, particularly China. Our relationship with China is complex, though. We have our differences and they are real. But there's nothing inevitable about a conflict with China -- nothing inevitable about a conflict with China. Wholesome competition and strong competition is fundamentally different than conflict.
In fact, we see considerable common interest on the security side. A secure and peaceful Asia Pacific enables economic growth for the entire region. This area of the world is going to be the economic engine of the 21st century; in halting the spread of weapons of mass destruction, including North Korea, to stabilizing nuclear missile program, where we have real cooperation; in greater access to affordable and clean sources of energy. It's easier to begin to talk about that in the United States and in China because as -- my President kids me -- I often say reality has a way of intruding. Reality has a way of intruding. And it has intruded in both our countries in terms of global warming and the effects on air quality -- storms, natural disasters. And it is overwhelmingly in our mutual interest that we share the capacity each of us may have to deal with a more healthy environment.
We need to keep building practical cooperation and manage areas where we do not see eye-to-eye. Everybody focuses on where we disagree with the Chinese. We disagree with our allies in other parts of the world. But China's recent and sudden announcement of the establishment of a new Air Defense Identification Zone has, to state the obvious, caused significant apprehension in the region.
And I was very direct about our firm position and our expectations in my conversations with President Xi. But I also put this in a broader context. The Asia Pacific region will be the driver of the global economy, to repeat myself, in the 21st century, and as China's economy grows, its stake in regional peace and stability will continue to grow as well because it has so much more to lose. That's why China will bear increasing responsibility to contribute positively to peace and security.
That means taking steps to reduce the risk of accidental conflict and miscalculation, and reaffirming -- reaffirming that we want to have better predictability and refraining from taking steps that will increase tension. And it means pursuing -- this means pursuing crisis management mechanisms and effective channels for communications with its neighbors.
These are some of the things I discussed with Chinese leaders. The United States has a profound stake in what happens here because we need, and we are, and will remain a Pacific power diplomatically, economically, and militarily. That's just a statement of fact.
When I first visited China back in 1979, as has been pointed out, I came to the conclusion then that I still share now, that China's economic growth then I thought would be good for, and now I am confident is good for America and the world. But it has never been inevitable. It takes work to build trust and make a habit out of cooperation, to be clear, predictable and straight with one another when we disagree, and to escape the traps that set other powers before us down a path of conflict.
That is the work of leaders and diplomats, but it is also of citizens and businesspeople like all of you assembled before me. I believe that our success or failure in building a U.S.-China relationship that will define the world for our grandchildren to live in depends not just on political leaders, but on you as well. I believe that the shared prosperity that you help create is part of the glue that will hold together this relationship. So I thank you. I thank you for your commitment. I thank you for your hard work. I thank you for staying in the game. And I wish you all a great deal of luck because your success strengthens the entire relationship.
And if we get this relationship right, together China and America, the region and the world will be better off for it for a long time to come, and that is not hyperbole. That is -- as an old Western movie used to say in America, that ain’t brag, ma’am. That's just fact. It is a fact that if we get this right the prospects for the 21st century being peaceful, secure and everyone sharing in the growing prosperity is real.
So thank you all for what you do. And may God bless you all and may God protect our troops. Thank you very much. Appreciate you. (Applause.)
Remarks by the Vice President at a Breakfast with the American Chamber of Commerce in Beijing and the U.S.-China Business Council
St. Regis Hotel
Beijing, People's Republic of China
10:12 A.M. (Local)
THE VICE PRESIDENT: (Applause.) Thank you very much. And I'm so late you probably thought you were going to hear from the 48th Vice President of the United States. (Laughter.) I apologize. I always, when I’m late at home, always blame it on the President. But I can’t do that today, and I apologize for keeping you waiting.
I remember 220 years ago, when I was in college, you only had to wait 10 minutes for a professor, 20 minutes for a full professor. The only full professor in the Biden family is my wife -- you didn’t have to wait this long. But thank you so much for giving me the opportunity to speak with you all.
Let me begin by saying one thing about competition. I’ve told this to Vice President Xi and then President Xi, in all the time I had to spend with him, is that one of the things that has happened in the last 20 years, as the world has become more competitive, it’s awakened the competitive spirit in the United States. Competition is stamped into our DNA. And if there’s anything remotely approaching a level playing field, we’ll do just fine -- just fine.
And so I want to thank the American Chamber of Commerce and the U.S. Business Council for inviting me here today. You are living the U.S.-China relationship every single day, and you know the opportunities, but you also know the obstacles. And it’s great to be back together one last time here in Beijing with our Ambassador, Gary Locke. I say one last time because he is going to be heading back to his home state of Washington after a very distinguished career, which I don’t think is anywhere near ended, as both governor, member of the Cabinet, as well as the Ambassador.
And Gary and I were speaking this morning as I was -- there was a telephone call, they said I’m required upstairs. And one of the things I like about Gary -- there’s no member of -- no governor or member of Cabinet that I have enjoyed working with more, because Gary speaks English. By that, I mean not English versus Chinese; I mean plain versus complicated. (Laughter.) And so when Gary speaks, everyone understands exactly what he means.
And as you know better than I, communication is the currency, and particularly the currency that is needed most here in China. He’s been an Ambassador to the Chinese government, but also to the Chinese people, and he will be missed. I remember, I was here shortly after Gary arrived and every newspaper you’d pick, even though I don’t read Chinese, I’d see Gary’s picture -- because he connected. He connected immediately with the Chinese people as a representative of our country and knowing -- the Chinese people knowing he was reaching out not just to the government, but to them.
I had a chance since I’ve been here -- it’s been a very rapid visit, and it’s been 14-hour days, but very useful -- I had a chance to talk with Vice President Li, and I will spend several hours -- and I spent I guess almost four and a half hours with President Xi. And I’m honored that he would give me the time to go into such detail, both in a private bilat with him as well as an expanded, as well as a lovely dinner he hosted for me and a few of my colleagues. Later, I’ll be meeting with Premier Li.
And I want to talk to you about much of what -- some of what I’ve talked to all of them about and what I believe to be are next steps in the U.S.-China relationship.
We’re trying to build a new kind of relationship between major powers, one that’s different, one that is defined by constructive cooperation, healthy competition, and a shared respect for an agreed upon new set of rules of the road and international norms for the 21st century.
After World II, our grandfathers and fathers and mothers put in place a structure that accommodated the economic change that took place in the world and set up a new set of rules of the road for the remainder of the 20th century. We’re in a different place now. You all know it better than I do. We use the phrase in colloquial conversation in all our countries that it’s a “global economy.” But it’s truly a global economy -- a global economy.
My colleagues always kid me about quoting Irish poets all the time. They think I do it because I’m Irish. I do it because they’re the best poets. (Laughter.) And William Butler Yeats wrote a poem called Easter Sunday 1916, about the first rising in Ireland in the 20th century. And he had a line in it that better describes, I would argue, the Pacific Basin in the year 2013 than it did in his Ireland in 1916. He said, "All is changed, changed utterly, a terrible beauty has been born."
We’re at a moment, a window, as they say, of opportunity. How long it will remain open remains to be seen -- where we can potentially establish a set of rules of the road that provide for mutual benefit and growth of both our countries and the region, that set down sort of the tracks for progress in the 21st century. I think it is that profound. I think that’s the place, that’s the inflection point we are at in our relationship now -- not only with China but the entire region.
And so the only path to realizing this vision for the future is through tangible, practical cooperation and managing our differences effectively. We’ve not tried this before. We’ve not tried this before. This is going to be difficult. But if we get it right, the outcome for our children and grandchildren can be profound -- profoundly positive.
But to move this relationship forward, there is no substitute for direct and personal engagement between leaders. President Xi pointed out to me, because I had an opportunity when he was vice president to spend some considerable time with him at the request of President Hu and then -- and President Obama. He made indirect reference to -- there was a famous American politician named Tip O’Neill, who I admired a great deal and was sort of a mentor when I was a young 29-year-old senator coming into Congress. And he’s famous for having said all politics is local. Well, I believe all politics is personal, including international politics.
Personal relationships are the only vehicle by which you build trust. It doesn’t mean you agree, but trust to know that the man or woman on the other side of the table is telling you precisely what they mean, even if you don’t want to hear it. That’s why President Obama asked me to make this visit, and that’s why President Xi and I spent so much time together yesterday discussing in great detail a whole range of issues we face together that are difficult for both of us to navigate in our own political system.
These were very candid conversations. I know it shocks you to think I would be candid. I know that’s a shocking assertion. No one has doubted that I mean exactly what I say. The problem is I sometimes tend to say all that I mean. (Laughter.) But because our relationship is so complex, getting it right isn’t going to be easy, and it’s going to require direct straightforwardness with one another about our interests, our concerns and, quite frankly, our expectations. And that was the nature of the discussion yesterday.
Let me start with economics, not because this is a business audience, but because ultimately what matters most on both sides is our ability to deliver better for our people without it being viewed as a zero-sum game. I have said since I met with Deng Xiaoping as a young senator, with very senior senators, that China’s economic growth is very much in the interest of the United States of America -- very much in our interest. In my meetings with President Xi, he and I spent a good deal of our time discussing the outcomes of China’s third plenum. China’s leaders have stated their ambition to move China toward a system where the market plays a “decisive role.” That is a very, very big order that will require on the part of -- and I’m confident he possesses it -- the leadership of this country and the President.
