FROM: DEFENSE DEPARTMENT
CONTRACTS
DEFENSE LOGISTICS AGENCY
L-3 Communications Systems West, Salt Lake City, Utah, has been awarded a maximum $85,485,879 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for procurement of spare and component satellite terminal parts. This contract is a sole-source acquisition. Location of performance is Utah with a Jan. 9, 2019 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-D-0001).
Dispensers Optical Service Corp.*, Louisville, Ky., has been awarded a maximum $17,006,713 modification (P00007) exercising the third option year on a one-year base contract (SPM2DE-11-D-7548) with four one-year option periods for various optical lenses. This is a fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract. Location of performance is Kentucky with a Jan. 12, 2015 performance completion date. Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.
Signature Flight Support Corp., Palm Springs, Calif., has been awarded a maximum $10,936,934 fixed-price with economic-price-adjustment contract for into-plane jet fuel. This contract is a competitive acquisition, and two offers were received. Location of performance is California with a March 31, 2018 performance completion date. Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies. Type of appropriation is fiscal 2014 through fiscal 2018 defense working capital funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Va., (SP0600-14-D-0005).
Boeing Co., Saint Louis, Mo., has been awarded a maximum $10,000,000 firm-fixed-price contract that provides gap or transition coverage of consumable items during contract transition to ensure uninterrupted support to the customer. This contract is a sole-source acquisition. Location of performance is Missouri with a May 2014 performance completion date. Using military services are Navy and Air Force. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pa., (SPM400-02-D-9407-PH01).
ARMY
Raytheon Co., McKinney, Texas, was awarded a $36,789,509 cost-plus-fixed-fee contract to procure second generation forward looking infrared (2GF) hardware and support services to preserve the Army's 2GF sensor industrial base. Fiscal 2013 other procurement, Army funds in the amount of $36,789,509 were obligated at the time of the award. Estimated completion date is July 3, 2015. One bid was solicited with one received. Work will be performed in McKinney, Texas. Army Contracting Command, Alexandria, Va., is the contracting activity (W909MY-14-C-0011).
Ultimate Training Munitions Inc., Somerville, N.J.*, was awarded an $11,250,000 firm-fixed-price contract for the close combat mission capability kit, for the M4/M16 (carbine/rifle) and M249 (squad automatic weapon). Funding and work performance location will be determined with each order. Estimated completion date is Jan. 10, 2019. Bids were solicited via the Internet with one received. Army Contracting Command, Picatinny Arsenal, N.J., is the contracting activity (W15QKN-14-D-0009).
L-3 Communications Corp., Tempe, Ariz., was awarded a $10,000,000 firm-fixed-price indefinite-delivery/indefinite-quantity contract for commercial tubes for special operations to improve lighting capabilities which increase range and field of vision in darkness. Funding and work performance location will be determined with each order. Estimated completion date is Jan. 2, 2018. One bid was solicited with one received. Army Contracting Command, Natick, Mass. is the contracting activity (W911QY-14-D-0006).
C.E.C. Inc., Lafayette, La.*, was awarded a $7,391,803 firm-fixed-price contract for work on the Lake Pontchartrain Bayou Bienvenue Swing Bridge and vicinity for detour roads; access/maintenance roads; grouted rip-rap; pile driving; pavement demolition; drainage box culverts, inlets, and piping. Also provided for in the contract is a concrete slab span bridge with curtain walls, concrete bridge approach slabs; asphalt pavement construction; grading; embankment; guardrails; and signing and marking. Fiscal 2014 other procurement funds in the amount of $7,391,803 were obligated at the time of the award. Estimated completion date is Aug. 30, 2015. Bids were solicited via the web with 12 received. Work will be performed in St. Bernard, La. Army Corps of Engineers, New Orleans, La., is the contracting activity (W912P8-14-C-0016).
AIR FORCE
United Technologies Corp., doing business as Pratt & Whitney Aftermarket Services Inc., San Antonio, Texas, has been awarded a $33,884,559 modification for the first option to previously awarded contract FA8121-10-D-0008 to remanufacture F-100-PW-100/200/220/220E/229 engine modules. Work will be performed at San Antonio, Texas, and is expected to be completed by April 22, 2014. This contract is 100 percent foreign military sales for Chile, Egypt, Jordan, Thailand, Taiwan, Greece and Indonesia. No funds are being obligated at time of award. Air Force Systems Center, Tinker Air Force Base, Okla., is the contracting activity.
Sparta Inc., Lake Forest, Calif., has been awarded a $7,310,558 modification (P00026) to firm-fixed-price contract (FA8802-10-F-3011) to exercise fiscal 2014, option four continued engineering consulting and technical advisory services including special studies under the basic task order to support or augment existing staff at Space and Missile Systems Center (SMC). Work will be performed at Los Angeles Air Force Base, Calif., and is expected to be completed on Jan. 10, 2015. Fiscal 2014 procurement and military personnel funds in the amount of $782,899 are being obligated at time of award. SMC, Los Angeles Air Force Base, Calif., is the contracting activity.
NAVY
Systems Engineering Support Co.*, San Diego, Calif., is being awarded an $18,626,453 indefinite-delivery/indefinite-quantity contract for production of Navigation Sensor System Interface (NAVSSI) hardware. NAVSSI collects, processes, integrates and formats distribution positioning, navigation and timing data for weapon systems, combat support systems, command, control, communications, computers, intelligence, surveillance, and reconnaissance systems and other information systems users. Work will be performed in San Diego, Calif., and is expected to be completed by December 2019. Fiscal 2012 shipbuilding and conversation, Navy funds in the amount of $498,126 will be obligated at the time of award and will not expire at the end of the current fiscal year. This contract was competitively procured via the Commerce Business Daily’s Federal Business Opportunities website and the SPAWAR e-Commerce Central website, with four offers received. The Space and Naval Warfare Systems Command, San Diego, Calif., is the contracting activity (N00039-14-D-0003).
Micro USA Inc.,* Poway, Calif. is being awarded a $17,622,114 indefinite-delivery/indefinite-quantity contract for production of Navigation Sensor System Interface (NAVSSI) hardware. NAVSSI collects, processes, integrates and formats distribution positioning, navigation and timing data for weapon systems, combat support systems, command, control, communications, computers, intelligence, surveillance, and reconnaissance systems and other information systems users. Work will be performed in Poway, Calif., and is expected to be completed by December 2019. Fiscal 2013 shipbuilding and conversation, Navy funds in the amount of $495,727 will be obligated at the time of award, and will not expire at the end of the current fiscal year. This contract was competitively procured via the Commerce Business Daily’s Federal Business Opportunities website and the SPAWAR e-Commerce Central website, with four offers received. The Space and Naval Warfare Systems Command, San Diego, Calif., is the contracting activity (N00039-14-D-0002).
Lockheed Martin Corp., Baltimore, Md., is being awarded $13,188,967 for modification 0017 to previously awarded (N00024-12-G-4329) for the accomplishment of planning yard support efforts for LCS 1 and 3. This modification is to definitize the LCS 3 not-to-exceed cost-plus award fee contracting action and to add support for LCS 1. Services include: vendor training and crew familiarization; trainer support; availability advanced planning; long lead time material planning and procurement; material warehousing; logistics product updates; and class sustainment management. Work will be performed in Washington, D.C., and is expected to be completed by September 2014. Fiscal 2014 operations and maintenance, Navy contract funds in the amount of $13,188,967 will be obligated at time of award and will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.
Airtec, Inc.*, California, Md., is being awarded a $9,477,860 modification to a previously awarded firm-fixed-price, indefinite-delivery/indefinite-quantity contract (N68335-13-D-0010) for intelligence, surveillance, and reconnaissance (ISR) services in support of the U.S. Southern Command. The contractor will provide ISR services utilizing two contractor-owned, contractor-operated aircraft, with government furnished property previously installed on the aircraft. Work will be performed in Bogota, Columbia, and is expected to be completed in September 2014. Fiscal 2014 operations and maintenance, Army contract funds in the amount of $751,459 will be obligated at time of award, all of which will expire at the end of the current fiscal year. The Naval Air Warfare Center, Lakehurst, N.J., is the contracting activity.
General Dynamics NASSCO, Norfolk, Va., is being awarded a $7,475,361 modification to previously awarded contract (N00024-09-C-4416) for the USS Carter Hall (LSD 50) fiscal 2014 extended dry-docking planned maintenance availability. Services provide extended dry docking, modernization, upgrades, repairs and alterations to multiple shipboard systems such as the engineering control systems, power management platform and chilled water distribution systems for the LSD-class amphibious landing ships. Work will be performed in Norfolk, Va., and is expected to be completed by April 2015. Fiscal 2014 operations and maintenance, Navy funding in the amount of $7,475,361 will be obligated at time of award and will expire at the end of the current fiscal year. Norfolk Ship Support Activity, Norfolk, Va., is the administrative contracting activity.
*Small Business
Friday, January 10, 2014
JUSTICE, COMMERCE NAME EXPERTS TO NEW NATIONAL COMMISSION ON FORENSIC SCIENCE
FROM: JUSTICE DEPARTMENT
Friday, January 10, 2014
U.S. Departments of Justice and Commerce Name Experts to First-ever National Commission on Forensic Science
The U.S. Department of Justice and the U.S. Department of Commerce’s National Institute of Standards and Technology (NIST) today announced appointments to a newly created National Commission on Forensic Science.
Members of the commission will work to improve the practice of forensic science by developing guidance concerning the intersections between forensic science and the criminal justice system. The commission also will work to develop policy recommendations for the U.S. Attorney General, including uniform codes for professional responsibility and requirements for formal training and certification.
The commission is co-chaired by Deputy Attorney General James M. Cole and Under Secretary of Commerce for Standards and Technology and NIST Director Patrick D. Gallagher. Nelson Santos, deputy assistant administrator for the Office of Forensic Sciences at the Drug Enforcement Administration, and John M. Butler, special assistant to the NIST director for forensic science, serve as vice-chairs.
“I appreciate the commitment each of the commissioners has made and look forward to working with them to strengthen the validity and reliability of the forensic sciences and enhance quality assurance and quality control,” said Deputy Attorney General Cole. “Scientifically valid and accurate forensic analysis supports all aspects of our justice system.”
The commission includes federal, state and local forensic science service providers; research scientists and academics; law enforcement officials; prosecutors, defense attorneys and judges; and other stakeholders from across the country. This breadth of experience and expertise reflects the many different entities that contribute to forensic science practice in the U.S. and will ensure these broad perspectives are represented on the commission and in its work.
“This new commission represents an extremely broad range of expertise and skills,” said Under Secretary Gallagher. “It will help ensure that forensic science is supported by the strongest possible science-based evidence gathering, analysis and measurement.
“This latest and most impressive collaboration between the Department of Justice and the National Institute of Standards and Technology will help ensure that the forensic sciences are supported by the most rigorous standards available—a foundational requirement in a nation built on the credo of ‘justice for all,’” said John P. Holdren, Assistant to the President for Science and Technology and Director of the White House Office of Science and Technology Policy.
The following commissioners were chosen from a pool of more than 300 candidates:
Suzanne Bell, Ph.D. , Associate Professor, West Virginia University; Frederick Bieber, Ph.D., Medical Geneticist, Brigham and Women’s Hospital and Associate Professor of Pathology, Harvard Medical School; Thomas Cech, Ph.D. , Distinguished Professor, University of Colorado, Boulder; Cecelia Crouse, Ph.D. , Director, Palm Beach County Sheriff’s Office Crime Laboratory; Gregory Czarnopys , Deputy Assistant Director, Forensic Services, Bureau of Alcohol, Tobacco, Firearms, and Explosives; M. Bonner Denton, Ph.D. , Professor, University of Arizona; Vincent Di Maio, M.D., Consultant in Forensic Pathology; Troy Duster, Ph.D. , Chancellor’s Professor and Senior Fellow, Warren Institute on Law and Social Policy, University of California, Berkeley; Jules Epstein , Associate Professor of Law, Widener University; Stephen Fienberg, Ph.D. , Maurice Falk University Professor of Statistics and Social Science, Carnegie Mellon University; Andrea Ferreira-Gonzalez, Ph.D. , Professor of Pathology and Director Molecular Diagnostics Laboratory, Virginia Commonwealth University; John Fudenberg , Assistant Coroner, Office of the Coroner/Medical Examiner, Clark County, Nevada; S. James Gates, Jr., Ph.D. , University System Regents Professor and John S. Toll Professor of Physics, University of Maryland; Dean Gialamas , Crime Laboratory Director, Los Angeles County Sheriff’s Department, Scientific Services Bureau; Paul Giannelli , Distinguished University Professor and Albert J Weatherhead III and Richard W. Weatherhead Professor of Law, Case Western Reserve University; Hon. Barbara Hervey , Judge, Texas Court of Criminal Appeals; Susan Howley , Public Policy Director, National Center for Victims of Crime; Ted Hunt , Chief Trial Attorney, Jackson County Prosecuting Attorney’s Office, Kansas City, Missouri; Linda Jackson , Director, Virginia Department of Forensic Science; John Kacavas , United States Attorney, District of New Hampshire; Pamela King, Assistant State Public Defender, Minnesota State Public Defender Office; Marc LeBeau, Ph.D. , Senior Forensic Scientist, Scientific Analysis Section, Federal Bureau of Investigation; Julia Leighton , General Counsel, Public Defender Service, District of Columbia; Hon. Bridget Mary McCormack , Justice, Michigan Supreme Court; Peter Neufeld , Co-Director, Innocence Project, Benjamin Cardozo School of Law; Phil Pulaski , Chief of Detectives, New York City Police Department; Hon. Jed Rakoff , Senior United States District Judge, Southern District of New York; Matthew Redle , Sheridan County and Prosecuting Attorney, Sheridan, Wyoming; Michael “Jeff” Salyards, Ph.D. , Executive Director, Defense Forensic Science Center, Department of the Army; and Ryant Washington , Sheriff, Fluvanna County Sherriff’s Office, Fluvanna, Virginia.
Ex-Officio Members:
David Honey, Ph.D. , Assistant Deputy Director of National Intelligence for Science and Technology and Director of Science and Technology, Office of the Director of National Intelligence; Marilyn Huestis, Ph.D., Chief, Chemistry and Drug Metabolism Section, National Institute on Drug Abuse, National Institutes of Health; Gerald LaPorte , Acting Director, Office of Investigative and Forensic Sciences, National Institute of Justice; Patricia Manzolillo , Laboratory Director, Forensic Laboratory Services, U.S. Postal Inspection Service; Frances Schrotter , Senior Vice President and Chief Operation Officer, American National Standards Institute; Kathryn Turman , Program Director, Office for Victim Assistance, Federal Bureau of Investigation; and Mark Weiss, Ph.D. , Division Director, Behavioral and Cognitive Sciences, National Science Foundation.
The first meeting of the Commission will be held February 3-4, 2014, at 810 7th Street, N.W., Washington, DC. The membership list, notice of meetings, commission charter and other related material will be maintained within the General Service Administration’s Federal Advisory Committee Act (FACA) database at http://www.facadatabase.gov .
As a non-regulatory agency of the U.S. Department of Commerce, NIST promotes U.S. innovation and industrial competitiveness by advancing measurement science, standards and technology in ways that enhance economic security and improve our quality of life.
Friday, January 10, 2014
U.S. Departments of Justice and Commerce Name Experts to First-ever National Commission on Forensic Science
The U.S. Department of Justice and the U.S. Department of Commerce’s National Institute of Standards and Technology (NIST) today announced appointments to a newly created National Commission on Forensic Science.
