U.S. CONGRATULATES PEOPLE OF THE EUROPEAN UNION ON EUROPE DAY

FROM:  U.S. STATE DEPARTMENT 

On the Occasion of Europe Day

Press Statement

John Kerry

Secretary of State

Washington, DC

May 8, 2014

---

On behalf of President Obama and the people of the United States, I congratulate the people of the European Union as you celebrate Europe Day on May 9.

Sixty-four years ago, Robert Schuman declared that a united Europe was indispensable to the maintenance of world peace. His vision continues to inspire us to join with our European partners in shaping a future worthy of our historic past.

When Europe negotiated the Treaty of Rome, the United States welcomed its contribution to the welfare of the entire free world. In 1992, when the European Community succeeded in creating a single market, U.S. companies invested – in droves. With the birth of the European Union, we worked together in a truly historic partnership to promote democracy, advance world trade, confront global challenges, and build new bridges across the Atlantic. We have supported EU efforts to jump-start growth in the Euro-zone and shore up European energy security. We continue to negotiate and remain laser focused on achieving an ambitious, comprehensive Transatlantic Trade and Investment Partnership. T-TIP will deepen our transatlantic economic partnership, increase economic well being on both sides of the Atlantic, and establish a way of doing business that can serve as the global gold standard.
Today, the United States and an expanded European Union are working together to defend and advance the values history has shown make all nations stronger: human rights, rule of law, and prosperity for our people and citizens around the world. Just this week, I met with EU High Representative Catherine Ashton during her visit to Washington. We had a wide ranging discussion on our shared strategy of using the tools of diplomacy to reduce the conflicts that are threatening Europe, Africa, the Middle East, and other parts of the world, including our work together in support of the people of Ukraine’s right to choose their own future. I thanked her for the tremendous cooperation between the EU and the United States.

We look back in pride on the miles we’ve traveled together. Yet we must also look forward to the challenges that lie ahead. We stand by our eastern partners in their sovereign right to choose their political and economic associations, and chart their own futures. And once again, our strength will come from our unity. As President Obama reaffirmed in Brussels, following the 2014 U.S.-EU Summit, “Europe, including the European Union, is the cornerstone of our engagement around the globe. We are more secure and more prosperous – the world is safer and more just – when Europe and America stand as one.”

On this Europe Day, the United States remains steadfast in our commitment to working side by side with our European partners and friends to advance peace and prosperity around the world, and to supporting the EU’s vision for a united, peaceful, stable, and democratic Europe.

AG HOLDER, EDUCATION SECRETARY DUNCAN ISSUE GUIDANCE ON EQUAL ACCESS TO PUBLIC SCHOOLS

FROM:  U.S. JUSTICE DEPARTMENT 

Thursday, May 8, 2014

Attorney General Holder and Secretary Duncan Issue Guidance for School Districts to Ensure Equal Access for All Children to Public Schools, Regardless of Immigration Status

WASHINGTON—Attorney General Eric Holder and Secretary Arne Duncan today announced updated guidance to assist public elementary and secondary schools to ensure enrollment processes are consistent with the law and fulfill their obligation to provide all children –  no matter their background –  equal access to an education.

In 2011, the Departments of Justice and Education issued guidance to help schools understand their responsibilities under the Supreme Court’s decision in Plyler v. Doe and federal civil rights laws to provide all children with equal access to an education regardless of their or their parents’ immigration status. Today, the departments are issuing important updates to that guidance, including examples of permissible enrollment practices, as well as examples of the types of information that may not be used as a basis for denying a student entrance to school.  

The updated guidance documents— including a guidance letter to states and school districts and a fact sheet and Q and A document—emphasize the need for flexibility in accepting documents from parents to prove a child’s age and to show that a child resides within a school’s attendance area.  They also provide specific examples of the types of documents that many schools have accepted.  And the guidance documents remind schools that they may not require certain documents – such as a parent’s state-issued driver’s license – where such a requirement would prevent a student from enrolling because of his or her parent’s immigration status.

“Public school districts have an obligation to enroll students regardless of immigration status and without discrimination on the basis of race, color, or national origin,” said Attorney General Eric Holder.  “The Justice Department will do everything it can to make sure schools meet this obligation.  We will vigilantly enforce the law to ensure the schoolhouse door remains open to all.”

“We want to be sure every school leader understands the legal requirements under the Constitution and federal laws, and it is our hope that this update will address some of the misperceptions out there,” said Secretary Arne Duncan.  “The message here is clear: let all children who live in your district enroll in your public schools.”

In the three years since the guidance was initially issued in 2011, the departments have worked collaboratively with states and school districts across the country to meet their obligations under Plyler and federal civil rights laws that prohibit discrimination on the basis of race, color and national origin.

The important changes announced today will provide districts with the additional tools and practical guidance needed to make sure the schoolhouse door is open to all students and that undocumented children and children from immigrant families no longer face barriers to enrollment in school and starting down the path to a better future.

FORMER VIRGINS ISLANDS LEGISLATURE EXECUTIVE DIRECTOR CHARGED WITH BRIBERY, EXTORTION

FROM:  U.S. JUSTICE DEPARTMENT 

Thursday, May 8, 2014

Former Executive Director of Virgin Islands Legislature Charged with Bribery and Extortion in Award of Government Contracts

The former e xecutive director of the Legislature of the Virgin Islands was indicted today by a federal grand jury in the Virgin Islands for accepting bribes and engaging in extortion in the award of contracts with the Legislature, announced Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division and U.S. Attorney Ronald W. Sharpe for the District of the Virgin Islands.

The indictment charges Louis “Lolo” Willis, 56, of St. Thomas, Virgin Islands, with three counts of federal programs bribery and three counts of extortion under color of official right.

According to the indictment, Willis was the executive director of the Legislature between 2009 and 2012.  One of his responsibilities included oversight of the renovation of the Legislature building, which included awarding and entering into contracts on behalf of the Legislature.   These contracts included contracts for general construction, air-conditioning services and carpentry, which were not publicly bid.  Willis was also responsible for paying the contractors for their work.   As alleged in the indictment, Willis accepted payments, including, among other things, thousands of dollars in cash, from three contractors in exchange for using his official position to secure contracting work for the contractors and to ensure they received payment upon completion.

An indictment is merely an accusation, and a defendant is presumed innocent unless proven guilty in a court of law.

This case was investigated by the FBI’s San Juan Division, the Office of the Virgin Islands Inspector General and the Internal Revenue Service – Criminal Investigation.   The case is being prosecuted by Trial Attorneys Peter Mason and Jennifer Blackwell of the Criminal Division’s Public Integrity Section and First Assistant U.S. Attorney Thomas Anderson of the District of the Virgin Islands.