But, in fact, many of the reforms China’s leaders are proposing actually match the priorities we have raised with China over the years. Leveling the playing field for private and foreign-owned companies -- it’s going to be a difficult, difficult transition. Protecting intellectual property and trade secrets, which is essential. It’s not a surprise that a number of American companies are coming home in their manufacturing. Why? Well, we have very productive workers, but also we have court systems that are totally transparent. Intellectual property is protected. It matters. And I think it’s becoming apparent to our competitors around the world that it matters for their own economic growth. Opening service sectors to private and foreign investment and moving to market -- to a market-demand exchange rate.
These are welcome steps, but they will be difficult steps, and there’s no need to wait till 2020. Again, the Chinese leadership in private has been very candid with me about the difficulty, but the determination they have to meet this, by any standard, very ambitious goal. Of course, what matters most at the end of the day will be implementation. There’s an old Saxon expression -- the proof of the pudding is in the eating. The proof of the pudding is in the eating. But I have no doubt that President Xi and his leadership and his primary advisors intend on, mean to, are committed to making the third plenum a reality. But it is going to require substantial commitment and follow-through.
Reform anywhere is challenging. There are always intense interests. I know you all are so happy about our views on Wall Street reform -- not easy, but a minor -- a minor -- change compared to what the Chinese leadership has taken on. But the more China delivers on its proposed reforms the strong our bilateral trade and investment relationship will be.
And there's a lot of work to do, and I know that many of you have concerns that need to be dealt with in the process. There are a number of areas where, in the next two years, we can and should make progress immediately. We have an opportunity to improve intellectual property protection, resolve outstanding trade disputes that are holding us back. We have an opportunity to significantly expand our cooperation on energy and climate change -- where we have overwhelmingly mutual interest. Helping China achieve new vehicle emission standards and energy-transparent goals is that we committed to this week.
Implementing our agreement on HFCs -- we have an opportunity to protect the health and well-being of our people by increasing the safety of food and drugs. And today we've agreed on increase of the number of U.S. inspectors who are operating in China.
We have an opportunity in the months ahead to make significant progress in negotiating a bid, a bilateral investment treaty and much more.
The third plenum also speaks to social and political reform and identifies some important near-term steps that they want to implement -- an end to China's program of reeducation through forced labor, easing the one-child policy, a commitment to deeper judicial and legal reforms. Any major economic power in the 21st century, these are all going to become essential requirements in order to sustain growth, in my humble opinion, through the first half of the 21st century.
As was pointed out yesterday by the President, quoting back to me, I always say I never tell another man his business, or suggest to another leader what's in the interests of his country. But the interests laid out in the third plenum seem to be very much in our mutual interest. There are many more steps China can take to open its politics and society as well as its economy. And as I've said before, this is actually, from our perspective, in China's interest, notwithstanding it's for them to determine their interest. Because history tells us that innovation is the currency of 21st century success. Innovation thrive where people breathe freely, speak freely, are able to challenge orthodoxy, where newspapers can report the truth without fear of consequences.
We have many disagreements, and some profound disagreements, on some of those issues right now, in the treatment of U.S. journalists. But I believe China will be stronger and more stable and more innovative if it respects universal human rights.
I was asked why we always talk about human rights. The point I try to make wherever I go in the world when that discussion comes up is we are a nation of immigrants. The vast majority of your ancestors who came to America came because their human rights were being violated. It is stamped into the DNA of Americans. No President, no matter how much he or she would like to avoid speaking to it, is able to remain silent without suffering consequences from the American public. It is who we are. Not that we're the citadel of human rights; we have much progress to make ourselves.
As businesses know well, prosperity critically depends upon predictability and stability. The United States and our allies have guaranteed peace and security in this region for more than 60 years, providing the conditions for the remarkable economic progress in the region, particularly China. Our relationship with China is complex, though. We have our differences and they are real. But there's nothing inevitable about a conflict with China -- nothing inevitable about a conflict with China. Wholesome competition and strong competition is fundamentally different than conflict.
In fact, we see considerable common interest on the security side. A secure and peaceful Asia Pacific enables economic growth for the entire region. This area of the world is going to be the economic engine of the 21st century; in halting the spread of weapons of mass destruction, including North Korea, to stabilizing nuclear missile program, where we have real cooperation; in greater access to affordable and clean sources of energy. It's easier to begin to talk about that in the United States and in China because as -- my President kids me -- I often say reality has a way of intruding. Reality has a way of intruding. And it has intruded in both our countries in terms of global warming and the effects on air quality -- storms, natural disasters. And it is overwhelmingly in our mutual interest that we share the capacity each of us may have to deal with a more healthy environment.
We need to keep building practical cooperation and manage areas where we do not see eye-to-eye. Everybody focuses on where we disagree with the Chinese. We disagree with our allies in other parts of the world. But China's recent and sudden announcement of the establishment of a new Air Defense Identification Zone has, to state the obvious, caused significant apprehension in the region.
And I was very direct about our firm position and our expectations in my conversations with President Xi. But I also put this in a broader context. The Asia Pacific region will be the driver of the global economy, to repeat myself, in the 21st century, and as China's economy grows, its stake in regional peace and stability will continue to grow as well because it has so much more to lose. That's why China will bear increasing responsibility to contribute positively to peace and security.
That means taking steps to reduce the risk of accidental conflict and miscalculation, and reaffirming -- reaffirming that we want to have better predictability and refraining from taking steps that will increase tension. And it means pursuing -- this means pursuing crisis management mechanisms and effective channels for communications with its neighbors.
These are some of the things I discussed with Chinese leaders. The United States has a profound stake in what happens here because we need, and we are, and will remain a Pacific power diplomatically, economically, and militarily. That's just a statement of fact.
When I first visited China back in 1979, as has been pointed out, I came to the conclusion then that I still share now, that China's economic growth then I thought would be good for, and now I am confident is good for America and the world. But it has never been inevitable. It takes work to build trust and make a habit out of cooperation, to be clear, predictable and straight with one another when we disagree, and to escape the traps that set other powers before us down a path of conflict.
That is the work of leaders and diplomats, but it is also of citizens and businesspeople like all of you assembled before me. I believe that our success or failure in building a U.S.-China relationship that will define the world for our grandchildren to live in depends not just on political leaders, but on you as well. I believe that the shared prosperity that you help create is part of the glue that will hold together this relationship. So I thank you. I thank you for your commitment. I thank you for your hard work. I thank you for staying in the game. And I wish you all a great deal of luck because your success strengthens the entire relationship.
And if we get this relationship right, together China and America, the region and the world will be better off for it for a long time to come, and that is not hyperbole. That is -- as an old Western movie used to say in America, that ain’t brag, ma’am. That's just fact. It is a fact that if we get this right the prospects for the 21st century being peaceful, secure and everyone sharing in the growing prosperity is real.
So thank you all for what you do. And may God bless you all and may God protect our troops. Thank you very much. Appreciate you. (Applause.)
LIBRARY OF CONGRESS CELEBRATES MEXICAN AND HISPANIC HERITAGE
FROM: U.S. LIBRARY OF CONGRESS
A Celebration of Mexico: A Champion of Reform
December 4, 2013 by Erin Allen
The Library of Congress has the largest collection of Hispanic materials in the world, including rare items of Mexican origin. Next Thursday and Friday, the institution is hosting a special “Celebration of Mexico” to take a look at some of these items and to also honor Hispanic and Mexican heritage. As part of the celebration, several of the institution’s curators have highlighted a few of the Library’s most treasured artifacts in a series of brief webcasts.
Bartolomé de Las Casas is known throughout history for his stand on the rights of native Americans. The Library holds several of his writings in his collections, including this book to inform the Spanish Crown that officials and landowners in the New World were behaving cruelly toward their indigenous subjects and to plead for redress. His book had an enormous impact, prompting Emperor Charles V to recognize the humanity of indigenous peoples and to issue the New Laws of the Indies in 1542, ending the absolute power of individual Spaniards.
Library of Congress Hispanic Division specialist Barbara Tenenbaum shares insights into the history of the early Americas and Dominican priest and social reformer Bartolomé de las Casas.
A Celebration of Mexico: A Champion of Reform
December 4, 2013 by Erin Allen
The Library of Congress has the largest collection of Hispanic materials in the world, including rare items of Mexican origin. Next Thursday and Friday, the institution is hosting a special “Celebration of Mexico” to take a look at some of these items and to also honor Hispanic and Mexican heritage. As part of the celebration, several of the institution’s curators have highlighted a few of the Library’s most treasured artifacts in a series of brief webcasts.
Bartolomé de Las Casas is known throughout history for his stand on the rights of native Americans. The Library holds several of his writings in his collections, including this book to inform the Spanish Crown that officials and landowners in the New World were behaving cruelly toward their indigenous subjects and to plead for redress. His book had an enormous impact, prompting Emperor Charles V to recognize the humanity of indigenous peoples and to issue the New Laws of the Indies in 1542, ending the absolute power of individual Spaniards.
Library of Congress Hispanic Division specialist Barbara Tenenbaum shares insights into the history of the early Americas and Dominican priest and social reformer Bartolomé de las Casas.