Members of the commission will work to improve the practice of forensic science by developing guidance concerning the intersections between forensic science and the criminal justice system. The commission also will work to develop policy recommendations for the U.S. Attorney General, including uniform codes for professional responsibility and requirements for formal training and certification.
The commission is co-chaired by Deputy Attorney General James M. Cole and Under Secretary of Commerce for Standards and Technology and NIST Director Patrick D. Gallagher. Nelson Santos, deputy assistant administrator for the Office of Forensic Sciences at the Drug Enforcement Administration, and John M. Butler, special assistant to the NIST director for forensic science, serve as vice-chairs.
“I appreciate the commitment each of the commissioners has made and look forward to working with them to strengthen the validity and reliability of the forensic sciences and enhance quality assurance and quality control,” said Deputy Attorney General Cole. “Scientifically valid and accurate forensic analysis supports all aspects of our justice system.”
The commission includes federal, state and local forensic science service providers; research scientists and academics; law enforcement officials; prosecutors, defense attorneys and judges; and other stakeholders from across the country. This breadth of experience and expertise reflects the many different entities that contribute to forensic science practice in the U.S. and will ensure these broad perspectives are represented on the commission and in its work.
“This new commission represents an extremely broad range of expertise and skills,” said Under Secretary Gallagher. “It will help ensure that forensic science is supported by the strongest possible science-based evidence gathering, analysis and measurement.
“This latest and most impressive collaboration between the Department of Justice and the National Institute of Standards and Technology will help ensure that the forensic sciences are supported by the most rigorous standards available—a foundational requirement in a nation built on the credo of ‘justice for all,’” said John P. Holdren, Assistant to the President for Science and Technology and Director of the White House Office of Science and Technology Policy.
The following commissioners were chosen from a pool of more than 300 candidates:
Suzanne Bell, Ph.D. , Associate Professor, West Virginia University; Frederick Bieber, Ph.D., Medical Geneticist, Brigham and Women’s Hospital and Associate Professor of Pathology, Harvard Medical School; Thomas Cech, Ph.D. , Distinguished Professor, University of Colorado, Boulder; Cecelia Crouse, Ph.D. , Director, Palm Beach County Sheriff’s Office Crime Laboratory; Gregory Czarnopys , Deputy Assistant Director, Forensic Services, Bureau of Alcohol, Tobacco, Firearms, and Explosives; M. Bonner Denton, Ph.D. , Professor, University of Arizona; Vincent Di Maio, M.D., Consultant in Forensic Pathology; Troy Duster, Ph.D. , Chancellor’s Professor and Senior Fellow, Warren Institute on Law and Social Policy, University of California, Berkeley; Jules Epstein , Associate Professor of Law, Widener University; Stephen Fienberg, Ph.D. , Maurice Falk University Professor of Statistics and Social Science, Carnegie Mellon University; Andrea Ferreira-Gonzalez, Ph.D. , Professor of Pathology and Director Molecular Diagnostics Laboratory, Virginia Commonwealth University; John Fudenberg , Assistant Coroner, Office of the Coroner/Medical Examiner, Clark County, Nevada; S. James Gates, Jr., Ph.D. , University System Regents Professor and John S. Toll Professor of Physics, University of Maryland; Dean Gialamas , Crime Laboratory Director, Los Angeles County Sheriff’s Department, Scientific Services Bureau; Paul Giannelli , Distinguished University Professor and Albert J Weatherhead III and Richard W. Weatherhead Professor of Law, Case Western Reserve University; Hon. Barbara Hervey , Judge, Texas Court of Criminal Appeals; Susan Howley , Public Policy Director, National Center for Victims of Crime; Ted Hunt , Chief Trial Attorney, Jackson County Prosecuting Attorney’s Office, Kansas City, Missouri; Linda Jackson , Director, Virginia Department of Forensic Science; John Kacavas , United States Attorney, District of New Hampshire; Pamela King, Assistant State Public Defender, Minnesota State Public Defender Office; Marc LeBeau, Ph.D. , Senior Forensic Scientist, Scientific Analysis Section, Federal Bureau of Investigation; Julia Leighton , General Counsel, Public Defender Service, District of Columbia; Hon. Bridget Mary McCormack , Justice, Michigan Supreme Court; Peter Neufeld , Co-Director, Innocence Project, Benjamin Cardozo School of Law; Phil Pulaski , Chief of Detectives, New York City Police Department; Hon. Jed Rakoff , Senior United States District Judge, Southern District of New York; Matthew Redle , Sheridan County and Prosecuting Attorney, Sheridan, Wyoming; Michael “Jeff” Salyards, Ph.D. , Executive Director, Defense Forensic Science Center, Department of the Army; and Ryant Washington , Sheriff, Fluvanna County Sherriff’s Office, Fluvanna, Virginia.
Ex-Officio Members:
David Honey, Ph.D. , Assistant Deputy Director of National Intelligence for Science and Technology and Director of Science and Technology, Office of the Director of National Intelligence; Marilyn Huestis, Ph.D., Chief, Chemistry and Drug Metabolism Section, National Institute on Drug Abuse, National Institutes of Health; Gerald LaPorte , Acting Director, Office of Investigative and Forensic Sciences, National Institute of Justice; Patricia Manzolillo , Laboratory Director, Forensic Laboratory Services, U.S. Postal Inspection Service; Frances Schrotter , Senior Vice President and Chief Operation Officer, American National Standards Institute; Kathryn Turman , Program Director, Office for Victim Assistance, Federal Bureau of Investigation; and Mark Weiss, Ph.D. , Division Director, Behavioral and Cognitive Sciences, National Science Foundation.
The first meeting of the Commission will be held February 3-4, 2014, at 810 7th Street, N.W., Washington, DC. The membership list, notice of meetings, commission charter and other related material will be maintained within the General Service Administration’s Federal Advisory Committee Act (FACA) database at http://www.facadatabase.gov .
As a non-regulatory agency of the U.S. Department of Commerce, NIST promotes U.S. innovation and industrial competitiveness by advancing measurement science, standards and technology in ways that enhance economic security and improve our quality of life.
PRESIDENT ANNOUNCES THREE PICKS TO SERVE ON BOARD OF GOVERNORS OF FEDERAL RESERVE
FROM: THE WHITE HOUSE
President Obama Announces his Intent to Nominate Three to Serve on the Board of Governors of the Federal Reserve System
WASHINGTON, DC – Today, President Obama announced his intent to nominate three individuals to serve on the Board of Governors of the Federal Reserve System. The President announced his intent to nominate Stanley Fischer to serve as Vice Chairman and Governor, Lael Brainard to serve as Governor, and announced his intent to nominate Jerome Powell for a second term as Governor.
President Obama said, “These three distinguished individuals have the proven experience, judgment and deep knowledge of the financial system to serve at the Federal Reserve during this important time for our economy. Stanley Fischer brings decades of leadership and expertise from various roles, including serving at the International Monetary Fund and the Bank of Israel. He is widely acknowledged as one of the world’s leading and most experienced economic policy minds and I’m grateful he has agreed to take on this new role and I am confident that he and Janet Yellen will make a great team. Lael Brainard has served as one of my top and most trusted international economic advisors during a challenging time not just at home, but for our global economy as well, and her knowledge of international monetary and economic issues will be an important addition to the Fed. I’m also thankful that Jerome Powell, who has proven to be an effective and wise voice at the Fed, has agreed to serve a second term. I’m confident that these individuals will serve their country well.”
President Obama announced his intent to nominate the following individuals today:
Stanley Fischer, Vice Chairman and Governor of the Board of Governors of the Federal Reserve System
(To represent the New York, NY region; term ending January 31, 2020)
Dr. Stanley Fischer served as the Governor of the Bank of Israel from 2005 to 2013, where he successfully navigated Israel’s economy through the global financial crisis. Prior to joining the Bank of Israel, Dr. Fischer was Vice Chairman of Citigroup from 2002 through 2005. From 1994 to 2001, he was the First Deputy Managing Director of the International Monetary Fund (IMF), addressing the Asian, Russian, Brazilian, and other financial crises of the late 1990s. Before he joined the IMF, Dr. Fischer was the Killian Professor and Head of the Department of Economics at the Massachusetts Institute of Technology (MIT). From 1988 to 1990, he was Vice President, Development Economics and Chief Economist at the World Bank. From 1973 to 1994, he taught economics at MIT. Dr. Fischer was Assistant Professor in the Department of Economics at the University of Chicago. He received a B.Sc. and an M.Sc. from the London School of Economics and a Ph.D. from MIT.
Lael Brainard, Governor of the Board of Governors of the Federal Reserve System
(To represent the Richmond, VA region; term ending January 31, 2026)
Dr. Lael Brainard most recently served as the U.S. Department of the Treasury’s Under Secretary for International Affairs from 2010 to 2013, where she was responsible for currency policy as well as for coordinating with G20 central banks and finance ministries to arrest the European financial crisis and institute fundamental financial reforms. She was awarded the Alexander Hamilton Award for her service as the Administration’s chief economic diplomat. Prior to joining the Administration, she was Vice President and the Founding Director of the Global Economy and Development Program at the Brookings Institution. During the Clinton Administration, she served as Deputy National Economic Adviser and Deputy Assistant to the President for International Economics, addressing challenges such as the Asian financial crisis and the Mexican financial crisis and China’s role in the global economy. Previously, Dr. Brainard served as Associate Professor of Applied Economics at the MIT Sloan School of Management. Dr. Brainard has also worked at McKinsey & Co. advising corporate clients on strategic challenges, and she has worked in the field of microfinance in West Africa. She received a B.A. from Wesleyan University and an M.A. and Ph.D. from Harvard University.
Jerome H. Powell, Governor of the Board of Governors of the Federal Reserve System
(To represent the Philadelphia, PA region; term ending January 31, 2028)
Jerome H. Powell is a Member of the Board of Governors of the Federal Reserve, a position he has held since 2012. Prior to serving on the Board of Governors, he was a visiting scholar at the Bipartisan Policy Center. From 1997 to 2005, he was a partner at The Carlyle Group. Mr. Powell previously served as an Assistant Secretary and an Under Secretary of the Treasury at the Department of the Treasury under President George H.W. Bush. He worked for many years prior to that as a lawyer and investment banker in New York City. Mr. Powell received an A.B. from Princeton University and J.D. from the Georgetown University Law Center.
President Obama Announces his Intent to Nominate Three to Serve on the Board of Governors of the Federal Reserve System
WASHINGTON, DC – Today, President Obama announced his intent to nominate three individuals to serve on the Board of Governors of the Federal Reserve System. The President announced his intent to nominate Stanley Fischer to serve as Vice Chairman and Governor, Lael Brainard to serve as Governor, and announced his intent to nominate Jerome Powell for a second term as Governor.
President Obama said, “These three distinguished individuals have the proven experience, judgment and deep knowledge of the financial system to serve at the Federal Reserve during this important time for our economy. Stanley Fischer brings decades of leadership and expertise from various roles, including serving at the International Monetary Fund and the Bank of Israel. He is widely acknowledged as one of the world’s leading and most experienced economic policy minds and I’m grateful he has agreed to take on this new role and I am confident that he and Janet Yellen will make a great team. Lael Brainard has served as one of my top and most trusted international economic advisors during a challenging time not just at home, but for our global economy as well, and her knowledge of international monetary and economic issues will be an important addition to the Fed. I’m also thankful that Jerome Powell, who has proven to be an effective and wise voice at the Fed, has agreed to serve a second term. I’m confident that these individuals will serve their country well.”
President Obama announced his intent to nominate the following individuals today:
Stanley Fischer, Vice Chairman and Governor of the Board of Governors of the Federal Reserve System
(To represent the New York, NY region; term ending January 31, 2020)
Dr. Stanley Fischer served as the Governor of the Bank of Israel from 2005 to 2013, where he successfully navigated Israel’s economy through the global financial crisis. Prior to joining the Bank of Israel, Dr. Fischer was Vice Chairman of Citigroup from 2002 through 2005. From 1994 to 2001, he was the First Deputy Managing Director of the International Monetary Fund (IMF), addressing the Asian, Russian, Brazilian, and other financial crises of the late 1990s. Before he joined the IMF, Dr. Fischer was the Killian Professor and Head of the Department of Economics at the Massachusetts Institute of Technology (MIT). From 1988 to 1990, he was Vice President, Development Economics and Chief Economist at the World Bank. From 1973 to 1994, he taught economics at MIT. Dr. Fischer was Assistant Professor in the Department of Economics at the University of Chicago. He received a B.Sc. and an M.Sc. from the London School of Economics and a Ph.D. from MIT.
Lael Brainard, Governor of the Board of Governors of the Federal Reserve System
(To represent the Richmond, VA region; term ending January 31, 2026)
Dr. Lael Brainard most recently served as the U.S. Department of the Treasury’s Under Secretary for International Affairs from 2010 to 2013, where she was responsible for currency policy as well as for coordinating with G20 central banks and finance ministries to arrest the European financial crisis and institute fundamental financial reforms. She was awarded the Alexander Hamilton Award for her service as the Administration’s chief economic diplomat. Prior to joining the Administration, she was Vice President and the Founding Director of the Global Economy and Development Program at the Brookings Institution. During the Clinton Administration, she served as Deputy National Economic Adviser and Deputy Assistant to the President for International Economics, addressing challenges such as the Asian financial crisis and the Mexican financial crisis and China’s role in the global economy. Previously, Dr. Brainard served as Associate Professor of Applied Economics at the MIT Sloan School of Management. Dr. Brainard has also worked at McKinsey & Co. advising corporate clients on strategic challenges, and she has worked in the field of microfinance in West Africa. She received a B.A. from Wesleyan University and an M.A. and Ph.D. from Harvard University.
Jerome H. Powell, Governor of the Board of Governors of the Federal Reserve System
(To represent the Philadelphia, PA region; term ending January 31, 2028)
Jerome H. Powell is a Member of the Board of Governors of the Federal Reserve, a position he has held since 2012. Prior to serving on the Board of Governors, he was a visiting scholar at the Bipartisan Policy Center. From 1997 to 2005, he was a partner at The Carlyle Group. Mr. Powell previously served as an Assistant Secretary and an Under Secretary of the Treasury at the Department of the Treasury under President George H.W. Bush. He worked for many years prior to that as a lawyer and investment banker in New York City. Mr. Powell received an A.B. from Princeton University and J.D. from the Georgetown University Law Center.
ATTORNEY GENERAL HOLDER'S STATEMENT ON SAME-SEX MARRIAGES IN UTAH
FROM: JUSTICE DEPARTMENT
Friday, January 10, 2014
Statement by Attorney General Eric Holder on Federal Recognition of Same-Sex Marriages in Utah
Attorney General Eric Holder issued the following statement today on the status of same-sex marriages performed in the state of Utah:
“Last June, the Supreme Court issued a landmark decision – in United States v. Windsor – holding that Americans in same-sex marriages are entitled to equal protection and equal treatment under the law. This ruling marked a historic step toward equality for all American families. And since the day it was handed down, the Department of Justice has been working tirelessly to implement it in both letter and spirit—moving to extend—federal benefits to married same-sex couples as swiftly and smoothly as possible.
"Recently, an administrative step by the court has cast doubt on same-sex marriages that have been performed in the state of Utah. And the governor has announced that the state will not recognize these marriages pending additional court action.
