THE FLAT GALAXY

FROM:  NASA/HUBBLE GALAXY 
Hubble Eyes Galaxy as Flat as a Pancake

Located some 25 million light-years away, this new Hubble image shows spiral galaxy ESO 373-8. Together with at least seven of its galactic neighbors, this galaxy is a member of the NGC 2997 group. We see it side-on as a thin, glittering streak across the sky, with all its contents neatly aligned in the same plane.
We see so many galaxies like this — flat, stretched-out pancakes — that our brains barely process their shape. But let us stop and ask: Why are galaxies stretched out and aligned like this?

Try spinning around in your chair with your legs and arms out. Slowly pull your legs and arms inwards, and tuck them in against your body. Notice anything? You should have started spinning faster. This effect is due to conservation of angular momentum, and it’s true for galaxies, too.

This galaxy began life as a humungous ball of slowly rotating gas. Collapsing in upon itself, it spun faster and faster until, like pizza dough spinning and stretching in the air, a disc started to form. Anything that bobbed up and down through this disk was pulled back in line with this motion, creating a streamlined shape.
Angular momentum is always conserved — from a spinning galactic disk 25 million light-years away from us, to any astronomer, or astronomer-wannabe, spinning in an office chair.  Image Credit: NASA/Hubble

DECEMBER: MONTH OF THE NANOSATELLITE LAUNCH

FROM:  U.S. DEFENSE DEPARTMENT 
Launch Propels Southcom-sponsored Nanosatellite Into Space
By Donna Miles
American Forces Press Service

WASHINGTON, Dec. 6, 2013 – An Atlas V rocket launched last night from Vandenberg Air Force Base, Calif., carried a U.S. Southern Command-sponsored nanosatellite into space -- and with it, the potential for more reliable and less expensive communications for troops around the world.

The nanosatellite, about the size of a loaf of bread and weighing just 11 pounds, piggybacked during the launch on a payload for the National Reconnaissance Office headquartered in Chantilly, Va., Southcom officials said.

That small package carries big hopes for Southcom, which spearheaded the demonstration project to help overcome communications challenges in the vast mountainous and densely forested terrain within Latin America, Juan Hurtado, Southcom’s science and technology advisor, told American Forces Press Service during an interview from Vandenberg Air Force Base.

As envisioned, troops on the ground will be able to tap the new technology directly from their field radios. And when the satellite moves beyond the part of the globe beyond Southcom’s area of responsibility, it could provide that same capability to other combatant commands as well, Hurtado said.

“This is a major milestone,” he said. “This first space project for U.S. Southern Command represents a big step ahead. I feel like we are about ready to offer a transformational capability to support troops in the field, not just within Southern Command, but throughout the Department of Defense.”

“This is just an evaluation, but we think this space capability could help improve communication during various operations,” said Marine Corps Gen. John F. Kelly, Southcom’s commander.

If the initial phase of the demonstration goes as hoped, two additional nanosatellites will launch next December, Hurtado reported.

All three will be set to a low-earth orbit, operating as one component of a communications suite to include a ground station, ground sensors and tactical radios, he explained. Collectively, they will support information-sharing and tactical communications over wide geographic expanses.

The development and deployment of the nanosatellites represent the strength of partnerships at several levels, Hurtado said.

U.S. Army Space and Missile Defense Command oversaw its development, and the Defense Department funded it through its Joint Capability Technology Demonstration effort. Cadre and students at the U.S. Naval Postgraduate School will help Southcom assess the technology’s operational value.

In addition, Southcom’s counterparts in Brazil will help evaluate its performance. Next week, Hurtado will be talking to officials in Peru and heading to Brazil to discuss details of this collaboration.

Kelly called the investment in nanosatellites “an opportunity for us to collaborate from the ground up with partner nations who are looking to develop this capability for a variety of security and commercial uses.”

The initial concept for the nanosatellite originated through close collaboration among the Secretary of Defense’s Rapid Fielding Directorate, Army Space and Missile Defense Command and Southcom’s science, technology and experimentation office.

Since it was stood up in 2002, the Southcom office has helped to identify technical capabilities to support the command’s mission, and lacking them, helped to develop new ones, Hurtado said. Its staff takes gaps and requirements as identified by U.S. forces and partner nations in the theater, converts them into technical requirements, then looks initially to the DOD technical technology community for solutions.

The original objective -- “to find ways to do things better or do things cheaper” -- is even more pressing in today’s fiscal environment, Hurtado noted.
The new nanosatellite offers promise on both counts. It cost $500,000 to build, far less than larger satellites, and its small size makes launching it into space relatively inexpensive. Both factors could make it feasible to deploy several nanosatellites as needed to expand communication coverage to ground forces in support of an array of mission requirements, including humanitarian assistance and disaster response operations, Hurtado said.

He emphasized however, that last night’s launch is just the start of a long evaluation process ahead. The first of two evaluations, planned for May, will take three months to complete. A final evaluation scheduled for February 2015 will span five months using all three satellites.

“Recognizing that, I feel extremely proud of this effort and the potential capability it stands to offer for our forces,” Hurtado said. “This will make communications not only less expensive, but more readily available.”

RECENT U.S. DEFENSE DEPARTMENT PHOTOS

FROM:  U.S. DEFENSE 
DEPARTMENT 

U.S. soldiers prepare their UH-60M Black Hawk helicopter for a night personnel movement mission on Forward Operating Base Shank, Afghanistan, Dec. 23, 2013. The soldiers are assigned to Company C, 2nd Battalion Assault, 10th Combat Aviation Brigade. U.S. Army photos by Capt. Peter Smedberg.

INITIAL AIRLIFT COMPLETE IN CENTRAL AFRICAN REPUBLIC

FROM:  U.S. DEFENSE DEPARTMENT 

Airlift Operations Complete in Central African Republic
By Claudette Roulo
American Forces Press Service

WASHINGTON, Dec. 30, 2013 – Initial airlift operations are complete in the Central African Republic, Pentagon spokesman Army Col. Steve Warren said here today.

A small U.S. Air Force support team and two C-17 Globemaster III aircraft began airlift operations Dec. 12 in response to a French request for airlift support. The U.S. airmen conducted 16 flights from Burundi to the Central African Republic, Warren said, transporting 857 Burundi troops, 73 pallets of equipment and 18 Burundian military vehicles.