U.S. FILES COMPLAINT UNDER FALSE CLAIMS AGAINST COLLEGE FOR ILLEGAL RECRUITING

FROM:  U.S. JUSTICE DEPARTMENT 

Thursday, May 8, 2014

United States Files Complaint Against Stevens-Henager College, Inc. Alleging False Claims Act Violations for Illegal Recruiting

The United States has filed a complaint under the False Claims Act against Stevens-Henager College, Inc. and its owner, The Center for Excellence in Higher Education, for illegally compensating recruiters, the Department of Justice announced today.  Stevens-Henager operates a chain of for-profit colleges in Idaho and Utah.

“Congress has made clear that colleges should not pay improper incentives to admissions recruiters,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery.  “The Department of Justice and the Department of Education are working together to combat unlawful recruitment practices that can harm students and result in the waste of taxpayer funds.”

In its complaint, the government alleged that the college falsely certified compliance with provisions of federal law that prohibit a university from paying incentive-based compensation to its admissions recruiters based on the number of students they recruit.  Congress enacted the prohibition on such incentive compensation to curtail the enrollment of unqualified students, high student loan default rates, and the waste of student loans and grant funds.

The claims alleged by the United States were initiated by a whistleblower lawsuit filed by two former Stevens-Henager employees under the False Claims Act, which allows private citizens to file suit over false claims on behalf of the government.  The act provides for the recovery of triple damages and penalties, and allows the government to intervene and take over the allegations, as it has done in this case.  The whistleblower is entitled to a share of any recovery obtained in the lawsuit.

“Fighting fraud and protecting federal tax dollars from abuse is a priority for this office,” said U.S. Attorney Wendy Olson for the District of Idaho. “The False Claims Act is an important tool for doing just that. Whistleblowers are necessary to our ongoing efforts to combat fraud, waste and abuse.”

This matter was investigated by the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Office for the District of Idaho, and the Department of Education, Office of Inspector General.  The case is captioned United States ex rel. Brooks v. Stevens-Henager College, Inc., et al., Case No. 1:13-CV-00009-BLW (D. Id.).  The claims asserted are allegations only, and there has been no determination of liability.

PRESIDENT OBAMA'S MESSAGE TO CONGRESS ON NUCLEAR ENERGY COOPERATION BETWEEN U.S.-VIETNAM

FROM:  THE WHITE HOUSE

Message to the Congress -- Transmitting the Agreement for Cooperation Between the US and Vietnam on the Peaceful Uses of Nuclear Energy

TO THE CONGRESS OF THE UNITED STATES:

I am pleased to transmit to the Congress, pursuant to sections 123 b. and 123 d. of the Atomic Energy Act of 1954, as amended (42 U.S.C. 2153(b), (d)) (the "Act"), the text of a proposed Agreement for Cooperation between the Government of the United States of America and the Government of the Socialist Republic of Vietnam Concerning Peaceful Uses of Nuclear Energy (the "Agreement"). I am also pleased to transmit my written approval, authorization, and determination concerning the Agreement, and an unclassified Nuclear Proliferation Assessment Statement (NPAS) concerning the Agreement. (In accordance with section 123 of the Act, as amended by title XII of the Foreign Affairs Reform and Restructuring Act of 1998 (Public Law 105-277), a classified annex to the NPAS, prepared by the Secretary of State in consultation with the Director of National Intelligence, summarizing relevant classified information, will be submitted to the Congress separately.) The joint memorandum submitted to me by the Secretaries of State and Energy and a letter from the Chairman of the Nuclear Regulatory Commission stating the views of the Commission are also enclosed. An addendum to the NPAS containing a comprehensive analysis of Vietnam's export control system with respect to nuclear-related matters, including interactions with other countries of proliferation concern and the actual or suspected nuclear, dual-use, or missile-related transfers to such countries, pursuant to section 102A of the National Security Act of 1947 (50 U.S.C. 403-1), as amended, is being submitted separately by the Director of National Intelligence.

The proposed Agreement has been negotiated in accordance with the Act and other applicable law. In my judgment, it meets all applicable statutory requirements and will advance the nonproliferation and other foreign policy interests of the United States.

The proposed Agreement provides a comprehensive framework for peaceful nuclear cooperation with Vietnam based on a mutual commitment to nuclear nonproliferation. Vietnam has affirmed that it does not intend to seek to acquire sensitive fuel cycle capabilities, but instead will rely upon the international market in order to ensure a reliable nuclear fuel supply for Vietnam. This political commitment by Vietnam has been reaffirmed in the preamble of the proposed Agreement. The Agreement also contains a legally binding provision that prohibits Vietnam from enriching or reprocessing U.S.-origin material without U.S. consent.

The proposed Agreement will have an initial term of 30 years from the date of its entry into force, and will continue in force thereafter for additional periods of 5 years each. Either party may terminate the Agreement on 6 months'advance written notice at the end of the initial 30 year term or at the end of any subsequent 5-year period. Additionally, either party may terminate the Agreement on 1 year's written notice. I recognize the importance of executive branch consultations with the Congress regarding the status of the Agreement prior to the end of the 30-year period after entry into force and prior to the end of each 5-year period thereafter. To that end, it is my strong recommendation that future administrations conduct such consultations with the appropriate congressional committees at the appropriate times.

The proposed Agreement permits the transfer of information, material, equipment (including reactors), and components for nuclear research and nuclear power production. It does not permit transfers of Restricted Data, sensitive nuclear technology, sensitive nuclear facilities, or major critical components of such facilities. In the event of termination of the Agreement, key nonproliferation conditions and controls continue with respect to material, equipment, and components subject to the Agreement.

Vietnam is a non-nuclear-weapon state party to the Treaty on the Non-Proliferation of Nuclear Weapons. Vietnam has in force a comprehensive safeguards agreement and an Additional Protocol with the International Atomic Energy Agency. Vietnam is a party to the Convention on the Physical Protection of Nuclear Material, which establishes international standards of physical protection for the use, storage, and transport of nuclear material, and has ratified the 2005 Amendment to the Convention. A more detailed discussion of Vietnam's intended civil nuclear program and its nuclear nonproliferation policies and practices, including its nuclear export policies and practices, is provided in the NPAS and in a classified annex to the NPAS submitted to you separately. As noted above, the Director of National Intelligence will provide an addendum to the NPAS containing a comprehensive analysis of Vietnam's export control system with respect to nuclear-related matters.

I have considered the views and recommendations of the interested departments and agencies in reviewing the proposed Agreement and have determined that its performance will promote, and will not constitute an unreasonable risk to, the common defense and security. Accordingly, I have approved the Agreement and authorized its execution and urge that the Congress give it favorable consideration.