EXPORT-IMPORT BANK WILL FINANCE $641 MILLION EXPORT OF REFINERY EQUIPMENT DEAL
FROM: U.S. EXPORT-IMPORT BANK
Ex-Im Bank Approves $641 Million to Finance the Export
of U.S. Refinery Equipment to Turkey
Transaction Supports 3,000 Jobs
Washington, D.C. – In a boost for U.S. jobs, the Export-Import Bank of the United States (Ex-Im Bank) has authorized a $640.7 million direct loan to Star Refineri A.S. (Star) of Istanbul, Turkey, that will finance the export of American-made oil refinery equipment and support approximately 3,000 U.S. jobs, according to bank estimates derived from Departments of Commerce and Labor data and methodology.
“This important transaction will support the export of cutting-edge American equipment,” said Ex-Im Bank Chairman and President Fred P. Hochberg. “Moreover, the transaction will help a vital industry in Turkey and support 3,000 U.S. jobs across America. The growth we see in the energy sector around the globe bolsters jobs here at home.”
The American-made equipment will factor in Star’s construction of an oil refinery in Aliaga, Turkey, approximately 30 miles north of Izmir on the Azean coast. Upon completion in 2017, the refinery will produce crude oil in addition to various other petrochemicals, including naphtha, LPG, and xylenes.
Ex-Im Bank Approves $641 Million to Finance the Export
of U.S. Refinery Equipment to Turkey
Transaction Supports 3,000 Jobs
Washington, D.C. – In a boost for U.S. jobs, the Export-Import Bank of the United States (Ex-Im Bank) has authorized a $640.7 million direct loan to Star Refineri A.S. (Star) of Istanbul, Turkey, that will finance the export of American-made oil refinery equipment and support approximately 3,000 U.S. jobs, according to bank estimates derived from Departments of Commerce and Labor data and methodology.
“This important transaction will support the export of cutting-edge American equipment,” said Ex-Im Bank Chairman and President Fred P. Hochberg. “Moreover, the transaction will help a vital industry in Turkey and support 3,000 U.S. jobs across America. The growth we see in the energy sector around the globe bolsters jobs here at home.”
The American-made equipment will factor in Star’s construction of an oil refinery in Aliaga, Turkey, approximately 30 miles north of Izmir on the Azean coast. Upon completion in 2017, the refinery will produce crude oil in addition to various other petrochemicals, including naphtha, LPG, and xylenes.
Friday, December 6, 2013
SECRETARY OF STATE KERRY'S REMARKS AT BEN GURION INTERNATIONAL AIRPORT
FROM: U.S. STATE DEPARTMENT
Press Availability at Ben Gurion International Airport
Press Availability
John Kerry
Secretary of State
Tel Aviv, Israel
December 6, 2013
SECRETARY KERRY: We’re here this morning just outside of Tel Aviv, but our hearts are in Johannesburg with all the millions of people who loved Nelson Mandela. Madiba’s long walk to freedom gave new meaning to character and to courage, to forgiveness, and to human dignity. And now that his long walk has ended, the example that he set for all of humanity lives on. He will be remembered as a pioneer for peace, and there are some people, I think, in the course of life who truly – you meet and you are touched by them, and you’re forever changed by the experience. Nelson Mandela is one of those people.
Teresa and I had the honor of sitting with Mandela over the Thanksgiving holidays of 2007, and – that and several other times. And I also stood in his tiny cell on Robben Island, a room with barely enough space to be able to lie down in or stand up in. I learned that the glare of the white rock quarry on the island permanently damaged his eyesight, and it hit home even more how remarkable it was that after spending 27 years locked up, locked away, and having his own vision impaired by that condition, that this man was still able to see the best interests of his country, the best interests of humanity, and embrace even the very guards who kept him prisoner. That is the story of a man whose ability to see resided not just in his eyes but in his conscience. He was a stranger to hate. He rejected recrimination in favor of reconciliation, and he knew the future demands required that we move beyond the place that he had been, beyond the past.
So we just think of the lessons that he taught the world which have special significance at this moment in history. He said, “It always seems impossible until it is done.” I think it’s appropriate for us to think about that in the context of the work that I’ve been doing here in the last couple of days and over these last months, and of the hopes and aspirations of the people of this region. That example of Nelson Mandela is an example that we all need to take to heart as we face the challenge of trying to reach a two-state solution.
Over the past two days, I had the opportunity to meet with both Prime Minister Netanyahu and President Abbas. And despite the fact that we are discussing really difficult, complicated issues, I am encouraged by the continued commitment of both leaders to the pursuit of peace. And they both underscored their commitment to continue to work through these difficult issues in the days ahead. As we look to the challenges that we face in the coming months, we need to all be not just reminded of the example of Nelson Mandela’s words, but by his actions. The naysayers are wrong to call peace in this region an impossible goal. It always seems impossible until it’s done.
Since the two parties first agreed to resume talks four months ago, they have held regular discussions and the United States has remained in close contact with both sides. It hasn’t been easy; I won’t pretend that. But none of the parties embarked on this path with the expectation that it was going to be a simple or easy process. We all knew upfront that it would be a long, arduous, and complicated journey.
Nonetheless, it is absolutely clear to me through the discussions that we had – and believe me, I wouldn’t spend these hours and I wouldn’t come back here given the agenda that we face on a global basis if I didn’t think it was worthwhile, if President Obama didn’t believe it was worth pursuing. And it is quite clear that both President Abbas and Prime Minister Netanyahu remain as determined as ever to continue down this path and to explore these possibilities. Because both parties have the same endpoint in their sights: Two nations for two peoples living side by side in peace and prosperity.
But neither peace nor prosperity are possible without security, and the United States will only support a final status agreement that makes both Israelis and Palestinians more secure than they are today. As I made clear yesterday, the commitment of the United States to Israel’s security is ironclad. It is a commitment that spans decades. It is permanent. In 1973, that commitment was the driving force behind the 32-day airlift the United States conducted to deliver military assistance to Israeli forces during the Yom Kippur War. More than 20 years ago, that commitment was the reason we began work with Israel to develop ballistic missile defense technologies that continue to protect the Israeli people from the range of threats that they face every day. And at this moment, our commitment to Israel’s security – a central issue as we work towards a lasting peace between the Israelis and the Palestinians, and as we work towards the creation of a viable, independent, Palestinian state.
That’s why President Obama and I have been working very closely with General John Allen, who is one of the United States’ most experienced military leaders, and a team with him of American defense experts – so that we can anticipate all of the threats to Israel’s security at every step of the final status negotiations process and work out ways to address those threats as well as to address the complicated questions of security within a new state of Palestine and to deal with the issues of a viable independent Palestinian state and the security challenges that that presents. Together, there is no doubt in my mind we can reach an agreement that will support the peaceful and promising Palestine that the Palestinian people deserve alongside a prosperous and a more secure Israel.
There’s another issue at the heart of Israel’s security that’s also been a key focus of all of our discussions, and that is the P5+1 negotiations with respect to Iran. Throughout these negotiations, our commitment to Israel’s security is paramount. The fact remains that both the United States and Israel have the same priority with respect to Iran. We are laser-focused on preventing the Iranians from acquiring a nuclear weapon. The United States firmly believes that the P5+1 first-step agreement not only makes Israel more secure than it was the day before that agreement, but we believe it will take us closer to a lasting, peaceful, and comprehensive solution to the Iranian nuclear program. It is the best opportunity we have to resolve the international community’s concerns about Iran’s nuclear program.
I pledge this, as President Obama has: As we proceed forward in this negotiation, we will continue to consult very closely with Israel as the negotiations resume as well as with our other friends and allies in the region and around the world, because that input is critical to us in the process. And as is known, Security Advisor to Prime Minister Netanyahu Yossi Cohen will travel to the United States next week. We will be engaging in very direct conversations so that we are on the same track going forward. I look forward to speaking in greater detail about the United States partnership with Israel tomorrow when I address the Saban Forum in Washington, D.C.
For now, let me just now reiterate how grateful I am for the courage that both Prime Minister Netanyahu and President Abbas both continue to display against naysayers, against opponents, as they pursue a full exploration of the possibilities of peace. I believe we are closer than we have been in years to bringing about the peace and the prosperity and the security that all of the people of this region deserve and yearn for.
Thank you very much, and I look forward to answering any questions.
MODERATOR: Lara Jakes, AP.
QUESTION: Thanks. Thank you. Just kind of following up on what you just said, you said you believe that we are closer than we have been in years to bringing about peace and prosperity. You’ve been here eight times, and as you know, the media is full of reports that there has actually been no progress made. So what specific examples of progress can you give us to show for your time here?
Also, this was the first time that General Allen briefed the prime minister on some ideas for a security resolution for Israel. Is the U.S. moving now into a more proactive bridging role because the two sides together have been unable to come up with some kind of resolution, solution, or compromise? Thanks.
SECRETARY KERRY: Well, no, actually, no. Let me answer the first – the second part of the question first as I answer the first part of the question.
The United States has always been an active participant and will remain an active participant, but the negotiation is between the two parties. And we play a critical role because we have an ability to be able to provide technology as well as other technical capacity as well as concepts that we can help shape with respect to security. Now, why do I say that I believe we’re making progress? Because we’ve gone through a very detailed, lengthy, in-depth analysis of the security challenges of the region, and particularly the challenges to Israel and to the creation of a viable, independent Palestinian state. And that process has taken time.