The Burundi troops -- a light infantry battalion -- are part of an African Union-led international support mission intended to help prevent the further spread of sectarian violence, Assistant Pentagon Press Secretary Carl Woog said in a Dec. 9 statement.

Fewer than 10 Americans remain on the ground serving as liaisons with the French military, Warren said.

Also, three of the four U.S. service members wounded Dec. 21 in South Sudan have returned to the United States for treatment, Warren said. The fourth remains in a U.S. military hospital in Landstuhl, Germany.

All four service members are in stable condition, a Defense Department spokesman said.

The service members were wounded when they attempted to evacuate Americans from the town of Bor, South Sudan, according to a U.S. Africa Command statement. They were hit by small-arms fire from unknown forces when their three CV-22 Osprey aircraft attempted to land in Bor. Africom is reviewing the incident, Warren said.

To date, more than 870 people have been evacuated from South Sudan on a mix of military and charter aircraft, he said. The Defense Department has flown three airlift missions with C-130 Hercules aircraft and one mission with a C-12 Huron.
Army Gen. David M. Rodriguez, Africom’s commander, ordered a platoon-sized element of Marines and a Marine Corps KC-130J Hercules aircraft to Entebbe, Uganda, on Dec. 24 to serve as a contingency force, Warren said. The Marines are part of Special-Purpose Marine Air-Ground Task Force Crisis Response, based at Moron Air Base, Spain, and were initially sent to Camp Lemonnier, Djibouti, before being moved to Uganda.

Rodriguez had earlier ordered elements of the East Africa Response Force to be positioned in Juba, South Sudan, to augment security at the embassy.

“This is all exactly what you’d expect [given the security situation],” Warren said. “It’s a combatant commander positioning forces in such a way that he’s got options.”

EPA'S CRIMINAL ENFORCEMENT PROGRAM OVERVIEW

FROM:  U.S. ENVIRONMENTAL AGENCY 
Criminal Enforcement Overview

EPA’s criminal enforcement program pursues individual and corporate defendants who have committed serious environmental crimes by providing:

Federal, state and local prosecutors with the evidence needed to prosecute environmental crimes.

Environmental forensic analyses and technical evaluations for both civil and criminal enforcement.

Computer evidence retrieval and evaluation.

Expert legal advice and counsel to EPA, U.S. Attorneys and the Department of Justice.

EPA's criminal enforcement program was established in 1982 and was granted full law enforcement authority by Congress in 1988. Today the program has more than 350 specially trained investigators, chemists, engineers, technicians, lawyers, and support staff.  From that number EPA has:

200 fully authorized federal law enforcement agents.

70 forensic scientists and technicians.

45 attorneys who specialize in environmental crimes enforcement.

U.S. PRESS STATEMENT ON FUNDING THE SPECIAL TRIBUNAL FOR LEBANON

FROM:  U.S. STATE DEPARTMENT 
Funding for the Special Tribunal for Lebanon
Press Statement
Marie Harf
Deputy Department Spokesperson, Office of the Spokesperson
Washington, DC
December 30, 2013

The United States welcomes Lebanon’s decision to fulfill its 2013 funding obligations to the Special Tribunal for Lebanon. We recognize and commend Prime Minister Mikati’s strong leadership in ensuring that the government met this important commitment. We fully support the work of the Tribunal and its efforts to find and hold accountable those responsible for reprehensible and destabilizing acts of violence in Lebanon.

The December 27 assassination bombing in Beirut is a stark reminder that for too long, Lebanon has suffered from a culture of impunity for those who use murder and terror to promote their political agenda against the interests of the Lebanese people. The Tribunal, working with the Government of Lebanon, will help end this impunity by providing a transparent, fair process to determine responsibility for the terrorist attack that killed former Prime Minister Hariri and scores of others.

Continued financial support and ongoing cooperation by Lebanon’s political, judicial, and law enforcement authorities are critical to the Tribunal’s work. That is why the United States has provided strong financial support to the Tribunal since its inception, and we will continue to do so. We urge the international community to continue to support the Tribunal and the Government of Lebanon to achieve the shared goals of ensuring justice and ending impunity. We stand with the Lebanese people in these efforts and will continue to do so.

INVESTOR PLEADS GUILTY IN REAL ESTATE FORECLOSURE AUCTION BID RIGGING CASE

FROM:  U.S. JUSTICE DEPARTMENT 
Monday, December 30, 2013
Eastern California Real Estate Investor Pleads Guilty to Bid Rigging and Fraud at Public Real Estate Foreclosure Auctions
Investigation Has Resulted in 11 Guilty Pleas to Date

An Eastern California real estate investor pleaded guilty today to conspiring to rig bids and commit mail fraud at public real estate foreclosure auctions in Eastern California, the Department of Justice announced.

Anthony B. Joachim of Stockton, Calif., entered his guilty plea in U.S. District Court for the Eastern District of California in Sacramento.  Joachim was originally indicted by a federal grand jury in Sacramento on Dec. 7, 2011, along with three other investors – Andrew B. Katakis, Donald M. Parker and Wiley C. Chandler – and one auctioneer – W. Theodore Longley. All five individuals were charged with conspiring with other unnamed co-conspirators to rig bids and commit mail fraud when purchasing selected properties at public real estate foreclosure auctions in San Joaquin County, Calif.  The indictment was superseded on May 8, 2013, to include an obstruction of justice charge against Katakis.  Chandler pleaded guilty on Feb. 24, 2012, and trial is scheduled to begin against the remaining individuals on Jan. 28, 2014.

According to court documents, Joachim conspired with others not to bid against one another and to instead designate a winning bidder to obtain selected properties at public real estate foreclosure auctions in San Joaquin County.  Joachim was also charged with conspiring to use the mail to carry out a scheme to fraudulently acquire title to selected San Joaquin County properties sold at public auctions, to make and receive payoffs and to divert money to co-conspirators that would have otherwise gone to mortgage holders and others by holding second, private auctions open only to members of the conspiracy.  The department said that the selected properties were then awarded to the conspirators who submitted the highest bids in the second, private auctions.  The private auctions often took place at or near the courthouse steps where the public auctions were held.  According to Joachim’s plea agreement, he participated in the conspiracies between about April 2009 until about October 2009.

“Today’s plea is the 11th in the Antitrust Division’s ongoing investigation of bid rigging and fraud involving real estate foreclosure auctions in the Eastern District of California,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division.  “The division has uncovered similar schemes across the country and continues to prosecute those who profit by undermining competition at real estate foreclosure auctions.”