This transmission shall constitute a submittal for purposes of both sections 123 b. and 123 d. of the Act. My Administration is prepared to begin immediately the consultations with the Senate Foreign Relations Committee and the House Foreign Affairs Committee as provided for in section 123 b. Upon completion of the 30 days of continuous session review provided for in section 123 b., the 60 days of continuous session review provided for in section 123 d. shall commence.

BARACK OBAMA

READOUT: U.S.-ISRAEL CONSULTATIVE GROUP MEETINGS

FROM:  THE WHITE HOUSE 

Readout of U.S.-Israel Consultative Group Meetings

 Following productive bilateral meetings with Prime Minister Netanyahu, President Peres and National Security Advisor Yossi Cohen on May 7, National Security Advisor Susan E. Rice and the U.S. delegation participated in the U.S.-Israel Consultative Group meetings in Jerusalem on May 8. The intensive and highly constructive meetings covered a range of bilateral and regional security issues.

On Iran, the U.S. delegation reaffirmed our commitment to prevent Iran from acquiring a nuclear weapon. The U.S delegation briefed on the ongoing diplomatic efforts of the P5+1 and EU to reach a comprehensive solution that peacefully resolves the international community's concerns with its program. The delegations held thorough consultations on all aspects of the challenge posed by Iran, and pledged to continue the unprecedented coordination between the United States and Israel as the negotiations continue.

On other critical regional and bilateral issues, the delegations shared views candidly and intensively, in the spirit of the extraordinary and unprecedented security cooperation between our two countries.

The U.S. Delegation included Under Secretary of State Wendy Sherman, Under Secretary of the Treasury David Cohen, Assistant Secretary of Defense Derek Chollet, Deputy Director of the CIA Avril Haines, Director of the Joint Staff Lieutenant General David Goldfein, Special Assistant to the President and White House Coordinator for the Middle East Phil Gordon, and U.S. Ambassador to Israel Dan Shapiro.

National Security Advisors Rice and Cohen agreed that the U.S.-Israel Consultative Group is an effective forum for strategic interagency security consultations between the U.S. and Israeli Governments, and will continue to meet regularly in Washington and Jerusalem. 

U.S. INCREASES MILITARY EXERCISES WITH EASTERN EUROPEAN ALLIES

FROM:  U.S. DEFENSE DEPARTMENT 

U.S. Announces More Exercises With East European Allies, Partners

By Jim Garamone

American Forces Press Service

WASHINGTON, May 8, 2014 – The United States has begun a new military exercise with Estonia amid no indication of a Russian troop pullback from its border with Ukraine.

Pentagon Spokesman Army Col. Steve Warren announced today that Exercise Spring Storm began earlier this week. At the same time, he said there has been no change in the Russian posture along the country's border with Ukraine, despite statements yesterday by President Vladimir Putin that Russian forces would pull back from the area.

Spring Storm is the latest exercise announced by the Pentagon since Russia annexed Crimea in March and is aimed at reassuring the region of NATO’s resolve. Warren called the exercise with the NATO ally “the first of three annual, multinational and bilateral exercises that will occur in the Baltic region,” with U.S. Special operations forces training with their Estonian counterparts.
Two more bilateral special operations exercises -- Flaming Sword and Namejs -- will be held over the next two months. More information about these exercises will become available later, Warren said.

There are 41 personnel participating in Exercise Spring Storm, officials said. Exercise Flaming Sword will involve 140 personnel.

U.S. special operations forces will also participate in a number of joint, combined exchange training events in five countries throughout the Baltic republics and Eastern Europe through the next two months. Eight countries are participating in this training -- Lithuania, Latvia, Estonia, Poland, Finland, Norway, Sweden and the United States.

The exchanges give American special operators valuable experience in the language and culture of the region and provide opportunity to hone their tactical skills with NATO allies, Warren said.

In the Black Sea, the USS Taylor, an Oliver Hazard-class destroyer, is visiting the Georgian port of Batumi today.

“While in Georgia, Taylor will conduct training with the Georgian coast guard,” Warren said.

SECRETARY KERRY'S REMARKS WITH SYRIAN OPPOSITION COALITION PRESIDENT AL-JARBA

FROM:  THE STATE DEPARTMENT 

Remarks With Syrian Opposition Coalition President Ahmad al-Jarba Before Their Meeting

Remarks

John Kerry

Secretary of State

Benjamin Franklin Room

Washington, DC

May 8, 2014

---

SECRETARY KERRY: Well, good afternoon, everybody. I’m delighted to welcome President Ahmad Jarba of the Syrian Opposition Coalition. Before I fully welcome him – excuse me – I do want to say one word about another subject (inaudible). The images from Nigeria this week have captured the public’s attention about extremism in faraway places. And it has also helped to focus the world’s attention on Boko Haram, a concern that we have been focused on for some period of time. Our interagency team is hitting the ground in Nigeria now, and they are going to be working in concert with President Goodluck Jonathan’s government to do everything that we possibly can to return these girls to their families and their communities. We are also going to do everything possible to counter the menace of Boko Haram. The entire world should not only be condemning this outrage, but should be doing everything possible to help Nigeria in the days ahead.

Now we have, obviously, an important meeting today with the Syrian Opposition Coalition, and I’m very pleased to welcome to the Department someone who understands better than anybody the stakes and the struggle in Syria, and the fight against extremism. President Jarba and I have met many times. We’ve had difficult moments in this journey, but we are committed to do our part to support the moderate opposition in its efforts to provide a legitimate voice to the aspirations and hopes of the Syrian people. His coalition, the Syrian Opposition Coalition that he has built, is an inclusive and moderate institution committed to the Syrian people and to the protection of all people, all minorities, all rights within Syria. The Syrian Opposition Coalition has given voice to all Syrians who have been oppressed by the regime for decades.
We have taken several steps this week to demonstrate our growing partnership with the coalition, and I look forward today to continuing our dialogue on the full range of our shared concerns in Syria, including putting an end to the violence, countering the regime, easing the humanitarian crisis, and building towards a day when we will see a truly representative government that is responsive to the needs of the Syrian people.

The President is well aware of the steps that we have taken to be helpful, and he’s here in Washington for a first-time visit where he will be meeting not only today with me, but he’ll meet with folks at the White House, with members of Congress, and have an opportunity to describe to people precisely what is happening on the ground, what is not happening that he wishes were, and the way in which he believes there is a road forward.

So I welcome him to Washington, and I look forward to our discussions, our dialogue today. Thank you. Mr. President.