General John Allen, who came with me on this trip and did brief, did so because we’ve reached a point where we have something to brief on, where we have results as a consequence of the analysis that’s been made. And we believe we’re able to contribute thinking as a consequence of those – that analysis that could help both the Palestinians and the Israelis to make judgments about some of the choices that are important to arriving at an agreement. So that is progress, and it hasn’t come easily. There are about 160 people who have contributed one way or the other to the process General Allen has pursued. The intelligence community, the Department of Defense, the State Department, the White House – all have been engaged in thinking through the various possibilities of how you deal with one problem or another with respect to security. And so obviously, security is paramount in the minds of the prime minister and his team with respect to their ability to be able to move forward with other issues that have to be dealt with. If Israel’s security cannot be increased through this agreement, it’s very difficult to make an agreement. So we are making certain that we’re addressing each and every one of those questions.
And I’m not going to comment further on the progress, but one thing I will say is this: We purposefully agreed at the beginning of this process that I would be the only person to comment on these talks publicly. And I notice in the newspapers or in some comments here or there there’s a leak and somebody suggests this or that. I have no idea who is leaking; I know it’s not me, and I’m the only authorized spokesperson. So whatever people are saying that something is on the table or not on the table or this or that is really not grounded in these talks. Some people may want to think they know more than others or suggest that they know what’s going on or – but the reality is that the people who really know what’s going on are not talking about it. And so there is not going to be a lot of information coming out. And the fact that there is not a lot of information coming out doesn’t mean that the talks aren’t being productive.
So we feel – I mean, I wouldn’t spend these hours if I didn’t think it was productive and we weren’t hammering out important concepts. And nor would the prime minister of Israel, who has a lot to do, spend this kind of time – nor would President Abbas, who has major responsibilities with respect to finance and to management of the Palestinian Authority. But all of us are committed to this process and they have taken, particularly, political heat for choices they have made in order to continue to pursue it. And guess what? They are continuing and they remain committed, and that’s because they know that we are engaged in serious conversations about how we could resolve the differences between the parties.
MODERATOR: Anne Gearan from The Washington Post.
QUESTION: Thank you. Mr. Secretary, do you leave here today with any assurances from the Israeli prime minister that he will be quieter or more cooperative on the Iran talks front? And also, did you discuss with him directly the role of Congress and possible new sanctions and anything that he might do to influence against that? Thank you.
SECRETARY KERRY: No. I did not have any conversation with the prime minister regarding Congress or Congress’s role. But of course, we did discuss the substance of the issue of Iran and the negotiation. And look, the prime minister has every right in the world to make his views known with respect to his concerns about the security of his country, and we would expect him to do that. But the prime minister has also been extremely constructive in working with us on the next steps and where we need to go now. He understands that we are now in the real negotiation.
And as I pointed out in my earlier comments, and I’ll say this again – I have said this to the prime minister, and I think it’s – and I’ll say this again now to the people of Israel and to any interested parties: I am personally convinced beyond any reasonable doubt that Israel is safer today after we have reached this first-step agreement than it was before we did that. Why do I say that? I say that because we are now engaged in the major comprehensive discussion that the prime minister wanted us to be engaged in, but guess what? We have stopped their program where it is.
They are destroying – under requirements, they will have to destroy the 20 percent enriched uranium in its entirety. They will not be able to grow their 3.5 percent enriched to stock at all. They will not be allowed to put new centrifuges in place. They will have to submit to inspections of the Fordow facility, of Natanz facility, of Arak facility. The Arak facility cannot progress at all with the installation of components or the testing of additional fuel or the installation of any of the nuclear components. And therefore, we have expanded the amount of time during which Iran could actually break out. That makes Israel safer in our judgment.
And the fear of the prime minister with respect to the sanctions is certainly an appropriate concern, but it is one that the Treasury Department and the Obama Administration are absolutely determined to prevent from becoming a problem, because we have the ability to control what happens with respect to those sanctions. And we will continue to enforce them. There is no change in the fundamental sanctions regime. A very small amount of money is released, but those sanctions will continue over the course of these negotiations. And we are free at any time, if Iran is not complying, or we do not move forward, to ratchet up those sanctions and even to go back to Congress and ask for additional sanctions.
So I am convinced that we have put forward a strong proposal, and now what we are doing with Israel is working very closely on what the final comprehensive agreement ought to look like. Israel and the United States are absolutely in sync, not an ounce of daylight between us, with respect to the need to make sure that Iran cannot achieve a nuclear weapon, will not in the future be able to achieve it, and certainly cannot move towards it without the United States of America and Israel knowing that and therefore being able to take steps to deal with it. I believe Israel is safer today and we will approach this final negotiation with an absolute view about Israel’s security, Israel’s safety, the region’s safety, and our ability to stand up afterwards and say, this was an agreement that was good for the region, good for Israel, good for the United States, good for the world. That’s our objective.
MODERATOR: Thanks, everyone.
SECRETARY KERRY: Thank you all very much. Appreciate it.
Press Availability at Ben Gurion International Airport
Press Availability
John Kerry
Secretary of State
Tel Aviv, Israel
December 6, 2013
SECRETARY KERRY: We’re here this morning just outside of Tel Aviv, but our hearts are in Johannesburg with all the millions of people who loved Nelson Mandela. Madiba’s long walk to freedom gave new meaning to character and to courage, to forgiveness, and to human dignity. And now that his long walk has ended, the example that he set for all of humanity lives on. He will be remembered as a pioneer for peace, and there are some people, I think, in the course of life who truly – you meet and you are touched by them, and you’re forever changed by the experience. Nelson Mandela is one of those people.
Teresa and I had the honor of sitting with Mandela over the Thanksgiving holidays of 2007, and – that and several other times. And I also stood in his tiny cell on Robben Island, a room with barely enough space to be able to lie down in or stand up in. I learned that the glare of the white rock quarry on the island permanently damaged his eyesight, and it hit home even more how remarkable it was that after spending 27 years locked up, locked away, and having his own vision impaired by that condition, that this man was still able to see the best interests of his country, the best interests of humanity, and embrace even the very guards who kept him prisoner. That is the story of a man whose ability to see resided not just in his eyes but in his conscience. He was a stranger to hate. He rejected recrimination in favor of reconciliation, and he knew the future demands required that we move beyond the place that he had been, beyond the past.
So we just think of the lessons that he taught the world which have special significance at this moment in history. He said, “It always seems impossible until it is done.” I think it’s appropriate for us to think about that in the context of the work that I’ve been doing here in the last couple of days and over these last months, and of the hopes and aspirations of the people of this region. That example of Nelson Mandela is an example that we all need to take to heart as we face the challenge of trying to reach a two-state solution.
Over the past two days, I had the opportunity to meet with both Prime Minister Netanyahu and President Abbas. And despite the fact that we are discussing really difficult, complicated issues, I am encouraged by the continued commitment of both leaders to the pursuit of peace. And they both underscored their commitment to continue to work through these difficult issues in the days ahead. As we look to the challenges that we face in the coming months, we need to all be not just reminded of the example of Nelson Mandela’s words, but by his actions. The naysayers are wrong to call peace in this region an impossible goal. It always seems impossible until it’s done.
Since the two parties first agreed to resume talks four months ago, they have held regular discussions and the United States has remained in close contact with both sides. It hasn’t been easy; I won’t pretend that. But none of the parties embarked on this path with the expectation that it was going to be a simple or easy process. We all knew upfront that it would be a long, arduous, and complicated journey.
Nonetheless, it is absolutely clear to me through the discussions that we had – and believe me, I wouldn’t spend these hours and I wouldn’t come back here given the agenda that we face on a global basis if I didn’t think it was worthwhile, if President Obama didn’t believe it was worth pursuing. And it is quite clear that both President Abbas and Prime Minister Netanyahu remain as determined as ever to continue down this path and to explore these possibilities. Because both parties have the same endpoint in their sights: Two nations for two peoples living side by side in peace and prosperity.
But neither peace nor prosperity are possible without security, and the United States will only support a final status agreement that makes both Israelis and Palestinians more secure than they are today. As I made clear yesterday, the commitment of the United States to Israel’s security is ironclad. It is a commitment that spans decades. It is permanent. In 1973, that commitment was the driving force behind the 32-day airlift the United States conducted to deliver military assistance to Israeli forces during the Yom Kippur War. More than 20 years ago, that commitment was the reason we began work with Israel to develop ballistic missile defense technologies that continue to protect the Israeli people from the range of threats that they face every day. And at this moment, our commitment to Israel’s security – a central issue as we work towards a lasting peace between the Israelis and the Palestinians, and as we work towards the creation of a viable, independent, Palestinian state.
That’s why President Obama and I have been working very closely with General John Allen, who is one of the United States’ most experienced military leaders, and a team with him of American defense experts – so that we can anticipate all of the threats to Israel’s security at every step of the final status negotiations process and work out ways to address those threats as well as to address the complicated questions of security within a new state of Palestine and to deal with the issues of a viable independent Palestinian state and the security challenges that that presents. Together, there is no doubt in my mind we can reach an agreement that will support the peaceful and promising Palestine that the Palestinian people deserve alongside a prosperous and a more secure Israel.
There’s another issue at the heart of Israel’s security that’s also been a key focus of all of our discussions, and that is the P5+1 negotiations with respect to Iran. Throughout these negotiations, our commitment to Israel’s security is paramount. The fact remains that both the United States and Israel have the same priority with respect to Iran. We are laser-focused on preventing the Iranians from acquiring a nuclear weapon. The United States firmly believes that the P5+1 first-step agreement not only makes Israel more secure than it was the day before that agreement, but we believe it will take us closer to a lasting, peaceful, and comprehensive solution to the Iranian nuclear program. It is the best opportunity we have to resolve the international community’s concerns about Iran’s nuclear program.