The department said that the primary purpose of the conspiracies was to suppress and restrain competition and to conceal payoffs in order to obtain selected real estate offered at San Joaquin County public foreclosure auctions at non-competitive prices.  When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner.  According to court documents, these conspirators paid and received money that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties, and in some cases, the defaulting homeowner.

“My office will continue to fight real estate fraud in all its forms, including bringing to justice those who would subvert public foreclosure auctions for their own personal gain,” said United States Attorney Benjamin B. Wagner of the Eastern District of California.

Joachim pleaded guilty to bid rigging, a violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million fine.  The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either of those amounts is greater than the statutory maximum fine.  Joachim also pleaded guilty to conspiracy to commit mail fraud, which carries a maximum sentence of 30 years in prison and a $1 million fine.
           
The guilty plea entered today is the latest in the department’s ongoing federal antitrust investigation of fraud and bidding irregularities in certain real estate auctions in San Joaquin County.  The investigation is being conducted by the Antitrust Division’s San Francisco office, the U.S. Attorney’s Office for the Eastern District of California, the FBI’s Sacramento Division and the San Joaquin County District Attorney’s Office.

Today’s action was brought in connection with the President’s Financial Fraud Enforcement Task Force.  The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud.  Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations.  Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,900 mortgage fraud defendants.

WHITE HOUSE STATEMENT ON NATIONAL MARITIME DOMAIN AWARENESS PLAN

FROM:  THE WHITE HOUSE 
December 30, 2013
Statement by NSC Spokesperson Caitlin Hayden on the National Maritime Domain Awareness Plan

Today the White House released the National Maritime Domain Awareness Plan.  This plan promotes global maritime security and prosperity through improved governance to support the effective understanding of the maritime domain.  Notably, 90 percent of the world’s commerce moves by sea, making maritime security essential to the global supply chain and international trade.

Consistent with Presidential Policy Directive 18: Maritime Security (PPD-18) and the National Strategy for Maritime Security (NSMS), the National Maritime Domain Awareness Plan merges and supersedes the National Plan to Achieve Maritime Domain Awareness and the Global Maritime Intelligence Integration Plan, each published in 2005 as supporting plans to the NSMS.  The consolidation of the two plans into a single National Maritime Domain Awareness Plan advances the foundation for the effective understanding of actual and potential threats and challenges emanating from or related to the maritime domain.  Using a whole-of-nation approach, at minimal cost, it promotes favorable conditions for integrating and sharing information, including intelligence, to better inform decisions affecting the security, safety, economy, and environment of the United States and the global maritime commons.

2013 What Happened This Year @NASA

WHITE HOUSE STATEMENT ON ATTACKS IN RUSSIA

FROM:  THE WHITE HOUSE
December 30, 2013
Statement by NSC Spokesperson Caitlin Hayden on Attacks in Russia

The United States condemns the terrorist attacks that struck the Russian city of Volgograd and sends deepest condolences to the families of the victims with hopes for the rapid healing of those wounded.

The United States stands in solidarity with the Russian people against terrorism.  The U.S. government has offered our full support to the Russian government in security preparations for the Sochi Olympic Games, and we would welcome the opportunity for closer cooperation for the safety of the athletes, spectators, and other participants.

U.S. DEFENSE DEPARTMENT CONTRACTS FOR DECEMBER 30, 2013

FROM:  U.S. DEFENSE DEPARTMENT 
CONTRACTS

AIR FORCE

The Boeing Co., Oklahoma City, Okla., has been awarded a firm-fixed-price, cost-plus-fixed-fee, cost-plus-incentive-fee, time and material, indefinite-delivery/indefinite-quantity contract (FA8107-14-D-0002), including the base period and four one-year option periods with an estimated ceiling value of $750,000,000.  Contractor will provide integrated engineering services for the B-1 weapon system to include detailed design engineering, maintenance engineering and systems (structure/flight systems, avionics, software and weapons delivery) engineering support, computer network support, technical analysis, drawing and source data maintenance/updates, flight safety analyses, reliability/maintainability analysis, test support, program analysis, cost estimation, schedule development, government furnished property and government furnished material maintenance, accident investigation, engineering feasibility studies, material deficiency report analysis, field problem investigation, and in-flight emergency response support, logistic system design support, evaluation of new capabilities and development of operational guidelines for fleet repairs and for users to employ.  Additional requirements include integration management, configuration management, acquisition/sustainment, weapon system enhancement, weapon system development efforts, production, integration management, configuration management, acquisition/sustainment logistics elements, sustaining engineering, studies and analysis, initial spares (investment and expense), provisioning, technical data, support for training due to system upgrades (tech data, source code, etc.), support equipment, technical support and technical order maintenance.  Work will be performed at Oklahoma City, Okla., and is expected to be completed Dec. 31, 2014.  This award is the result of a sole source acquisition.  The first delivery order (0001) will be funded with fiscal 2014 operations and maintenance funds in the amount of 21,377,960 and are being obligated at time of award.  Air Force Life Cycle Management Center/WWKKB Tinker Air Force Base, Okla., is the contracting activity (FA8107-14-D-0002).

BAE Systems Information and Electronics Systems Integration Inc., Greenlawn, N.Y., has been awarded a $21,742,595 modification (P00004) on contract (FA8615-13-C-6014) for the F-16 Mode 5 Advanced Identify Friend/Foe, combined interrogator transponder.  The contract modification exercises the option for the purchase of an additional 200 production units being produced under the basic contract.  Work will be performed at Greenlawn, N.Y., and is expected to be completed by Dec. 31, 2015.  This action includes the following European Participating Air Force countries: Belgium, Denmark, The Netherlands, Norway, and Portugal.  The percentage of this action that supports foreign military sales is 70 percent.  Fiscal 2013 FMS, Air National Guard and aircraft procurement funds in the amount of $21,742,595 are being obligated at time of award.  Air Force Life Cycle Management Center/WWMK, Wright-Patterson Air Force Base, Ohio, is the contracting activity.