MR. JARBA: (Via interpreter) Thank you, Mr. Secretary. First of all, I would like to thank you, Mr. Secretary, our dear friend John Kerry, for giving us this time and for this kind hospitality. We always like to see our friend. We have met several times in the past, but this is the first time we meet in your capital, your dear capital. We would also like to thank the U.S. for its support for the struggle of the Syrian people, for freedom and democracy, and also to lift the injustice and fight oppression and dictatorship that Bashar al-Assad is engaging in. The Syrian people is looking for – to the superpower and country that plays a leading role in the world, and we look forward also to work with you now and in the future. And our goal is to establish a civil – pluralistic civil society – state that is just, and which all minorities and the – should live side by side with the majority.
And thank you very much.

SECRETARY KERRY: Mr. President, as I think you know, we’re not going to take questions at this time. We are going to go back to the room here where our delegations will meet, but thank you all very much. Appreciate it. Thank you.

U.S. DEFENSE DEPARTMENT CONTRACTS FOR MAY 8, 2014

FROM:  U.S. DEFENSE DEPARTMENT 

CONTRACTS

NAVY

General Atomics, San Diego, California, is being awarded an undefinitized contract action with a not-to-exceed value of $26,607,250 for the procurement of Advanced Arresting Gear and Electromagnetic Aircraft Launch System long-lead time materials in support of the CVN 79 full production. Work will be performed in San Diego, California, (47 percent); Mankato, Minnesota, (35 percent); Spring Grove, Illinois, (16 percent), and Detroit, Michigan, (2 percent), and is expected to be completed in January 2017. Fiscal 2013 ship conversion, Navy funds in the amount of $15,382,408 are being obligated at time of award, none of which will expire at the end of the current fiscal year. This contract was not competitively procured pursuant to FAR 6.302-1. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity (N00019-14-C-0037).

Lockheed Martin Corp., Mission Systems & Training, Owego, New York, is being awarded a $15,590,000 modification to a previously awarded firm-fixed-price contract (N00019-09-C-0031) for the upgrade and overhaul of 12 P-3C aircraft for the Government of Taiwan under the Foreign Military Sales program. Work will be performed in Greenville, South Carolina, (66 percent); Owego, New York, (28 percent); and Marietta, Georgia, (6 percent), and is expected to be completed in August 2015. Foreign Military Sales funds in the amount of $15,590,000 are being obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Warfare Center Aircraft Division, Lakehurst, New Jersey, is the contracting activity.

Sikorsky Aircraft Corp., Stratford, Connecticut, is being awarded a $7,920,664 firm-fixed-price delivery order (#4007) against a previously awarded basic ordering agreement (N00019-14-G-0004) for Aircraft Mine Counter Measure Removable Mission Equipment B Kits in support of the MH-60S aircraft. Work will be performed in Stratford, Connecticut, and is expected to be completed in April 2016. Fiscal 2012 and 2013 aircraft procurement, Navy contract funds in the amount of $7,920,664 will be obligated at time of award, $4,300,564 of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity.

IDSC Holdings, LLC., Kenosha, Wisconsin, is being awarded a not-to-exceed $6,857,381 firm-fixed-price contract for the procurement of hand tools and toolboxes for Low Rate Initial Production 7, in support of the Joint Strike Fighter F35 Tool Control program. Work will be performed in Kenosha, Wisconsin, and is expected to be completed in May 2015. Fiscal 2012 and 2014 aircraft procurement and operations and maintenance, Navy, and fiscal 2012 aircraft procurement, Air Force funds in the amount of $6,857,381 are being obligated at time of award, $756,572 of which will expire at the end of the current fiscal year. This contract was not competitively procured pursuant to FAR 6.302-1. The Naval Air Warfare Center Aircraft Division, Lakehurst, New Jersey, is the contracting activity (N68335-14-C-0188).

DEFENSE LOGISTICS AGENCY

Veyance Technologies, Inc., Fairlawn, Ohio, has been awarded a maximum $67,113,566 firm-fixed-price contract for vehicle track shoe assemblies. This is a one-year base contract with no option periods. This is a sole-source acquisition. Location of performance is Ohio, with an Oct. 7, 2015 performance completion date. Using service is Army. Type of appropriation is fiscal year 2015 through fiscal year 2016 Army working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Warren, Michigan, (SPRDL1-14-C-0052).

Treen Box & Pallet Corp.,* Bensalem, Pennsylvania, (SPM8EF-12-D-0003/P00106); Cutter Lumber Products,* Livermore, California, (SPM8EF-12-D-0004/P00107) have each been awarded modifications exercising the first option period on fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contracts to provide wooden pallets. These contract actions have a maximum value of $48,000,000. Locations of performance are Pennsylvania and California with a Jun. 8, 2015 performance completion date. Using services are federal civilian agencies. Type of appropriation is fiscal year 2014 through fiscal year 2015 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.

Allied Joint Venture,** Miami Lakes, Florida, has been awarded a maximum $20,000,000 modification (P00047) exercising the second option period on a twenty-month base contract (SPM2DS-11-D-0001) with two twenty-month option periods. This is a firm-fixed-price contract for delivery of various medical, dental, hospital, and surgical supplies. Location of performance is Florida with a Feb. 16, 2016 performance completion date. Using military service is Navy. Type of appropriation is fiscal year 2014 through fiscal year 2015 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.

CORRECTION: The contract announced on May 1, 2014 for Foster Fuels Inc.,* Brookneal, Virginia (SP0600-14-D-4005) was announced with an incorrect award amount and award date. The correct amount awarded is $853,187,052 and the award was made on May 6, 2014.

ARMY

ALCOA Automotive – Indiana Assembly and Fabricating*, Auburn, Indiana, was awarded a $39,359,234 firm-fixed-price, contract for 800 firing platforms to support M119A3 howitzer modernization. Funding and performance location will be determined with each order. Estimated completion date is May 7, 2019. Bids were solicited via the Internet, with three received. Army Contracting Command, Picatinny Arsenal, New Jersey, is the contracting activity (W15QKN-14-D-0040).
Georgia Power Company, Atlanta, Georgia, was awarded an $11,169,322 modification (P00052) to firm-fixed-price contract W91249-06-F-0207 exercising option year eight for electrical services for Fort Gordon, Georgia. The period of performance begins Jan. 1, 2015 and runs through Dec. 31, 2015. Fiscal 2015 operations and maintenance, Army appropriations will be paid on a reimbursable basis. Army Contracting Command, Fort Gordon, Georgia, is the contracting activity.