I pledge this, as President Obama has: As we proceed forward in this negotiation, we will continue to consult very closely with Israel as the negotiations resume as well as with our other friends and allies in the region and around the world, because that input is critical to us in the process. And as is known, Security Advisor to Prime Minister Netanyahu Yossi Cohen will travel to the United States next week. We will be engaging in very direct conversations so that we are on the same track going forward. I look forward to speaking in greater detail about the United States partnership with Israel tomorrow when I address the Saban Forum in Washington, D.C.
For now, let me just now reiterate how grateful I am for the courage that both Prime Minister Netanyahu and President Abbas both continue to display against naysayers, against opponents, as they pursue a full exploration of the possibilities of peace. I believe we are closer than we have been in years to bringing about the peace and the prosperity and the security that all of the people of this region deserve and yearn for.
Thank you very much, and I look forward to answering any questions.
MODERATOR: Lara Jakes, AP.
QUESTION: Thanks. Thank you. Just kind of following up on what you just said, you said you believe that we are closer than we have been in years to bringing about peace and prosperity. You’ve been here eight times, and as you know, the media is full of reports that there has actually been no progress made. So what specific examples of progress can you give us to show for your time here?
Also, this was the first time that General Allen briefed the prime minister on some ideas for a security resolution for Israel. Is the U.S. moving now into a more proactive bridging role because the two sides together have been unable to come up with some kind of resolution, solution, or compromise? Thanks.
SECRETARY KERRY: Well, no, actually, no. Let me answer the first – the second part of the question first as I answer the first part of the question.
The United States has always been an active participant and will remain an active participant, but the negotiation is between the two parties. And we play a critical role because we have an ability to be able to provide technology as well as other technical capacity as well as concepts that we can help shape with respect to security. Now, why do I say that I believe we’re making progress? Because we’ve gone through a very detailed, lengthy, in-depth analysis of the security challenges of the region, and particularly the challenges to Israel and to the creation of a viable, independent Palestinian state. And that process has taken time.
General John Allen, who came with me on this trip and did brief, did so because we’ve reached a point where we have something to brief on, where we have results as a consequence of the analysis that’s been made. And we believe we’re able to contribute thinking as a consequence of those – that analysis that could help both the Palestinians and the Israelis to make judgments about some of the choices that are important to arriving at an agreement. So that is progress, and it hasn’t come easily. There are about 160 people who have contributed one way or the other to the process General Allen has pursued. The intelligence community, the Department of Defense, the State Department, the White House – all have been engaged in thinking through the various possibilities of how you deal with one problem or another with respect to security. And so obviously, security is paramount in the minds of the prime minister and his team with respect to their ability to be able to move forward with other issues that have to be dealt with. If Israel’s security cannot be increased through this agreement, it’s very difficult to make an agreement. So we are making certain that we’re addressing each and every one of those questions.
And I’m not going to comment further on the progress, but one thing I will say is this: We purposefully agreed at the beginning of this process that I would be the only person to comment on these talks publicly. And I notice in the newspapers or in some comments here or there there’s a leak and somebody suggests this or that. I have no idea who is leaking; I know it’s not me, and I’m the only authorized spokesperson. So whatever people are saying that something is on the table or not on the table or this or that is really not grounded in these talks. Some people may want to think they know more than others or suggest that they know what’s going on or – but the reality is that the people who really know what’s going on are not talking about it. And so there is not going to be a lot of information coming out. And the fact that there is not a lot of information coming out doesn’t mean that the talks aren’t being productive.
So we feel – I mean, I wouldn’t spend these hours if I didn’t think it was productive and we weren’t hammering out important concepts. And nor would the prime minister of Israel, who has a lot to do, spend this kind of time – nor would President Abbas, who has major responsibilities with respect to finance and to management of the Palestinian Authority. But all of us are committed to this process and they have taken, particularly, political heat for choices they have made in order to continue to pursue it. And guess what? They are continuing and they remain committed, and that’s because they know that we are engaged in serious conversations about how we could resolve the differences between the parties.
MODERATOR: Anne Gearan from The Washington Post.
QUESTION: Thank you. Mr. Secretary, do you leave here today with any assurances from the Israeli prime minister that he will be quieter or more cooperative on the Iran talks front? And also, did you discuss with him directly the role of Congress and possible new sanctions and anything that he might do to influence against that? Thank you.
SECRETARY KERRY: No. I did not have any conversation with the prime minister regarding Congress or Congress’s role. But of course, we did discuss the substance of the issue of Iran and the negotiation. And look, the prime minister has every right in the world to make his views known with respect to his concerns about the security of his country, and we would expect him to do that. But the prime minister has also been extremely constructive in working with us on the next steps and where we need to go now. He understands that we are now in the real negotiation.
And as I pointed out in my earlier comments, and I’ll say this again – I have said this to the prime minister, and I think it’s – and I’ll say this again now to the people of Israel and to any interested parties: I am personally convinced beyond any reasonable doubt that Israel is safer today after we have reached this first-step agreement than it was before we did that. Why do I say that? I say that because we are now engaged in the major comprehensive discussion that the prime minister wanted us to be engaged in, but guess what? We have stopped their program where it is.
They are destroying – under requirements, they will have to destroy the 20 percent enriched uranium in its entirety. They will not be able to grow their 3.5 percent enriched to stock at all. They will not be allowed to put new centrifuges in place. They will have to submit to inspections of the Fordow facility, of Natanz facility, of Arak facility. The Arak facility cannot progress at all with the installation of components or the testing of additional fuel or the installation of any of the nuclear components. And therefore, we have expanded the amount of time during which Iran could actually break out. That makes Israel safer in our judgment.
And the fear of the prime minister with respect to the sanctions is certainly an appropriate concern, but it is one that the Treasury Department and the Obama Administration are absolutely determined to prevent from becoming a problem, because we have the ability to control what happens with respect to those sanctions. And we will continue to enforce them. There is no change in the fundamental sanctions regime. A very small amount of money is released, but those sanctions will continue over the course of these negotiations. And we are free at any time, if Iran is not complying, or we do not move forward, to ratchet up those sanctions and even to go back to Congress and ask for additional sanctions.
So I am convinced that we have put forward a strong proposal, and now what we are doing with Israel is working very closely on what the final comprehensive agreement ought to look like. Israel and the United States are absolutely in sync, not an ounce of daylight between us, with respect to the need to make sure that Iran cannot achieve a nuclear weapon, will not in the future be able to achieve it, and certainly cannot move towards it without the United States of America and Israel knowing that and therefore being able to take steps to deal with it. I believe Israel is safer today and we will approach this final negotiation with an absolute view about Israel’s security, Israel’s safety, the region’s safety, and our ability to stand up afterwards and say, this was an agreement that was good for the region, good for Israel, good for the United States, good for the world. That’s our objective.
MODERATOR: Thanks, everyone.
SECRETARY KERRY: Thank you all very much. Appreciate it.
U.S. DEFENSE DEPARTMENT CONTRACTS FOR NOVEMBER 6, 2013
FROM: U.S. DEFENSE DEPARTMENT
CONTRACTS
AIR FORCE
Lockheed Martin Corp., Marietta, Ga., has been awarded up to $169,726,427 not-to-exceed firm-fixed-price contract for advance procurement funding for long lead efforts associated with 18 C-130J aircraft. Work will be performed at Marietta, Ga., and is expected to be completed by Oct. 31, 2016. This award is the result of a sole-source acquisition. Fiscal 2013 advance procurement funds in the amount of $169,726,427 are being obligated at time of award. Air Force Life Cycle Management Center/WLNNC, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8625-14-C-6450).
Booz Allen Hamilton Inc., McLean, Va., has been awarded an $18,062,895 cost-plus-fixed-fee modification (P00047) under an existing contract (FA8811-10-C-0006) for systems engineering and integration support to the Launch and Test Range System . The contract modification extends the existing contract for one year. Work will be performed at Los Angeles Air Force Base, Calif., and is expected to be completed by Dec. 7, 2014. Fiscal 2014 other procurement and research and development funds in the amounf of $3,665,819 are being obligated at time of award. Range and Network Division, Space and Missile Systems Center, Los Angeles Air Force Base, Calif., is the contracting activity.
Oasis Systems LLC, Lexington, Mass., was awarded an $11,918,862 modification (P00005) on an existing cost-plus-fixed-fee, cost-reimbursable contract (FA8721-13-C-0025) for professional acquisition support services. This contract modification provides the exercise of an option for an additional six months of professional acquisition support services under the basic contract. Work will be performed at Hanscom Air Force Base, Mass., and Langley Air Force Base, Va., and is expected to be completed by April 17, 2014. This modification provides professional acquisition support services in support of Air Force Life Cycle Management Center divisions. Fiscal 2012 procurement and fiscal 2013 research and development and procurement funds in the amount of $420,420 were obligated at time of award. Air Force Life Cycle Management Center, Enterprise Acquisition Division/PZM, Hanscom Air Force Base, Mass., is the contracting activity (Awarded Sept. 10, 2013).
