Wednesday, February 26, 2014

HHS ANNOUNCES RECORD $19.5 BILLION RECOVERED FROM HEALTH CARE FRAUD CASES

FROM:  DEPARTMENT OF HEALTH AND HUMAN SERVICES 
February 26, 2014

Departments of Justice and Health and Human Services announce record-breaking recoveries resulting from joint efforts to combat health care fraud
Government teams recovered $4.3 billion in FY 2013 and $19.2 billion over the last five years

Attorney General Eric Holder and HHS Secretary Kathleen Sebelius today released the annual Health Care Fraud and Abuse Control (HCFAC) Program report showing that for every dollar spent on health care-related fraud and abuse investigations through this and other programs in the last three years, the government recovered $8.10.  This is the highest three-year average return on investment in the 17-year history of the HCFAC Program.

The government’s health care fraud prevention and enforcement efforts recovered a record-breaking $4.3 billion in taxpayer dollars in Fiscal Year (FY) 2013, up from $4.2 billion in FY 2012, from individuals and companies who attempted to defraud federal health programs serving seniors or who sought payments from taxpayers to which they were not entitled.  Over the last five years, the administration’s enforcement efforts have recovered $19.2 billion, up from $9.4 billion over the prior five-year period.  Since the inception of the program in1997, the HCFAC Program has returned more than $25.9 billion to the Medicare Trust Funds and treasury.

These recoveries, released today in the annual HCFAC Program report, demonstrate President Obama’s commitment to making the elimination of fraud, waste and abuse, particularly in health care, a top priority for the administration.  This is the fifth consecutive year that the program has increased recoveries over the past year, climbing from $2 billion in FY 2008 to over $4 billion every year since FY 2011.

The success of this joint Department of Justice and HHS effort was made possible in part by the Health Care Fraud Prevention and Enforcement Action Team (HEAT), created in 2009 to prevent fraud, waste and abuse in Medicare and Medicaid and to crack down on individuals and entities that are abusing the system and costing American taxpayers billions of dollars.

“With these extraordinary recoveries, and the record-high rate of return on investment we’ve achieved on our comprehensive health care fraud enforcement efforts, we’re sending a strong message to those who would take advantage of their fellow citizens, target vulnerable populations, and commit fraud on federal health care programs,” said Attorney General Eric Holder.  “Thanks to initiatives like HEAT, our work to combat fraud has never been more cooperative or more effective.  And our unprecedented commitment to holding criminals accountable, and securing remarkable results for American taxpayers, is paying dividends.”

“These impressive recoveries for the American taxpayer are just one aspect of the comprehensive anti-fraud strategy we have implemented since the passage of the Affordable Care Act,” said HHS Secretary Sebelius.  “We’ve cracked down on tens of thousands health care providers suspected of Medicare fraud. New enrollment screening techniques are proving effective in preventing high risk providers from getting into the system, and the new computer analytics system that detects and stops fraudulent billing before money ever goes out the door is accomplishing positive results – all of which are adding to savings for the Medicare Trust Fund.”

The new authorities under the Affordable Care Act granted to HHS and the Centers for Medicare & Medicaid Services (CMS) were instrumental in clamping down on fraudulent activity in health care.  In FY 2013, CMS announced the first use of its temporary moratoria authority granted by the Affordable Care Act.  The action stopped enrollment of new home health or ambulance enrollments in three fraud hot spots around the country, allowing CMS and its law enforcement partners to remove bad actors from the program while blocking provider entry or re-entry into these already over-supplied markets.

The Justice Department and HHS have improved their coordination through HEAT and are currently operating Medicare Fraud Strike Force teams in nine areas across the country. The strike force teams use advanced data analysis techniques to identify high-billing levels in health care fraud hot spots so that interagency teams can target emerging or migrating schemes as well as chronic fraud by criminals masquerading as health care providers or suppliers. The Justice Department’s enforcement of the civil False Claims Act and the Federal Food, Drug and Cosmetic Act has produced similar record-breaking results.  These combined efforts coordinated under HEAT have expanded local partnerships and helped educate Medicare beneficiaries about how to protect themselves against fraud.

In Fiscal Year 2013, the strike force secured records in the number of cases filed (137), individuals charged (345), guilty pleas secured (234) and jury trial convictions (46). Beyond these remarkable results, the defendants who were charged and sentenced are facing significant time in prison – an average of 52 months in prison for those sentenced in FY 2013, and an average of 47 months in prison for those sentenced since 2007.

In FY 2013, the Justice Department opened 1,013 new criminal health care fraud investigations involving 1,910 potential defendants, and a total of 718 defendants were convicted of health care fraud-related crimes during the year.  The department also opened 1,083 new civil health care fraud investigations.

The strike force coordinated a takedown in May 2013 that resulted in charges by eight strike force cities against 89 individuals, including doctors, nurses and other licensed medical professionals, for their alleged participation in Medicare fraud schemes involving approximately $223 million in false billings. As a part of the May 2013 takedown, HHS also suspended or took other administrative action against 18 providers using authority under the health care law to suspend payments until an investigation is complete.

In FY 2013, the strike force secured records in the number of cases filed (137), individuals charged (345), guilty pleas secured (234) and jury trial convictions (48). Beyond these remarkable results, the defendants who were charged and sentenced are facing significant time in prison – an average of 52 months in prison for those sentenced in FY 2013, and an average of 47 months in prison for those sentenced since 2007.

In March 2011, CMS began an ambitious project to revalidate all 1.5 million Medicare enrolled providers and suppliers under the Affordable Care Act screening requirements. As of September 2013, more than 535,000 providers were subject to the new screening requirements and over 225,000 lost the ability to bill Medicare due to the Affordable Care Act requirements and other proactive initiatives.  Since the Affordable Care Act, CMS has also revoked 14,663 providers and suppliers’ ability to bill the Medicare program. These providers were removed from the program because they had felony convictions, were not operational at the address CMS had on file, or were not in compliance with CMS rules.

HHS and the Justice Department are leading historic efforts with the private sector to bring innovation to the fight against health care fraud. In addition to real-time data and information exchanges with the private sector, CMS’ Program Integrity Command Center worked with the HHS Office of the Inspector General and the FBI to conduct 93 missions to detect, investigate, and reduce improper payments in FY 2013.

From May 2013 through August 2013, CMS led an outreach and education campaign targeted to specific communities where Medicare fraud is more prevalent.  This multimedia campaign included national television, radio, and print outreach and resulted in an increased awareness of how to detect and report Medicare fraud.

U.S.-GEORGIA STRATEGIC PARTNERSHIP COMMISSION PLENARY SESSION REMARKS

FROM:  U.S. STATE DEPARTMENT 
Remarks at the U.S.-Georgia Strategic Partnership Commission Plenary Session
Remarks
John Kerry
Secretary of State
Georgian Prime Minister Irakli Garibashvili
Ben Franklin Room
Washington, DC
February 26, 2014

SECRETARY KERRY:  Well, good morning, everybody.  It’s my great pleasure and privilege to welcome Prime Minister Garibashvili from Georgia and our esteemed Georgian colleagues.  Thank you all for being here with us for this dialogue that will take place today, and we are very happy to participate in the Fourth Strategic Partnership Commission Plenary Session.  And we’ve just had a very good bilateral meeting in which we’ve discussed a host of issues ranging from the economic challenges to Georgia, the external challenges to Georgia, and we ranged as far as, obviously, the Association Agreement with Europe and the challenge of Ukraine, and other issues in the region.

We were going to have some very traditional Georgian dancers come in here to celebrate your arrival, but regrettably the swords and daggers wouldn’t get by the Diplomatic Security, so unable to do that.  But we are actually very, very pleased to continue this dialogue.  I’ve been to Georgia prior to becoming Secretary of State; I look forward to visiting as Secretary of State.  And we’ve had a very strong and important relationship focused on many, many issues, but significant – democracy and rule of law and the transition in Georgia to your recent election.  And we’re very pleased now to be able to meet here in Washington and continue a conversation which has been ongoing for some period of time.

It’s fitting that we meet together here in the Ben Franklin Room.  That’s Ben Franklin up behind us here.  He was our first diplomat, the first ambassador to France.  He’s the father of the Foreign Service and a really unrivaled innovator.  I think you know that.  And the reason why he remains one of the most beloved Americans is because of his frontier spirit and his openness and his ingenuity.  Frankly, we see that same kind of open spirit and innovation and frontier spirit in what you are engaged in right now in Georgia.  And this year we celebrate 12 years of a strong and ever-growing-stronger relationship between Georgia and the United States.  We made a lot of progress, but now we need to build on it, and that’s what we talked about a few minutes ago and will continue in the discussion today.

First, I want to congratulate you on Georgia’s free and fair presidential election in 2013.  The transparency and the openness of the process were significant, and we applaud it.  You have a chance to build on these achievements by demonstrating now a level playing field during your upcoming local elections.  And I think everybody knows that democracies benefit from strong political opposition, so we urge all sides to work constructively to advance the dialogue and debate within Georgia, and that’s just going to make your nation stronger.  We’re confident of that.