Alatec, Inc.*, Huntsville, Alabama, was awarded a $7,689,231 modification (P00002) to firm-fixed-price contract W9124Q-13-D-0003 for analytic mission support services to the U.S. Army Training and Doctrine Command Analysis Center at White Sands Missile Range, New Mexico. Funding and performance location will be determined with each order. Estimated completion date is May 31, 2015. Army Contracting Command, White Sands Missile Range, New Mexico, is the contracting activity.

AIR FORCE

Lockheed Martin Aeronautics Co., Marietta, Georgia, has been awarded a $508,945,073 fixed-price modification (FA8625-07-C-6471 P00201) for C-5 Reliability Enhancement and Re-engining Program. The contract modification is for incorporation of the C-5 RERP Lot 7 Material and Fabrication effort. Fiscal 2014 aircraft procurement funds in the amount of $508,945,073 are being obligated at time of award. Work will be performed at Marietta, Georgia, and is expected to be completed by May 2018. Air Force Life Cycle Management Center/WLSK, Wright-Patterson Air Force Base, Ohio, is the contracting activity.
BAE Systems Technology Solutions & Service, Rockville, Maryland, has been awarded a $139,963,796 firm-fixed-price contract for 134 aircraft with the KF-16 upgrade capabilities. This award is for initial development and long lead production for the program. The full program will be added in to this undefinitized contract action in fourth quarter 2014, and a modification will be done at that time to increase the scope of work to the full program. Work will be performed at Ft. Worth, Texas, and the first upgraded KF-16 aircraft are scheduled for delivery starting 2019. The contract is 100 percent foreign military sales for the government of Korea. Procurement funds in the amount of $68,582,260 are being obligated on this award. Air Force Life Cycle Management Center/WWMK, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8615-14-C-6023).
Georgia Tech Applied Research Corp., Atlanta, Georgia, has been awarded a $20,545,422 delivery order (0265) on the SENSIAC indefinite-delivery/indefinite-quantity, cost-plus-fixed-fee, sole-source contract (HC1047-05-D-4000) for Foreign Military Sales Electronic Warfare Sensor Systems. SENSIAC will support FMS and their customers in centralizing technical, engineering, and analytical support of all EW sensor systems, improving the hardware and software capabilities of EW sensor systems, and improving expendable countermeasures technologies. The work will be performed at Atlanta, Georgia, and work is expected to be complete by Dec. 6, 2015. This contract is 100 percent foreign military sales for Taiwan. Fiscal 2014 research, development, test and evaluation FMS funds of $8,010,000 are being obligated at time of award. Air Force Installation Contracting Command/KD, Offutt Air Force Base, Nebraska, is the contracting activity.
*Small Business

**Small Disadvantaged Business

GSA ADMINISTRATOR'S STATEMENT ON IT REFORM

FROM:  GENERAL SERVICES ADMINISTRATION 

Federal IT Reform Hearing

STATEMENT OF THE HONORABLE DANIEL M. TANGHERLINI

ADMINISTRATOR FOR GENERAL SERVICES ADMINISTRATION

BEFORE THE COMMITTEE ON APPROPRIATIONS SUBCOMMITTEE ON FINANCIAL SERVICES AND GENERAL GOVERNMENT

UNITED STATES SENATE

 May 7, 2014

Good afternoon Chairman Udall, Ranking Member Johanns, and Members of the Committee.  My name is Dan Tangherlini, and I am the Administrator of the U.S. General Services Administration (GSA).

The challenges of technology procurement and delivery facing the government have been a focus for better management and oversight throughout this Administration.  They present an opportunity to deliver better outcomes for the American people in a more efficient manner.  Given the U.S. General Services Administration’s mission to deliver the best value in real estate, acquisition, and technology services to the government and the American people, we believe we are uniquely positioned to help make a difference in these efforts. Through better management of our own IT investments, as well as offerings GSA provides government-wide, GSA can support the Administration’s efforts to better manage IT and help to continue improving some of these longstanding challenges.

GSA Information Technology –

Empowering the Chief Information Officer (CIO)

Since my arrival at GSA, we have been focused on consolidating and streamlining major functions within the agency to eliminate redundancy, improve oversight, and increase accountability.  Consistent with the Administration’s push to strengthen CIO authorities, GSA brought together all IT functions, budgets, and authorities from across the agency under an accountable, empowered GSA CIO, in line with the best practices followed by most modern organizations today.  GSA has moved from 17 different regional and bureau CIOs to one enterprise CIO office.  To improve management and accountability, GSA established the Investment Review Board co-chaired by the GSA CIO and Chief Financial Officer (CFO) with oversight and authority over all GSA IT spending. Prior to this consolidation, GSA’s business lines and often the regions had separate IT systems and budgets, providing limited visibility and oversight into proposed investments and creating significant redundancy and inefficiency.

Enterprise Planning

GSA now has one enterprise-wide process for making IT investments, which ensures that investments are geared toward the highest priorities in support of the agency’s strategic goals.  We are now able to more comprehensively look at the portion of spending that is focused on operating and maintaining existing systems.  We have set internal goals to reduce ongoing operating costs to allow the organization to make better long-term investments using our enterprise-wide, data driven zero-based IT budgeting process.

Zero-based IT budgeting (ZBB)

GSA is beginning to leverage an internal ZBB process to develop the IT budget. ZBB is a budgeting method that requires justification for all expenses in each new fiscal period. This method will ensure budgeting processes align to the organization’s strategy by tying budget line items to specific strategic goals and initiatives.  For instance, GSA used to maintain multiple systems to track engagements with partner Federal agencies.  Through these changes, GSA’s major business lines will share these tools, facilitating a two-fold win. From an IT perspective, we eliminated the cost of maintaining redundant systems, resulting in lower operations and maintenance costs.  From the mission execution side, we improved engagement with partner Federal agencies by putting a more complete picture of who we work with in the hands of our staff.

Enhanced Use of Cloud Computing and Consolidation of Data Centers

Consolidation also provides an opportunity to adopt the best forward-leaning practices not just in where and what IT investments are made, but also how we support these investments.  In recognition of the need to modernize not just applications but how we support IT, and consistent with broader Federal efforts, GSA instituted a "cloud first" policy that prompts all application development initiatives to look first to the GSA cloud platforms available as technology solutions before evaluating legacy platforms with higher operational costs. In doing this, GSA has saved money not only in the areas of reduced infrastructure costs, but also through the reuse of previously developed functionality.  This initiative in part has also allowed us to consolidate 1,700 legacy applications into fewer than 100 cloud-based applications between 2011 and 2013.  GSA’s use of cloud services has saved $15 million dollars[1] over the past five years.  GSA has also been aggressive in shutting down unneeded data centers as part of the Federal Data Center Consolidation Initiative.  In Fiscal Year 2013, GSA shut down 37 data centers, meeting our goal, and we intend to shut down an additional 24 this fiscal year.