Quantech Services Inc., Lexington, Mass., was awarded a $10,074,671 modification (P00006) on an existing cost-plus-fixed-fee, cost-reimbursable contract (FA8721-13-C-0016) for professional acquisition support services. This contract modification provides the exercise of an option for an additional six months of professional acquisition support services under the basic contract. Work will be performed at Hanscom Air Force Base, Mass. and Langley Air Force Base, Va., and is expected to be completed by April 17, 2014. This modification provides professional acquisition support services in support of Air Force Life Cycle Management Center divisions, including classified foreign military sales. FMS support accounts for approximately 46 percent of the stated modification and includes Afghanistan, Egypt, Jordan, and Oman. Fiscal 2013 research and development, procurement and FMS funds in the amount of $2,016,142 were obligated at time of award. Air Force Life Cycle Management Center, Enterprise Acquisition Division/PZM, Hanscom Air Force Base, Mass., is the contracting activity (Awarded Sept. 10, 2013).
Global Defense Systems LP, Warner Robins, Ga., has been awarded a $9,624,302, firm-fixed-price contract for 480 C-130 Loadmaster Crashworthy seats. The Crashworthy seat will provide lifesaving capabilities during hard landings. Work will be performed at Albertville, Ala., and is expected to be completed June 30, 2016. This award is the result of a competitive acquisition via the internet, and five offers were received. Fiscal 2011 and 2012 procurement funds in the amount of $9,624,302 are being obligated at time of award. Air Force Life Cycle Management Center/WLKCA, Robins Air Force Base, Ga., is the contracting activity (FA8504-14-C-0002).
P E Systems Inc., Fairfax, Va., was awarded an $8,968,305 modification (P00005) on an existing cost-plus-fixed-fee, cost-reimbursable contract (FA8721-13-C-0029) for professional acquisition support services. This contract modification provides the exercise of an option for an additional six months of professional acquisition support services under the basic contract. Work will be performed at Hanscom Air Force Base, Mass., Langley Air Force Base, Va., Washington, D.C., and Wright-Patterson Air Force Base, Ohio, and is expected to be completed by April 17, 2014. This modification provides professional acquisition support services in support of Air Force Life Cycle Management Center divisions, including classified foreign military sales. FMS support accounts for approximately 1 percent of the stated modification and includes the countries of Germany, Greece, Morocco, Oman, Pakistan, Saudi Arabia, Singapore, and Thailand. Fiscal 2012 procurement and fiscal 2013 operations and maintenance, research and development, procurement and FMS funds in the amount of $621,641 were obligated at time of award. Air Force Life Cycle Management Center, Enterprise Acquisition Division/PZM, Hanscom Air Force Base, Mass., is the contracting activity (Awarded Sept. 19, 2013).
NAVY
Lockheed Martin, Mission Systems & Training, Mitchel Field, N.Y., is being awarded a $58,785,716 cost-plus-incentive fee, cost-plus-fixed fee contract for United States and United Kingdom D-5 navigation subsystem engineering support services. This contract provides for U.S. and U.K. fleet support, U.S. and U.K. trainer systems support, Ohio-class SSBN engineered refueling overhauls, U.S. and U.K. SSI4 trainer system, SSBN-R strategic weapon training system and training system development, U.K. successor support, software modernization and Linked Autonomous Programmed Navigational Operational Trainer modernization. The maximum dollar value, including the base period and one option-year if exercised, is $114,236,770. The work will be performed in Mitchel Field, N.Y. (97 percent), Clearwater/Oldsmar, Fla. (2 percent) and Manassas, Va. (1 percent), with an expected completion date of April 2017. Fiscal 2014 operations and maintenance, Navy contract funds in the amount of $36,042,285; fiscal 2014 research, development, test and evaluation contract funds in the amount of $12,382,648; fiscal 2014 United Kingdom contract funds in the amount of $6,912,487; and fiscal 2014 other procurement, Navy contract funds in the amount of $3,448,296 are being obligated at time of award. Contract funds in the amount of $36,042,285 will expire at the end of the current fiscal year. This contract was a sole-source acquisition in accordance with 10 U.S.C. 2304(c)(1). Strategic Systems Programs, Washington, D.C., is the contracting activity (N00030-14-C-0002).
BAE Systems Technology Solutions Inc., Rockville, Md., is being awarded a $56,517,376 cost-plus-fixed fee, cost-plus-incentive fee contract for the United States and United Kingdom D5 strategic weapons systems programs, U.S. guided missile submarine attack weapons systems programs, Nuclear Weapons Security, and future concepts. These services will include: weapon system coordination, safety class engineering, conduct of installation test programs, direct logistics support of deployed forces, and support of logistics management programs. This contract provides for coordination documentation; electrical diagrams; systems publications; shipyard installation test support; test equipment and test data analysis; support for re-engineering the SWS as appropriate in response to guidelines resulting from continuous improvement initiatives, configuration management through SSP Alterations program, logistics engineering, Preventive Maintenance Management Plan, Standard Maintenance Procedures; systems level documentation and training curriculum support; logistics planning; logistics engineering; field logistics services; network development and maintenance. In addition, BAE Systems will provide the following products for the Common Missile Compartment (CMC) concept development effort to ensure that the existing TRIDENT II (D5) SWS is compatible with the Concept Development efforts being pursued for the CMC Program: weapon system coordination, class engineering, configuration management, logistics engineering, systems-level documentation, network development and maintenance and facility engineering and design support. They will also provide technical and engineering support to the CMC concept development efforts for SWS life cycle cost control evaluations. The maximum dollar value, including the base period and two option years, is $171,358,761. Work will be performed at Rockville, Md. (73 percent); Washington, D.C. (13 percent ); Silverdale, Wash. (5 percent); St. Mary’s, Ga. (4 percent); Portsmouth, Va. (3 percent); San Diego, Calif. (1 percent); the United Kingdom (.6 percent) , and Mechanicsburg, Pa. (.3 percent), with an expected completion date of Sept. 30, 2014. Fiscal 2014operations and maintenance, Navy funds in the amount of $33,679,376; fiscal 2014 United Kingdom contract funds in the amount of $10,268,000; fiscal 2013 and 2014 research, development, test and evaluation contract funds in the amounts of $488,000 and $6,783,000 respectively; fiscal 2012, 2013, and 2014 other procurement, Navy contract funds in the amounts of $173,000, $513,000, and $4,418,000 respectively; and fiscal 2014 weapons, Navy contract funds in the amount of $195,000 are being obligated at time of award. Contract funds in the amount of $34,340,376 will expire at the end of the current fiscal year. This contract was a sole source acquisition in accordance with 10 U.S.C. 2304(c)(1). Strategic Systems Programs, Washington, D.C., is the contracting activity (N00030-14-C-0009).
Huntington Ingalls Industries, Pascagoula, Miss., is being awarded a $39,051,995 modification to previously awarded contract (N00024-10-C-2203) for life cycle engineering and support services on the Amphibious Transport Dock Ship Program LPD 17 class. Services to be provided include post-delivery planning and engineering, homeport technical support, Class Integrated Product Data Environment, data maintenance and equipment management, systems integration and engineering support, LPD 17 class design services, research engineering, obsolescence management, material support, emergent repair provision (including warranty enforcement), training and logistics support; LPD 17 Integrated Planning Yard support including ship alteration development and installation, material management, Fleet Modernization Program planning, availability planning, configuration data management, research engineering, logistics documentation, and other logistics and executing activity coordination, and management of all related data within the Configuration Data Manager’s Database-Open Architecture. Work will be performed in Pascagoula, Miss., and is expected to be completed by December 2014. Fiscal 2005 shipbuilding and conversion, Navy funds in the amount of $5, 045,557, fiscal 2012 shipbuilding and conversion, Navy funds in the amount of $2,373,000, fiscal 2014 shipbuilding and conversion, Navy funds in the amount of $1,727,500, and fiscal 2014 operations and maintenance, Navy funds in the amount of $50,000 will be obligated at time of award. Contract funds in the amount of $2,423,000 will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.
Bell-Boeing Joint Project Office, Amarillo, Texas, is being awarded a $15,597,818 firm-fixed-price delivery order (0075) against a previously issued basic ordering agreement (N00019-12-G-0006) in support of the V-22 aircraft. This order provides for additional nonrecurring engineering and technical support to forward fit/retrofit engineering change proposal #1007 into the aircraft. This effort will also provide for the delivery of eight helmet mounted display retrofit kits, spares, support equipment, tooling and training devices. Work will be performed at Ridley Park, Pa. (99.9 percent), and Fort Worth, Texas (.1 percent), and is expected to be completed in March 2015. Fiscal 2013 aircraft procurement, U.S. Special Operations Command funding in the amount of $15,597,818 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.
DEFENSE LOGISTICS AGENCY
Atlantic Diving Supply Inc.*, Virginia Beach, Va., has been awarded a maximum $84,063,089 fixed-price with economic-price-adjustment contract for various commercial fasteners. This contract is a competitive acquisition, and seven offers were received. Location of performance is Virginia with a Dec. 5, 2016 performance completion date. This is a three-year base contract with one two-year option periods. Using military services are Army, Navy, Air Force, and Marine Corps. Type of appropriation is fiscal 2014 through fiscal 2019 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPM5EN-14-D-0001).