We also want to reiterate U.S. support for Georgia’s participation in the EU’s Eastern Partnership, and we encourage Georgia to sign an Association Agreement with the EU later this year.  Today, I am announcing – and let me just say about that that as we do that, as I have said about Ukraine yesterday with Secretary William Hague, we don’t make that urging for the signing of an association as some sort of zero-sum game between the East and West or between us or any other party.  We simply want people to be able to exercise their freedom of choice and be able to maximize their economic opportunities.  And that doesn’t mean that it can’t also involve engagement with others, as we would hope it would, because we are involved in a global trading regime and a global society, and increasingly is impossible for people to operate in exclusionary ways.

Today, I am announcing additional assistance by the United States to help support Georgia’s European and Euro-Atlantic vision; specifically, to help Georgia achieve visa-free travel with the EU and to mitigate the hardships caused by borderization along the occupied territories.  We also commend Georgia’s progress on economic reform, and we urge the government to quickly implement its plans to spur trade and investment, including with the United States.  Strict adherence to rule of law and a steadfast commitment to the process will encourage the confidence of investors and it will serve as a catalyst for integration with Europe and enhance Georgia’s international reputation.  We urge all Georgians to unite in looking forward and to leave the past in the past.

The United States remains committed to strengthening our trade and investment with Georgia – particularly important as we pursue trade negotiations with the EU.  And we also support your efforts to become a regional trade hub, which will require continued infrastructure improvements and sustained regional cooperation.

Our enhanced defense cooperation is ongoing, and we commend Georgia’s contribution as the largest non-NATO troop contributor in Afghanistan, serving alongside United States Marines in Helmand Province and standing ready to contribute to the alliance’s post-2014 mission.  We honor the extraordinary sacrifices of Georgian soldiers and their families, and we will continue to work with you to develop the capacity to care and support for your wounded.

We stand by the Bucharest decision and all subsequent decisions that Georgia will become a member of NATO.  The United States will work to make sure that Georgia’s progress is acknowledged by all members of this year’s NATO Summit.

We support your reconciliation efforts in an effort to achieve a peaceful and a just resolution to the conflicts of Georgia.  The United States remains steadfast in our support for Georgia’s sovereignty and territorial integrity.  We continue to object to Russia’s occupation, militarization, and borderization of Georgian territory, and we call on Russia to fulfill its obligations under the 2008 ceasefire agreement, including the withdrawal of its forces and free access for humanitarian assistance.

Lastly and most importantly, our relationship is founded on a close connection between our people.  Building on your health minister’s participation in the recent Global Health Security Initiative, we look forward to sharing medical best practices in order to promote public health.  The United States supports efforts to help preserve Georgia’s rich cultural heritage though the U.S. Ambassadors Fund for Cultural Preservation and the International Visitor Leadership Program.

Given Georgia’s many achievements in just over two decades and our close and growing cooperation in a large number of areas, I am confident that our relationship will not just endure, but it’s going to grow.  It’s going to flourish in the years to come.  And as we approach the challenges ahead together, we can take confidence in what we have already achieved together.  Our strategic partnership is stronger than ever, thanks in no small part to the work that we have done as part of this commission and the work that we will continue in the discussion today.

So Mr. Prime Minister, it’s my great privilege to welcome you here.  Thank you for being with us.  We look forward to working with you as you meet the many challenges that you face, and look forward to growing this partnership.  Thank you.

PRIME MINISTER GARIBASHVILI:  Thank you very much, Mr. Secretary.  Thank you very much, and I’d like to thank you for your personal engagement and for your personal support to Georgia.

Your Excellency, ladies and gentlemen, it is my great pleasure to – and privilege to address the distinguished audience on such an important occasion at the Fourth U.S.-Georgia Strategic Charter Omnibus Plenary Session in the margins of my first visit to United States in this capacity of prime minister of Georgia.  I am very honored to underline that the people and the Government of Georgia are in perfect unison in considering the United States of America as our foremost partner.

From the very outset, let me express heartfelt gratitude for your unwavering commitment to the sovereignty, territorial integrity, security, democratic consolidation in NATO and EU membership aspirations of my country.  And your support provides a powerful stimulus to our resolve to proceed in the often uphill but honorable task of strengthening democracy, especially in our challenging region, and especially when more than 20 percent of Georgia territory remains under Russian occupation.

Likewise, we are proud to say that Georgia has always stood adamantly next to the United States in every single situation when a strategic decision was required to be a U.S. ally, and we are proud of those decisions.  Let me reiterate that we attach critical importance to our strategic partnership with the United States, with the charter as the main framework of our comprehensive, cross-dimensional agenda of cooperation.  The virtually all-encompassing nature of all the four working groups – democracy and governance, security and defense, economy and energy, and trade and people-to-people and cultural exchanges – duly reflect up in the range of our cooperative endeavors.  Georgia-U.S. relations are being developed in a gradual and consistent manner in these four major areas.

But let me step back to say that we have already achieved substantial progress in all spheres of our bilateral cooperation.  While first of all Georgia and the United States enjoy successful cooperation in security and defense, we are actually making progress in fulfilling President Barack Obama’s pledge to bolster our cooperation aimed at enhancing Georgia’s defense capabilities.  It is also important that we are consistently broadening scopes of our enhanced defense cooperation.  The United States support enables us to significantly progress in defense transformation process.  In fact, NATO has been vocal in duly crediting Georgia for successful defense and security reforms, and as a reliable ally and security provider, we remain firm on our full-fledged commitment to the NATO-led ISAF mission in Afghanistan, much like the post-ISAF mission.  We will commence our participation in the NATO Response Force in 2015 and in 2016 with the assistance of our American friends.

Herewith, I would like to thank the United States for outstanding support provided to our wounded warriors.  This is extremely important for us.  As you know, Washington’s political and financial engagement was always critical.  We thankfully recall that United States was the first among our close friends to donate one billion U.S. dollars in aid to the people of Georgia after the August 2008 war.  Furthermore, we have received a large chunk of investment of $140 million through the second MCC compact, which will be effectively spent on improving the quality of education in science, technology, engineering, and math fields.  The United States overall strong support and assistance on these and other numerous occasions continued unabated even during the financial challenges.  And for the – for that, we sincerely thank our American friends.

We believe that Georgia’s continued close consultations with United States on the High Level Trade and Investment Dialogue are essential for bolstering bilateral trade and investment, including the possibility of U.S.-Georgia free trade agreement, and for that end, we expect to carry out – carry on our negotiations on the high level.  And we will spare no effort to make substantial advancement.

Also, we hope that our American colleagues will be as swift and highly responsive to these as ever.  For the moment, we will be consistent in utilizing Georgia’s outstanding potential and realistic aspiration for growth in its transformation into original business, trade, and logistic hub.  As you know, the country is blessed with exceptionally advantageous location and potential to turning to the gateway linking Europe with lucrative Chinese markets through the Caspian Sea in the Central Asia regions.  And we are devoted to this idea and plan to underpin these ambitions by continuous improvement to our transportation infrastructure and elimination of regulatory bottlenecks to trade via the region.

Let me say that U.S. aid has always played an important role in various directions, and we welcome their latest decision to select Georgia among those 20 countries’ participation in these – in the Science, Technology, Innovation, and Partnership program.  And undoubtedly, this is going to further enhance my country’s overall development in the vital areas.

Let me say this offer is well noted and very much appreciated.  Our people-to-people relations have already brought about numerous tangible outcomes, one of them being the U.S. decision to further extend the visa validity terms for various categories of Georgian citizens.  Moreover, many more young people now intensively benefit from the educational exchange programs, and we’re extremely grateful for that.  And while looking ahead, we thank our American partners for these achievements and continue to explore other potential areas of cooperation for further success.

And to conclude, Mr. Secretary, I would like to express my firm confidence that our cooperation will progress further.  In addition to many a common interest between our states, we are united first and foremost by the shared values between the two nations.  And I do believe that our existing and prospective avenues of partnership are destined to succeed.

Once again, thank you very much.

SECRETARY KERRY:  Well, thank you very, very much, Mr. Prime Minister.  If you’d just take one minute.

I appreciate – I think our comments mutually dovetail, which is no surprise, and I think we’re on the same track.  So hopefully, this economic vision and the security vision that you express is something that we can flesh out a little more in the course of the dialogue that will continue this morning.

Let me just say that I think in my opening comments, I shortchanged our relationship by ten years.  I think it’s 22 years, not 12 years, which is more a reflection on my eyesight than on anything else.  (Laughter.)  But I appreciate --

PRIME MINISTER GARIBASHVILI:  Thank you.

SECRETARY KERRY:  -- very, very much your being here.  I do look forward to getting there.  I think we’re trying to figure out some time in the spring, and I think between now and then, we have some work to do and I look forward to doing that with you.  So thank you for --

PRIME MINISTER GARIBASHVILI:  No, thank you.

SECRETARY KERRY:  -- taking the time to be with us today, appreciate it.

I think what we’re going to do now is ask the press if they would take their leave so that we can have the discussion that is going to follow from this, and we thank you all for being here with us.