"In the meantime, I am confirming today that, for purposes of federal law, these marriages will be recognized as lawful and considered eligible for all relevant federal benefits on the same terms as other same-sex marriages. These families should not be asked to endure uncertainty regarding their status as the litigation unfolds. In the days ahead, we will continue to coordinate across the federal government to ensure the timely provision of every federal benefit to which Utah couples and couples throughout the country are entitled – regardless of whether they in same-sex or opposite-sex marriages. And we will continue to provide additional information as soon as it becomes available.”
Friday, January 10, 2014
Statement by Attorney General Eric Holder on Federal Recognition of Same-Sex Marriages in Utah
Attorney General Eric Holder issued the following statement today on the status of same-sex marriages performed in the state of Utah:
“Last June, the Supreme Court issued a landmark decision – in United States v. Windsor – holding that Americans in same-sex marriages are entitled to equal protection and equal treatment under the law. This ruling marked a historic step toward equality for all American families. And since the day it was handed down, the Department of Justice has been working tirelessly to implement it in both letter and spirit—moving to extend—federal benefits to married same-sex couples as swiftly and smoothly as possible.
"Recently, an administrative step by the court has cast doubt on same-sex marriages that have been performed in the state of Utah. And the governor has announced that the state will not recognize these marriages pending additional court action.
"In the meantime, I am confirming today that, for purposes of federal law, these marriages will be recognized as lawful and considered eligible for all relevant federal benefits on the same terms as other same-sex marriages. These families should not be asked to endure uncertainty regarding their status as the litigation unfolds. In the days ahead, we will continue to coordinate across the federal government to ensure the timely provision of every federal benefit to which Utah couples and couples throughout the country are entitled – regardless of whether they in same-sex or opposite-sex marriages. And we will continue to provide additional information as soon as it becomes available.”
HEALTH CARE COMPANY EXECS TO PAY OVER $1 MILLION TO RESOLVE FALSE CLAIMS ALLEGATIONS
FROM: JUSTICE DEPARTMENT
Friday, January 10, 2014
Former HealthEssentials Solutions Inc. Executives to Pay More Than $1 Million to Resolve Allegations of Submitting False Claims to Federal Health Care Program
Michael R. Barr, former chief executive officer of Louisville, Kentucky-based HealthEssentials Solutions Inc., has agreed to pay $1 million to resolve allegations that he knowingly caused HealthEssentials to submit false claims to Medicare between 1999 and 2004, the Justice Department announced today. Norman J. Pfaadt, HealthEssentials’ former chief financial officer, also agreed to pay $20,000 to resolve similar allegations. H ea lt h E s s e nt i a ls provided primary medical care to patients in nursing facilities, assisted living facilities and other settings from 1998 until it filed for bankruptcy and ceased operations in 2005. Barr founded HealthEssentials and served as its president, chief executive and board chairman. Pfaadt served as HealthEssentials’ senior vice president and chief financial officer.
“Healthcare executives should lead by example and create cultures of compliance within their companies, not pressure their employees to cheat the taxpayers,” said Assistant Attorney General for the Civil Division Stuart F. Delery. “We will continue to hold health care executives personally accountable for their dealings with Medicare.”
“Pursuing health care fraud is a priority of this office and the Department of Justice,” said U.S. Attorney for the Western District of Kentucky David J. Hale. “We will continue to work with the Department of Health and Human Services and the public to ensure that fraudulent claims are investigated and those responsible are required to pay.”
In March 2008, HealthEssentials pleaded guilty to submitting false statements to Medicare relating to services it provided to patients in assisted living facilities and entered into a civil settlement with the government. In May 2011, HealthEssentials’ former director of billing, Karen Stone, pleaded guilty for her role in the company’s billing scheme.
The settlement announced today resolves Barr’s and Pfaadt’s alleged liability under the False Claims Act for their roles in HealthEssentials’ false billings. The government alleged that, between 1999 and 2004, HealthEssentials billed for services that were inflated or not medically necessary and that Barr and Pfaadt pressured HealthEssentials employees to inflate the company’s billings, despite having been advised by attorneys and others that doing so would be improper. The government further alleged that Barr pressured HealthEssentials employees to conduct special medical assessments on patients, without regard to whether the patients required the assessments, solely to increase the amount that HealthEssentials could bill for the visits. As part of the settlement, Barr has agreed to a three-year period of exclusion from participating in federally funded health care programs.
“Executives cheating taxpayers and patients – as alleged in this case – should beware of exclusion from Medicare, Medicaid and all other federal health programs, as well as criminal and civil liability,” said Inspector General of the U.S. Department of Health and Human Services Daniel R. Levinson. “Vulnerable beneficiaries deserve protection from potentially harmful, medically unnecessary services.”
The allegations that were resolved by the settlement arose in part from a lawsuit filed by former HealthEssentials employees Michael and Leigh RoBards under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring suit on behalf of the government and to share in any recovery. Mr. and Mrs. RoBards will receive a total of $153,000.
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.
The case was handled by the Commercial Litigation Branch, Civil Division, U.S. Department of Justice and the U.S. Attorney’s Office for the Western District of Kentucky, with assistance from the Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation.
The claims settled by this agreement are allegations only; there has been no determination of liability. The case is captioned United States ex rel. Stydinger, et al. v. Michael R. Barr and Norman J. Pfaadt, Civil No. 3:03-cv-00380-TBR (W.D. Ky.).
Friday, January 10, 2014
Former HealthEssentials Solutions Inc. Executives to Pay More Than $1 Million to Resolve Allegations of Submitting False Claims to Federal Health Care Program
Michael R. Barr, former chief executive officer of Louisville, Kentucky-based HealthEssentials Solutions Inc., has agreed to pay $1 million to resolve allegations that he knowingly caused HealthEssentials to submit false claims to Medicare between 1999 and 2004, the Justice Department announced today. Norman J. Pfaadt, HealthEssentials’ former chief financial officer, also agreed to pay $20,000 to resolve similar allegations. H ea lt h E s s e nt i a ls provided primary medical care to patients in nursing facilities, assisted living facilities and other settings from 1998 until it filed for bankruptcy and ceased operations in 2005. Barr founded HealthEssentials and served as its president, chief executive and board chairman. Pfaadt served as HealthEssentials’ senior vice president and chief financial officer.
“Healthcare executives should lead by example and create cultures of compliance within their companies, not pressure their employees to cheat the taxpayers,” said Assistant Attorney General for the Civil Division Stuart F. Delery. “We will continue to hold health care executives personally accountable for their dealings with Medicare.”
“Pursuing health care fraud is a priority of this office and the Department of Justice,” said U.S. Attorney for the Western District of Kentucky David J. Hale. “We will continue to work with the Department of Health and Human Services and the public to ensure that fraudulent claims are investigated and those responsible are required to pay.”
In March 2008, HealthEssentials pleaded guilty to submitting false statements to Medicare relating to services it provided to patients in assisted living facilities and entered into a civil settlement with the government. In May 2011, HealthEssentials’ former director of billing, Karen Stone, pleaded guilty for her role in the company’s billing scheme.
The settlement announced today resolves Barr’s and Pfaadt’s alleged liability under the False Claims Act for their roles in HealthEssentials’ false billings. The government alleged that, between 1999 and 2004, HealthEssentials billed for services that were inflated or not medically necessary and that Barr and Pfaadt pressured HealthEssentials employees to inflate the company’s billings, despite having been advised by attorneys and others that doing so would be improper. The government further alleged that Barr pressured HealthEssentials employees to conduct special medical assessments on patients, without regard to whether the patients required the assessments, solely to increase the amount that HealthEssentials could bill for the visits. As part of the settlement, Barr has agreed to a three-year period of exclusion from participating in federally funded health care programs.
“Executives cheating taxpayers and patients – as alleged in this case – should beware of exclusion from Medicare, Medicaid and all other federal health programs, as well as criminal and civil liability,” said Inspector General of the U.S. Department of Health and Human Services Daniel R. Levinson. “Vulnerable beneficiaries deserve protection from potentially harmful, medically unnecessary services.”
The allegations that were resolved by the settlement arose in part from a lawsuit filed by former HealthEssentials employees Michael and Leigh RoBards under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring suit on behalf of the government and to share in any recovery. Mr. and Mrs. RoBards will receive a total of $153,000.
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.
The case was handled by the Commercial Litigation Branch, Civil Division, U.S. Department of Justice and the U.S. Attorney’s Office for the Western District of Kentucky, with assistance from the Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation.
The claims settled by this agreement are allegations only; there has been no determination of liability. The case is captioned United States ex rel. Stydinger, et al. v. Michael R. Barr and Norman J. Pfaadt, Civil No. 3:03-cv-00380-TBR (W.D. Ky.).
FEDS SEND MORE FUNDING TO AID IN SEVERE WEATHER RECOVERY EFFORTS IN MISSISSIPPI
FROM: LABOR DEPARTMENT
Additional funding awarded to Mississippi to assist ongoing cleanup
and recovery efforts from severe storms, tornadoes and flooding
WASHINGTON — The U.S. Department of Labor today announced a $833,835 National Emergency Grant incremental award to continue with the cleanup and recovery efforts resulting from the severe storms, tornadoes and flooding in Mississippi on Feb. 10, 2013. These funds are being awarded to the Mississippi Department of Employment Security to create temporary jobs for eligible individuals to assist in cleanup efforts.
"The residents of Mississippi recovering from the devastating storms last February," said Eric M. Seleznow, acting assistant secretary of labor for employment and training. "This funding will help create the jobs necessary to provide assistance to the communities impacted by this damaging weather system."
This grant was first approved on March 4, 2013, for up to $2,000,000, with $1,000,000 initially released, to assist in the aftermath of the Mississippi severe storms, tornadoes and flooding. This incremental award brings the total funds awarded for this project to $1,833,835, which is projected to create a total of 95 temporary jobs.
Following the Mississippi severe storms, tornadoes and flooding, the Federal Emergency Management Agency declared Forrest, Lamar, Marion and Wayne counties as eligible for FEMA's Public Assistance Program. The state is targeting Forrest and Lamar counties for assistance under this grant.
National Emergency Grants are part of the secretary of labor's discretionary fund and are awarded based on a state's ability to meet specific guidelines.
Editor's Note: Acting Assistant Secretary of Labor for Employment and Training Eric M. Seleznow's radio actuality on National Emergency Grants is available for public use.
Additional funding awarded to Mississippi to assist ongoing cleanup
and recovery efforts from severe storms, tornadoes and flooding
WASHINGTON — The U.S. Department of Labor today announced a $833,835 National Emergency Grant incremental award to continue with the cleanup and recovery efforts resulting from the severe storms, tornadoes and flooding in Mississippi on Feb. 10, 2013. These funds are being awarded to the Mississippi Department of Employment Security to create temporary jobs for eligible individuals to assist in cleanup efforts.
"The residents of Mississippi recovering from the devastating storms last February," said Eric M. Seleznow, acting assistant secretary of labor for employment and training. "This funding will help create the jobs necessary to provide assistance to the communities impacted by this damaging weather system."
This grant was first approved on March 4, 2013, for up to $2,000,000, with $1,000,000 initially released, to assist in the aftermath of the Mississippi severe storms, tornadoes and flooding. This incremental award brings the total funds awarded for this project to $1,833,835, which is projected to create a total of 95 temporary jobs.
Following the Mississippi severe storms, tornadoes and flooding, the Federal Emergency Management Agency declared Forrest, Lamar, Marion and Wayne counties as eligible for FEMA's Public Assistance Program. The state is targeting Forrest and Lamar counties for assistance under this grant.
National Emergency Grants are part of the secretary of labor's discretionary fund and are awarded based on a state's ability to meet specific guidelines.
Editor's Note: Acting Assistant Secretary of Labor for Employment and Training Eric M. Seleznow's radio actuality on National Emergency Grants is available for public use.
FTC GOES AFTER AUTO DEALERS FOR FALSE ADVERTISING
FROM: FEDERAL TRADE COMMISSION
FTC Announces Sweep Against 10 Auto Dealers
‘Operation Steer Clear’ Drives Home That Auto Ads Must Be Truthful
The Federal Trade Commission announced today that nine auto dealers agreed to settle deceptive advertising charges, and the agency is taking action against a 10th dealer, in a nationwide sweep focusing on the sale, financing, and leasing of motor vehicles.
According to the complaints, the dealers made a variety of misrepresentations in print, Internet, and video advertisements that violated the FTC Act, falsely leading consumers to believe they could purchase vehicles for low prices, finance vehicles with low monthly payments, and/or make no upfront payment to lease vehicles. One dealer even misrepresented that consumers had won prizes they could collect at the dealership.
“Buying or leasing a car is a big deal, and car ads are an important source of information for serious shoppers,” said Jessica Rich, director of the FTC’s Bureau of Consumer Protection. “Dealers’ ads need to spell out costs and other important terms customers can count on. If they don’t, dealers can count on the FTC to take action.”
‘Operation Steer Clear’ is the latest effort from the FTC to protect consumers in the auto marketplace. The dealerships that settled are charged as follows:
California
Casino Auto Sales of La Puente, Calif., and Rainbow Auto Sales, of South Gate, Calif., allegedly violated the FTC Act by deceptively advertising that consumers could purchase vehicles at specific low prices when, in fact, the price was $5,000 higher. Both dealers’ ads involved a mix of English and Spanish. Honda of Hollywood, Los Angeles, and Norm Reeves Honda of Cerritos, Calif., violated the FTC Act by deceptively advertising that consumers could pay $0 up-front to lease a vehicle when, in fact, the advertised amounts excluded substantial fees and other amounts. The ads also allegedly violated the Consumer Leasing Act (CLA) and Regulation M, by failing to disclose certain lease related terms. Norm Reeves Honda’s ads also allegedly violated the Truth in Lending Act (TILA) and Regulation Z, by failing to disclose certain credit related terms.
Georgia
Nissan of South Atlanta of Morrow, Ga., allegedly violated the FTC Act by deceptively advertising that consumers could finance a vehicle purchase with low monthly payments when, in fact, the payments were temporary “teasers” after which consumers would owe a different amount. The ads also allegedly violated TILA and Regulation Z, by failing to disclose certain credit related terms.
Illinois
Infiniti of Clarendon Hills of Clarendon Hills, Ill., allegedly violated the FTC Act by deceptively advertising that consumers could pay $0 up-front to lease a vehicle when, in fact, the advertised amounts excluded substantial fees and other amounts. The ads also allegedly violated the CLA and Regulation M, by failing to disclose certain lease related terms.
North Carolina
Paramount Kia of Hickory, N.C., allegedly violated the FTC Act by deceptively advertising that consumers could finance a purchase with low monthly payments when, in fact, the payments were temporary “teasers” after which the consumer would owe a much higher amount, by several hundred dollars. The ads also allegedly violated the TILA and Regulation Z, by failing to clearly and conspicuously disclose certain credit related terms.
Michigan
Fowlerville Ford of Fowlerville, Mich., allegedly violated the FTC Act by sending mailers that deceptively claimed consumers had won a sweepstakes prize, when, in fact, they had not. Some of their ads also allegedly violated TILA and Regulation Z, by failing to disclose certain credit related terms.
Texas
Southwest Kia companies, including New World Auto Imports, Dallas, Texas, New World Auto Imports of Rockwall, Rockwall, Texas, and Hampton Two Auto Corporations, Mesquite, Texas, allegedly violated the FTC Act by deceptively advertising that consumers could purchase a vehicle for specific low monthly payments when, in fact, consumers would owe a final balloon payment of over $10,000. The companies also allegedly deceptively advertised that consumers could drive home a vehicle for specific low up-front amounts and low monthly payments when, in fact, the deal was a lease and they would owe substantially more up-front. The ads also allegedly violated the CLA and Regulation M, by failing to disclose certain lease related terms, and the TILA and Regulation Z, by failing to disclose certain credit related terms.