Agile Development

The focus of our transition has not been limited to what we build, but also how we build. GSA IT has moved away from the world of waterfall application development methodologies that have historically led to higher costs and poor product quality, to an agile methodology which allows us to work better, faster, and leaner than we ever have before. Our move to an agile development shop has resulted in a significant increase in our ability to rapidly deploy and scale.   As a result, beginning in 2013, GSA’s development cycle time has been reduced to six to eight weeks from eight to twelve months.

These IT reform initiatives have resulted in more efficient allocation of IT resources.  In FY 2013, GSA spent $698 million in IT spending.  In FY 2015, GSA requested $572 million, a reduction of nearly 18 percent.  We have cut 45 Full Time Equivalent positions in the IT area and identified several duplicative systems in the regions and between various offices that are now being consolidated.  In addition, GSA’s strategic hiring plan is focused on obtaining IT skills through government hires to allow us to decrease the reliance on contractors in some areas.

Consolidated IT governance helps GSA realize a high-performing IT environment as effectively and efficiently as possible. Enterprise IT governance will ensure GSA is investing in the right initiatives at the right time, allow greater oversight of key IT investments, and promote interoperability and transparency through the GSA enterprise.  It also allows a level of transparency and accountability that will lead to continuous ongoing improvement.

IT Acquisition Solutions –

In addition to our efforts to better manage internal GSA IT investments and policies, we also offer acquisition solutions to agencies that deliver savings and enable them to focus more on core mission activities.

GSA aggregates and leverages the Federal government’s buying power to obtain a wide range of information technology and telecommunications products and services in support of agency missions across government through contract vehicles like Schedule 70 and Networx.  Schedule 70 is an indefinite delivery/indefinite quantity (IDIQ) multiple award schedule that provides direct access to products, services, and solutions from more than 5,000 certified industry partners.  Networx provides cost-effective solutions for partner agencies’ communications infrastructure and service needs.  Through better pricing of these and other similar acquisitions, GSA helped agencies save more than $1 billion in Fiscal Year 2013, and will help them save an additional $1 billion in Fiscal Year 2014 on these acquisitions.[2]

Additionally, GSA is currently developing the Prices Paid Portal.  This proof of concept tool is intended to provide greater visibility into the prices paid by government agencies for commonly purchased goods and services.  Currently, the system is being populated with initial data on simple commodities such as office supplies, with data on more complex items to follow.  Allowing the federal acquisition community to see and analyze the cost of these good and services is intended to drive better pricing for all future federal procurements. Our hope is to replicate our purchasing experience as individuals where comparative market pricing information is widely available, such as many e-commerce, travel and secondary market portals.

Innovative Technologies and Digital Services –

GSA also looks for opportunities to help agencies adopt new technologies and take advantage of digital services that improve mission delivery, and enhance their interactions with the public.  For example, the Federal Risk and Authorization Management Program (FedRAMP) is a government-wide program that accelerates adoption of cloud computing across government by providing a standardized approach to security assessment, authorization, and continuous monitoring for cloud products and services.  This mandatory approach, which uses a “do once, use many times” framework, is saving cost, time, and staff required to conduct redundant agency security assessments.

GSA helps to ensure that we have tools that allow the Government to access the ingenuity of the American people to help solve Government’s challenges.  GSA manages Challenge.gov, an award-winning platform to promote and conduct challenge and prize competitions government-wide.  Challenge.gov seeks to involve more Americans in the work of government.    Eighty contests were hosted in FY 2013, covering a wide range of technical and creative challenges.  For instance, the Federal Trade Commission (FTC) hosted a robocall challenge, which asked innovators to create solutions to block illegal robocalls on landline or mobile phones.  The FTC received nearly 800 entries and selected two winners in a tie for the best overall solution.  One winning solution, Nomorobo, went to market on September 30, 2013, and has blocked nearly 1.3 million calls for consumers.

GSA also is leading efforts to open government data to entrepreneurs and other innovators to fuel development of products and services that drive economic growth.  GSA operates Data.gov, the flagship open government portal, which enables easy access to and use of more than 90,000 data collections from over 180 government agencies.  By facilitating information transparency and access, GSA allows anyone, whether an individual or a business, to take public information and apply it in new and useful ways. A snapshot of the power of open data can be seen on Data.gov/Impact, which provides a list of companies leveraging open government data to power the economy.

GSA is also committed to helping agencies through smarter delivery of IT projects.  In collaboration with White House Office of Science and Technology Policy, GSA manages the Presidential Innovation Fellows (PIF) program.  The PIF program recruits and sources some of our nation’s brightest individuals to specific agencies and challenges them to implement solutions that save money and make the Federal government work better for the American people.  The program is set up to deliver results in months, not years, and has already demonstrated its value through solutions like USAID’s Better than Cash and VA’s Blue Button.

Building on this approach, and in coordination with the Digital Service at OMB, GSA recently announced the creation of 18F— a digital delivery team within GSA that aims to make the government’s digital and web services simple, effective, and easier to use for the American people.  By using lessons from our Nation’s top technology startups, these public service innovators are looking to provide support for our federal partners in delivering better digital services at reduced time and cost. 18F is structured to develop in an agile manner, building prototypes rapidly and putting them in the hands of users for feedback; measure success not in terms of completion of a system, but through customer use; build core capacity so that the government can build and deliver technology solutions; and scale what works iteratively.

18F is already engaged in various initiatives to improve services GSA provides to our constituents. As an example, the 18F team helped develop a new, innovative tool called FBOpen (fbopen.gsa.gov) that allows small and innovative businesses to quickly access federal contracting and grant opportunities by using simple search queries. This open source search tool makes it easier for small businesses and less traditional federal contractors to better find and bid on government opportunities, while increasing competition and delivering a simpler way to find all of the opportunities the federal government makes available.  By pairing innovative technologists with agency procurement experts and reaching out to small businesses to understand their needs, GSA was able to successfully test [and deploy] a viable product in less than six months.   FBOpen is just one example of how use of smarter IT practices can shorten the time to value, whether work is performed by federal employees, contractors, or both.

Conclusion –

GSA’s internal IT reforms, acquisition solutions, and digital services are in keeping with our mission to deliver the best value in information technology solutions to government and the American people.  GSA still has a lot of work ahead of us, and I appreciate the Committee’s support of our reform efforts.

I appreciate the opportunity to appear before you today and I am happy to answer any questions you have.  Thank you.