Exelis Inc., Clifton, N.J., has been awarded a $9,796,591 firm-fixed-price modification (P00004) on an existing contract (FA8540-11-C-0012) for manufacture and delivery of AN/ALQ-211 (V)-9 AIDEWS Pod classified and unclassified spares.  Work will be performed at Clifton, N.J., and delivery is 24 months after receipt of contract award.  This award is the result of a source-directed acquisition and is 100 percent foreign military sales for Pakistan.  Air Force Life Cycle Management Center/WNKCB, Robins Air Force Base, Ga., is the contracting activity.

General Dynamics Advanced Information Systems, Santa Clara, Calif., has been awarded a $7,459,516 cost-plus-award-fee modification (P00072) on contract (FA8819-08-C-0050) for security upgrades.  This contract modification provides for security upgrades on all Joint Execution and Tasking Systems for Space services which will include upgrading the commercial off the shelf hardware and software; redesigning and re-implementing the developmental software which builds the PowerPoint documents from data within the database; and redesigning and re-implementing the software which retrieves messages/files from the Multi-compartmented Collaboration Service.  Work will be performed at Santa Clara, Calif., and work is expected to be completed by June 30, 2015.  This contract will be incrementally funded with fiscal 2013 and 2014 research and development funds with $834,029 of those funds being obligated at time of award.  Space and Missile Systems Center, Space Superiority Systems Directorate, Los Angeles Air Force Base, Calif., is the contracting activity.

NAVY

United Technologies Corp., Pratt & Whitney, Military Engines, East Hartford, Conn., is being awarded a $167,030,588 cost-plus-incentive-fee contract for operations and maintenance support and non-recurring and recurring sustainment, site activation and depot activation work scope for the low rate initial production VII F135 propulsion systems.  This contract combines purchases for the U.S. Navy and Marine Corps ($90,834,199; 54.4 percent); the U.S. Air Force ($56,544,842; 33.9 percent); and the International Partners ($19,651,547; 11.7 percent).  Work will be performed in East Hartford, Conn. (63 percent); Indianapolis, Ind. (25 percent), and Bristol, United Kingdom (12 percent), and is expected to be completed in December 2016.  Fiscal 2012, 2013 aircraft procurement, Air Force; fiscal 2012 aircraft procurement, Navy; fiscal 2014 operations and maintenance, Air Force; fiscal 2014 operations and maintenance, Navy; International Partner funding contract funds in the amount of $167,030,588 will be obligated at time of award, $99,441,116 of which will expire at the end of the current fiscal year.  This contract was not competitively procured pursuant to 10 U.S.C. 2304(c)(1).  The Naval Air Systems Command, Patuxent River, Md. is the contracting activity (N00019-14-C-0026).

Raytheon Co., McKinney, Texas, is being awarded $69,198,968 for ceiling priced delivery order 7008 against a previously issued basic ordering agreement (N00383-10-G-003D) for repair of 32 weapon repairable assemblies and 33 shop replaceable assemblies of the Advanced Targeting Forward Looking Infrared System used in the support of the F/A-18 Aircraft.  Work will be performed in McKinney, Texas (84.9 percent), Jacksonville, Fla. (11.7 percent), El Segundo, Calif. (3.4 percent), and work is expected to be completed no later than December 2015.  Fiscal 2014 Navy working capital funds in the amount of $51,899,226 will be obligated at the time of award, and will not expire before the end of the current fiscal year.  The contract was not competitively procured and is issued on a sole source basis in accordance with 10 U.S.C. 2304(c)(1).  Naval Supply Systems Command, Weapon Systems Support, Philadelphia, Pa., is the contracting activity.  

The Boeing Co., St. Louis, Mo., is being awarded $46,652,280 for firm-fixed-price, cost-plus-fixed-fee delivery order 0110 against a previously issued basic ordering agreement (N00019-11-G-0001) for integrated logistics support and sustaining engineering for F/A-18A-D, F/A-18E/F, and EA-18G aircraft for the U.S. Navy and the governments of Australia, Canada, Spain, Finland, Switzerland, Kuwait, and Malaysia.  Support to be provided includes logistics, engineering, provisioning, information systems, technical data updates, support equipment engineering, training and software integration support.  This contract combines purchases for the U.S. Navy ($36,613,615; 78.3 percent) and the governments of Australia ($7,030,930; 15.1 percent); Canada ($501,289; 1.1 percent), Spain ($501,289; 1.1 percent); Finland ($501,289; 1.1 percent); Switzerland ($501,289; 1.1 percent); Kuwait ($501,289; 1.1 percent); and Malaysia ($501,289; 1.1 percent) under the Foreign Military Sales (FMS) program.  Work will be performed in St. Louis, Mo. (70 percent); El Segundo, Calif. (15 percent); Oklahoma City, Okla. (6 percent);  Bethpage, N.Y. (5 percent); and San Diego, Calif. (4 percent), and is expected to be completed in December 2014.  Fiscal 2014 aircraft procurement, Navy; fiscal 2014 operations and maintenance, Navy; and FMS contract funds in the amount $46,652,280 will be obligated at time of award; $321,914 of which expire at the end of the current fiscal year.  The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.

Forward Slope, San Diego, Calif., is being awarded a $28,651,472 indefinite-delivery/indefinite-quantity, cost-plus-fixed-fee, multiple award contract to support Space and Naval Warfare Systems Center Pacific command and control (C2) technologies, capabilities, and C2-related capabilities in the areas of innovative science and technology research, systems engineering, architecture, design, development, integration, test, experimentation, implementation and support of C2 net-centric operations (tactical, operational, strategic and national interest).  Support includes information processing relating to Joint, Navy, Marine Corps, Army, and Air Force operations and their interfacing with civil and non-government components and capabilities.  This is one of six contracts awarded: each awardee will compete for task orders during the ordering period.  This three-year contract includes one two-year option period, which, if exercised, would bring the potential value of this contract to $47,851,366.  Work will be performed in San Diego, Calif., and work is expected to be completed Dec. 29, 2016.  Contract funds will not expire at the end of the current fiscal year.  Funding anticipated to be obligated in fiscal 2014 include operations and maintenance, Navy, operations and maintenance, Army, other procurement, Navy, research and development, Air Force and Coast Guard multi-year appropriation acquisition, contracts, and improvements funds as task orders are issued.  This contract was competitively procured via a 100 percent Small Business Set-Aside solicitation via publication on the Federal Business Opportunities website and the SPAWAR e-Commerce Central website, with 15 proposals were received and six were selected for award.  The Space and Naval Warfare Systems Center Pacific, San Diego, Calif., is the contracting activity (N66001-14-D-0095).