READOUT: VP BIDEN'S MEETING WITH DIDIER BURKHALTER, PRESIDENT OF SWISS CONFEDERATION

FROM:  THE WHITE HOUSE 
Readout of Vice President Biden’s Meeting with President of the Swiss Confederation and Chairperson-in-Office of the Organization for Security and Cooperation in Europe Didier Burkhalter

Vice President Biden met today with the President of the Swiss Confederation and Chairperson-in-Office for the Organization for Security and Cooperation in Europe, Didier Burkhalter, to discuss regional and bilateral issues of concern.  The two leaders consulted on the current situation in Ukraine, including what support the United States and the OSCE could offer to help return the country to peace and stability, to ensure justice and accountability, and to strengthen democratic institutions as Ukrainians chart their future course.  The Vice President praised the strong and important friendship between our two countries and expressed deep appreciation for Switzerland’s continued protection of U.S. interests in Iran and Cuba.  The Vice President and President Burkhalter discussed opportunities for continued cooperation across our shared agenda, including on non-proliferation, countering violent extremism, development and humanitarian assistance.   Finally, given shared interest in strengthening workforce skills, the Vice President and President Burkhalter discussed vocational and other job skills training efforts in both countries.

LAUNCH PADS ON TANEGASHIMA ISLAND, JAPAN WAITS TO SEND UP GPM CORE OBSERVATORY

FROM:  NASA 

The launch pads at the Japan Aerospace Exploration Agency’s (JAXA) Tanegashima Space Center on Tanegashima Island, Japan are seen on Friday, Feb. 21, 2014, a week ahead of the planned launch of an H-IIA rocket carrying the Global Precipitation Measurement (GPM) Core Observatory. GPM is an international mission led by NASA and JAXA to measure rain and snowfall over most of the globe multiple times a day. To get that worldwide view of precipitation, multiple satellites will be contributing observations for a global data set, all unified by the advanced measurements of GPM's Core Observatory, built at NASA's Goddard Space Flight Center in Greenbelt, Md. Launch of the GPM Core Observatory from Tanegashima Space Center is scheduled for Thursday, Feb. 27 during a window beginning at 1:07 p.m. EST (3:07 a.m. on Friday, Feb. 28 Japan time). Image Credit- NASA-Bill Ingalls

CHAIRMAN JOINT CHIEFS SAYS AFGHAN NATIONAL SECURITY FORCES PERFORMANCE POSITIVE

FROM:  U.S. DEFENSE DEPARTMENT 
Dempsey: Past Year ‘Surprisingly Positive’ for Afghan Forces
By Jim Garamone
American Forces Press Service

ABOARD A U.S. MILITARY AIRCRAFT, Feb. 25, 2014 – By both NATO and Afghan accounts, the past year “has been surprisingly positive” for the Afghan national security forces, the chairman of the Joint Chiefs of Staff said.
Army Gen. Martin E. Dempsey told reporters traveling with him to Afghanistan that both NATO and Afghan leaders underestimated the abilities of the Afghan security forces -- forces that didn’t really exist a few years ago.

Since taking the lead throughout the country last year, Afghan forces have done very well, the chairman said. The Taliban had a handful of objectives, he added: to reclaim territory, to use several high-profile attacks to return to prominence, and to discredit the Afghan security forces.

The Taliban obviously didn’t have much success, Dempsey said. They never retook territory, they launched few large attacks in the Afghan capital of Kabul, and they have not discredited the security forces. The question now is not how the Afghan forces are doing, he said, but rather how the upcoming Afghan election will come off, and whether there will be a political system to embrace the Afghan forces and their progress in the months ahead.

Afghan forces are in charge of April’s presidential election, providing the security with NATO forces staying far to the rear. Plans now call for limited NATO support for logistics.

The NATO combat mission ends at the end of the year. A follow-on NATO mission -- Operation Resolute Support -- begins Jan. 1, and it calls for NATO forces to stay engaged at the regional level helping to train, advise and assist Afghan army and police formations. It also calls for providing assistance at the Ministry of Defense and the Ministry of the Interior in Kabul.

Before this can happen, Afghan officials must sign the bilateral security agreement that they negotiated with the United States and which a national council of tribal and family elders approved. Afghan President Hamid Karzai said he will leave it to his successor to sign the document. Once the U.S.-Afghan agreement is signed, NATO will negotiate a similar pact.

NATO needs the agreement to legally remain in Afghanistan beyond this year. Dempsey said the “shot clock” is running down, and there is a point at which the regional approach may no longer be feasible. “What I don’t want to do is run out of options for our elected leaders or for Afghanistan,” he said.

Dempsey noted he has made many visits to Afghanistan. “What I’m always struck by is that many of us -- our NATO partners and us -- continue to change jobs,” he said. “So there is always something new to learn, to see, to talk about. But I also end up speaking with the same Afghans time after time after time.”

The chairman said he had the same experience when he served in Iraq. “My counterpart in Iraq has been the chief of defense for eight years,” the chairman said. “So when I would come back to him and talk about what’s new, I’m not sure he could see what was new as readily as I could. But I don’t think I could see what isn’t new as readily as he can.”

The same is true in Afghanistan. “It has always been our challenge to knit those two together -- our ability to see things as they are changing, and maybe our partner’s ability to see the continuity of things,” he said.
Dempsey said he does have some clarity on the retrograde movement out of Afghanistan.

“Our ability to retrograde the entire thing -- should we need to, and which would be unfortunate -- we could retrograde with relatively low risk, given the time available,” he said. “As the time continues to expire, the risk on our ability to retrograde increases, and that’s another thing I need to look them in the eye to make sure I understand it fully.”


FORMER AIRLINE FUEL SUPPLY COMPANY EMPLOYEE PLEADS GUILTY IN ANTITRUST CASE

FROM:  U.S. JUSTICE DEPARTMENT 
FORMER EMPLOYEE OF FLORIDA AIRLINE FUEL SUPPLY COMPANY PLEADS GUILTY TO OBSTRUCTING FEDERAL INVESTIGATION

WASHINGTON — A former employee of a Florida-based airline fuel supply service company pleaded guilty today to obstructing an investigation into fraud and anticompetitive conduct in the airline charter services industry, the Department of Justice announced.

Craig Perez, a former employee of Aviation Fuel International Inc. (AFI), pleaded guilty to a felony charge filed today in U.S. District Court for the Western District of Missouri in Kansas City.  The charge against Perez stems from the U.S. Department of Defense’s Office of the Inspector General’s Defense Criminal Investigative Service (DCIS)’s investigation into kickback payments made by AFI and its employees to Wayne Kepple, the former vice president of ground operations for Ryan International Airlines.

Ryan provided air passenger and cargo services for corporations, private individuals and the U.S. government, including the U.S. Department of Defense, the U.S. Department of Homeland Security and the U.S. Marshals Service.

According to court documents, Perez worked for AFI from June 2007 until March 2008 and was vice president of services.  During that time, Kepple received kickback payments from AFI on aviation fuel, services and equipment sold by AFI to Ryan.  In November 2011, a federal agent with DCIS contacted Perez to interview him in relation to its investigation of AFI.  After speaking with the federal agent, and with full knowledge of the purpose of the interview, Perez knowingly destroyed relevant files from his laptop computer relating to his employment at AFI with the intent to impede, obstruct and influence the investigation of AFI and his involvement in that conduct.

“The Antitrust Division will hold accountable those who attempt to conceal their illegal actions and obstruct a government investigation,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division.  “Destroying evidence in an attempt to undermine a federal investigation is a crime the division takes very seriously.”

Perez is charged with obstruction of justice, which carries a maximum penalty of 20 years in prison and a $250,000 criminal fine for individuals.  He has agreed to cooperate in the ongoing investigation.

Today’s plea is the fifth to arise out of the Antitrust Division’s ongoing investigation into fraud and anticompetitive conduct in the airline charter services industry.  The other four individuals have been ordered to serve sentences ranging from 16 to 87 months in prison and to pay more than $580,000 in restitution.  A sixth individual, Sean Wagner, the owner and operator of AFI, and AFI itself were indicted on Aug. 13, 2013.

The investigation is being conducted by the Antitrust Division’s National Criminal Enforcement Section and the U.S. Department of Defense’s Office of Inspector General’s Defense Criminal Investigative Service, headed by Special Agent in Charge John F. Khin.

AG HOLDER'S REMARKS AT NATIONAL ASSOCIATION OF ATTORNEYS GENERAL WINTER MEETING

FROM:  U.S. JUSTICE DEPARTMENT 
Remarks as Prepared for Delivery by Attorney General Eric Holder at the National Association of Attorneys General Winter Meeting
Washington, D.C. ~ Tuesday, February 25, 2014

Thank you, Attorney General [J.B.] Van Hollen, for those kind words; for your dedicated service over more than two decades; and for your leadership not only in the great State of Wisconsin, but also as President of the National Association of Attorneys General.

It’s a privilege to take part in this important meeting.  I’d like to thank NAAG’s leadership team and professional staff for bringing us together this week – and inviting me to speak with this distinguished group once again.

Over the past five years, I’ve been privileged to work closely with many of the attorneys general in this room.  Some of us have collaborated on cutting-edge public safety and financial crime initiatives.  Some of us are working together to strengthen our courts and corrections systems – and to find innovative ways to reduce costs and share resources.  And some of us have occasionally found ourselves on opposite sides of an issue.

But despite the differences we’ve encountered from time to time, as attorneys general, we all share the same set of goals.  And we’re striving to fulfill the same responsibilities: by protecting the safety of our fellow citizens and the security of our nation; by safeguarding the civil rights to which everyone in this country is entitled; by preventing and combating violent crime, financial fraud, and threats to the most vulnerable members of society; by improving the effectiveness of our criminal justice systems; and by strengthening collaboration among government, law enforcement, and community partners at every level.