[1] Savings resulting from use of cloud services, such as Salesforce Platform as a Service, and E-mail as a Service.
[2] Compared to commercial pricing for comparable services and terms and conditions

EDUCATION SECRETARY ARNE DUNCAN'S STATEMENT ON 12TH-GRADE READING, MATH RESULTS

FROM:  U.S. EDUCATION DEPARTMENT 

Statement by U.S. Education Secretary Arne Duncan on National Assessment of Educational Progress 12th-grade reading and math results

MAY 7, 2014

"Despite the highest high school graduation rate in our history, and despite growth in student achievement over time in elementary school and middle school, student achievement at the high school level has been flat in recent years. Just as troubling, achievement gaps among ethnic groups have not narrowed. We project that our nation's public schools will become majority-minority this fall—making it even more urgent to put renewed attention into the academic rigor and equity of course offerings and into efforts to redesign high schools. We must reject educational stagnation in our high schools, and as a nation, we must do better for all students, especially for African-American and Latino students."

MAN CHARGED WITH IMMIGRATION FRAUD RELATING TO CRIMES COMMITTED IN BOSNIA-HERZEGOVINA

FROM:  U.S. JUSTICE DEPARTMENT 

Wednesday, May 7, 2014

Minnesota Man Charged with Immigration Fraud for Failing to Disclose Crimes Committed in Bosnia and Military Service During the Bosnian Conflict

Zdenko Jakiša, 45, of Forest Lake, Minnesota, was arrested today on immigration fraud charges for failing to disclose multiple crimes committed in Bosnia-Herzegovina and his military service during the armed conflict there in the 1990s.

Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, United States Attorney Andrew M. Luger of the District of Minnesota, Special Agent in Charge J. Michael Netherland of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) St. Paul and Acting Special Agent in Charge Jane Rhodes-Wolfe of the FBI’s Minneapolis Field Office made the announcement.

Jakiša made an initial appearance today in the District of Minnesota and is scheduled for a detention hearing on May 12, 2014.

According to the indictment unsealed today, Jakiša, a former member of the armed forces of the Croatian Defense Council in Bosnia-Herzegovina, committed immigration fraud by providing false and fraudulent information about his military service during the Bosnian conflict, his criminal record in Bosnia-Herzegovina and his commission of crimes of moral turpitude.

Records from Bosnia and Bosnian witnesses indicate that Jakisa committed numerous crimes in Bosnia-Herzegovina, which he did not disclose during his refugee or green card applications.   Such crimes include the murder of an elderly Bosnian Serb woman and the kidnapping, robbery and assault of a Bosnian Muslim man in September 1993.

The case is being investigated jointly by HSI St. Paul and the FBI’s Minneapolis Field Office. ICE’s Human Rights Violators and War Crimes Center provided the lead in this investigation.   The Criminal Division’s Office of International Affairs and their counterparts at the Prosecutor’s Office of Bosnia and Herzegovina provided valuable assistance.

The case is being prosecuted by Senior Trial Attorney Matthew C. Singer from the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Nate Petterson of the District of Minnesota.

Members of the public who have information about former human rights violators in the United States are urged to contact U.S. law enforcement through the Human Rights and Special Prosecutions Section at hrsptips@usdoj.gov , toll-free at 1-800-813-5863, the HSI tip line at 1-866-DHS-2-ICE, or to complete its online tip form at www.ice.gov/exec/forms/hsi-tips/tips.asp . To learn more about the assistance available to victims in these cases, the public should contact HSI’s confidential victim-witness toll-free number at 1-866-872-4973. Tips may be provided anonymously.

The charges in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

U.S. MARINES IN AFGHANISTAN DEPART FORWARD OPERATING BASE NOLAY TO CAMP LEATHERNECK

FROM:  U.S. DEFENSE DEPARTMENT 

U.S. Marine Corps trucks wait in place as the sun sets on Forward Operating Base Nolay for the last time before departing the Sangin Valley in Afghanistan's Helmand province, for Camp Leatherneck, May 4, 2014. U.S. Marine Corps photo by Cpl. Joshua Young.

U.S. Marines and sailors prepare to leave Forward Operating Base Nolay in Afghanistan's Helmand province, for Camp Leatherneck, May 4, 2014. U.S. Marine Corps photo by Cpl. Joshua Young.

ISS VIEW OF EARTH'S ATMOSPHERIC LAYERS

FROM:  NASA 

International Space Station astronauts captured this photo of Earth's atmospheric layers on July 31, 2011, revealing the troposphere (orange-red), stratosphere and above. Satellite instruments allow scientists to better understand the chemistry and dynamics occurring within and between these layers. NASA monitors Earth’s vital signs from land, air and space with a fleet of satellites and ambitious and ground-based observation campaigns. NASA develops new ways to observe and study Earth’s interconnected natural systems with long-term data records and computer analysis tools to better see how our planet is changing. The agency shares this unique knowledge with the global community and works with institutions in the United States and around the world that contribute to understanding and protecting our home planet. > National Climate Assessment > Administrator's Blog: NASA's Role in Climate Assessment > Earth Right Now Image Credit: NASA/JSC Gateway to Astronaut Photography of Earth.

SEC WARNS OF SCAMS INVOLVING VIRTUAL CURRENCY

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 

The SEC’s Office of Investor Education and Advocacy is issuing this Investor Alert to make investors aware about the potential risks of investments involving Bitcoin and other forms of virtual currency.

The rise of Bitcoin and other virtual and digital currencies creates new concerns for investors. A new product, technology, or innovation – such as Bitcoin – has the potential to give rise both to frauds and high-risk investment opportunities. Potential investors can be easily enticed with the promise of high returns in a new investment space and also may be less skeptical when assessing something novel, new and cutting-edge.

We previously issued an Investor Alert about the use of Bitcoin in the context of a Ponzi scheme. The Financial Industry Regulatory Authority (FINRA) also recently issued an Investor Alert cautioning investors about the risks of buying and using digital currency such as Bitcoin. In addition, the North American Securities Administrators Association (NASAA) included digital currency on its list of the top 10 threats to investors for 2013.

What is Bitcoin?

Bitcoin has been described as a decentralized, peer-to-peer virtual currency that is used like money – it can be exchanged for traditional currencies such as the U.S. dollar, or used to purchase goods or services, usually online. Unlike traditional currencies, Bitcoin operates without central authority or banks and is not backed by any government.

IRS treats Bitcoin as property. The IRS recently issued guidance stating that it will treat virtual currencies, such as Bitcoin, as property for federal tax purposes. As a result, general tax principles that apply to property transactions apply to transactions using virtual currency

If you are thinking about investing in a Bitcoin-related opportunity, here are some things you should consider.

Investments involving Bitcoin may have a heightened risk of fraud.