Harmonia Holdings Group*, Blacksburg, Va., is being awarded a $26,674,385 indefinite-delivery/indefinite-quantity, cost-plus-fixed-fee, multiple award contract to support Space and Naval Warfare Systems Center Pacific command and control (C2) technologies, capabilities, and C2-related capabilities in the areas of innovative science and technology research, systems engineering, architecture, design, development, integration, test, experimentation, implementation and support of C2 net-centric operations (tactical, operational, strategic and national interest).  Support includes information processing relating to Joint, Navy, Marine Corps, Army, and Air Force operations and their interfacing with civil and non-government components and capabilities.  This is one of six contracts awarded:  each awardee will compete for task orders during the ordering period.  This three-year contract includes one two-year option period, which, if exercised, would bring the potential value of this contract to $44,913,925.  Work will be performed in Blacksburg, Va. (70 percent), and San Diego, Calif. (30 percent), and work is expected to be completed Dec. 29, 2016.  Funding anticipated to be obligated in fiscal 2014 include operations and maintenance, Navy, operations and maintenance, Army, other procurement, Navy, research and development, Air Force and Coast Guard multi-year appropriation acquisition, contracts, and improvements funds as task orders are issued.  Contract funds will not expire at the end of the current fiscal year.  This contract was competitively procured via a 100 percent Small Business Set-Aside solicitation via publication on the Federal Business Opportunities website and the SPAWAR e-Commerce Central website, with 15 proposals received and six were selected for award.  The Space and Naval Warfare Systems Center Pacific, San Diego, Calif., is the contracting activity (N66001-14-D-0099).

Moebius, San Diego, Calif., is being awarded a $24,594,747 indefinite-delivery/indefinite-quantity, cost-plus-fixed-fee, multiple award contract to support Space and Naval Warfare Systems Center Pacific command and control (C2) technologies, capabilities, and C2-related capabilities in the areas of innovative science and technology research, systems engineering, architecture, design, development, integration, test, experimentation, implementation and support of C2 net-centric operations (tactical, operational, strategic and national interest). Support includes information processing relating to Joint, Navy, Marine Corps, Army, and Air Force operations and their interfacing with civil and non-government components and capabilities.  This is one of six contracts awarded: each awardee will compete for task orders during the ordering period. This three-year contract includes one two-year option period, which, if exercised, would bring the potential value of this contract to $40,331,599.  Work will be performed in San Diego, Calif., and work is expected to be completed Dec. 29, 2016.  Funding anticipated to be obligated in fiscal 2014 include operations and maintenance, Navy, operations and maintenance, Army, other procurement, Navy, research and development, Air Force and Coast Guard multi-year appropriation acquisition, contracts, and improvements funds as task orders are issued.  Contract funds will not expire at the end of the current fiscal year.  This contract was competitively procured via a 100 percent Small Business Set-Aside solicitation via publication on the Federal Business Opportunities website and the SPAWAR e-Commerce Central website, with 15 proposals received and six were selected for award.  The Space and Naval Warfare Systems Center Pacific, San Diego, Calif., is the contracting activity (N66001-14-D-0097).

ISPA Technology*, Alexandria, Va., is being awarded a $24,017,291 indefinite-delivery/indefinite-quantity, cost-plus-fixed-fee, multiple award contract to support Space and Naval Warfare Systems Center Pacific command and control (C2) technologies, capabilities, and C2-related capabilities in the areas of innovative science and technology research, systems engineering, architecture, design, development, integration, test, experimentation, implementation and support of C2 net-centric operations (tactical, operational, strategic and national interest).  Support includes information processing relating to Joint, Navy, Marine Corps, Army, and Air Force operations and their interfacing with civil and non-government components and capabilities.  This is one of six contracts awarded:  each awardee will compete for task orders during the ordering period.  This three-year contract includes one two-year option period, which, if exercised, would bring the potential value of this contract to $39,912,645.  Work will be performed in Alexandria, Va. (70 percent), and San Diego, Calif. (30 percent), and work is expected to be completed Dec. 29, 2016.  Fiscal 2014 include operations and maintenance, Navy, operations and maintenance, Army, other procurement, Navy, research and development, Air Force and Coast Guard multi-year appropriation acquisition, contracts, and improvements funds as task orders are issued.  Contract funds will not expire at the end of the current fiscal year.  This contract was competitively procured via a 100 percent Small Business Set-Aside solicitation via publication on the Federal Business Opportunities website and the SPAWAR e-Commerce Central website, with 15 proposals received and six were selected for award.  The Space and Naval Warfare Systems Center Pacific, San Diego, Calif., is the contracting activity (N66001-14-D-0098).

G2 Software Systems*, San Diego, Calif., is being awarded a $23,420,492 indefinite-delivery, indefinite-quantity, cost-plus-fixed-fee, multiple award contract to support Space and Naval Warfare Systems Center Pacific command and control (C2) technologies, capabilities, and C2-related capabilities in the areas of innovative science and technology research, systems engineering, architecture, design, development, integration, test, experimentation, implementation and support of C2 net-centric operations (tactical, operational, strategic and national interest).  Support includes information processing relating to Joint, Navy, Marine Corps, Army, and Air Force operations and their interfacing with civil and non-government components and capabilities.  This is one of six contracts awarded:  each awardee will compete for task orders during the ordering period.  This three-year contract includes one two-year option period, which, if exercised, would bring the potential value of this contract to $38,650,655.  Work will be performed in San Diego, Calif., and work is expected to be completed Dec. 29, 2016.  Contract funds will not expire at the end of the current fiscal year.  Funding anticipated to be obligated in fiscal 2014 include operations and maintenance, Navy, operations and maintenance, Army, other procurement, Navy, research and development, Air Force and Coast Guard multi-year appropriation acquisition, contracts, and improvements funds as task orders are issued.  This contract was competitively procured via a 100 percent Small Business Set-Aside solicitation via publication on the Federal Business Opportunities website and the SPAWAR e-Commerce Central website, with 15 proposals received and six were selected for award.  The Space and Naval Warfare Systems Center Pacific, San Diego, Calif., is the contracting activity (N66001-14-D-0094).