The proposed consent orders settling the FTC’s charges in the nine cases are designed to prevent the dealerships from engaging in similar deceptive advertising practices in the future. The orders prohibit the dealerships from misrepresenting in any advertisement for the purchase, financing, or leasing of motor vehicles the cost of leasing a vehicle, the cost of purchasing a vehicle with financing, or any other material fact about the price, sale, financing, or leasing of a vehicle. When relevant, the proposed consent orders also address the alleged TILA and CLA violations by requiring the dealerships to clearly and conspicuously disclose terms required by these credit and lease laws. In the case where the dealerships misrepresented that consumers had won a prize, the proposed order also prohibits misrepresenting material terms of any prize, sweepstakes, giveaway, or other incentive.
The FTC would like to thank the Los Angeles Department of Consumer Affairs for its assistance with multiple investigations in California, and the Michigan Department of Attorney General for its assistance with the investigation in Michigan.
The Commission votes to accept the packages containing the nine proposed consent orders and complaints for public comment were 4-0. The agreements will be subject to public comment for 30 days, beginning today and continuing through Feb. 10, 2014, after which the Commission will decide whether to make the proposed consent orders final. Submit a comment electronically:
Casino Auto Sales
Honda of Hollywood
Fowlerville Ford
Infiniti of Clarendon Hills
Nissan of South Atlanta
Norm Reeves Honda Superstore
Paramount Kia
Rainbow Auto Sales
Southwest Kia
Comments in paper form should be mailed or delivered to: Federal Trade Commission, Office of the Secretary, Room H-113 (Annex D), 600 Pennsylvania Avenue, N.W., Washington, DC 20580.
In addition, the FTC issued an administrative complaint against Courtesy Auto Group of Attleboro, Mass. The FTC alleges the dealership violated the FTC Act by deceptively advertising that consumers can lease a vehicle for $0 down and specific monthly payments when, in fact, the advertised amounts exclude substantial fees. The ads also allegedly violate the CLA and Regulation M, by failing to disclose or clearly and conspicuously disclose certain lease related terms.
The Commission vote to issue the administrative complaint was 4-0.
FTC Announces Sweep Against 10 Auto Dealers
‘Operation Steer Clear’ Drives Home That Auto Ads Must Be Truthful
The Federal Trade Commission announced today that nine auto dealers agreed to settle deceptive advertising charges, and the agency is taking action against a 10th dealer, in a nationwide sweep focusing on the sale, financing, and leasing of motor vehicles.
According to the complaints, the dealers made a variety of misrepresentations in print, Internet, and video advertisements that violated the FTC Act, falsely leading consumers to believe they could purchase vehicles for low prices, finance vehicles with low monthly payments, and/or make no upfront payment to lease vehicles. One dealer even misrepresented that consumers had won prizes they could collect at the dealership.
“Buying or leasing a car is a big deal, and car ads are an important source of information for serious shoppers,” said Jessica Rich, director of the FTC’s Bureau of Consumer Protection. “Dealers’ ads need to spell out costs and other important terms customers can count on. If they don’t, dealers can count on the FTC to take action.”
‘Operation Steer Clear’ is the latest effort from the FTC to protect consumers in the auto marketplace. The dealerships that settled are charged as follows:
California
Casino Auto Sales of La Puente, Calif., and Rainbow Auto Sales, of South Gate, Calif., allegedly violated the FTC Act by deceptively advertising that consumers could purchase vehicles at specific low prices when, in fact, the price was $5,000 higher. Both dealers’ ads involved a mix of English and Spanish. Honda of Hollywood, Los Angeles, and Norm Reeves Honda of Cerritos, Calif., violated the FTC Act by deceptively advertising that consumers could pay $0 up-front to lease a vehicle when, in fact, the advertised amounts excluded substantial fees and other amounts. The ads also allegedly violated the Consumer Leasing Act (CLA) and Regulation M, by failing to disclose certain lease related terms. Norm Reeves Honda’s ads also allegedly violated the Truth in Lending Act (TILA) and Regulation Z, by failing to disclose certain credit related terms.
Georgia
Nissan of South Atlanta of Morrow, Ga., allegedly violated the FTC Act by deceptively advertising that consumers could finance a vehicle purchase with low monthly payments when, in fact, the payments were temporary “teasers” after which consumers would owe a different amount. The ads also allegedly violated TILA and Regulation Z, by failing to disclose certain credit related terms.
Illinois
Infiniti of Clarendon Hills of Clarendon Hills, Ill., allegedly violated the FTC Act by deceptively advertising that consumers could pay $0 up-front to lease a vehicle when, in fact, the advertised amounts excluded substantial fees and other amounts. The ads also allegedly violated the CLA and Regulation M, by failing to disclose certain lease related terms.
North Carolina
Paramount Kia of Hickory, N.C., allegedly violated the FTC Act by deceptively advertising that consumers could finance a purchase with low monthly payments when, in fact, the payments were temporary “teasers” after which the consumer would owe a much higher amount, by several hundred dollars. The ads also allegedly violated the TILA and Regulation Z, by failing to clearly and conspicuously disclose certain credit related terms.
Michigan
Fowlerville Ford of Fowlerville, Mich., allegedly violated the FTC Act by sending mailers that deceptively claimed consumers had won a sweepstakes prize, when, in fact, they had not. Some of their ads also allegedly violated TILA and Regulation Z, by failing to disclose certain credit related terms.
Texas
Southwest Kia companies, including New World Auto Imports, Dallas, Texas, New World Auto Imports of Rockwall, Rockwall, Texas, and Hampton Two Auto Corporations, Mesquite, Texas, allegedly violated the FTC Act by deceptively advertising that consumers could purchase a vehicle for specific low monthly payments when, in fact, consumers would owe a final balloon payment of over $10,000. The companies also allegedly deceptively advertised that consumers could drive home a vehicle for specific low up-front amounts and low monthly payments when, in fact, the deal was a lease and they would owe substantially more up-front. The ads also allegedly violated the CLA and Regulation M, by failing to disclose certain lease related terms, and the TILA and Regulation Z, by failing to disclose certain credit related terms.
The proposed consent orders settling the FTC’s charges in the nine cases are designed to prevent the dealerships from engaging in similar deceptive advertising practices in the future. The orders prohibit the dealerships from misrepresenting in any advertisement for the purchase, financing, or leasing of motor vehicles the cost of leasing a vehicle, the cost of purchasing a vehicle with financing, or any other material fact about the price, sale, financing, or leasing of a vehicle. When relevant, the proposed consent orders also address the alleged TILA and CLA violations by requiring the dealerships to clearly and conspicuously disclose terms required by these credit and lease laws. In the case where the dealerships misrepresented that consumers had won a prize, the proposed order also prohibits misrepresenting material terms of any prize, sweepstakes, giveaway, or other incentive.
The FTC would like to thank the Los Angeles Department of Consumer Affairs for its assistance with multiple investigations in California, and the Michigan Department of Attorney General for its assistance with the investigation in Michigan.
The Commission votes to accept the packages containing the nine proposed consent orders and complaints for public comment were 4-0. The agreements will be subject to public comment for 30 days, beginning today and continuing through Feb. 10, 2014, after which the Commission will decide whether to make the proposed consent orders final. Submit a comment electronically:
Casino Auto Sales
Honda of Hollywood
Fowlerville Ford
Infiniti of Clarendon Hills
Nissan of South Atlanta
Norm Reeves Honda Superstore
Paramount Kia
Rainbow Auto Sales
Southwest Kia
Comments in paper form should be mailed or delivered to: Federal Trade Commission, Office of the Secretary, Room H-113 (Annex D), 600 Pennsylvania Avenue, N.W., Washington, DC 20580.
In addition, the FTC issued an administrative complaint against Courtesy Auto Group of Attleboro, Mass. The FTC alleges the dealership violated the FTC Act by deceptively advertising that consumers can lease a vehicle for $0 down and specific monthly payments when, in fact, the advertised amounts exclude substantial fees. The ads also allegedly violate the CLA and Regulation M, by failing to disclose or clearly and conspicuously disclose certain lease related terms.
The Commission vote to issue the administrative complaint was 4-0.
QUADRENNIAL ENERGY REVIEW LAUNCHED BY WHITE HOUSE
FROM: THE WHITE HOUSE
Obama Administration Launches Quadrennial Energy Review
First QER Will Focus on Transmission and Distribution Infrastructure
Today, President Obama signed a Memorandum directing his Administration to conduct a Quadrennial Energy Review (QER). This first QER will focus on the development of a comprehensive strategy for the infrastructure involved in transporting, transmitting, and delivering energy. The QER will be developed through robust interagency dialogue and engagement of external stakeholders and will help to build on the Nation’s progress toward greater energy and climate security.
Building on the foundation provided in the President’s Blueprint for a Secure Energy Future and his Climate Action Plan, this QER will study the opportunities and challenges that our energy infrastructure faces as a result of transformations in energy supply, markets, and use; issues of aging and capacity; impacts of climate change; and cyber and physical threats. The QER will provide rigorous analysis in a focused, actionable document for policymakers across all sectors.
The development of the QER will include broad outreach, including to the private sector; state, local and tribal governments; labor and other non-governmental organizations; and the academic community. The QER will be conducted by an interagency task force that is co-chaired by the leaders of the White House Domestic Policy Council and Office of Science and Technology Policy, and includes representation from all relevant executive departments and agencies. The Department of Energy will play a key role in providing analytical support to the QER.
As the Presidential Memorandum outlines, the QER will provide an integrated view of, and recommendations for, Federal energy policy in the context of economic, environmental, occupational, security, and health and safety priorities; review the adequacy of existing executive and legislative activities and recommend additional executive and legislative actions as appropriate; assess and recommend priorities for research, development, and demonstration programs to support key goals; and identify analytical tools and data needed to support further policy development and implementation.
Since President Obama took office, domestic oil production has increased more than 50 percent and natural gas production is now the highest it has ever been. Today, America is not just leading the world in energy production but it is also leading the world in energy innovation: Investments in research, development, and deployment have more than doubled the renewable electricity that we generate from wind and solar, even as the prices of those technologies continue to drop, and advances in energy efficiency are making our energy system cleaner, cheaper, and more reliable. All this change tests an aging infrastructure that must keep pace both with the transformations in energy supply, climate change and security. In this context, the QER will help U.S. policymakers across all sectors make decisions based on unbiased data and rigorous analysis.
Obama Administration Launches Quadrennial Energy Review
First QER Will Focus on Transmission and Distribution Infrastructure
Today, President Obama signed a Memorandum directing his Administration to conduct a Quadrennial Energy Review (QER). This first QER will focus on the development of a comprehensive strategy for the infrastructure involved in transporting, transmitting, and delivering energy. The QER will be developed through robust interagency dialogue and engagement of external stakeholders and will help to build on the Nation’s progress toward greater energy and climate security.
Building on the foundation provided in the President’s Blueprint for a Secure Energy Future and his Climate Action Plan, this QER will study the opportunities and challenges that our energy infrastructure faces as a result of transformations in energy supply, markets, and use; issues of aging and capacity; impacts of climate change; and cyber and physical threats. The QER will provide rigorous analysis in a focused, actionable document for policymakers across all sectors.
The development of the QER will include broad outreach, including to the private sector; state, local and tribal governments; labor and other non-governmental organizations; and the academic community. The QER will be conducted by an interagency task force that is co-chaired by the leaders of the White House Domestic Policy Council and Office of Science and Technology Policy, and includes representation from all relevant executive departments and agencies. The Department of Energy will play a key role in providing analytical support to the QER.
As the Presidential Memorandum outlines, the QER will provide an integrated view of, and recommendations for, Federal energy policy in the context of economic, environmental, occupational, security, and health and safety priorities; review the adequacy of existing executive and legislative activities and recommend additional executive and legislative actions as appropriate; assess and recommend priorities for research, development, and demonstration programs to support key goals; and identify analytical tools and data needed to support further policy development and implementation.
Since President Obama took office, domestic oil production has increased more than 50 percent and natural gas production is now the highest it has ever been. Today, America is not just leading the world in energy production but it is also leading the world in energy innovation: Investments in research, development, and deployment have more than doubled the renewable electricity that we generate from wind and solar, even as the prices of those technologies continue to drop, and advances in energy efficiency are making our energy system cleaner, cheaper, and more reliable. All this change tests an aging infrastructure that must keep pace both with the transformations in energy supply, climate change and security. In this context, the QER will help U.S. policymakers across all sectors make decisions based on unbiased data and rigorous analysis.
READOUT: PRESIDENT OBAMA'S MEETING WITH CONGRESSIONAL MEMBERS
FROM: THE WHITE HOUSE
Readout of the President's Meeting with Members of Congress
Today President Obama met with Members of Congress to discuss the Administration’s ongoing review of signals intelligence programs, including our study of the Review Group on Intelligence and Communications Technologies report. In August, the President committed his Administration to working with Congress to pursue reforms to our nation’s surveillance programs and the Foreign Intelligence Surveillance Court. This meeting was an opportunity for the President to hear from the Members about the work they have been doing on these issues since they last met and solicit their input as we near the end of our internal review. The President thanked the Members for their ongoing work on these challenging issues.
The following Members of Congress attended:
Senator Dianne Feinstein, D-CA, Chairman, Select Committee on Intelligence
Senator Saxby Chambliss, R-GA, Vice Chairman, Select Committee on Intelligence
Senator Patrick Leahy, D-VT, Chairman, Judiciary Committee
Senator Chuck Grassley, R-IA, Ranking Member, Judiciary Committee
Senator Dick Durbin, D-IL, Assistant Majority Leader and Chairman, Appropriations Subcommittee on Defense
Senator Thad Cochran, R-MS, Ranking Member, Appropriations Subcommittee on Defense
Senator Richard Blumenthal, D-CT
Senator Mark Udall, D-CO
Senator Ron Wyden, D-OR
Representative Mike Rogers, R-MI, Chairman, Permanent Select Committee on Intelligence
Representative Bob Goodlatte, R-VA, Chairman, Judiciary Committee
Representative John Conyers, D-MI, Ranking Member, Judiciary Committee
Representative Rodney Frelinghuysen, R-NJ, Chairman, Appropriations Subcommittee on Defense
Representative Peter Visclosky, D-IN, Ranking Member, Appropriations Subcommittee on Defense
Representative Adam Schiff, D-CA
Representative Jim Sensenbrenner, R-WI
Readout of the President's Meeting with Members of Congress
Today President Obama met with Members of Congress to discuss the Administration’s ongoing review of signals intelligence programs, including our study of the Review Group on Intelligence and Communications Technologies report. In August, the President committed his Administration to working with Congress to pursue reforms to our nation’s surveillance programs and the Foreign Intelligence Surveillance Court. This meeting was an opportunity for the President to hear from the Members about the work they have been doing on these issues since they last met and solicit their input as we near the end of our internal review. The President thanked the Members for their ongoing work on these challenging issues.