KPMG LLP, McLean, Va., has been awarded a maximum $12,834,740 firm-fixed-price contract for all necessary management services, personnel and documentation required for Defense Logistics Agency audit readiness review. This contract is a competitive acquisition, and six offers were received. Location of performance is Virginia with a Dec. 5, 2014 performance completion date. This is a one-year base contract. Using service is federal civilian agencies. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Contracting Services Office, Richmond, Va., (SP4703-11-A-0017-0034).
ARMY
General Atomics Aeronautical Systems Inc., Poway, Calif., was awarded a $40,253,105 modification (P0003) to contract W58RGZ-13-C-0109 for the Gray Eagle full rate production option exercise applicable to the Gray Eagle Unmanned Aircraft System. Fiscal 2014 other procurement, Army funds in the amount of $40,253,105 were obligated at the time of the award. Estimated completion date is Sept. 30, 2016. One bid was solicited with one received. Work will be performed at Poway, Calif. Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity.
EADS North America, Herndon, Va. was awarded a $33,217,089 firm-fixed-price contract with options for the purchase of six UH72A Lakota aircraft and six airborne radio communication 231 radios. Fiscal 2014 other procurement funds in the amount of $33,217,089 were obligated at the time of the award. Estimated completion date is Dec. 31, 2014. Five bids were solicited with three received. Work will be performed in Herndon, Va. Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity (W58RGZ-06-C-0194).
Dutra Dredging Co., San Rafael, Calif., was awarded a $19,869,500 firm-fixed-price contract for dredging the Thimble Shoal Federal Navigation Channel and the Cape Henry Federal Navigation Channel. Fiscal 2014 other procurement funds in the amount of $8,231,200 were obligated at the time of the award. Estimated completion date is Sept 1, 2014. Bids were solicited via the Internet with three received. Work will be performed at Newport News, Va. Army Corps of Engineers, Norfolk, Va., is the contracting activity (W91236-14-C-0014).
BAE Systems Information & Electronic Systems Integration, Greenlawn, N.Y., was awarded an $11,527,257 cost-plus-fixed-fee contract to acquire engineering services, a technical data package and technical training required to develop organic depot activation repair capability of the AN/APX-124 Mode S/5 Identification Friend or Foe Transponder System at Tobyhanna Army Depot, Pa. Fiscal 2014 other procurement funds in the amount of $3,562,257 were obligated at the time of the award. Estimated completion date is June 6, 2016. Bids were solicited via the Internet with one received. Work will be performed at Greenlawn, N.Y. Army Contracting Command, Tobyhanna, Pa., is the contracting activity (W25G1V-14-C-0003).
Jorge Scientific Corp., Arlington, Va., was awarded a $7,309,301 firm-fixed-price contract for Counterinsurgency (COIN) Advisory and Assistance Team services in Afghanistan regarding a new COIN concept without a break in service. This assistance entails training U.S. forces on how to train Afghanistan National Security Forces (ANSF) on functions critical to ANSF sustainment. Fiscal 2014 operations and maintenance, Army funds in the amount of $5,755,730 were obligated at the time of the award. Estimated completion date is March 15, 2014. This was a sole-source acquisition. Work will be performed in Afghanistan. CENTCOM Joint Theater Support Contracting Command – Phoenix APO, AE is the contracting activity (W56SGK-14-C-0003).
DEFENSE ADVANCED RESEARCH PROJECTS AGENCY
Koniag Information Security Systems, Chantilly, Va., has been awarded a $6,600,688 cost-plus-fixed-fee contract. This award is for contractor support services for the DARPA Security and Intelligence Directorate. Work will be performed in Arlington, Va. The estimated completion date is Dec. 31, 2014. Fiscal 2013 research and development funds are being obligated at time of award. The contracting activity is the Defense Advanced Research Projects Agency, Arlington, Va., (HR0011-14-C-0048).
*Small Business
CONTRACTS
AIR FORCE
Lockheed Martin Corp., Marietta, Ga., has been awarded up to $169,726,427 not-to-exceed firm-fixed-price contract for advance procurement funding for long lead efforts associated with 18 C-130J aircraft. Work will be performed at Marietta, Ga., and is expected to be completed by Oct. 31, 2016. This award is the result of a sole-source acquisition. Fiscal 2013 advance procurement funds in the amount of $169,726,427 are being obligated at time of award. Air Force Life Cycle Management Center/WLNNC, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8625-14-C-6450).
Booz Allen Hamilton Inc., McLean, Va., has been awarded an $18,062,895 cost-plus-fixed-fee modification (P00047) under an existing contract (FA8811-10-C-0006) for systems engineering and integration support to the Launch and Test Range System . The contract modification extends the existing contract for one year. Work will be performed at Los Angeles Air Force Base, Calif., and is expected to be completed by Dec. 7, 2014. Fiscal 2014 other procurement and research and development funds in the amounf of $3,665,819 are being obligated at time of award. Range and Network Division, Space and Missile Systems Center, Los Angeles Air Force Base, Calif., is the contracting activity.
Oasis Systems LLC, Lexington, Mass., was awarded an $11,918,862 modification (P00005) on an existing cost-plus-fixed-fee, cost-reimbursable contract (FA8721-13-C-0025) for professional acquisition support services. This contract modification provides the exercise of an option for an additional six months of professional acquisition support services under the basic contract. Work will be performed at Hanscom Air Force Base, Mass., and Langley Air Force Base, Va., and is expected to be completed by April 17, 2014. This modification provides professional acquisition support services in support of Air Force Life Cycle Management Center divisions. Fiscal 2012 procurement and fiscal 2013 research and development and procurement funds in the amount of $420,420 were obligated at time of award. Air Force Life Cycle Management Center, Enterprise Acquisition Division/PZM, Hanscom Air Force Base, Mass., is the contracting activity (Awarded Sept. 10, 2013).
Quantech Services Inc., Lexington, Mass., was awarded a $10,074,671 modification (P00006) on an existing cost-plus-fixed-fee, cost-reimbursable contract (FA8721-13-C-0016) for professional acquisition support services. This contract modification provides the exercise of an option for an additional six months of professional acquisition support services under the basic contract. Work will be performed at Hanscom Air Force Base, Mass. and Langley Air Force Base, Va., and is expected to be completed by April 17, 2014. This modification provides professional acquisition support services in support of Air Force Life Cycle Management Center divisions, including classified foreign military sales. FMS support accounts for approximately 46 percent of the stated modification and includes Afghanistan, Egypt, Jordan, and Oman. Fiscal 2013 research and development, procurement and FMS funds in the amount of $2,016,142 were obligated at time of award. Air Force Life Cycle Management Center, Enterprise Acquisition Division/PZM, Hanscom Air Force Base, Mass., is the contracting activity (Awarded Sept. 10, 2013).
Global Defense Systems LP, Warner Robins, Ga., has been awarded a $9,624,302, firm-fixed-price contract for 480 C-130 Loadmaster Crashworthy seats. The Crashworthy seat will provide lifesaving capabilities during hard landings. Work will be performed at Albertville, Ala., and is expected to be completed June 30, 2016. This award is the result of a competitive acquisition via the internet, and five offers were received. Fiscal 2011 and 2012 procurement funds in the amount of $9,624,302 are being obligated at time of award. Air Force Life Cycle Management Center/WLKCA, Robins Air Force Base, Ga., is the contracting activity (FA8504-14-C-0002).
P E Systems Inc., Fairfax, Va., was awarded an $8,968,305 modification (P00005) on an existing cost-plus-fixed-fee, cost-reimbursable contract (FA8721-13-C-0029) for professional acquisition support services. This contract modification provides the exercise of an option for an additional six months of professional acquisition support services under the basic contract. Work will be performed at Hanscom Air Force Base, Mass., Langley Air Force Base, Va., Washington, D.C., and Wright-Patterson Air Force Base, Ohio, and is expected to be completed by April 17, 2014. This modification provides professional acquisition support services in support of Air Force Life Cycle Management Center divisions, including classified foreign military sales. FMS support accounts for approximately 1 percent of the stated modification and includes the countries of Germany, Greece, Morocco, Oman, Pakistan, Saudi Arabia, Singapore, and Thailand. Fiscal 2012 procurement and fiscal 2013 operations and maintenance, research and development, procurement and FMS funds in the amount of $621,641 were obligated at time of award. Air Force Life Cycle Management Center, Enterprise Acquisition Division/PZM, Hanscom Air Force Base, Mass., is the contracting activity (Awarded Sept. 19, 2013).
NAVY
Lockheed Martin, Mission Systems & Training, Mitchel Field, N.Y., is being awarded a $58,785,716 cost-plus-incentive fee, cost-plus-fixed fee contract for United States and United Kingdom D-5 navigation subsystem engineering support services. This contract provides for U.S. and U.K. fleet support, U.S. and U.K. trainer systems support, Ohio-class SSBN engineered refueling overhauls, U.S. and U.K. SSI4 trainer system, SSBN-R strategic weapon training system and training system development, U.K. successor support, software modernization and Linked Autonomous Programmed Navigational Operational Trainer modernization. The maximum dollar value, including the base period and one option-year if exercised, is $114,236,770. The work will be performed in Mitchel Field, N.Y. (97 percent), Clearwater/Oldsmar, Fla. (2 percent) and Manassas, Va. (1 percent), with an expected completion date of April 2017. Fiscal 2014 operations and maintenance, Navy contract funds in the amount of $36,042,285; fiscal 2014 research, development, test and evaluation contract funds in the amount of $12,382,648; fiscal 2014 United Kingdom contract funds in the amount of $6,912,487; and fiscal 2014 other procurement, Navy contract funds in the amount of $3,448,296 are being obligated at time of award. Contract funds in the amount of $36,042,285 will expire at the end of the current fiscal year. This contract was a sole-source acquisition in accordance with 10 U.S.C. 2304(c)(1). Strategic Systems Programs, Washington, D.C., is the contracting activity (N00030-14-C-0002).