For more than a century, the National Association of Attorneys General has brought America’s leading legal minds together to discuss and advance this work.  Especially in recent years – through sequestration, federal government shutdown, and unprecedented budgetary difficulties – you have shown remarkable leadership in addressing the priorities we share.  And that’s why I’ve made it a priority to participate in this organization’s conferences since I took office just over five years ago: because, at every stage of my career – as a prosecutor, as a judge, as U.S. Attorney for the District of Columbia, and as Deputy Attorney General – I’ve seen the profound, positive differences that state leaders like you can make.  And I understand the unique roles you play as the chief law enforcement officers in each of your respective jurisdictions.

In so many ways, you and your colleagues are pioneering our broad-based efforts to recalibrate and reform America’s criminal justice systems – to ensure that 21st century challenges can be met with 21st century solutions.  You’re responding to the same realities that are driving Justice Department reforms at the federal level – by working to break the vicious cycle of poverty, criminality, and incarceration that traps individuals and weakens communities.  And I’m pleased to note that this commitment has, in many places, given way to principled action – and expanded federal-state partnership.

In recent years, no fewer than 17 states – supported by the Department’s Justice Reinvestment Initiative, and led by state officials from both parties – have directed significant funding away from prison construction and toward evidence-based programs and services, like supervision and drug treatment, that are proven to reduce recidivism while improving public safety.  Rather than increasing costs, a new report – funded by the Bureau of Justice Assistance – projects that these 17 states will save $4.6 billion over a 10-year period.  And although the full impact of our justice reinvestment policies remains to be seen, it’s clear that these efforts are bearing fruit – and showing significant promise across the country.    
From Georgia, North Carolina, Texas, and Ohio – to Kentucky, Arkansas, Pennsylvania, Hawaii, and far beyond – reinvestment and serious reform are improving public safety and saving precious resources.  And I believe that the changes that have led to these remarkable results should be carefully studied – and emulated.

That’s why, last August – in a speech before the American Bar Association in San Francisco – I announced a new “Smart on Crime” initiative that’s allowing the Justice Department to expand on the innovations that so many states have led; to become both smarter and more efficient when battling crime, and the conditions and choices that breed it; and to develop and implement commonsense reforms to the federal criminal justice system.

Under this initiative, we’re ensuring that stringent mandatory minimum sentences for certain federal, drug-related crimes will now be reserved for the most serious criminals.  We’re taking steps to advance proven reentry policies and diversion programs that can serve as alternatives to incarceration in some cases.  And as we look toward the future of this work, we’ll continue to rely on your leadership – and close engagement – to keep advancing the kinds of data-driven public safety solutions that many of you have championed for decades.

This also means making good on our commitment to provide formerly incarcerated people with fair opportunities to rejoin their communities – and become productive, law-abiding citizens – once their involvement with the criminal justice system is at an end.  With the Justice Department’s strong support, the ABA has done important work in this regard, cataloguing tens of thousands of statutes and regulations that impose unwise collateral consequences – related to housing, employment, and voting – that prevent individuals with past convictions from fully reintegrating into society.  As you know, in April 2011, I asked state attorneys general to undertake similar reviews in your own jurisdictions, and – wherever possible – to mitigate or eliminate unnecessary collateral consequences without decreasing public safety.  I’ve made the same request of high-ranking officials across the federal government.  And moving forward, I’ve directed every component of the Justice Department to lead by example on this issue – by considering whether any proposed rule, regulation, or guidance may present unnecessary barriers to successful reentry.
Two weeks ago, at Georgetown University Law Center, I called upon state leaders and other elected officials to take these efforts even further – by passing clear and consistent reforms to restore voting rights to those who have served their terms in prison or jail, completed their parole or probation, and paid their fines.  I renew this call today – because, like so many other collateral consequences, we’ve seen that the permanent disenfranchisement of those who have paid their debts to society serves no legitimate public safety purpose.  It is purely punitive in nature.  It is counterproductive to our efforts to improve reentry and reduce recidivism.  And it’s well past time that we affirm – as a nation – that the free exercise of our citizens’ most fundamental rights should never be subject to politics, or geography, or the lingering effects of flawed and unjust policies.

I applaud those – like Senator Rand Paul, of Kentucky – who have already shown leadership in helping to address this issue.  And I encourage each of you to consider and take up this fight in your home states.

Of course, I recognize that this reform, and the other changes we seek, will not be easy to achieve.  And none of them will take hold overnight.  I know that, as law enforcement leaders, your work has in many ways never been more complex or more challenging.  And particularly in this time of budgetary uncertainty – when unwise, across-the-board cuts have impacted federal, state, and local programs we depend upon – you and your colleagues need all the support, and all the resources, you can get.

That’s why I will never stop fighting to provide the tools and assistance that state and local law enforcement leaders desperately need.  And I’m pleased to report that the bipartisan funding agreement – recently signed into law by President Obama – will restore essential funding for a number of key law enforcement priorities by returning the Justice Department’s appropriations to pre-sequestration levels.

Already, this legislation has enabled us to lift a Department-wide hiring freeze that had been in place for just over three years – so we can begin to bring on additional federal agents, prosecutors, and other staff to bolster ongoing investigative and enforcement efforts across America.  We anticipate that this agreement will also allow us to further invest in the kinds of place-based, intelligence-driven strategies that many of you have proven as effective; to keep offering assistance to states and localities suffering acute crime challenges; and to continue building upon the outstanding work that attorneys general, district attorneys, states’ attorneys, U.S. Attorneys and others have made possible – despite great adversity – in our ongoing fight against crime, against victimization, and for equal rights and equal justice.

This, after all, is the essential duty to which all of us – as attorneys general – have been sworn: not just to win cases, but to see that justice is done.  This is the cause that brings us together in Washington this week – working to confront the threats and seize the opportunities before us.  And this is the extraordinary task with which the American people have entrusted the leaders in this room – and the challenge that all justice professionals are called to address:  not merely to use our legal system to settle disputes and punish those who have done wrong, but to answer the kinds of fundamental questions – about fairness and equality – that have always determined who we are and who we aspire to be, both as a nation and as a people.

These are the questions that drove President Obama and me to decide, in early 2011, that Justice Department attorneys would no longer defend the constitutionality of Section 3 of the Defense of Marriage Act.  As I’ve said before, this decision was not taken lightly.  Our actions were motivated by the strong belief that all measures that distinguish among people based on their sexual orientation must be subjected to a heightened standard of scrutiny – and, therefore, that this measure was unconstitutional discrimination.  Last summer, the Supreme Court issued a historic decision – United States v. Windsor – striking down the federal government’s ban on recognizing gay and lesbian couples who are legally married.  This marked a critical step forward, and a resounding victory for equal treatment and equal protection under the law.

More recently – and partly in response to the Windsor decision – a number of state attorneys general, including those in Pennsylvania, Nevada, Virginia – and, just last week, Oregon – have reached similar determinations after applying heightened scrutiny to laws in their states concerning same-sex marriage.  

Any decisions – at any level – not to defend individual laws must be exceedingly rare.  They must be reserved only for exceptional circumstances.  And they must never stem merely from policy or political disagreements – hinging instead on firm constitutional grounds.  But in general, I believe we must be suspicious of legal classifications based solely on sexual orientation.  And we must endeavor – in all of our efforts – to uphold and advance the values that once led our forebears to declare unequivocally that all are created equal and entitled to equal opportunity.
This bedrock principle is immutable.  It is timeless.  And it goes to the very heart of what this country has always stood for – even though, as centuries of advancement in the cause of civil rights have shown, our understanding of it evolves over time.  As I said just after the Administration’s decision on DOMA was announced, America’s most treasured ideals were not put into action or given the full force of law in a single instant.  On the contrary: our ideals are continually advanced as our justice systems – and our Union – are strengthened; and as social science, human experience, legislation, and judicial decisions expand the circle of those who are entitled to the protections and rights enumerated by the Constitution.

As we gather here in Washington today, I believe that our highest ideals – realized in the form of landmark Supreme Court rulings, from Brown to Zablocki, from Romer to Lawrence, from Loving to Windsor – light a clear path forward.  They have impelled us, in some instances, to extraordinary action.  And the progress we’ve seen has been consistent with the finest traditions of our legal system, the central tenets of our Constitution, and the “fundamental truth” that, as President Obama once said, “when all Americans are treated as equal . . . we are all more free.”  

As we come together this week to renew our commitment to the work we share, to steel our resolve to combat crime – and to pledge our continued fidelity to the values that guide us, and the Constitution we’ve sworn to uphold – we must strive to move our country forward.  We must keep fighting against violence, safeguarding civil rights, and working to bring our justice system in line with our highest ideals.  We must keep refusing to accept a status quo that falls short of that which our Constitution demands – and the American people deserve.  And we must keep standing up and speaking out – no matter the challenges we face – to eradicate victimization and end injustice in all its forms.

This won’t always be easy – and, occasionally, but inevitably, our tactical paths will diverge.  But as long as we are dedicated to working in common cause, determined to disagree with mutual respect, and devoted to our shared pursuit of a more just and more perfect Union – I am confident in where our collective efforts, and your steadfast leadership, will take us.  I know, as this organization proves every day, that vigorous debate need not be subsumed by partisanship.  As attorneys general, we are called to serve.  We are expected to lead.

Thank you, once again, for your work, for your partnership – and for the opportunity to take part in this important dialogue. I look forward to all that we’ll do and achieve together in the critical days ahead.