The following Members of Congress attended:
Senator Dianne Feinstein, D-CA, Chairman, Select Committee on Intelligence
Senator Saxby Chambliss, R-GA, Vice Chairman, Select Committee on Intelligence
Senator Patrick Leahy, D-VT, Chairman, Judiciary Committee
Senator Chuck Grassley, R-IA, Ranking Member, Judiciary Committee
Senator Dick Durbin, D-IL, Assistant Majority Leader and Chairman, Appropriations Subcommittee on Defense
Senator Thad Cochran, R-MS, Ranking Member, Appropriations Subcommittee on Defense
Senator Richard Blumenthal, D-CT
Senator Mark Udall, D-CO
Senator Ron Wyden, D-OR
Representative Mike Rogers, R-MI, Chairman, Permanent Select Committee on Intelligence
Representative Bob Goodlatte, R-VA, Chairman, Judiciary Committee
Representative John Conyers, D-MI, Ranking Member, Judiciary Committee
Representative Rodney Frelinghuysen, R-NJ, Chairman, Appropriations Subcommittee on Defense
Representative Peter Visclosky, D-IN, Ranking Member, Appropriations Subcommittee on Defense
Representative Adam Schiff, D-CA
Representative Jim Sensenbrenner, R-WI
SECRETARY OF DEFENSE HAGEL VISITS NEW MEXICO NUCLEAR FACILITIES
FROM: DEFENSE DEPARTMENT
Hagel Visits Troops, Defense Nuclear Facilities in New Mexico
By Cheryl Pellerin
American Forces Press Service
ALBUQUERQUE, N.M., Jan. 9, 2014 – Defense Secretary Chuck Hagel said he was impressed with what he saw here yesterday at an Air Force base on the northern edge of the Chihuahuan Desert, where two facilities represent a large and historic part of the nation’s nuclear weapons expertise.
The secretary spent the morning in San Antonio, visiting troops, wounded warriors and their families, and hospital workers and staff at Brooke Army Medical Center and its Center for the Intrepid. He then traveled here for briefings at Kirtland Air Force Base and the Air Force Materiel Command's Nuclear Weapons Center, whose responsibilities include nuclear system programs acquisition, modernization and sustainment for the Defense and Energy departments.
Also on the nearly 52,000-acre base is the main facility of Sandia National Laboratories, where scientists and engineers develop, engineer and test non-nuclear components of nuclear weapons. An initial version of the lab was established in 1945 in the early days of the Manhattan Project, a research and development program that produced the first atomic bombs during World War II.
During his visit to Sandia and Kirtland, Hagel met with experts and discussed microsystems and engineering science applications, proliferation assessment, the advanced hypersonic weapon concept, and other topics.
Afterward, while briefing reporters who are traveling with him, Hagel said he wanted especially to visit Sandia “because modernization, research and development, [and] that technical edge that we have been able to maintain, is critically important … in the world we’re in today.”
Technology in particular, he added, has increasingly driven complications, combustibility and new dimensions in the global environment.
At the lab, he said, “I was impressed not only with the technical capability but with the people.”
Because of the critical skills required in any institution, but particularly in the area of nuclear weapons, nuclear modernization and research and development, Hagel said, the United States must continue to be able to recruit and keep cutting-edge minds worldwide on its team.
The secretary said he also was impressed with the people he met at Sandia and Kirtland, including “what they’re doing, how they’re doing it, and the commitment they have made to this country and [its] future.” They understand the privilege of helping to make a better world, he added.
Today, Hagel will travel to Cheyenne, Wyo., to visit the Missile Alert Facility and Launch Control Center, where he will receive briefings and have lunch with missile combat crewmembers and security forces.
Afterward, Hagel will move to F.E. Warren Air Force Base, where the 90th Missile Wing, activated in 1963, operates 150 Minuteman III intercontinental ballistic missiles. At the base, he will hold a troop event for up to 200 service members.
“I think it’s very important that all of us who have some responsibility for the national security of this country pay attention to every aspect of that responsibility,” Hagel said, “and certainly the nuclear component of our defense capabilities -- the deterrence capabilities that nuclear gives us.”
The secretary said he firmly believes that nuclear deterrence probably is the reason there has been no World War III. “We've had wars, but not on the scale of what we saw in the first half of the 20th century,” he said.
Hagel said another reason he visited Sandia and Kirtland yesterday and will travel to Cheyenne today “is that the American people have to be assured of the safety, security and reliability of the nuclear component of our national security.”
In a fact sheet released a year ago, the State Department said the U.S. government is committed to modernizing the nuclear weapons infrastructure to support a safe, secure and effective nuclear weapons stockpile in the absence of nuclear explosive testing. In accordance with the Nuclear Posture Review, the State Department fact sheet said, the National Nuclear Security Administration identified a path forward.
The modernization focuses on recapitalizing and refurbishing existing infrastructure for plutonium, uranium, tritium, high-explosive production, non-nuclear component production, high-fidelity testing and waste disposition. It also will preserve and enhance essential science and technology tools for assessing and certifying weapons without nuclear explosive testing.
“These investments in science, technology, engineering, manufacturing and information technology infrastructure will sustain the capabilities that underpin the stockpile and other national security missions,” the document said.
During his visit here, Hagel acknowledged the high cost of modernizing the U.S. nuclear weapons infrastructure, but noted the importance of nuclear weapons continuing to stay secure and safe. In a December report, the Congressional Budget Office estimated that between 2014 and 2023, the costs of the administration’s plans for nuclear forces will total $355 billion.
“This country has always been willing to make that investment,” Hagel said, “and I think we will continue to make it.”
The secretary said he believes Congress will be a strong partner in this effort. “I’m often asked many questions by members of Congress of both parties and both houses about nuclear modernization and about our investment and our commitment, so I look forward to that continued conversation,” he said. “We’ll get into the specifics of that when I present our [defense] budget, probably within the next two months.”
Hagel Visits Troops, Defense Nuclear Facilities in New Mexico
By Cheryl Pellerin
American Forces Press Service
ALBUQUERQUE, N.M., Jan. 9, 2014 – Defense Secretary Chuck Hagel said he was impressed with what he saw here yesterday at an Air Force base on the northern edge of the Chihuahuan Desert, where two facilities represent a large and historic part of the nation’s nuclear weapons expertise.
The secretary spent the morning in San Antonio, visiting troops, wounded warriors and their families, and hospital workers and staff at Brooke Army Medical Center and its Center for the Intrepid. He then traveled here for briefings at Kirtland Air Force Base and the Air Force Materiel Command's Nuclear Weapons Center, whose responsibilities include nuclear system programs acquisition, modernization and sustainment for the Defense and Energy departments.
Also on the nearly 52,000-acre base is the main facility of Sandia National Laboratories, where scientists and engineers develop, engineer and test non-nuclear components of nuclear weapons. An initial version of the lab was established in 1945 in the early days of the Manhattan Project, a research and development program that produced the first atomic bombs during World War II.
During his visit to Sandia and Kirtland, Hagel met with experts and discussed microsystems and engineering science applications, proliferation assessment, the advanced hypersonic weapon concept, and other topics.
Afterward, while briefing reporters who are traveling with him, Hagel said he wanted especially to visit Sandia “because modernization, research and development, [and] that technical edge that we have been able to maintain, is critically important … in the world we’re in today.”
Technology in particular, he added, has increasingly driven complications, combustibility and new dimensions in the global environment.
At the lab, he said, “I was impressed not only with the technical capability but with the people.”
Because of the critical skills required in any institution, but particularly in the area of nuclear weapons, nuclear modernization and research and development, Hagel said, the United States must continue to be able to recruit and keep cutting-edge minds worldwide on its team.
The secretary said he also was impressed with the people he met at Sandia and Kirtland, including “what they’re doing, how they’re doing it, and the commitment they have made to this country and [its] future.” They understand the privilege of helping to make a better world, he added.
Today, Hagel will travel to Cheyenne, Wyo., to visit the Missile Alert Facility and Launch Control Center, where he will receive briefings and have lunch with missile combat crewmembers and security forces.
Afterward, Hagel will move to F.E. Warren Air Force Base, where the 90th Missile Wing, activated in 1963, operates 150 Minuteman III intercontinental ballistic missiles. At the base, he will hold a troop event for up to 200 service members.
“I think it’s very important that all of us who have some responsibility for the national security of this country pay attention to every aspect of that responsibility,” Hagel said, “and certainly the nuclear component of our defense capabilities -- the deterrence capabilities that nuclear gives us.”
The secretary said he firmly believes that nuclear deterrence probably is the reason there has been no World War III. “We've had wars, but not on the scale of what we saw in the first half of the 20th century,” he said.
Hagel said another reason he visited Sandia and Kirtland yesterday and will travel to Cheyenne today “is that the American people have to be assured of the safety, security and reliability of the nuclear component of our national security.”
In a fact sheet released a year ago, the State Department said the U.S. government is committed to modernizing the nuclear weapons infrastructure to support a safe, secure and effective nuclear weapons stockpile in the absence of nuclear explosive testing. In accordance with the Nuclear Posture Review, the State Department fact sheet said, the National Nuclear Security Administration identified a path forward.
The modernization focuses on recapitalizing and refurbishing existing infrastructure for plutonium, uranium, tritium, high-explosive production, non-nuclear component production, high-fidelity testing and waste disposition. It also will preserve and enhance essential science and technology tools for assessing and certifying weapons without nuclear explosive testing.
“These investments in science, technology, engineering, manufacturing and information technology infrastructure will sustain the capabilities that underpin the stockpile and other national security missions,” the document said.
During his visit here, Hagel acknowledged the high cost of modernizing the U.S. nuclear weapons infrastructure, but noted the importance of nuclear weapons continuing to stay secure and safe. In a December report, the Congressional Budget Office estimated that between 2014 and 2023, the costs of the administration’s plans for nuclear forces will total $355 billion.
“This country has always been willing to make that investment,” Hagel said, “and I think we will continue to make it.”
The secretary said he believes Congress will be a strong partner in this effort. “I’m often asked many questions by members of Congress of both parties and both houses about nuclear modernization and about our investment and our commitment, so I look forward to that continued conversation,” he said. “We’ll get into the specifics of that when I present our [defense] budget, probably within the next two months.”
FDA APPROVES FARXIGA TABLETS FOR TREATMENT OF TYPE 2 DIABETES
FROM: FOOD AND DRUG ADMINISTRATION
FDA NEWS RELEASE
For Immediate Release: Jan. 8, 2014
FDA approves Farxiga to treat type 2 diabetes
The U.S. Food and Drug Administration today approved Farxiga (dapaglifozin) tablets to improve glycemic control, along with diet and exercise, in adults with type 2 diabetes.
Type 2 diabetes affects about 24 million people and accounts for more than 90 percent of diabetes cases diagnosed in the United States. Over time, high blood sugar levels can increase the risk for serious complications, including heart disease, blindness, and nerve and kidney damage.
“Controlling blood sugar levels is very important in the overall treatment and care of diabetes, and Farxiga provides an additional treatment option for millions of Americans with type 2 diabetes,” said Curtis Rosebraugh, M.D., M.P.H., director of the Office of Drug Evaluation II in the FDA’s Center for Drug Evaluation and Research.
Farxiga is a sodium-glucose co-transporter 2 (SGLT2) inhibitor that blocks the reabsorption of glucose by the kidney, increases glucose excretion, and lowers blood glucose levels. The drug’s safety and effectiveness were evaluated in 16 clinical trials involving more than 9,400 patients with type 2 diabetes. The trials showed improvement in HbA1c (hemoglogin A1c or glycosylated hemoglobin, a measure of blood sugar control).
Farxiga has been studied as a stand-alone therapy and in combination with other type 2 diabetes therapies including metformin, pioglitazone, glimepiride, sitagliptin, and insulin. Farxiga should not be used to treat people with type 1 diabetes; those who have increased ketones in their blood or urine (diabetic ketoacidosis); or those with moderate or severe renal impairment, end stage renal disease, or patients on dialysis.
An increased number of bladder cancers were diagnosed among Farxiga users in clinical trials so Farxiga is not recommended for patients with active bladder cancer. Patients with a history of bladder cancer should talk to their physician before using Farxiga. Farxiga can cause dehydration, leading to a drop in blood pressure (hypotension) that can result in dizziness and/or fainting and a decline in renal function. The elderly, patients with impaired renal function, and patients on diuretics to treat other conditions appeared to be more susceptible to this risk.
The FDA is requiring six post-marketing studies for Farxiga:
a cardiovascular outcomes trial (CVOT) to evaluate the cardiovascular risk of Farxiga in patients with high baseline risk of cardiovascular disease;
a double-blind, randomized, controlled assessment of bladder cancer risk in patients enrolled in the CVOT;
an animal study evaluating the role of Farxiga-induced urinary flow/rate and composition changes on bladder tumor promotion in rodents;
two clinical trials to assess the pharmacokinetics, efficacy, and safety in pediatric patients; and
an enhanced pharmacovigilance program to monitor reports of liver abnormalities and pregnancy outcomes.
In clinical trials the most common side effects observed in patients treated with Farxiga were genital mycotic (fungal) infections and urinary tract infections.
Farxiga is marketed by Bristol-Meyers Squibb Company, Princeton, N.J. and AstraZeneca Pharmaceuticals L.P., Wilmington, Del.
For more information:
FDA Approved Drugs
FDA: Drug Innovation
FDA: Diabetes Information
The FDA, an agency within the U.S. Department of Health and Human Services, protects the public health by assuring the safety, effectiveness, and security of human and veterinary drugs, vaccines and other biological products for human use, and medical devices. The agency also is responsible for the safety and security of our nation’s food supply, cosmetics, dietary supplements, products that give off electronic radiation, and for regulating tobacco products.
FDA NEWS RELEASE
For Immediate Release: Jan. 8, 2014
FDA approves Farxiga to treat type 2 diabetes
The U.S. Food and Drug Administration today approved Farxiga (dapaglifozin) tablets to improve glycemic control, along with diet and exercise, in adults with type 2 diabetes.
Type 2 diabetes affects about 24 million people and accounts for more than 90 percent of diabetes cases diagnosed in the United States. Over time, high blood sugar levels can increase the risk for serious complications, including heart disease, blindness, and nerve and kidney damage.
“Controlling blood sugar levels is very important in the overall treatment and care of diabetes, and Farxiga provides an additional treatment option for millions of Americans with type 2 diabetes,” said Curtis Rosebraugh, M.D., M.P.H., director of the Office of Drug Evaluation II in the FDA’s Center for Drug Evaluation and Research.
Farxiga is a sodium-glucose co-transporter 2 (SGLT2) inhibitor that blocks the reabsorption of glucose by the kidney, increases glucose excretion, and lowers blood glucose levels. The drug’s safety and effectiveness were evaluated in 16 clinical trials involving more than 9,400 patients with type 2 diabetes. The trials showed improvement in HbA1c (hemoglogin A1c or glycosylated hemoglobin, a measure of blood sugar control).
Farxiga has been studied as a stand-alone therapy and in combination with other type 2 diabetes therapies including metformin, pioglitazone, glimepiride, sitagliptin, and insulin. Farxiga should not be used to treat people with type 1 diabetes; those who have increased ketones in their blood or urine (diabetic ketoacidosis); or those with moderate or severe renal impairment, end stage renal disease, or patients on dialysis.
An increased number of bladder cancers were diagnosed among Farxiga users in clinical trials so Farxiga is not recommended for patients with active bladder cancer. Patients with a history of bladder cancer should talk to their physician before using Farxiga. Farxiga can cause dehydration, leading to a drop in blood pressure (hypotension) that can result in dizziness and/or fainting and a decline in renal function. The elderly, patients with impaired renal function, and patients on diuretics to treat other conditions appeared to be more susceptible to this risk.