The Boeing Co., St. Louis, Mo., is being awarded $22,218,372 for firm-fixed-price delivery order 0140 against a previously issued basic ordering agreement (N00019-11-G-0001) for the procurement of an automated maintenance environment integrated software for the F/A-18E/F and EA-18G aircraft for the U.S. Navy and the government of Australia.  This contract combines purchases for the U.S. Navy ($19,251,990; 86.6 percent) and the government of Australia ($2,966,382; 13.4 percent) under the Foreign Military Sales (FMS) program.  Work will be performed in St. Louis, Mo., and is expected to be completed in December 2015.  Fiscal 2013 aircraft procurement, Navy and FMS contract funds in the amount $22,218,372 will be obligated at time of award; none of which expire at the end of the current fiscal year.  The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.

Geocent*, Metairie, La., is being awarded a $22,109,107 indefinite-delivery/indefinite-quantity, cost-plus-fixed-fee, multiple award contract to support Space and Naval Warfare Systems Center Pacific command and control (C2) technologies, capabilities, and C2-related capabilities in the areas of innovative science and technology research, systems engineering, architecture, design, development, integration, test, experimentation, implementation and support of C2 net-centric operations (tactical, operational, strategic and national interest).  Support includes information processing relating to Joint, Navy, Marine Corps, Army, and Air Force operations and their interfacing with civil and non-government components and capabilities.  This is one of six contracts awarded:  each awardee will compete for task orders during the ordering period.  This three-year contract includes one two-year option period, which, if exercised, would bring the potential value of this contract to $36,444,193.  Work will be performed Metairie, La. (70 percent), and San Diego, Calif. (30 percent), and work is expected to be completed Dec. 29, 2016.  Funding anticipated to be obligated in fiscal 2014 include operations and maintenance, Navy, operations and maintenance, Army, other procurement, Navy, research and development, Air Force and Coast Guard multi-year appropriation acquisition, contracts, and improvements funds as task orders are issued.  Contract funds will not expire at the end of the current fiscal year.  This contract was competitively procured via a 100 percent Small Business Set-Aside solicitation via publication on the Federal Business Opportunities website and the SPAWAR e-Commerce Central website, with 15 proposals received and six were selected for award.  The Space and Naval Warfare Systems Center Pacific, San Diego, Calif., is the contracting activity (N66001-14-D-0096).

BAE Systems Information and Electronics Systems Integration Inc., Greenlawn, N.Y., is being awarded a $12,835,546 modification to a previously awarded firm-fixed-price contract (N00019-12-C-2020) for supplies and services required for the delivery, installation, and testing of six French E-2C compatible AN/APX-122A Mode 5/S Interrogator units for the government of France.  The supplies and services to be procured include non-recurring engineering required for the development of French E-2C compatible AN/APX-122A IFF Mode 5/S Interrogator, software modifications required for compatibility with the French E-2C aircraft, technical data, and technical support.  Work will be performed in Greenlawn, N.Y. (80 percent), Nashua, N.H. (15 percent); Melbourne, Fla. (3 percent); Dayton, Ohio (1 percent), and Cuers, France (1 percent), and is expected to be completed in December 2018.  Foreign Military Sales contract funds in the amount of $12,835,546 will be obligated at the 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.

IAP World Services Inc., Cape Canaveral, Fla., is being awarded a $12,598,143 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for base operating support services at Naval Air Station Patuxent River, Webster Field Annex, Solomon’s Recreation Center Annex and Point Lookout, Md.  The work to be performed provides for general management and administration services; facility support (facilities investment, integrated solid waste management and pool maintenance services); utilities maintenance and operation (including electrical, water and waste water); environmental.  The maximum dollar value including the base period and four option years is $63,595,731.  Work will be performed in Patuxent River, Md. (91 percent); Webster Field, Md. (five percent); Solomon’s Island, Md. (two percent); and Point Lookout, Md. (two percent), and is expected to be completed by January 2015.  Fiscal 2014 Defense working capital funds, Defense; fiscal 2014 Defense Health Program, Defense; fiscal 2014 operations and maintenance, Navy; and fiscal 2014 non-appropriated funds in the amount of $5,217,224 are obligated on this award and will expire at the end of the current fiscal year.  This contract was competitively procured via the Navy Electronic Commerce Online website, with 10 proposals received.  The Naval Facilities Engineering Command, Washington, Washington, D.C., is the contracting activity (N40080-14-D-0302).

Southwest Research Institute, San Antonio, Texas, is being awarded an $11,151,506 cost-plus-fixed-fee contract to design, develop, test, integrate, and demonstrate the System Manager and Link Manager Reference applications for the Telemetry Network System (TmNS) in support of the Major Range and Test Facility Base (MRTFB) Integrated Network Enhancement Telemetry Program Office.  The MRTFBs will utilize the TmNS to significantly increase test mission efficiency through networked enabled telemetry components.  Work will be performed in San Antonio, Texas, and is expected to be completed in December 2018.  Fiscal 2013 research, development, test and evaluation, Navy contract funds in the amount of $565,000 are being obligated on this award, all of which will expire at the end of the current fiscal year.  This contract was not competitively procured pursuant to FAR 6.302-1.  The Naval Air Warfare Center Aircraft Division, Patuxent River, Md., is the contracting activity (N00421-14-C-0010).

DEFENSE LOGISTICS AGENCY

Exelis Inc., Fort Wayne, Ind., has been awarded a maximum $10,931,575 firm-fixed-price contract for the procurement of receiver transmitter and wiring harnesses spare parts.  This contract is a sole-source acquisition.  This is a one year base contract with no option year periods.  Location of performance is Indiana with a Dec. 25, 2014 performance completion date.  Using military service is Army.  Type of appropriation is fiscal 2014 Army working capital funds.  The contracting activity is the Defense Logistics Agency Land and Maritime, Aberdeen Proving Ground, Md., (SPRBL1-14-C-0001).

*Small Business

CFTC ISSUES ADVISORY REGARDING COMMODITY TRADING ADVISORS AND SWAPS

FROM:  COMMODITY FUTURES TRADING COMMISSION 
CFTC’s Division of Swap Dealer and Intermediary Oversight Issues Advisory Concerning Commodity Trading Advisors and Swaps

Washington, DC — The U.S. Commodity Futures Trading Commission’s (CFTC or Commission) Division of Swap Dealer and Intermediary Oversight (DSIO) today issued an advisory that provides guidance regarding requirements imposed on commodity trading advisors (CTAs) resulting from the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act).