COMMERCE DEPT. ANNOUNCES EXPORTS SUPPORTED OVER 11.3 MILLION JOBS IN 2013

FROM:  EXPORT-IMPORT BANK 
U.S. Exports Support a Record 11.3 Million Jobs in 2013

Washington, D.C. – Today the Department of Commerce announced that U.S. exports supported more than 11.3 million jobs in 2013, up 1.6 million jobs since 2009. In FY 2013, the Export-Import Bank supported an estimated 205,000 jobs.

According to the data in the report, exports now support more jobs than any time in the past 20 years.

“The job counts published today reveal just how important exports are to American jobs,” said Export-Import Bank Chairman and President Fred P. Hochberg. “That is why at Ex-Im Bank we continue to stand side-by-side with American exporters and help them fill orders abroad. In FY 2013 alone, our institution supported an estimated $37.4 billion in U.S. export sales and approximately 205,000 American jobs.”

In 2013, every $1 billion of U.S. exports supported nearly 5,600 jobs. Goods exports supported 7.1 million jobs in 2013, up 1.1 million positions from 2009. Services exports supported 4.2 million jobs in 2013, which is a record for the noted 20 year period.

SECRETARY OF STATE KERRY'S REMARKS AT ECONOMIST WORLD OCEAN SUMMIT

FROM:  U.S. STATE DEPARTMENT 

Remarks at the Economist World Ocean Summit

Remarks
John Kerry
Secretary of State
Via Video Teleconference
February 25, 2014


SECRETARY KERRY: John, thank you very much. I’m – first of all, I’ve been listening to you and agree with everything you’ve said, and very sorry that I can’t be with you in San Francisco this morning personally, but obviously I’m happy to be able to come by video and delighted to be able to offer a few thoughts about this from the State Department.

Let me start by thanking The Economist and National Geographic for bringing together a whole bunch of influential people from so many different industries. John, I see you motioning. Is there a – can you hear me?

MODERATOR: Secretary Kerry, thank you very much for coming – for addressing us like this. And I wondered if you could say a few words about the oceans, and then I might ask you one thing about your personal involvement in it.

SECRETARY KERRY: Sure. I was – I started. I didn’t know whether you were hearing me or not, but it’s my pleasure to be able to be with you to share some thoughts about this. And as I was listening to you, I was thinking about some of the challenges, obviously, of responding to this notion that restaurateurs and businesses and other people are talking about it, but we’re not necessarily doing it or doing what’s necessary.

Look, the challenge of meeting the current problems of our oceans is really one of the most complex global challenges that we face today. As everybody knows, oceans are three quarters of our planet. And the oceans are in trouble, just to follow up on the comments previously made. And there isn’t any doubt about that.

But the good news is we know exactly what is threatening our oceans, and we have a very good understanding of what we need to do in order to deal with these threats. We don’t yet have the political consensus or the urgency translated into political action. And we know that there’s no way that governments are going to tackle this enormous challenge, frankly, without significant impetus from the private sector, the NGO community, academia, media, and others. So that’s why I’m – I was particularly excited to take part in this session today and to simply underscore to everybody that we need a far more robust international dialogue on protecting and governing our oceans.

I’ll just share with you very quickly, coming from Massachusetts, it’s hard not to have a connection to the sea. And I grew up with a family that has a very deep connection. My mother’s side of the family, my ancestors, were sea merchants back in the 1800s, 1900s. My father was a recreational fisherman, a sailor, a passionate sailor who introduced me to the ocean at age three. And after he retired, he sailed across the Atlantic several times for the sheer pleasure and adventure of it. And I’ve been a sailor all of my life, a fisherman, and somebody who enjoys taking a break by the sea as often as possible, and I learned early on to appreciate the wonders of the oceans.

I also learned early on how important it is to protect them, because we would go in the summer to a place right near the Woods Hole Oceanographic. And I’d always see these marine biologists probing the waters and wondered what they were up to. So stewardship of our oceans has been a priority for me throughout my career in the United States Senate, and I want to emphasize it is a major priority for me today as Secretary of State.

Whether you live on the coast or you live hundreds of miles from the closest beach, the fact is that every human on Earth depends on the oceans for the food we eat and for the air we breathe. Let me emphasize that. Most people don’t think about that, but for the air we breathe. We depend on the oceans, literally, for the essentials of life. And as we all know, the oceans are home to countless different species and diverse ecosystems. And the environmental reasons for protecting the planet’s oceans should be leaping out at people.

But there are a couple of other reasons for protecting our oceans. First, it’s an economic imperative. Fisheries alone support a $500 billion global economy and the livelihoods of almost a billion people around the world.

The other reason that it’s important is that keeping our oceans healthy is a food security issue and therefore a global security issue. More than one billion people worldwide depend on fish as their primary source of protein. And most of these people live in the poorest, least developed countries, where other protein options are either too limited or too expensive for the average family to buy.

So one would think that this kind of a precious, interconnected resource would actually receive the highest level of protection. The sad truth is that is not the case. And as a result, the diverse, varied ecosystems of our oceans globally are challenged as never before.

To start with, there is too much money chasing too few fish. Overfishing is an enormous problem around the world. And I got deeply involved in this when I was chairman of the Senate Subcommittee on the Oceans. Almost one third of the world’s fish stocks are currently overexploited, and most of the others are fished at the absolute maximum levels. I regret to say that almost two thirds of the catch in many parts of the world is simply thrown overboard – it’s what you call bycatch – and the fish of choice is then taken in and sold, but there’s a much greater level of destruction to the ecosystem that takes place. And as demand for seafood continues to grow, as it does on a daily basis, the pressure on fishermen to bring in more fish grows in what is supposed to be a sustainable fishery process. And right now, we’re witnessing the definition of unsustainability.

Part of the problem has to do with simply keeping track of how, when, and where fish are caught. I remember dealing with this issue with our management – our fisheries management councils around the country. That’s very, very difficult. And a lot of captains resist regulation because they don’t feel the science is sufficient to be able to document the decision that the public sector takes. So it’s very, very difficult to enforce fishing regulations out at sea.
And a huge chunk of the seafood that is caught around the world is obtained in ways that are illegal, unreported, or unregulated. So this is obviously not only bad for the oceans’ ecosystems, it’s disastrous for the U.S. commercial seafood industry and other seafood industries around the world. And when billions of pounds of illegally obtained seafood makes its way into the global marketplace, it jeopardizes a million jobs and more than 115 billion in sales every single year. That’s just in the United States.

The second major threat that our oceans face is record pollution that is contaminating our seas. And I’m talking about debris, garbage that floats off the shores, but I’m also talking about pollutants that we can’t see with the naked eye – nitrogen, phosphorous, other nutrients that come from land and disrupt marine ecosystems. And the nutrient pollution can come from hundreds of miles inland, where you see fertilizer flowing downstream and into the sea. I saw this vividly when I was campaigning out in Iowa and in the Midwest, all of which feed into the Mississippi, through the Missouri River or other rivers. And this kind of practice has contributed to some 500 areas throughout the oceans of the world, where marine life simply cannot exist. And we all know they’re called dead zones for a reason.

The third major threat that our oceans face has to do with greenhouse gases, which is one of the reasons I spoke in Jakarta, in Indonesia the other day about climate change. When we think about greenhouse gases, most people think about clouds of exhaust that’s coming from the tailpipe of a car or a smokestack at the top of a building. But that pollution doesn’t only make its way into the atmosphere and cause climate change. A lot of it is absorbed by our oceans, which causes them then to become more acidic and eat away at coral reefs, shellfish, and so forth. And this has enormous ramifications all the way up the food chain and makes business harder for the billions of people who make a living selling fish or through ecotourism.

So I’ve just listed some of the formidable challenges, but the fact is – the hope is that there are solutions. And I want to briefly mention the three tangible ways that we can begin to improve the health of our oceans, then we can talk.

First, the U.S. Government and domestic industries have made real progress in sustainably managing our fisheries. More and more, we are learning how to do that. We’re also trying to stop ports from importing illegally harvested fish. There’s more that we can do on both of these fronts. One step all nations should take is to end government subsidies to fisheries, because that just encourages overfishing and undermines the effort to have a management regulatory process that is sustainable.

Another is to implement more systematic checks on seafood delivered to ports all over the world. In the United States, we are also exploring policies that would, for example, only allow seafood into American markets if there’s proof that the seafood was captured legally and in a way that is traceable. All of these steps can actually help us to level the playing field for honest fishermen and better protect the entire seafood supply chain.

Second, we can – more sustainable agricultural processes will go a long way toward cutting down on nutrient pollution. And we could also do a better job of protecting coastal and marine areas. Today, less than 3 percent of the world’s oceans are part of a marine protected area or a marine reserve. I’m proud that I introduced, with Gerry Studds years ago, the Stellwagen Marine Preserve off of Massachusetts. But we need many more of these around the world. Think about the progress we could make if just 10 percent of coastal and marine areas were protected. And I think that’s a goal that we could accomplish and it’s one we ought to set for ourselves.

Third, if we want to slow down the rate of acidification on our oceans, protect our coral reefs, and save species from extinction, we have to cut down on greenhouse gas emissions and pursue cleaner sources of energy. It’s as simple as that.