The FDA is requiring six post-marketing studies for Farxiga:
a cardiovascular outcomes trial (CVOT) to evaluate the cardiovascular risk of Farxiga in patients with high baseline risk of cardiovascular disease;
a double-blind, randomized, controlled assessment of bladder cancer risk in patients enrolled in the CVOT;
an animal study evaluating the role of Farxiga-induced urinary flow/rate and composition changes on bladder tumor promotion in rodents;
two clinical trials to assess the pharmacokinetics, efficacy, and safety in pediatric patients; and
an enhanced pharmacovigilance program to monitor reports of liver abnormalities and pregnancy outcomes.
In clinical trials the most common side effects observed in patients treated with Farxiga were genital mycotic (fungal) infections and urinary tract infections.
Farxiga is marketed by Bristol-Meyers Squibb Company, Princeton, N.J. and AstraZeneca Pharmaceuticals L.P., Wilmington, Del.
For more information:
FDA Approved Drugs
FDA: Drug Innovation
FDA: Diabetes Information
The FDA, an agency within the U.S. Department of Health and Human Services, protects the public health by assuring the safety, effectiveness, and security of human and veterinary drugs, vaccines and other biological products for human use, and medical devices. The agency also is responsible for the safety and security of our nation’s food supply, cosmetics, dietary supplements, products that give off electronic radiation, and for regulating tobacco products.
CDC SAYS LUNG CANCER NEW CASES DECREASED FROM 2005-2009
FROM: CENTERS FOR DISEASE CONTROL AND PREVENTION
Rates of new lung cancer cases drop in U.S. men and women
CDC report finds fastest drop in adults aged 35-44 years
Tobacco control efforts are having a major impact on Americans’ health, a new analysis of lung-cancer data suggests. The rate of new lung cancer cases decreased among men and women in the United States from 2005 to 2009, according to a report in this week’s Morbidity and Mortality Weekly Report.
The study also found that lung cancer incidence rates went down 2.6 percent per year among men, from 87 to 78 cases per 100,000 men and 1.1 percent per year among women, from 57 to 54 cases per 100,000 women.
The fastest drop was among adults aged 35-44 years, decreasing 6.5 percent per year among men and 5.8 percent per year among women. Lung cancer incidence rates decreased more rapidly among men than among women in all age groups. Among adults aged 35-44 years, men had slightly lower rates of lung cancer incidence than women.
“These dramatic declines in the number of young adults with lung cancer show that tobacco prevention and control programs work – when they are applied,” said CDC Director Tom Frieden, M.D., M.P.H.
Lung cancer is the leading cause of cancer death and the second most commonly diagnosed cancer among both men and women in the United States. Most lung cancers are attributable to cigarette smoking and secondhand smoke. Because smoking behaviors among women are now similar to those among men, women are now experiencing the same risk of lung cancer as men.
“While it is encouraging that lung cancer incidence rates are dropping in the United States, one preventable cancer is one too many,” Dr. Frieden said. “Implementation of tobacco control strategies is needed to reduce smoking prevalence and the lung cancer it causes among men and women.”
In 2010, states appropriated only 2.4 percent of their tobacco revenues for tobacco control. An earlier CDC study showed that states vary widely in their success at reducing smoking – and in reducing new lung cancers.
In the new report, CDC used data from the National Program of Cancer Registries and the National Cancer Institute’s Surveillance, Epidemiology, and End ResultsExternal Web Site Icon program for the period 2005–2009 to assess lung cancer incidence rates and trends among men and women by age group.
Lung cancer incidence decreased among men in all U.S. Census regions and 23 states, and decreased among women in the South and West and seven states. Rates were stable in all other states. These declines reflect the successes of past tobacco prevention and control efforts.
The study indicates that continued attention to local, state, and national population-based tobacco prevention and control strategies are needed to achieve further reductions in smoking prevalence among both men and women of all ages to reduce subsequent lung cancer in the United States. Strategies proven to reduce tobacco use among youth and adults include increased tobacco prices, comprehensive smoke-free laws, restriction of tobacco advertising and promotion, and hard-hitting mass media and community engagement campaigns.
This month marks the 50th anniversary of the first Surgeon General's Report linking cigarette smoking to lung cancer. Smoking remains the leading cause of preventable death and disease in the United States. Millions of Americans are living with a smoking-related disease, and each day more than 2,100 youth and young adults become daily smokers.
Through the Affordable Care Act, more Americans will qualify to get health care coverage that fits their needs and budget, including important preventive services such as tobacco use screenings and tobacco cessation services that may be covered with no additional costs.
Rates of new lung cancer cases drop in U.S. men and women
CDC report finds fastest drop in adults aged 35-44 years
Tobacco control efforts are having a major impact on Americans’ health, a new analysis of lung-cancer data suggests. The rate of new lung cancer cases decreased among men and women in the United States from 2005 to 2009, according to a report in this week’s Morbidity and Mortality Weekly Report.
The study also found that lung cancer incidence rates went down 2.6 percent per year among men, from 87 to 78 cases per 100,000 men and 1.1 percent per year among women, from 57 to 54 cases per 100,000 women.
The fastest drop was among adults aged 35-44 years, decreasing 6.5 percent per year among men and 5.8 percent per year among women. Lung cancer incidence rates decreased more rapidly among men than among women in all age groups. Among adults aged 35-44 years, men had slightly lower rates of lung cancer incidence than women.
“These dramatic declines in the number of young adults with lung cancer show that tobacco prevention and control programs work – when they are applied,” said CDC Director Tom Frieden, M.D., M.P.H.
Lung cancer is the leading cause of cancer death and the second most commonly diagnosed cancer among both men and women in the United States. Most lung cancers are attributable to cigarette smoking and secondhand smoke. Because smoking behaviors among women are now similar to those among men, women are now experiencing the same risk of lung cancer as men.
“While it is encouraging that lung cancer incidence rates are dropping in the United States, one preventable cancer is one too many,” Dr. Frieden said. “Implementation of tobacco control strategies is needed to reduce smoking prevalence and the lung cancer it causes among men and women.”
In 2010, states appropriated only 2.4 percent of their tobacco revenues for tobacco control. An earlier CDC study showed that states vary widely in their success at reducing smoking – and in reducing new lung cancers.
In the new report, CDC used data from the National Program of Cancer Registries and the National Cancer Institute’s Surveillance, Epidemiology, and End ResultsExternal Web Site Icon program for the period 2005–2009 to assess lung cancer incidence rates and trends among men and women by age group.
Lung cancer incidence decreased among men in all U.S. Census regions and 23 states, and decreased among women in the South and West and seven states. Rates were stable in all other states. These declines reflect the successes of past tobacco prevention and control efforts.
The study indicates that continued attention to local, state, and national population-based tobacco prevention and control strategies are needed to achieve further reductions in smoking prevalence among both men and women of all ages to reduce subsequent lung cancer in the United States. Strategies proven to reduce tobacco use among youth and adults include increased tobacco prices, comprehensive smoke-free laws, restriction of tobacco advertising and promotion, and hard-hitting mass media and community engagement campaigns.
This month marks the 50th anniversary of the first Surgeon General's Report linking cigarette smoking to lung cancer. Smoking remains the leading cause of preventable death and disease in the United States. Millions of Americans are living with a smoking-related disease, and each day more than 2,100 youth and young adults become daily smokers.
Through the Affordable Care Act, more Americans will qualify to get health care coverage that fits their needs and budget, including important preventive services such as tobacco use screenings and tobacco cessation services that may be covered with no additional costs.
Thursday, January 9, 2014
WHITE HOUSE STATEMENT REGARDING BIPARTISAN CONGRESSIONAL TRADE PRIORITIES ACT OF 2014
FROM: THE WHITE HOUSE
Statement by the Press Secretary on the Bipartisan Congressional Trade Priorities Act of 2014
Trade Promotion Authority is a key part of a comprehensive strategy to increase exports and support more American jobs at higher wages, including in a stronger manufacturing sector. We welcome the introduction of the Bipartisan Congressional Trade Priorities Act of 2014 as an important step towards Congress updating its important role in trade negotiations. We look forward to working with Democrats and Republicans in Congress throughout the legislative process to pass Trade Promotion Authority legislation with as broad bipartisan support as possible.
The United States has the most open markets in the world, but our products and services still face barriers abroad. That’s why we need to use every tool we have to knock down trade barriers that prevent American goods and services from being exported. If we don’t seize these opportunities, our competitors surely will. And if we don’t take the leadership to set high standards around the world, we will face a race to the bottom which is not in the interest of our workers and firms.
As this process moves ahead, we stand ready to work with Congress to renew the Generalized System of Preferences Program and protect and strengthen Trade Adjustment Assistance for America’s workers.
Statement by the Press Secretary on the Bipartisan Congressional Trade Priorities Act of 2014
Trade Promotion Authority is a key part of a comprehensive strategy to increase exports and support more American jobs at higher wages, including in a stronger manufacturing sector. We welcome the introduction of the Bipartisan Congressional Trade Priorities Act of 2014 as an important step towards Congress updating its important role in trade negotiations. We look forward to working with Democrats and Republicans in Congress throughout the legislative process to pass Trade Promotion Authority legislation with as broad bipartisan support as possible.
The United States has the most open markets in the world, but our products and services still face barriers abroad. That’s why we need to use every tool we have to knock down trade barriers that prevent American goods and services from being exported. If we don’t seize these opportunities, our competitors surely will. And if we don’t take the leadership to set high standards around the world, we will face a race to the bottom which is not in the interest of our workers and firms.
As this process moves ahead, we stand ready to work with Congress to renew the Generalized System of Preferences Program and protect and strengthen Trade Adjustment Assistance for America’s workers.
UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT FOR WEEKENDING JANUARY 4, 2014
UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT
SEASONALLY ADJUSTED DATA
In the week ending January 4, the advance figure for seasonally adjusted initial claims was 330,000, a decrease of 15,000 from the previous week's revised figure of 345,000. The 4-week moving average was 349,000, a decrease of 9,750 from the previous week's revised average of 358,750.
The advance seasonally adjusted insured unemployment rate was 2.2 percent for the week ending December 28, unchanged from the prior week's unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending December 28 was 2,865,000, an increase of 50,000 from the preceding week's revised level of 2,815,000. The 4-week moving average was 2,872,250, an increase of 18,750 from the preceding week's revised average of 2,853,500.
UNADJUSTED DATA
The advance number of actual initial claims under state programs, unadjusted, totaled 486,033 in the week ending January 4, an increase of 34,384 from the previous week. There were 557,724 initial claims in the comparable week in 2013.
The advance unadjusted insured unemployment rate was 2.5 percent during the week ending December 28, an increase of 0.3 percentage point from the prior week. The advance unadjusted number for persons claiming UI benefits in state programs totaled 3,295,112, an increase of 451,828 from the preceding week. A year earlier, the rate was 2.9 percent and the volume was 3,730,220.
The total number of people claiming benefits in all programs for the week ending December 21 was 4,193,749, a decrease of 265,067 from the previous week. There were 5,356,419 persons claiming benefits in all programs in the comparable week in 2012.
No state was triggered "on" the Extended Benefits program during the week ending December 21.
Initial claims for UI benefits filed by former Federal civilian employees totaled 1,199 in the week ending December 28, a decrease of 669 from the prior week. There were 1,208 initial claims filed by newly discharged veterans, a decrease of 789 from the preceding week.
There were 20,705 former Federal civilian employees claiming UI benefits for the week ending December 21, a decrease of 2,003 from the previous week. Newly discharged veterans claiming benefits totaled 28,567, a decrease of 3,430 from the prior week.
States reported 1,287,037 persons claiming Emergency Unemployment Compensation (EUC) benefits for the week ending December 21, a decrease of 104,260 from the prior week. There were 1,991,454 persons claiming EUC in the comparable week in 2012. EUC weekly claims include first, second, third, and fourth tier activity.
The highest insured unemployment rates in the week ending December 21 were in Alaska (5.3), Pennsylvania (3.4), New Jersey (3.3), Connecticut (3.2), Illinois (3.1), Montana (3.0), Puerto Rico (2.9), Wisconsin (2.9), California (2.8), Nevada (2.8), Oregon (2.8), and Rhode Island (2.8).
The largest increases in initial claims for the week ending December 28 were in Michigan (+16,056), Pennsylvania (+10,601), New Jersey (+7,345), Ohio (+7,036), and Iowa (+5,369), while the largest decreases were in California (-14,635), Texas (-6,723), Florida (-3,738), North Carolina (-2,694), and South Carolina (-2,184).
SEASONALLY ADJUSTED DATA
In the week ending January 4, the advance figure for seasonally adjusted initial claims was 330,000, a decrease of 15,000 from the previous week's revised figure of 345,000. The 4-week moving average was 349,000, a decrease of 9,750 from the previous week's revised average of 358,750.
The advance seasonally adjusted insured unemployment rate was 2.2 percent for the week ending December 28, unchanged from the prior week's unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending December 28 was 2,865,000, an increase of 50,000 from the preceding week's revised level of 2,815,000. The 4-week moving average was 2,872,250, an increase of 18,750 from the preceding week's revised average of 2,853,500.
UNADJUSTED DATA
The advance number of actual initial claims under state programs, unadjusted, totaled 486,033 in the week ending January 4, an increase of 34,384 from the previous week. There were 557,724 initial claims in the comparable week in 2013.
The advance unadjusted insured unemployment rate was 2.5 percent during the week ending December 28, an increase of 0.3 percentage point from the prior week. The advance unadjusted number for persons claiming UI benefits in state programs totaled 3,295,112, an increase of 451,828 from the preceding week. A year earlier, the rate was 2.9 percent and the volume was 3,730,220.
The total number of people claiming benefits in all programs for the week ending December 21 was 4,193,749, a decrease of 265,067 from the previous week. There were 5,356,419 persons claiming benefits in all programs in the comparable week in 2012.
No state was triggered "on" the Extended Benefits program during the week ending December 21.
Initial claims for UI benefits filed by former Federal civilian employees totaled 1,199 in the week ending December 28, a decrease of 669 from the prior week. There were 1,208 initial claims filed by newly discharged veterans, a decrease of 789 from the preceding week.
There were 20,705 former Federal civilian employees claiming UI benefits for the week ending December 21, a decrease of 2,003 from the previous week. Newly discharged veterans claiming benefits totaled 28,567, a decrease of 3,430 from the prior week.
States reported 1,287,037 persons claiming Emergency Unemployment Compensation (EUC) benefits for the week ending December 21, a decrease of 104,260 from the prior week. There were 1,991,454 persons claiming EUC in the comparable week in 2012. EUC weekly claims include first, second, third, and fourth tier activity.
The highest insured unemployment rates in the week ending December 21 were in Alaska (5.3), Pennsylvania (3.4), New Jersey (3.3), Connecticut (3.2), Illinois (3.1), Montana (3.0), Puerto Rico (2.9), Wisconsin (2.9), California (2.8), Nevada (2.8), Oregon (2.8), and Rhode Island (2.8).
The largest increases in initial claims for the week ending December 28 were in Michigan (+16,056), Pennsylvania (+10,601), New Jersey (+7,345), Ohio (+7,036), and Iowa (+5,369), while the largest decreases were in California (-14,635), Texas (-6,723), Florida (-3,738), North Carolina (-2,694), and South Carolina (-2,184).