The Dodd-Frank Act amended the statutory definition of CTA to include any person who engages in the business of advising others on swaps. Additionally, certain CTAs who were previously exempt from registration with the CFTC are now required to register because of the CFTC’s rescission of Commission Regulation 4.13(a)(4) and amendments to Commission Regulation 4.5. As a result, provisions of the Commodity Exchange Act (CEA) and CFTC regulations applicable to CTAs might, depending on the circumstances, result in new advisory obligations.

This advisory provides guidance on the potential new advisory obligations of CTAs arising from the Dodd-Frank Act. It also informs the newly expanded class of CTAs and those previously exempt CTAs as to the general regulatory framework, including: (1) provisions of the CEA and CFTC regulations applicable generally to CTA activities; (2) CTA advisory obligations with respect to swap risk disclosures; and (3) requirements relevant to CTAs that advise Special Entities on swap transactions.

CFTC, MONETARY AUTHORITY OF SINGAPORE AGREE TO BETTER REGULATE CROSS-BORDER ENTITIES

FROM:  COMMODITY FUTURES TRADING COMMISSION 
December 27, 2013

U.S. Commodity Futures Trading Commission and Monetary Authority of Singapore Sign Memorandum of Understanding to Enhance Supervision of Cross-Border Regulated Entities

Washington, DC – Today, leaders of the U.S. Commodity Futures Trading Commission (Commission) and the Monetary Authority of Singapore (MAS) signed a Memorandum of Understanding (MOU) regarding cooperation and the exchange of information in the supervision and oversight of regulated entities that operate on a cross-border basis in the United States and Singapore.

Through the MOU, the Commission and MAS express their willingness to cooperate with each other in the interest of fulfilling their respective regulatory mandates regarding derivatives markets. The scope of the MOU includes markets and organized trading platforms, central counterparties, trade repositories, and intermediaries, dealers, and other market participants.

The MOU was signed by Commission Chairman Gary Gensler and MAS Deputy Managing Director, Financial Supervision, Ong Chong Tee.

NSC SPOKESPERSON HAYDEN ISSUE'S STATEMENT ON TALKS IN NORTHERN IRELAND

FROM:  U.S. WHITE HOUSE 
December 29, 2013
Statement by NSC Spokesperson Caitlin Hayden on the All-Party Talks in Northern Ireland

Talks led by independent chair Richard Haass with the five parties of the Northern Ireland Executive have reached a critical juncture. The goal has been and remains to reach agreement before the end of the year on new arrangements for parading, flags, and contending with the legacy of past violence.

Initiating these talks demonstrated the commitment of the parties and people of Northern Ireland to move forward on tough issues. We are confident that a solution can be reached if there is political will on all sides.

We call upon the leadership of the five parties to make the compromises necessary to conclude an agreement now, one that would help heal the divisions that continue to stand between the people of Northern Ireland and the future they deserve.

A CHRISTMAS EVE SELFIE IN SPACE

FROM:  NASA
Astronaut Mike Hopkins on Dec. 24 Spacewalk

On Dec. 24, 2013, NASA astronaut Mike Hopkins, Expedition 38 Flight Engineer, participates in the second of two spacewalks, spread over a four-day period, which were designed to allow the crew to change out a degraded pump module on the exterior of the Earth-orbiting International Space Station. He was joined on both spacewalks by NASA astronaut Rick Mastracchio, whose image shows up in Hopkins' helmet visor.

The pump module controls the flow of ammonia through cooling loops and radiators outside the space station, and, combined with water-based cooling loops inside the station, removes excess heat into the vacuum of space.  Image Credit: NASA

"FORCE MANAGEMENT PROGRAMS NECESSARY..."

FROM: U.S. AIR FORCE 
Force management programs necessary despite budget deal/ Published December 23, 2013

WASHINGTON (AFNS) -- Despite a congressional budget deal that lessens the impact of sequestration on the Air Force, it doesn’t go far enough to halt actions to shrink the service, senior service officials said.

Under Secretary of the Air Force Eric Fanning and Gen. Mark A. Welsh III, the Air Force chief of staff, said that even with some relief from sequestration, the service will still have to reduce its force structure and sacrifice modernization and readiness.

How this occurs will affect what the service will look like in 2023, when sequestration ends, they said.

The proposed budget deal making its way through Congress would mitigate some near-term readiness problems, Welsh said, and Air Force leaders will put any money Congress approves beyond sequestration into training and maintenance accounts.

The budget agreement, which was months in the making, eases spending caps for the next two fiscal years while softening the impact of across-the-board spending cuts, known as the sequester, on defense and non-defense programs.

Overall, the agreement calls for more than $20 billion in deficit reduction.

Still, Welsh said, this doesn’t change the long-term picture, noting that sequestration poses a dilemma for the Air Force. Does the service choose to keep near-term readiness high at the expense of force modernization, or vice versa?

“That’s the balance we’re trying to walk,” the general said.

One example of this conundrum is the close air support mission. The Air Force is studying proposals on how best to carry out this core mission, the general said. One proposal would eliminate the A-10 Thunderbolt II close air support aircraft -- the aircraft Welsh flew as a young pilot.

If money were no object, the A-10 would be a great platform to retain, the general said. But money is tight, he noted, and will be tighter.

“To pay our $12 billion-a-year bill toward sequestration, we have got to find savings in big chunks,” Welsh said. “That’s the problem. And that's what all these discussions are based on. It's not about a specific platform. It's about balancing the mission sets.”

The general said other aircraft -- F-16 Fighting Falcons, B-1 Lancers and B-52 Stratofortresses -- provide roughly 75 percent of the close air support in Afghanistan today.

“We have a lot of airplanes that can perform that mission and perform it well,” he said. “Those other aircraft do other things for us.”

The Air Force ultimately will replace the A-10 with the F-35 Lightning II joint strike fighter, Welsh said.

“That plan hasn’t changed,” he added.

Saving money also is important, he said.

“To do that, you have to start talking about fleet divestitures, because you have to get rid of the infrastructure behind the aircraft -- the logistics tail, the supply systems, the facilities that do all the logistical support and depot maintenance, et cetera,” he said. “That's where you create big savings.”

Changing force structure also will inevitably change the service, Welsh said.

“We will have to draw down people -- both the tooth and the tail that comes with that force structure,” he said.

Personnel policies will be used to shape the force, and the service is getting these policies out to Airmen now so they can make informed decisions, Welsh said.