So these steps are part of a way that we can slow the damage from climate change. And in Jakarta last week, I spoke at length about the enormity of the threat that it poses and the urgent need for a global solution to what is simply a global challenge. This doesn’t know borders. It’s trans-boundary. And every country on earth has to do all it can to reduce emissions not just for the future of marine life but, frankly, for the future of all life.

So we have some pretty clear marching orders, and I think events like this gathering can hopefully help us carry them out. And we have to start building a consensus around a clear and effective policy agenda developed, soup to nuts, by the cooperative effort of governments, the private sector, civil society leaders, and other stakeholders around the world.

With that in mind, I can take advantage of this conference to announce that, this summer, I will be convening a two-day international oceans conference here in Washington sponsored by the State Department, and I hope that that conference will build on the progress that you make in San Francisco. We can build on your topics and the effort that you’re making in order to sharpen our focus on this critical issue. And I hope that many – or all of you – will come and join us, because we’re going to have to build a very significant political effort around this issue.
I told you at the outset that the oceans have been a huge part of my life for my whole life. I know that many of you share that same experience. So we have to do everything we can to live up to our responsibility to leave future generations the same healthy, vibrant experience that many of us were fortunate enough to live out when we were kids. But now it’s at risk and it’s going to take huge global cooperation in order to address it. So between this World Ocean Summit and the conference we’ll have at the State Department this summer and other conversations – I think there’s going to be one in The Hague taking place around the world – we have to summon the global cooperation so that we can take the steps necessary to protect our oceans for generations to come.

Thank you all very, very much. It went on a little longer than I meant to, but I appreciate it. (Applause.)

MODERATOR: Thank you. Can I – Secretary, can I ask you just one question? I know you’re hard-pressed for time – is that you talked about there being a global answer to these problems, and there were two particular bits on that. One is the U.S. and the Law of the Sea. I know you have repeatedly said that the U.S. should sign up for that. But then secondly, whether if you look at the United Nations, whether there should be, as we at The Economist have argued and everyone here is very firmly behind, there should be a world oceans organization of some sort at the United Nations that brings all these things together. And I wonder if you could say something about that.

SECRETARY KERRY: Well, let me say something about both. On the Law of the Sea, I wanted very much to try to ratify the Law of the Sea when I was chairman of the Foreign Relations Committee, and I’d love to ratify it now. But we’re having difficulty with this Senate in even being able to ratify a disabilities treaty that doesn’t require the United States to do anything, but helps other countries raise the standards for people with disabilities. So you can understand the difficulties of what we have in terms of the ratification process. But we are committed to living by the law of the sea even though it isn’t ratified, and we will do everything in our power to live by the standards of the law of the sea.

With respect to the world organization effort or some kind of organization, of course we need a global framework of some kind by which people sign up and agree to cooperate. But we not only need the rules, we need the regulatory enforcement process. Senator Ted Stevens and I together took drift net fishing to the United Nations in the 1990s, I think it was, and we managed to get them banned. But – and in most places people are adopting good practices and they’re not doing it. But there are fishermen out there who still use drift nets, and as we all know they sometimes break off, they wind up ghost fishing. They go up and down in the ocean according to the weight of the carcasses trapped in them, and they continue to fish even though there’s no product, which is why we banned them in the first place.

But who is there to enforce this today? Who is there to enforce even – or even to collect globally agreed upon science by which we can make the kinds of decisions that need to be made? So I absolutely endorse the notion, as does President Obama, that we need some kind of global understanding about how we will enforce – and what – how we will enforce regulations and what rules we will put in place in order to preserve our fisheries and manage our coastlines and do the things necessary to reduce the pollution and preserve these ecosystems. It is going to take some kind of global understanding.

I know people resist and hate the idea. They think: “Wait a minute. We have our commercial economic zone, our extended economic zone.” Each country wants to exercise its own sovereignty, but that’s not the way the ocean works, and that’s not the way migratory species behave. We’re all connected to these and we have to find a global structure. I think the United Nations is the obvious one within which to try to arrive at an understanding of how we’re going to preserve this.

I’ve got to run, unfortunately, but it’s a – I hope you will keep this conversation going.
(Applause.)

Tuesday, February 25, 2014

U.S. DEFENSE DEPARTMENT CONTRACTS FOR FEBRUARY 25, 2014

FROM:  U.S. DEFENSE DEPARTMENT 
CONTRACTS

NAVY

The Boeing Co., Seattle, Wash., is being awarded a $2,070,439,240 modification to a previously awarded firm-fixed-price contract (N00019-12-C-0112) to exercise the options for the procurement of 16 P-8A Multi-mission Maritime Aircraft full rate production Lot I aircraft and 16 Ancillary Mission Equipment kits for the U.S. Navy.  Work will be performed in Seattle, Wash. (78.4 percent); Baltimore, Md. (4.7 percent); Greenlawn, N.Y. (2.4 percent); Cambridge, United Kingdom (1.6 percent); Rockford, Ill. (1.1 percent); North Amityville, N.Y. (1 percent), and miscellaneous locations throughout the continental United States (10.8 percent), and is expected to be completed in April 2017.  Fiscal 2014 aircraft procurement, Navy funds in the amount of $2,070,439,240 will be obligated on this award, none of which will expire at the end of the current fiscal year.  The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.

Seaward Services Inc., New Albany, Ind., is being awarded a $26,654,889 indefinite-delivery/indefinite-quantity contract incorporating firm-fixed price and cost-plus-fixed-fee provisions for the provision of vessels, supplies, equipment and services in support of the South Florida Ocean Measurement Facility (SFOMF) in Dania Beach, Fla.  SFOMF offers land, sea, and air test environments for use by government, private industry, and educational/institutional communities.  This contract will provide materials, supplies, equipment, vessels, and services needed to efficiently and effectively operate and maintain the facility.  Data acquisition systems, offshore test range(s), underwater systems, boats, vehicles, and associated material and weight handling equipment used for testing.  Work will be performed in Dania Beach, Fla., and is expected to complete by September 2019.  Fiscal 2014 operations and maintenance, Navy funding in the amount of $95,000 will be obligated at time of award and will expire at the end of the current fiscal year.  The Naval Surface Warfare Center, Carderock Division, Ship System Engineering Station, Philadelphia, Pa., is the contracting activity (N65540-14-D-0008).

ARMY

Action Manufacturing Co., Bristol, Pa. was awarded an $83,200,000 firm-fixed-price, foreign military sales contract (U.K.) for approximately 1,100,000 M739A1 point detonating/delay artillery fuses and 100,000 safe and arm module assemblies for the 155mm M825A1 white phosphorous smoke projectile.  Funding and performance location will be determined with each order.  Estimated completion date is Feb. 25, 2019. Bids were solicited via the Internet with two received.  Army Contracting Command, Picatinny, Arsenal, N.J. is the contracting activity (W15QKN-14-D-0003).

Treviicos South, Inc., Charlestown, Mass., was awarded a$ 44,261,913 firm-fixed-price contract for the Bolivar Seepage Barrier, Bolivar, Ohio, for a partial-depth and partial-length seepage barrier through the upstream slope of Bolivar Dam.  Fiscal 2013 other procurement funds in the amount of $5,000,000 were obligated at the time of the award.  Estimated completion date is May 28, 2018. Bids were solicited via the Internet with seven received. Work will be performed in Bolivar, Ohio. Army Corps of Engineers, Huntington, W. Va. is the contracting activity (W91237-14-C-0003).

Aerojet Rocketdyne Inc., Sacramento, Calif., was awarded a $12,566,969 firm-fixed-price contract for sole-source procurement of 114 Hawk rocket motors for Jordan and 186 for Egypt. Fiscal 2014 other procurement funds in the amount of $12,566,969 were obligated at the time of the award. Estimated completion date is Oct. 1, 2015.  Work will be performed in Sacramento, Calif.  Army Contracting Command, Redstone Arsenal, Ala. is the contracting activity (W31P4Q-14-C-0075).

DEFENSE LOGISTICS AGENCY

Protective Products Enterprises Inc., Sunrise, Fla., has been awarded a maximum $76,661,994 modification (P00102) exercising the second option year on a one-year base contract (SPM1C1-12-D-1026) with three one-year option periods for improved outer tactical vests and components.  This is a firm-fixed-price contract.  Location of performance is Florida with a Feb. 27, 2015 performance completion date.  Using military services are Army and Air Force.  Type of appropriation is fiscal 2014 through fiscal 2015 defense working capital funds.  The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.

Steris Corp., Mentor, Ohio, has been awarded a maximum $27,381,687 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for commercial electronic catalog.  This contract is a competitive acquisition, and 32 offers were received.  This is a five-year base contract.  Location of performance is Ohio with a Feb. 18, 2019 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., (SPM2DH-14-D-8206).

Willbros Government Services LLC, Tulsa, Okla., has been awarded a maximum $9,379,740 firm-fixed-price contract for contractor-owned/contractor-operated fuels management services.  This contract is a competitive acquisition, and four offers were received.  This is a five-year base contract with three five-year option periods.  Locations of performance are Oklahoma and Louisiana with a March 31, 2019 performance completion date.  Using military services are Army 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-C-5406).