U.S. DEFENSE DEPARTMENT CONTRACTS FOR JANUARY 9, 2014
FROM: DEFENSE DEPARTMENT
CONTRACTS
ARMY
Sikorsky Aircraft Corp., Stratford, Conn., was awarded a $549,905,199 modification (P00126) to contract W58RGZ-12-C-0008 to fund Navy’s eighteen MH-60S helicopters and nineteen MH-60R helicopters and associated sustaining engineering, program management, systems engineering, provisioning, technical publications, other integrated logistics support and advanced procurement funding for program years four and five. Fiscal 2014 other program funds in the amount of $230,186,863 were obligated at the time of the award. Estimated completion date is Dec. 31, 2015. Work will be performed in Stratford, Conn. Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity
DEFENSE LOGISTICS AGENCY
American Water Operations & Maintenance Inc., Voorhees, N.J., has been awarded a maximum $288,021,970 fixed-price with economic-price-adjustment contract for assumption of ownership, operation, and maintenance of the water distribution system and wastewater collection system at Hill Air Force Base. This contract is a competitive acquisition and one offer was received. Location of performance is New Jersey and Utah with a January 2064 performance completion date. Using military service is Air Force. Type of appropriation is fiscal 2014 Air Force operations and maintenance funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Va., (SP0600-14-C-8290).
US Foods International Inc.*, Gardena, Calif., has been awarded a maximum $42,226,006 modification (P00202) exercising the fourth option year on a one-year base contract (SPM300-08-D-3310) with four one-year option periods for prime vendor full line food distribution. This is a fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract. Locations of performance are California and South Korea with a Jan. 31, 2015 performance completion date. Using military services are Army, Navy, Air Force, Marine Corps, federal civilian agencies, and other authorized Department of Defense customers. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.
The Merchants Co., Hattiesburg, Miss., has been awarded a maximum $12,316,254 fixed-price with economic-price-adjustment, indefinite-quantity, bridge contract for prime vendor food and beverage support. This contract is a sole-source acquisition. Location of performance is Mississippi with a July 12, 2014 performance completion date. Using military services are Army, Navy, Air Force, Marine Corps, Coast Guard, and Air National Guard. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPM300-14-D-3732).
US Foods Inc., Livermore, Calif., has been awarded a maximum $7,232,994 firm-fixed-price, indefinite-quantity contract for prime vendor full-line food distribution. This contract is a sole-source acquisition. Location of performance is California with a July 12, 2014 performance completion date. Using military services are Army, Navy, Air Force, Marine Corps and Coast Guard. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPM300-14-D-3734).
MISSILE DEFENSE AGENCY
Raytheon Missile Systems Co., Tucson, Ariz., is being awarded a not-to-exceed $156,000,000 sole-source, undefinitized contract action, with a hybrid contract structure with firm-fixed-price and cost reimbursable contract line item numbers. Under this contract modification, the contractor will procure 8 Standard Missile-3 Block IB missile material and all up round build up. The work will be performed in Tucson, Ariz. The performance period is from date of award through September 2016. Fiscal 2014 Defense wide procurement funds will be used to fund this effort. The Missile Defense Agency, Dahlgren, Va., is the contracting activity (HQ0276-13-C-0001).
NAVY
Electric Boat Corp., Groton, Conn., is being awarded a $15,035,596 cost-plus-fixed-fee modification to previously awarded contract (N00024-13-C-2128) for procurement of integrated tube and hull long-lead-time material in support of the Ohio Class Replacement Program. This contract combines purchases for the U.S. Navy (50 percent) and the government of the United Kingdom (50 percent) under the Foreign Military Sales program. Work will be performed in Groton, Conn., and is scheduled to be completed by November 2016. Fiscal 2014 research, development, test and evaluation and FMS funding in the amount of $15,035,596 will be obligated at time of award and will not expire at the end of the current fiscal year. Supervisor of Shipbuilding Conversion and Repair, Groton, Conn., is the contracting activity.
Huntington Ingalls Inc., Newport News Shipbuilding, Newport News, Va., is being awarded an unpriced contract action not to exceed an estimated value of $8,163,923 to previously awarded contract (N00024-08-C-2110) to perform all efforts necessary to procure, manage and deliver onboard repair parts in support of the USS Gerald R. Ford (CVN 78) construction. Work will be performed in Newport News, Va., and is expected to complete in September 2015. Fiscal 2014 shipbuilding and conversion, Navy funding in the amount of $500,000 will be obligated at time of award and will not expire at the end of the current fiscal year. Supervisor of Shipbuilding Conversion and Repair, Newport News, Va., is the contracting activity.
BriarTek Inc., Alexandria, Va., is being awarded an $8,070,975 indefinite-delivery/indefinite-quantity contract for supplies and services for the procurement of the Man Overboard Indicator (MOBI) Ship Installation Support System, logistics and training services. The overall objective of the MOBI program is to outfit each ship with a system capable of alerting the crew to a man overboard event, so that a lifesaving rescue can be affected. Work will be conducted at various ship homeports within and outside the continental United States as required and is expected to be completed by January 2019. Fiscal 2014 other procurement, Navy, fiscal 2014 operations and maintenance, Navy, and fiscal 2014 shipbuilding and conversion, Navy funding in the amount of $18,000 will be obligated at time of award and will not expire at the end of the current fiscal year. This contract was not competitively procured. The contract was awarded on a sole-source basis in accordance with the statutory authority of 10 U.S.C. 2304(c)(1) as implemented by FAR 6.302-1 - only one responsible source and no other supplies or services will satisfy agency requirements. The Naval Surface Warfare Center, Carderock Division, Ship System Engineering Station, Philadelphia, Pa., is the contracting activity (N65540-14-D-0001).
AIR FORCE
The Boeing Co., Huntington Beach, Calif., has been awarded a $7,131,719 firm-fixed-price contract for Combat Survivor Evader Locator (CSEL) contractor logistics support 2014-2017. The contractor will provide maintenance, sustaining engineering, new equipment training for users/operators; engineering support for the entire CSEL system on a continuous, around-the-clock basis; and analysis, tools, countermeasures, and software development and integration solutions for all Department of Defense cyber security and information assurance directives, instructions, procedures, threats and policies. Work will be performed at Huntington Beach, Calif., and is expected to be completed on Dec. 31, 2014. Fiscal 2014 operations and maintenance funds in the amount of $282,704 are being obligated at time of award. Battle Management Directorate, Hanscom Air Force Base, Mass., is the contracting activity (FA8730-14-C-0013).
*Small Business
CONTRACTS
ARMY
Sikorsky Aircraft Corp., Stratford, Conn., was awarded a $549,905,199 modification (P00126) to contract W58RGZ-12-C-0008 to fund Navy’s eighteen MH-60S helicopters and nineteen MH-60R helicopters and associated sustaining engineering, program management, systems engineering, provisioning, technical publications, other integrated logistics support and advanced procurement funding for program years four and five. Fiscal 2014 other program funds in the amount of $230,186,863 were obligated at the time of the award. Estimated completion date is Dec. 31, 2015. Work will be performed in Stratford, Conn. Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity
DEFENSE LOGISTICS AGENCY
American Water Operations & Maintenance Inc., Voorhees, N.J., has been awarded a maximum $288,021,970 fixed-price with economic-price-adjustment contract for assumption of ownership, operation, and maintenance of the water distribution system and wastewater collection system at Hill Air Force Base. This contract is a competitive acquisition and one offer was received. Location of performance is New Jersey and Utah with a January 2064 performance completion date. Using military service is Air Force. Type of appropriation is fiscal 2014 Air Force operations and maintenance funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Va., (SP0600-14-C-8290).
US Foods International Inc.*, Gardena, Calif., has been awarded a maximum $42,226,006 modification (P00202) exercising the fourth option year on a one-year base contract (SPM300-08-D-3310) with four one-year option periods for prime vendor full line food distribution. This is a fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract. Locations of performance are California and South Korea with a Jan. 31, 2015 performance completion date. Using military services are Army, Navy, Air Force, Marine Corps, federal civilian agencies, and other authorized Department of Defense customers. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.
The Merchants Co., Hattiesburg, Miss., has been awarded a maximum $12,316,254 fixed-price with economic-price-adjustment, indefinite-quantity, bridge contract for prime vendor food and beverage support. This contract is a sole-source acquisition. Location of performance is Mississippi with a July 12, 2014 performance completion date. Using military services are Army, Navy, Air Force, Marine Corps, Coast Guard, and Air National Guard. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPM300-14-D-3732).
US Foods Inc., Livermore, Calif., has been awarded a maximum $7,232,994 firm-fixed-price, indefinite-quantity contract for prime vendor full-line food distribution. This contract is a sole-source acquisition. Location of performance is California with a July 12, 2014 performance completion date. Using military services are Army, Navy, Air Force, Marine Corps and Coast Guard. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPM300-14-D-3734).
MISSILE DEFENSE AGENCY
Raytheon Missile Systems Co., Tucson, Ariz., is being awarded a not-to-exceed $156,000,000 sole-source, undefinitized contract action, with a hybrid contract structure with firm-fixed-price and cost reimbursable contract line item numbers. Under this contract modification, the contractor will procure 8 Standard Missile-3 Block IB missile material and all up round build up. The work will be performed in Tucson, Ariz. The performance period is from date of award through September 2016. Fiscal 2014 Defense wide procurement funds will be used to fund this effort. The Missile Defense Agency, Dahlgren, Va., is the contracting activity (HQ0276-13-C-0001).
NAVY
Electric Boat Corp., Groton, Conn., is being awarded a $15,035,596 cost-plus-fixed-fee modification to previously awarded contract (N00024-13-C-2128) for procurement of integrated tube and hull long-lead-time material in support of the Ohio Class Replacement Program. This contract combines purchases for the U.S. Navy (50 percent) and the government of the United Kingdom (50 percent) under the Foreign Military Sales program. Work will be performed in Groton, Conn., and is scheduled to be completed by November 2016. Fiscal 2014 research, development, test and evaluation and FMS funding in the amount of $15,035,596 will be obligated at time of award and will not expire at the end of the current fiscal year. Supervisor of Shipbuilding Conversion and Repair, Groton, Conn., is the contracting activity.
Huntington Ingalls Inc., Newport News Shipbuilding, Newport News, Va., is being awarded an unpriced contract action not to exceed an estimated value of $8,163,923 to previously awarded contract (N00024-08-C-2110) to perform all efforts necessary to procure, manage and deliver onboard repair parts in support of the USS Gerald R. Ford (CVN 78) construction. Work will be performed in Newport News, Va., and is expected to complete in September 2015. Fiscal 2014 shipbuilding and conversion, Navy funding in the amount of $500,000 will be obligated at time of award and will not expire at the end of the current fiscal year. Supervisor of Shipbuilding Conversion and Repair, Newport News, Va., is the contracting activity.
BriarTek Inc., Alexandria, Va., is being awarded an $8,070,975 indefinite-delivery/indefinite-quantity contract for supplies and services for the procurement of the Man Overboard Indicator (MOBI) Ship Installation Support System, logistics and training services. The overall objective of the MOBI program is to outfit each ship with a system capable of alerting the crew to a man overboard event, so that a lifesaving rescue can be affected. Work will be conducted at various ship homeports within and outside the continental United States as required and is expected to be completed by January 2019. Fiscal 2014 other procurement, Navy, fiscal 2014 operations and maintenance, Navy, and fiscal 2014 shipbuilding and conversion, Navy funding in the amount of $18,000 will be obligated at time of award and will not expire at the end of the current fiscal year. This contract was not competitively procured. The contract was awarded on a sole-source basis in accordance with the statutory authority of 10 U.S.C. 2304(c)(1) as implemented by FAR 6.302-1 - only one responsible source and no other supplies or services will satisfy agency requirements. The Naval Surface Warfare Center, Carderock Division, Ship System Engineering Station, Philadelphia, Pa., is the contracting activity (N65540-14-D-0001).
AIR FORCE
The Boeing Co., Huntington Beach, Calif., has been awarded a $7,131,719 firm-fixed-price contract for Combat Survivor Evader Locator (CSEL) contractor logistics support 2014-2017. The contractor will provide maintenance, sustaining engineering, new equipment training for users/operators; engineering support for the entire CSEL system on a continuous, around-the-clock basis; and analysis, tools, countermeasures, and software development and integration solutions for all Department of Defense cyber security and information assurance directives, instructions, procedures, threats and policies. Work will be performed at Huntington Beach, Calif., and is expected to be completed on Dec. 31, 2014. Fiscal 2014 operations and maintenance funds in the amount of $282,704 are being obligated at time of award. Battle Management Directorate, Hanscom Air Force Base, Mass., is the contracting activity (FA8730-14-C-0013).
*Small Business
SEC CHARGES ALCOA INC., WITH VIOLATING FOREIGN CORRUPT PRACTICES ACT
FROM: SECURITIES AND EXCHANGE COMMISSION
The Securities and Exchange Commission today charged global aluminum producer Alcoa Inc. with violating the Foreign Corrupt Practices Act (FCPA) when its subsidiaries repeatedly paid bribes to government officials in Bahrain to maintain a key source of business.
An SEC investigation found that more than $110 million in corrupt payments were made to Bahraini officials with influence over contract negotiations between Alcoa and a major government-operated aluminum plant. Alcoa’s subsidiaries used a London-based consultant with connections to Bahrain’s royal family as an intermediary to negotiate with government officials and funnel the illicit payments to retain Alcoa’s business as a supplier to the plant. Alcoa lacked sufficient internal controls to prevent and detect the bribes, which were improperly recorded in Alcoa’s books and records as legitimate commissions or sales to a distributor.
Alcoa agreed to settle the SEC’s charges and a parallel criminal case announced today by the U.S. Department of Justice by paying a total of $384 million.
“As the beneficiary of a long-running bribery scheme perpetrated by a closely controlled subsidiary, Alcoa is liable and must be held responsible,” said George Canellos, co-director of the SEC Enforcement Division. “It is critical that companies assess their supply chains and determine that their business relationships have legitimate purposes.”
Kara N. Brockmeyer, chief of the SEC Enforcement Division’s FCPA Unit added, “The extractive industries have historically been exposed to a high risk of corruption, and those risks are as real today as when the FCPA was first enacted.”
According to the SEC’s order instituting settled administrative proceedings, Alcoa is a global provider of not only primary or fabricated aluminum, but also smelter grade alumina – the raw material that is supplied to plants called smelters that produce aluminum. Alcoa refines alumina from bauxite that it extracts in its global mining operations. From 1989 to 2009, one of the largest customers of Alcoa’s global bauxite and alumina refining business was Aluminium Bahrain B.S.C. (Alba), which is considered one of the largest aluminum smelters in the world. Alba is controlled by Bahrain’s government, and Alcoa’s mining operations in Australia were the source of the alumina that Alcoa supplied to Alba.
According to the SEC’s order, Alcoa’s Australian subsidiary retained a consultant to assist in negotiations for long-term alumina supply agreements with Alba and Bahraini government officials. A manager at the subsidiary described the consultant as “well versed in the normal ways of Middle East business” and one who “will keep the various stakeholders in the Alba smelter happy…” Despite the red flags inherent in this arrangement, Alcoa’s subsidiary inserted the intermediary into the Alba sales supply chain, and the consultant generated the funds needed to pay bribes to Bahraini officials. Money used for the bribes came from the commissions that Alcoa’s subsidiary paid to the consultant as well as price markups the consultant made between the purchase price of the product from Alcoa and the sale price to Alba.