“We’d love to get all this done with voluntary force-shaping measures over a period of time,” he said. “If we … have to take involuntary measures, I would like everyone to have at least six months of time to talk to their family (and) to think about the impact this could have on them.”

With only operations and maintenance and investment accounts remaining for quick assessment, a profound impact to readiness could ensue.

“The Air Force was already in a 20-year readiness decline, something we were just starting to address when sequestration hit,” said Fanning, adding that the service’s size and structure doesn’t lend itself to a tiered readiness model.

“When the flag goes up, the Air Force is expected to get to the crisis rapidly," he said. "Speed is a key advantage of airpower.”

The number of Air Force squadrons equals the combatant commanders’ requirements, Fanning said, but with little or no time built into plans to bring forces up to full readiness.

“If it takes months to generate combat air power, the president loses deterrence, diplomatic influence and contingency options on which the nation has come to depend,” he said.

Fanning characterized budget compromises currently in debate on Capitol Hill as encouraging, though lower than service officials would like. The additional funds over the next two years will help cover readiness shortfalls, stability and planning, he said.

“Even with this relief, we will need to resize the Air Force to one that is smaller than it is today in order to protect investments we need for the future and to shape an Air Force that we can keep ready; we can’t do these cuts individually, ad hoc, or in isolation,” Fanning said. “If something’s restored to the budget we present to the Hill, something else will need to go.”

Still, Fanning pledged a continued commitment to helping Airmen get past the “distractions” of budget and political uncertainty.

“We will make the decisions that we can, as quickly as we can, as transparently as we can … to get the Air Force back to that ‘new normal,’” he said.

(Courtesy of Air Force Public Affairs Agency Operating Location - P)

SECRETARY OF DEFENSE HAGEL CALLS EGYPTIAN DEFENSE MINISTER AFTER BOMBINGS

FROM:  U.S. DEFENSE DEPARTMENT 

Hagel Calls Egyptian Defense Minister to Discuss Attacks
American Forces Press Service

WASHINGTON, Dec. 29, 2013 – Defense Secretary Chuck Hagel called Egyptian Minister of Defense Gen. Abdel Fattah Al-Sisi to discuss recent events in Egypt and to offer the Defense Department's assistance in investigating the attacks in Mansoura, Nasr City and Sharkiya province, Pentagon Press Secretary Navy Rear Adm. John Kirby said in a statement issued today.

Kirby's statement reads as follows:

"Secretary of Defense Chuck Hagel called Egyptian Minister of Defense General Al-Sisi today to discuss recent events in Egypt.

"Secretary Hagel expressed his condolences for the loss of life and injuries from the bombings in Mansoura, Nasr City, and Sharkiya province. The Secretary condemned the attacks and offered the assistance of the Department of Defense to help the Egyptian government investigate the attacks.

Both men discussed the balance between security and freedom, and the Secretary stressed the role of political inclusiveness in the democratic process. Secretary Hagel also expressed concerns about the political climate in advance of the constitutional referendum, including the continued enforcement of a restrictive demonstrations law.

The Secretary and Minister also discussed the desires of the Egyptian people for a civilian-led democracy, stability, and economic opportunities."

Stockpile Stewardship: Los Alamos

LANL NEWS: DATELINE LOS ALAMOS: TOP SCIENCE NEWS FOR 2013

LANL News: Dateline Los Alamos: Top Science News for 2013

ABBOTT LABS PAYS NEARLY $5.5 MILLION TO SETTLE PHYSICIAN KICKBACK CLAIMS

FROM:  U.S. JUSTICE DEPARTMENT 
Friday, December 27, 2013
Abbott Laboratories Pays U.S. $5.475 Million to Settle Claims That Company Paid Kickbacks to Physicians

Abbott Laboratories has agreed to pay the United States $5.475 million to resolve allegations that it violated the False Claims Act by paying kickbacks to induce doctors to implant the company’s carotid, biliary and peripheral vascular products, the Justice Department announced today.  Abbott is a global pharmaceuticals and health care products company based in Abbott Park, Ill.

“Patients have a right to treatment decisions that are based on their own medical needs, not the personal financial interests of their health care providers,” said Assistant Attorney General Stuart F. Delery of the Civil Division of the Department of Justice.  “Kickbacks undermine the ability of health care providers to objectively evaluate and treat their patients, and will continue to be a primary focus of the Department’s health care enforcement efforts.”

The settlement resolves allegations that Abbott knowingly paid prominent physicians for teaching assignments, speaking engagements and conferences with the expectation that these physicians would arrange for the hospitals with which they were affiliated to purchase Abbott’s carotid, biliary and peripheral vascular products.  As a result, the United States alleged Abbott violated the Anti-Kickback Act and caused the submission of false claims to Medicare for the procedures in which these Abbott products were used.

“Physicians should make decisions regarding medical devices based on what is in the best interest of patients without being induced by payments from manufacturers competing for their business,” said U.S. Attorney Bill Killian of the Eastern District of Tennessee.

“Offering financial inducements can distort health care decision-making,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta.  “OIG and our law enforcement partners vigilantly protect government health programs from such alleged abuses.”

Carotid and peripheral vascular products are used to treat circulatory disorders by increasing blood flow to the head and various parts of the body, respectively.  Biliary products are used to treat obstructions that occur in the bile ducts.

The settlement resolves allegations originally brought in a lawsuit filed by Steven Peters and Douglas Gray, former Abbott employees, under the qui tam provision of the False Claims Act , which allows whistleblowers to file suit on behalf of the United States for false claims and share in any recovery   As part of today’s resolution, Peters and Gray will receive a total payment of more than $1 million.

This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius.  The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in this effort is the False Claims Act.  Since January 2009, the Justice Department has recovered a total of more than $17 billion through False Claims Act cases, with more than $12.2 billion of that amount recovered in cases involving fraud against federal health care programs.

This settlement was the result of an investigation by the Justice Department’s Civil Division, the U.S. Attorney’s Offices for the Eastern District of Tennessee and the Northern District of California and the Office of Inspector General at the U.S. Department of Health and Human Services.

The lawsuit is captioned United States ex rel. Peters et al. v. Abbott Laboratories, Inc., Civil Action No. 3:09-CV-430 (E.D. Tenn.).   The claims settled by this agreement are allegations only, and there has been no determination of liability.