Zodiac Aerospace*, Alpharetta, Ga., has been awarded a maximum $7,063,300 firm-fixed-price contract for aircraft recorders and cartridges.  This contract is a sole-source acquisition.  This is a 24-month base contract with no option periods.  Location of performance is Georgia with a Feb. 29, 2016 performance completion date.  Using military services are Navy and Air Force.  Type of appropriation is fiscal 2014 Army and Air Force working capital funds.  The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pa., (SPRPA1-14-C-W008).

Todd’s Quality Tomatoes*, Sanford, Fla., has been awarded a maximum $7,000,000 fixed-price with economic-price-adjustment, indefinite-quantity contract for full line fresh fruit and vegetable support.  This contract is a competitive acquisition, and three offers were received.  This is an 18-month base contract with two 18-month option periods.  Location of performance is Florida with an Aug. 24, 2015 performance completion date.  Using military services are Army, Navy, Air Force, Marine Corps, and Department of Agriculture school customers.  Type of appropriation is fiscal 2014 through fiscal 2015 defense working capital funds.  The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPE300-14-D-P243).

AIR FORCE

Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Marietta, Ga., has been awarded a $12,190,077 modification (P00209) on an existing firm-fixed-price contract (FA8625-11-C-6597) to provide HC/MC-130J unique spare parts.  This award is the result of a sole-source acquisition.  Work will be performed at Marietta, Ga., and is expected to be completed by Feb. 16, 2016.  Fiscal 2012 aircraft procurement funds in the amount of $12,190,077 will be obligated at time of award.  Air Force Life Cycle Management Center/WISK, Wright-Patterson Air Force Base, Ohio, is the contracting activity.

*Small Business

DOD SAYS CONTINGENCY PLANS BEING MADE FOR FULL AFGHANISTAN WITHDRAWAL

FROM:  U.S. DEFENSE DEPARTMENT
Contingency Plans Begin for Possible Full Afghanistan Withdrawal
American Forces Press Service

WASHINGTON, Feb. 25, 2014 – President Barack Obama today informed Afghan President Hamid Karzai that because the Afghan leader has demonstrated that it is unlikely that he will sign the bilateral security agreement on a U.S. military presence in Afghanistan beyond this year, he has asked the Pentagon to ensure that it has adequate plans in place to accomplish an orderly withdrawal by the end of the year should the United States not keep any troops in Afghanistan after 2014.
In a summary of the Obama-Karzai phone call released to reporters, White House officials said Obama is leaving open the possibility of concluding a bilateral security agreement with Afghanistan later this year.

“However, the longer we go without a BSA, the more challenging it will be to plan and execute any U.S. mission,” they added. “Furthermore, the longer we go without a BSA, the more likely it will be that any post-2014 U.S. mission will be smaller in scale and ambition.”

Soon after, Defense Secretary Chuck Hagel released a statement expressing his “strong support” for the president’s decision.

"This is a prudent step, given that President Karzai has demonstrated that it is unlikely that he will sign the bilateral security agreement, which would provide DOD personnel with critical protections and authorities after 2014,” the secretary said. He also commended the efforts of Marine Corps Gen. Joseph F. Dunford Jr., commander of U.S. forces and the NATO-led International Security Assistance Force in Afghanistan, and other military leaders to provide flexibility to the president as the United States works to determine the future of the U.S. presence in Afghanistan.

"As the United States military continues to move people and equipment out of the Afghan theater, our force posture over the next several months will provide various options for political leaders in the United States and NATO,” Hagel said in his statement. “And during this time, DOD will still continue planning for U.S. participation in a NATO-led mission focused on training, advising, and assisting Afghan security forces, as well as a narrowly focused counterterrorism mission.”
The United States will consult closely with NATO allies and ISAF partners in the months ahead, he added, noting that he looks forward to discussing U.S. planning with NATO and ISAF defense ministers in Brussels this week.

PRESIDENT ANNOUNCES INITIATIVES TO BOOST ADVANCED MANUFACTURING, DEFENSE, HIGH-QUALITY JOBS

President Obama.  White House Photo
FROM:  THE WHITE HOUSE 
President Obama Announces Two New Public-Private Manufacturing Innovation Institutes and Launches the First of Four New Manufacturing Innovation Institute Competitions

A Detroit-area based consortium of 60 companies, nonprofits, and universities and a Chicago based consortium of 73 companies, nonprofits, and universities are partnering with the federal government to launch two new manufacturing innovation hubs. The first new manufacturing innovation institute competition this year is launching today, one of four the Administration has committed to launching this year.

WASHINGTON, DC – The President today will announce new steps in partnership with the private sector to boost advanced manufacturing, strengthen our capabilities for defense, and attract the types of high-quality jobs that a growing middle class requires. First, the President will announce two new manufacturing innovation institutes led by the Department of Defense supported by a $140 million Federal commitment combined with more than $140 million in non-federal resources: (1) Detroit-area headquartered consortium of businesses and universities, with a focus on lightweight and modern metals manufacturing; (2) Chicago headquartered consortium of businesses and universities that will concentrate on digital manufacturing and design technologies.

Second, the President will also launch a competition for a new manufacturing innovation institute to build U.S. strength in manufacturing advanced composites, the first of four new competitions to be launched this year.

President Obama has declared 2014 a year of action, and while he will continue to work with Congress on new measures to create jobs and grow the economy, he will also use his executive authority to get things done. After shedding jobs for a decade, our manufacturers have added 622,000 jobs since early 2010, including more than 80,000 over the past four months.   Manufacturing production is growing at its fastest pace in over a decade, and the President is committed to building on that progress.

Today’s announcement of two new DOD-led manufacturing institutes fulfills the President’s pledge in his 2013 State of the Union to establish three new manufacturing innovation institutes from existing resources.  In May 2013, the Administration launched competitions for the three institutes with a Federal commitment of $200 million across five agencies – the Departments of Defense, Energy, Commerce, NASA, and the National Science Foundation, building off the success of a pilot institute headquartered in Youngstown, Ohio.  In January 2014, the first of these three institutes was announced, the new Department of Energy-led Next Generation Power Electronics Manufacturing Innovation Institute in Raleigh, N.C.

And with the opening of the competition for the next manufacturing innovation institute on advanced composites, the President is moving forward on his new pledge in the State of the Union to launch four institutes this year, totaling eight institutes supported by the Administration.  

Each institute serves as a regional hub, bridging the gap between applied research and product development by bringing together companies, universities and other academic and training institutions, and Federal agencies to co-invest in key technology areas that encourage investment and production in the U.S.  This type of “teaching factory” provides a unique opportunity for education and training of students and workers at all levels, while providing the shared assets to help companies, most importantly small manufacturers, access the cutting-edge capabilities and equipment to design, test, and pilot new products and manufacturing processes.

Today’s announcement is another step forward toward fulfilling the president’s vision for a full national network of up to 45 manufacturing innovation institutes, which will also require legislation from Congress. In July 2013, Senators Brown (D-OH) and Blunt (R-MO) and Congressmen Reed (R-NY) and Kennedy (D-MA) co-sponsored bipartisan legislation in both the Senate and House that would create a network for manufacturing innovation led by the Department of Commerce consistent with the president’s vision, helping the United States to take advantage of this unique opportunity to accelerate growth and innovation in domestic production and create the foundation for well-paying jobs that strengthen the middle class.  The President will continue to work with Congress to get legislation passed while continuing to make progress where he can to boost these partnerships that are important to revitalizing our manufacturing sector.

LIGHTWEIGHT AND MODERN METALS MANUFACTURING

The winning Lightweight and Modern Metals Manufacturing Innovation – or LM3I – Institute team, headquartered in the Detroit area and led by EWI, brings together a 60-member consortium that pairs the world’s leading aluminum, titanium, and high strength steel manufacturers with universities and laboratories pioneering new technology development and research.  The long-term goal of the LM3I Institute will be to expand the market for and create new consumers of products and systems that utilize new, lightweight, high‑performing metals and alloys by removing technological barriers to their manufacture.  The Institute will achieve this through leadership in pre-competitive advanced research and partnerships across defense, aerospace, automotive, energy, and consumer products industries.

DIGITAL MANUFACTURING AND DESIGN INNOVATION

The winning Digital Manufacturing and Design Innovation – or DMDI – Institute team headquartered in Chicago, Illinois and led by UI Labs, spearheads a consortium of 73 companies, universities, nonprofits, and research labs – creating a novel partnership between world-leading manufacturing experts and cutting-edge software companies to enable interoperability across the supply chain, develop enhanced digital capabilities to design and test new products, and reduce costs in manufacturing processes across multiple industries.

NEW COMPETITION

The new competition for an Advanced Composites Manufacturing Innovation Institute, led by the Department of Energy, will award $70 million over five years to improve our ability to manufacture advanced fiber-reinforced polymer composites at the production speed, cost and performance needed for widespread use in clean energy products including fuel-efficient and electric vehicles, wind turbines and hydrogen and natural gas storage tanks. This new competition will be the fifth institute launched by the President to date and the first of four new Institute competitions he will launch this year, building on his pledge in this year’s State of the Union.

The Lightweight and Modern Metals Innovation Institute:

Lightweight and modern metals are utilized in a vast array of commercial products, from automobiles, to machinery and equipment, to marine craft and aircraft. These ultra-light and ultra-strong materials improve the performance, enhance the safety, and boost the energy and fuel efficiency of vehicles and machines. For example, lightweight steels are helping American automakers produce cars more fuel efficient than ever before – with some cars today already up to 39% lighter and just as strong.  For the Department of Defense, lightweight and modern metals will strengthen our defense capabilities, like enabling the creation of armored vehicles strong enough to withstand a roadside bomb but light enough for helicopter-transport.