BAE Systems Technology Solutions Inc., Rockville, Md., is being awarded a $56,517,376 cost-plus-fixed fee, cost-plus-incentive fee contract for the United States and United Kingdom D5 strategic weapons systems programs, U.S. guided missile submarine attack weapons systems programs, Nuclear Weapons Security, and future concepts. These services will include: weapon system coordination, safety class engineering, conduct of installation test programs, direct logistics support of deployed forces, and support of logistics management programs. This contract provides for coordination documentation; electrical diagrams; systems publications; shipyard installation test support; test equipment and test data analysis; support for re-engineering the SWS as appropriate in response to guidelines resulting from continuous improvement initiatives, configuration management through SSP Alterations program, logistics engineering, Preventive Maintenance Management Plan, Standard Maintenance Procedures; systems level documentation and training curriculum support; logistics planning; logistics engineering; field logistics services; network development and maintenance. In addition, BAE Systems will provide the following products for the Common Missile Compartment (CMC) concept development effort to ensure that the existing TRIDENT II (D5) SWS is compatible with the Concept Development efforts being pursued for the CMC Program: weapon system coordination, class engineering, configuration management, logistics engineering, systems-level documentation, network development and maintenance and facility engineering and design support. They will also provide technical and engineering support to the CMC concept development efforts for SWS life cycle cost control evaluations. The maximum dollar value, including the base period and two option years, is $171,358,761. Work will be performed at Rockville, Md. (73 percent); Washington, D.C. (13 percent ); Silverdale, Wash. (5 percent); St. Mary’s, Ga. (4 percent); Portsmouth, Va. (3 percent); San Diego, Calif. (1 percent); the United Kingdom (.6 percent) , and Mechanicsburg, Pa. (.3 percent), with an expected completion date of Sept. 30, 2014. Fiscal 2014operations and maintenance, Navy funds in the amount of $33,679,376; fiscal 2014 United Kingdom contract funds in the amount of $10,268,000; fiscal 2013 and 2014 research, development, test and evaluation contract funds in the amounts of $488,000 and $6,783,000 respectively; fiscal 2012, 2013, and 2014 other procurement, Navy contract funds in the amounts of $173,000, $513,000, and $4,418,000 respectively; and fiscal 2014 weapons, Navy contract funds in the amount of $195,000 are being obligated at time of award. Contract funds in the amount of $34,340,376 will expire at the end of the current fiscal year. This contract was a sole source acquisition in accordance with 10 U.S.C. 2304(c)(1). Strategic Systems Programs, Washington, D.C., is the contracting activity (N00030-14-C-0009).
Huntington Ingalls Industries, Pascagoula, Miss., is being awarded a $39,051,995 modification to previously awarded contract (N00024-10-C-2203) for life cycle engineering and support services on the Amphibious Transport Dock Ship Program LPD 17 class. Services to be provided include post-delivery planning and engineering, homeport technical support, Class Integrated Product Data Environment, data maintenance and equipment management, systems integration and engineering support, LPD 17 class design services, research engineering, obsolescence management, material support, emergent repair provision (including warranty enforcement), training and logistics support; LPD 17 Integrated Planning Yard support including ship alteration development and installation, material management, Fleet Modernization Program planning, availability planning, configuration data management, research engineering, logistics documentation, and other logistics and executing activity coordination, and management of all related data within the Configuration Data Manager’s Database-Open Architecture. Work will be performed in Pascagoula, Miss., and is expected to be completed by December 2014. Fiscal 2005 shipbuilding and conversion, Navy funds in the amount of $5, 045,557, fiscal 2012 shipbuilding and conversion, Navy funds in the amount of $2,373,000, fiscal 2014 shipbuilding and conversion, Navy funds in the amount of $1,727,500, and fiscal 2014 operations and maintenance, Navy funds in the amount of $50,000 will be obligated at time of award. Contract funds in the amount of $2,423,000 will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.
Bell-Boeing Joint Project Office, Amarillo, Texas, is being awarded a $15,597,818 firm-fixed-price delivery order (0075) against a previously issued basic ordering agreement (N00019-12-G-0006) in support of the V-22 aircraft. This order provides for additional nonrecurring engineering and technical support to forward fit/retrofit engineering change proposal #1007 into the aircraft. This effort will also provide for the delivery of eight helmet mounted display retrofit kits, spares, support equipment, tooling and training devices. Work will be performed at Ridley Park, Pa. (99.9 percent), and Fort Worth, Texas (.1 percent), and is expected to be completed in March 2015. Fiscal 2013 aircraft procurement, U.S. Special Operations Command funding in the amount of $15,597,818 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.
DEFENSE LOGISTICS AGENCY
Atlantic Diving Supply Inc.*, Virginia Beach, Va., has been awarded a maximum $84,063,089 fixed-price with economic-price-adjustment contract for various commercial fasteners. This contract is a competitive acquisition, and seven offers were received. Location of performance is Virginia with a Dec. 5, 2016 performance completion date. This is a three-year base contract with one two-year option periods. Using military services are Army, Navy, Air Force, and Marine Corps. Type of appropriation is fiscal 2014 through fiscal 2019 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPM5EN-14-D-0001).
KPMG LLP, McLean, Va., has been awarded a maximum $12,834,740 firm-fixed-price contract for all necessary management services, personnel and documentation required for Defense Logistics Agency audit readiness review. This contract is a competitive acquisition, and six offers were received. Location of performance is Virginia with a Dec. 5, 2014 performance completion date. This is a one-year base contract. Using service is federal civilian agencies. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Contracting Services Office, Richmond, Va., (SP4703-11-A-0017-0034).
ARMY
General Atomics Aeronautical Systems Inc., Poway, Calif., was awarded a $40,253,105 modification (P0003) to contract W58RGZ-13-C-0109 for the Gray Eagle full rate production option exercise applicable to the Gray Eagle Unmanned Aircraft System. Fiscal 2014 other procurement, Army funds in the amount of $40,253,105 were obligated at the time of the award. Estimated completion date is Sept. 30, 2016. One bid was solicited with one received. Work will be performed at Poway, Calif. Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity.
EADS North America, Herndon, Va. was awarded a $33,217,089 firm-fixed-price contract with options for the purchase of six UH72A Lakota aircraft and six airborne radio communication 231 radios. Fiscal 2014 other procurement funds in the amount of $33,217,089 were obligated at the time of the award. Estimated completion date is Dec. 31, 2014. Five bids were solicited with three received. Work will be performed in Herndon, Va. Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity (W58RGZ-06-C-0194).
Dutra Dredging Co., San Rafael, Calif., was awarded a $19,869,500 firm-fixed-price contract for dredging the Thimble Shoal Federal Navigation Channel and the Cape Henry Federal Navigation Channel. Fiscal 2014 other procurement funds in the amount of $8,231,200 were obligated at the time of the award. Estimated completion date is Sept 1, 2014. Bids were solicited via the Internet with three received. Work will be performed at Newport News, Va. Army Corps of Engineers, Norfolk, Va., is the contracting activity (W91236-14-C-0014).
BAE Systems Information & Electronic Systems Integration, Greenlawn, N.Y., was awarded an $11,527,257 cost-plus-fixed-fee contract to acquire engineering services, a technical data package and technical training required to develop organic depot activation repair capability of the AN/APX-124 Mode S/5 Identification Friend or Foe Transponder System at Tobyhanna Army Depot, Pa. Fiscal 2014 other procurement funds in the amount of $3,562,257 were obligated at the time of the award. Estimated completion date is June 6, 2016. Bids were solicited via the Internet with one received. Work will be performed at Greenlawn, N.Y. Army Contracting Command, Tobyhanna, Pa., is the contracting activity (W25G1V-14-C-0003).
Jorge Scientific Corp., Arlington, Va., was awarded a $7,309,301 firm-fixed-price contract for Counterinsurgency (COIN) Advisory and Assistance Team services in Afghanistan regarding a new COIN concept without a break in service. This assistance entails training U.S. forces on how to train Afghanistan National Security Forces (ANSF) on functions critical to ANSF sustainment. Fiscal 2014 operations and maintenance, Army funds in the amount of $5,755,730 were obligated at the time of the award. Estimated completion date is March 15, 2014. This was a sole-source acquisition. Work will be performed in Afghanistan. CENTCOM Joint Theater Support Contracting Command – Phoenix APO, AE is the contracting activity (W56SGK-14-C-0003).
DEFENSE ADVANCED RESEARCH PROJECTS AGENCY
Koniag Information Security Systems, Chantilly, Va., has been awarded a $6,600,688 cost-plus-fixed-fee contract. This award is for contractor support services for the DARPA Security and Intelligence Directorate. Work will be performed in Arlington, Va. The estimated completion date is Dec. 31, 2014. Fiscal 2013 research and development funds are being obligated at time of award. The contracting activity is the Defense Advanced Research Projects Agency, Arlington, Va., (HR0011-14-C-0048).
*Small Business
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