The SEC’s order finds that Alcoa did not conduct due diligence or otherwise seek to determine whether there was a legitimate business purpose for the use of a middleman. Recipients of the corrupt payments included senior Bahraini government officials, members of Alba’s board of directors, and Alba senior management. For example, after Alcoa’s subsidiary retained the consultant to lobby a Bahraini government official, the consultant’s shell companies made two payments totaling $7 million in August 2003 for the benefit of the official. Two weeks later, Alcoa and Alba signed an agreement in principle to have Alcoa participate in Alba’s plant expansion. In October 2004, the consultant’s shell company paid $1 million to an account for the benefit of that same government official, and Alba went on to reach another supply agreement in principle with Alcoa. Around the time that agreement was executed, the consultant’s companies made three payments totaling $41 million to benefit another Bahraini government official as well.
The SEC’s cease-and-desist order finds that Alcoa violated Sections 30A, 13(b)(2)(A), and 13(b)(2)(B) of the Securities Exchange Act of 1934. Alcoa will pay $175 million in disgorgement of ill-gotten gains, of which $14 million will be satisfied by the company’s payment of forfeiture in the parallel criminal matter. Alcoa also will pay a criminal fine of $209 million.
The SEC appreciates the assistance of the Fraud Section of the Criminal Division at the Department of Justice as well as the Federal Bureau of Investigation, Internal Revenue Service, Australian Federal Police, Ontario Securities Commission, Guernsey Financial Services Commission, Liechtenstein Financial Market Authority, Norwegian ØKOKRIM, United Kingdom Financial Control Authority, and Office of the Attorney General of Switzerland.
The Securities and Exchange Commission today charged global aluminum producer Alcoa Inc. with violating the Foreign Corrupt Practices Act (FCPA) when its subsidiaries repeatedly paid bribes to government officials in Bahrain to maintain a key source of business.
An SEC investigation found that more than $110 million in corrupt payments were made to Bahraini officials with influence over contract negotiations between Alcoa and a major government-operated aluminum plant. Alcoa’s subsidiaries used a London-based consultant with connections to Bahrain’s royal family as an intermediary to negotiate with government officials and funnel the illicit payments to retain Alcoa’s business as a supplier to the plant. Alcoa lacked sufficient internal controls to prevent and detect the bribes, which were improperly recorded in Alcoa’s books and records as legitimate commissions or sales to a distributor.
Alcoa agreed to settle the SEC’s charges and a parallel criminal case announced today by the U.S. Department of Justice by paying a total of $384 million.
“As the beneficiary of a long-running bribery scheme perpetrated by a closely controlled subsidiary, Alcoa is liable and must be held responsible,” said George Canellos, co-director of the SEC Enforcement Division. “It is critical that companies assess their supply chains and determine that their business relationships have legitimate purposes.”
Kara N. Brockmeyer, chief of the SEC Enforcement Division’s FCPA Unit added, “The extractive industries have historically been exposed to a high risk of corruption, and those risks are as real today as when the FCPA was first enacted.”
According to the SEC’s order instituting settled administrative proceedings, Alcoa is a global provider of not only primary or fabricated aluminum, but also smelter grade alumina – the raw material that is supplied to plants called smelters that produce aluminum. Alcoa refines alumina from bauxite that it extracts in its global mining operations. From 1989 to 2009, one of the largest customers of Alcoa’s global bauxite and alumina refining business was Aluminium Bahrain B.S.C. (Alba), which is considered one of the largest aluminum smelters in the world. Alba is controlled by Bahrain’s government, and Alcoa’s mining operations in Australia were the source of the alumina that Alcoa supplied to Alba.
According to the SEC’s order, Alcoa’s Australian subsidiary retained a consultant to assist in negotiations for long-term alumina supply agreements with Alba and Bahraini government officials. A manager at the subsidiary described the consultant as “well versed in the normal ways of Middle East business” and one who “will keep the various stakeholders in the Alba smelter happy…” Despite the red flags inherent in this arrangement, Alcoa’s subsidiary inserted the intermediary into the Alba sales supply chain, and the consultant generated the funds needed to pay bribes to Bahraini officials. Money used for the bribes came from the commissions that Alcoa’s subsidiary paid to the consultant as well as price markups the consultant made between the purchase price of the product from Alcoa and the sale price to Alba.
The SEC’s order finds that Alcoa did not conduct due diligence or otherwise seek to determine whether there was a legitimate business purpose for the use of a middleman. Recipients of the corrupt payments included senior Bahraini government officials, members of Alba’s board of directors, and Alba senior management. For example, after Alcoa’s subsidiary retained the consultant to lobby a Bahraini government official, the consultant’s shell companies made two payments totaling $7 million in August 2003 for the benefit of the official. Two weeks later, Alcoa and Alba signed an agreement in principle to have Alcoa participate in Alba’s plant expansion. In October 2004, the consultant’s shell company paid $1 million to an account for the benefit of that same government official, and Alba went on to reach another supply agreement in principle with Alcoa. Around the time that agreement was executed, the consultant’s companies made three payments totaling $41 million to benefit another Bahraini government official as well.
The SEC’s cease-and-desist order finds that Alcoa violated Sections 30A, 13(b)(2)(A), and 13(b)(2)(B) of the Securities Exchange Act of 1934. Alcoa will pay $175 million in disgorgement of ill-gotten gains, of which $14 million will be satisfied by the company’s payment of forfeiture in the parallel criminal matter. Alcoa also will pay a criminal fine of $209 million.
The SEC appreciates the assistance of the Fraud Section of the Criminal Division at the Department of Justice as well as the Federal Bureau of Investigation, Internal Revenue Service, Australian Federal Police, Ontario Securities Commission, Guernsey Financial Services Commission, Liechtenstein Financial Market Authority, Norwegian ØKOKRIM, United Kingdom Financial Control Authority, and Office of the Attorney General of Switzerland.
FLORIDA COUPLE SENTENCED TO PRISON FOR ROLES IN PROCUREMENT CONTRACT BRIBERY CASE
FROM: JUSTICE DEPARTMENT
Wednesday, January 8, 2014
Florida Couple Sentenced for Roles in Procurement Contract Bribery Scheme
A Florida man was sentenced to serve 15 months in prison, and his wife was sentenced to 24 months of probation, for their roles in a bribery and fraud scheme involving federal procurement contracts, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney David B. Barlow of the District of Utah.
On Feb. 26, 2013, Sylvester Zugrav, 70, of Sarasota, Fla., pleaded guilty to conspiracy to commit bribery and procurement fraud, and his wife, Maria Zugrav, 67, also of Sarasota, pleaded guilty to misprision of a felony related to her efforts to conceal the conspiracy.
The Zugravs were charged in an October 2011 indictment along with Jose Mendez, 51, of Farr West, Utah. Mendez, a procurement program manager for the U.S. Air Force Foreign Materials Acquisition Support Office (FMASO) at Hill Air Force Base, in Ogden, Utah, was charged in the indictment with conspiracy, bribery and procurement fraud, and has since pleaded guilty to all charges and agreed to forfeit more than $180,000 he received as part of the bribery scheme. Sentencing for Mendez is scheduled for Jan. 29, 2014.
According to court documents, the Zugravs owned Atlas International Trading Company, a business that contracted to provide foreign military materials to the U.S. government through FMASO.
In his plea agreement, Sylvester Zugrav admitted that, from 2008 through August 2011, he gave Mendez more than $180,000 in bribe payments and offered Mendez more than $1 million in additional bribe payments contingent upon Atlas’s receipt of future contracts with FMASO. In exchange for Sylvester Zugrav’s bribe payments and offers, Mendez ensured that Atlas and Sylvester Zugrav received favorable treatment in connection with procurement contracts by, among other things, assisting Atlas in obtaining and maintaining procurement contracts; assisting Atlas in receiving payments on such contracts; and providing Atlas with contract bid or proposal information or source selection information before the award of procurement contracts. In her plea agreement, Maria Zugrav admitted that she was aware of Sylvester Zugrav’s bribe payments to Mendez and assisted with concealing the crime.
According to court records, Sylvester Zugrav provided bribe payments to Mendez in three ways: cash payments via Federal Express to Mendez’s residential address; in-person payments of cash and other things of value; and electronic wire transfers to a bank account in Mexico opened by and in the name of Mendez’s cousin. Between November 2009 and August 2011, Sylvester Zugrav sent nine FedEx packages to Mendez’s home address. Each package contained $5,000 in cash, except the last package, which contained $3,000 and was seized by law enforcement. Maria Zugrav assisted her husband and Mendez’s bribe scheme by limiting cash withdrawals from Atlas’s bank account to not more than $5,000 to avoid scrutiny by banking officials and law enforcement.
According to the plea documents, on multiple occasions when Sylvester Zugrav and Mendez traveled to the same location, Sylvester Zugrav would give Mendez cash payments and other things of value. From 2008 through August 2011, Sylvester Zugrav gave Mendez seven in-person cash payments ranging from $500 to $10,000 and purchased for him[?] a laptop computer and software package worth over $2,900.
During the course of the corrupt scheme, Mendez opened a foreign bank account so that Sylvester Zugrav could pay Mendez larger bribe payments. Mendez asked his cousin in Mexico to open an account there. After the account was opened by Mendez’s cousin, Maria Zugrav made wire transfers to the bank account located in the name of Mendez’s cousin to avoid detection of the larger bribe payments by law enforcement. From 2008 through August 2011, Maria Zugrav sent to the Mexico account 10 wire transfers ranging from $350 to $26,700.
Court records also describe additional steps taken to conceal the bribery scheme, including creating and using covert e-mail accounts, using encrypted documents, adopting false names and using code words. For instance, to avoid detection of their e-mail communications, Sylvester Zugrav and Mendez established e-mail accounts to be used only to communicate requests and offers for bribe payments. Sylvester Zugrav and Mendez also created password-protected documents for e-mail communications and used code words and false names. Within the encrypted documents, Mendez adopted the moniker “Chuco” and Sylvester Zugrav used the codename “Jugo.” They referred to cash as “literature.”
The case was investigated by the FBI and the Air Force Office of Special Investigations. The case is being prosecuted by Trial Attorneys Marquest J. Meeks and Edward P. Sullivan of the Criminal Division’s Public Integrity Section, Assistant U.S. Attorney Carlos A. Esqueda of the District of Utah, and Trial Attorney Deborah Curtis of the National Security Division’s Counterespionage Section.
Wednesday, January 8, 2014
Florida Couple Sentenced for Roles in Procurement Contract Bribery Scheme
A Florida man was sentenced to serve 15 months in prison, and his wife was sentenced to 24 months of probation, for their roles in a bribery and fraud scheme involving federal procurement contracts, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney David B. Barlow of the District of Utah.
On Feb. 26, 2013, Sylvester Zugrav, 70, of Sarasota, Fla., pleaded guilty to conspiracy to commit bribery and procurement fraud, and his wife, Maria Zugrav, 67, also of Sarasota, pleaded guilty to misprision of a felony related to her efforts to conceal the conspiracy.
The Zugravs were charged in an October 2011 indictment along with Jose Mendez, 51, of Farr West, Utah. Mendez, a procurement program manager for the U.S. Air Force Foreign Materials Acquisition Support Office (FMASO) at Hill Air Force Base, in Ogden, Utah, was charged in the indictment with conspiracy, bribery and procurement fraud, and has since pleaded guilty to all charges and agreed to forfeit more than $180,000 he received as part of the bribery scheme. Sentencing for Mendez is scheduled for Jan. 29, 2014.
According to court documents, the Zugravs owned Atlas International Trading Company, a business that contracted to provide foreign military materials to the U.S. government through FMASO.
In his plea agreement, Sylvester Zugrav admitted that, from 2008 through August 2011, he gave Mendez more than $180,000 in bribe payments and offered Mendez more than $1 million in additional bribe payments contingent upon Atlas’s receipt of future contracts with FMASO. In exchange for Sylvester Zugrav’s bribe payments and offers, Mendez ensured that Atlas and Sylvester Zugrav received favorable treatment in connection with procurement contracts by, among other things, assisting Atlas in obtaining and maintaining procurement contracts; assisting Atlas in receiving payments on such contracts; and providing Atlas with contract bid or proposal information or source selection information before the award of procurement contracts. In her plea agreement, Maria Zugrav admitted that she was aware of Sylvester Zugrav’s bribe payments to Mendez and assisted with concealing the crime.
According to court records, Sylvester Zugrav provided bribe payments to Mendez in three ways: cash payments via Federal Express to Mendez’s residential address; in-person payments of cash and other things of value; and electronic wire transfers to a bank account in Mexico opened by and in the name of Mendez’s cousin. Between November 2009 and August 2011, Sylvester Zugrav sent nine FedEx packages to Mendez’s home address. Each package contained $5,000 in cash, except the last package, which contained $3,000 and was seized by law enforcement. Maria Zugrav assisted her husband and Mendez’s bribe scheme by limiting cash withdrawals from Atlas’s bank account to not more than $5,000 to avoid scrutiny by banking officials and law enforcement.
According to the plea documents, on multiple occasions when Sylvester Zugrav and Mendez traveled to the same location, Sylvester Zugrav would give Mendez cash payments and other things of value. From 2008 through August 2011, Sylvester Zugrav gave Mendez seven in-person cash payments ranging from $500 to $10,000 and purchased for him[?] a laptop computer and software package worth over $2,900.
During the course of the corrupt scheme, Mendez opened a foreign bank account so that Sylvester Zugrav could pay Mendez larger bribe payments. Mendez asked his cousin in Mexico to open an account there. After the account was opened by Mendez’s cousin, Maria Zugrav made wire transfers to the bank account located in the name of Mendez’s cousin to avoid detection of the larger bribe payments by law enforcement. From 2008 through August 2011, Maria Zugrav sent to the Mexico account 10 wire transfers ranging from $350 to $26,700.
Court records also describe additional steps taken to conceal the bribery scheme, including creating and using covert e-mail accounts, using encrypted documents, adopting false names and using code words. For instance, to avoid detection of their e-mail communications, Sylvester Zugrav and Mendez established e-mail accounts to be used only to communicate requests and offers for bribe payments. Sylvester Zugrav and Mendez also created password-protected documents for e-mail communications and used code words and false names. Within the encrypted documents, Mendez adopted the moniker “Chuco” and Sylvester Zugrav used the codename “Jugo.” They referred to cash as “literature.”
The case was investigated by the FBI and the Air Force Office of Special Investigations. The case is being prosecuted by Trial Attorneys Marquest J. Meeks and Edward P. Sullivan of the Criminal Division’s Public Integrity Section, Assistant U.S. Attorney Carlos A. Esqueda of the District of Utah, and Trial Attorney Deborah Curtis of the National Security Division’s Counterespionage Section.
READOUT OF PRESIDENT OBAMA'S CALL WITH GERMAN CHANCELLOR MERKEL
FROM: THE WHITE HOUSE
Readout of the President’s Call with Chancellor Merkel
The President spoke to Chancellor Merkel today to wish her a speedy recovery following her injury and to congratulate her on the formation of her new cabinet. The leaders noted the full agenda for 2014, including the Transatlantic Trade and Investment Partnership (T-TIP) negotiations and NATO Summit, and looked forward to working closely together to advance our shared interests. The President also extended an invitation to the Chancellor to visit Washington at a mutually agreeable time in the coming months.
Readout of the President’s Call with Chancellor Merkel
The President spoke to Chancellor Merkel today to wish her a speedy recovery following her injury and to congratulate her on the formation of her new cabinet. The leaders noted the full agenda for 2014, including the Transatlantic Trade and Investment Partnership (T-TIP) negotiations and NATO Summit, and looked forward to working closely together to advance our shared interests. The President also extended an invitation to the Chancellor to visit Washington at a mutually agreeable time in the coming months.
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