There are significant challenges for new lightweight and modern metals to reach widespread commercial production. To aid in overcoming these challenges, in June 2011, the President announced the Advanced Manufacturing Partnership and the Materials Genome Initiative for Economic Competitiveness, recognizing the critical role of materials technologies in the products we produce and the need for a better, faster, more economical way to bring these technologies to market.

Today, the Administration is launching the Lightweight and Modern Metals Manufacturing Innovation Institute to develop and expand the use of technologies at the important intersection of materials, manufacturing, and design.  By strengthening emerging capabilities in both advanced metals manufacturing schemes and the design of their end-use components, we will accelerate innovations from lab to market and deliver products to the defense and the commercial sector at significantly reduced weight, time and cost.  For example, a large commercial light truck manufacturer recently eliminated 700 lbs by moving to an aluminum body, made possible by these technologies, in their 2015 model. This national institute will make the U.S. more competitive by expanding domestic markets for products made with lightweight and modern metals such as automobiles, wind turbines, medical devices, engines, commercial aircraft, and Department of Defense systems and vehicles. It will also lead to significant reductions in manufacturing and energy costs.

The long-term goal of the LM3I Institute will be to expand the market for and create new consumers of products and systems that utilize new, lightweight high‑performing metals and alloys by removing technological barriers to their manufacture.  The Institute will achieve this through leadership in pre-competitive advanced research and partnerships across defense, aerospace, automotive, energy, and consumer products industries.

The winning consortium, led by EWI and headquartered in the Detroit-area includes the following members:

34 Companies: ABS, AEM, ALCOA Technology, Boeing, Comau, Easom Automation, EWI, Fabrisonic, Flash Bainite Steel, GE, Honda North American Services, Huys, Infinium, Inc., Innovative Weld Solutions, ITW, Lockheed Martin, Luvata, Materion, MesoCoat, MTI, NanoSteel Company, Optomec, Phoenix Integration, PowderMet, RealWeld, RTI International Metals, SaCell, Southwest Research Institute (SWRI), Steel Warehouse Co., ThermoCalc, TIMET, Trumpf, Inc., UTRC, Wolf Robotics

9 Universities and Labs: Colorado School of Mines, Michigan State University, Michigan Tech University, The Ohio State University, University of Kentucky, University of Michigan, University of Notre Dame, University of Tennessee, Wayne State University

17 Other Organizations: American Foundry Society, American Welding Society, ASM International, CAR, Columbus State Community College, Conexus Indiana, DET NORSKE VERITAS™, Focus Hope, International Association of Machinists & Aerospace Workers, Ivy Tech, Macomb Community College, MAGNET, Pellissippi State Community College, State of Kentucky, State of Michigan, State of Ohio, Southeast Michigan Workforce Intelligence Network

The Digital Manufacturing and Design Innovation Institute

The U.S. stands on the edge of a new frontier in manufacturing, where high-tech products are designed and tested largely within a virtual environment and individually tailored for performance.  Much like the internet has transformed the way we engage in commerce, manufacturing is being transformed by digital design.  Product development no longer begins on a draftsman's table, where sketches are turned into physical prototypes and tested again and again to get it right.  As a result of increasing complexity of manufactured systems, increasing diversity across the supply chain, and the increasing requirement for low-volume production to meet highly customized needs, there is a growing opportunity to expand our capabilities in digital manufacturing and design to drive U.S. manufacturing leadership.  We already have a long-standing leadership in software development, with 80% of the world’s software produced in the U.S.  The integrated design, development, and production of highly complex systems, leveraging our existing strength in software, can speed ideas from the lab into commercial production, reduce costs, and shorten production lifecycles.  

There are significant challenges to integrate this ‘digital thread’ across different manufactured technologies and across the supply chain.  These challenges include establishing true interoperability, the effective and balanced management of intellectual property interests, maintaining network technology and security, workforce skills, and new organizational cultures that embrace and leverage the digital thread.  Collaboration across industry, academia and government provides an opportunity to directly address these challenges in a pre-competitive way.

The Digital Manufacturing and Design Innovation Institute awardee has assembled a world-class team of more than seventy organizations from across industry, including leading manufacturers and software developers, government and academia, with both broad and deep experience in all aspects of the product development process from design and prototyping to manufacturing at scale. The combined resources and expertise of the consortium partners will provide a leap forward in digital design and manufacturing.

The winning consortium, led by UI Labs and headquartered in Chicago, Illinois includes the following members:

41 Companies: 3D Systems, ANSYS, Autodesk, Big Kaiser Precision Tooling Inc., Boeing, Caron Engineering Inc., Caterpillar, CG Tech, Cincinnati Inc., Colorado Association for Manufacturing & Technology, Cray, Dassault Systems, Deere & Company, DMG Mori, Evolved Analytics LLC, General Dynamics - Ordnance & Tactical Systems, General Electric, Haas Automation, Honeywell, Illinois Tool Works, Imagecom Inc. (Aspire 3D), International TechneGroup Inc., Kennametal, Lockheed Martin, Microsoft, MSC Software, North American Die Casting Association, National Instruments, Nimbis Services Inc., Okuma, Palo Alto Research Center, Parlec, Procter & Gamble, Product Development & Analysis, PTC, Inc., Rockwell Collins, Rolls-Royce, Siemens, System Insights, The Dow Chemical Company, UPS.

23 Universities and Labs: Colorado University – Boulder, Illinois Institute of Technology, Indiana University, Iowa State University, Missouri University of Science and Technology, Northern Illinois University, Northwestern University, Notre Dame, Oregon State, Purdue University, Rochester Institute of Technology, Southern Illinois University, University of Chicago, University of Illinois at Chicago, University of Illinois at Urbana - Champaign, University of Iowa, University of Louisville, University of Michigan, University of Nebraska- Lincoln, University of Northern Iowa, University of Texas – Austin, University of Wisconsin – Madison, Western Illinois University.

9 Other Organizations: American Foundry Society, City of Chicago – Department of Housing & Economic Opportunity, Colorado OEDIT, Commonwealth of Kentucky, Illinois Department of Commerce & Economic Opportunity, Illinois Science & Technology Coalition, MT Connect Institute, Reshoring Initiative, UI Labs

Advanced Composites Manufacturing Innovation Institute Competition

Today, the President announced a new competition, sponsored by the Department of Energy, to provide $70 million to launch a new Advanced Composites Manufacturing Innovation Institute focused on advanced fiber-reinforced polymer composites, which combine strong fibers with tough plastics to cost-effectively manufacture materials that are lighter and stronger than steel. This new competition is the first of the four the President will launch this year, building on his pledge in this year’s State of the Union and hitting the halfway point on his initial goal of creating 15 Manufacturing Innovation Institutes.

While advanced composites are used in selective industries such as aircraft, military vehicles, satellites and luxury cars, these materials remain expensive, require large amounts of energy to manufacture and are difficult to recycle. The Energy Department’s Manufacturing Innovation Institute for advanced composites will be aimed at overcoming these barriers to widespread use by developing low-cost, high-speed, and energy-efficient manufacturing and recycling processes. Through this work, the Institute will focus on lowering the cost of advanced composites by 50 percent, reducing the energy used to make composites by 75 percent and increasing the recyclability of composites to over 95 percent within 10 years.

Advanced composites could help manufacturers deliver clean energy products with better performance and lower costs such as lightweight vehicles with record-breaking fuel economy; lighter and longer wind turbines blades; high pressure tanks for natural gas-fueled cars; and lighter, highly energy-efficient industrial equipment.

For example, advanced composites could reduce passenger car weight by 50 percent and improve fuel efficiency by about 35 percent without compromising performance or safety – helping to save more than $5,000 in fuel over the lifetime of an average car at today’s gasoline prices. In the wind energy industry, doubling the length of a turbine blade can quadruple the amount of electricity generated. Advances in low-cost composite materials will help manufacturers build longer, lighter and stronger blades to capture the maximum levels of wind energy and support a cost-competitive U.S. offshore wind industry. Low-cost advanced composites are also needed to make the storage tanks for vehicles that run on hydrogen and natural gas – helping to give drivers more fuel and transportation options that save money and cut carbon pollution.

The Energy Department seeks proposals from teams of nonprofit organizations, universities, national laboratories and private industry and will make up to $70 million available over five years, subject to congressional appropriations, that must be matched by at least $70 million in non-federal commitments.


RECENT U.S. DEFENSE DEPARTMENT PHOTOS




FROM:  U.S. DEFENSE DEPARTMENT 

A U.S. Marine throws a training grenade during a live-fire exercise at Arta Range, Djibouti, Feb. 18, 2014. The Marine is assigned to 13th Marine Expeditionary Unit, Battalion Landing Team, Alpha Company, 1st Battalion, 4th Marine Regiment. The unit is deployed with the Boxer Amphibious Ready Group as a theater reserve and crisis response force throughout the U.S. 5th Fleet area of responsibility. U.S. Air Force photo by Staff Sgt. Staci Miller.




A grenade explodes near its targets after being thrown by a U.S. Marine during a live-fire exercise at Arta Range, Djibouti, Feb. 18, 2014. U.S. Air Force photo by Staff Sgt. Staci Miller.


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