Innovations and new technologies are often used by fraudsters to perpetrate fraudulent investment schemes. Fraudsters may entice investors by touting a Bitcoin investment “opportunity” as a way to get into this cutting-edge space, promising or guaranteeing high investment returns. Investors may find these investment pitches hard to resist.

Bitcoin Ponzi scheme. In July 2013, the SEC charged an individual for an alleged Bitcoin-related Ponzi scheme in SEC v. Shavers. The defendant advertised a Bitcoin “investment opportunity” in an online Bitcoin forum, promising investors up to 7% interest per week and that the invested funds would be used for Bitcoin activities. Instead, the defendant allegedly used bitcoins from new investors to pay existing investors and to pay his personal expenses.

As with any investment, be careful if you spot any of these potential warning signs of investment fraud:

“Guaranteed” high investment returns. There is no such thing as guaranteed high investment returns. Be wary of anyone who promises that you will receive a high rate of return on your investment, with little or no risk.

Unsolicited offers. An unsolicited sales pitch may be part of a fraudulent investment scheme. Exercise extreme caution if you receive an unsolicited communication – meaning you didn’t ask for it and don’t know the sender – about an investment opportunity.

Unlicensed sellers. Federal and state securities laws require investment professionals and their firms who offer and sell investments to be licensed or registered. Many fraudulent investment schemes involve unlicensed individuals or unregistered firms. Check license and registration status by searching the SEC’s Investment Adviser Public Disclosure (IAPD) website or FINRA’s BrokerCheck website.

No net worth or income requirements. The federal securities laws require securities offerings to be registered with the SEC unless an exemption from registration applies. Most registration exemptions require that investors are accredited investors. Be highly suspicious of private (i.e., unregistered) investment opportunities that do not ask about your net worth or income.
Sounds too good to be true. If the investment sounds too good to be true, it probably is. Remember that investments providing higher returns typically involve more risk.

Pressure to buy RIGHT NOW. Fraudsters may try to create a false sense of urgency to get in on the investment. Take your time researching an investment opportunity before handing over your money.

Bitcoin users may be targets for fraudulent or high-risk investment schemes.

Both fraudsters and promoters of high-risk investment schemes may target Bitcoin users. The exchange rate of U.S. dollars to bitcoins has fluctuated dramatically since the first bitcoins were created. As the exchange rate of Bitcoin is significantly higher today, many early adopters of Bitcoin may have experienced an unexpected increase in wealth, making them attractive targets for fraudsters as well as promoters of high-risk investment opportunities.

Fraudsters target any group they think they can convince to trust them. Scam artists may take advantage of Bitcoin users’ vested interest in the success of Bitcoin to lure these users into Bitcoin-related investment schemes. The fraudsters may be (or pretend to be) Bitcoin users themselves. Similarly, promoters may find Bitcoin users to be a receptive audience for legitimate but high-risk investment opportunities. Fraudsters and promoters may solicit investors through forums and online sites frequented by members of the Bitcoin community.    

Bitcoins for oil and gas. The Texas Securities Commissioner recently entered an emergency cease and desist order against a Texas oil and gas exploration company, which claims it is the first company in the industry to accept bitcoins from investors, for intentionally failing to disclose material facts to investors including “the nature of the risks associated with the use of Bitcoin to purchase working interests” in wells. The company advertised working interests in wells in West Texas, both at a recent Bitcoin conference and through social media and a web page, according to the emergency order.


Bitcoin trading suspension. In February 2014, the SEC suspended trading in the securities of Imogo Mobile Technologies because of questions about the accuracy and adequacy of publicly disseminated information about the company’s business, revenue and assets. Shortly before the suspension, the company announced that it was developing a mobile Bitcoin platform, which resulted in significant movement in the trading price of the company’s securities.

Using Bitcoin may limit your recovery in the event of fraud or theft.

If fraud or theft results in you or your investment losing bitcoins, you may have limited recovery options. Third-party wallet services, payment processors and Bitcoin exchanges that play important roles in the use of bitcoins may be unregulated or operating unlawfully.

Law enforcement officials may face particular challenges when investigating the illicit use of virtual currency. Such challenges may impact SEC investigations involving Bitcoin:

Tracing money. Traditional financial institutions (such as banks) often are not involved with Bitcoin transactions, making it more difficult to follow the flow of money.

International scope. Bitcoin transactions and users span the globe. Although the SEC regularly obtains information from abroad (such as through cross-border agreements), there may be restrictions on how the SEC can use the information and it may take more time to get the information. In some cases, the SEC may be unable to obtain information located overseas.

No central authority. As there is no central authority that collects Bitcoin user information, the SEC generally must rely on other sources, such as Bitcoin exchanges or users, for this type of information.

Seizing or freezing bitcoins. Law enforcement officials may have difficulty seizing or freezing illicit proceeds held in bitcoins. Bitcoin wallets are encrypted and unlike money held in a bank or brokerage account, bitcoins may not be held by a third-party custodian.

Investments involving Bitcoin present unique risks.

Consider these risks when evaluating investments involving Bitcoin:

Not insured. While securities accounts at U.S. brokerage firms are often insured by the Securities Investor Protection Corporation (SIPC) and bank accounts at U.S. banks are often insured by the Federal Deposit Insurance Corporation (FDIC), bitcoins held in a digital wallet or Bitcoin exchange currently do not have similar protections.

History of volatility. The exchange rate of Bitcoin historically has been very volatile and the exchange rate of Bitcoin could drastically decline. For example, the exchange rate of Bitcoin has dropped more than 50% in a single day. Bitcoin-related investments may be affected by such volatility.
Government regulation. Bitcoins are not legal tender. Federal, state or foreign governments may restrict the use and exchange of Bitcoin.

Security concerns. Bitcoin exchanges may stop operating or permanently shut down due to fraud, technical glitches, hackers or malware. Bitcoins also may be stolen by hackers.

New and developing. As a recent invention, Bitcoin does not have an established track record of credibility and trust. Bitcoin and other virtual currencies are evolving.

Recent Bitcoin exchange failure. A Bitcoin exchange in Japan called Mt. Gox recently failed after hackers apparently stole bitcoins worth hundreds of millions of dollars from the exchange. Mt. Gox subsequently filed for bankruptcy. Many Bitcoin users participating on the exchange are left with little recourse.
***

Before making any investment, carefully read any materials you are given and verify the truth of every statement you are told about the investment. For more information about how to research an investment, read our publication Ask Questions. Investigate the individuals and firms offering the investment, and check out their backgrounds by searching the SEC’s IAPD website or FINRA’s BrokerCheck website and by contacting your state securities regulator.

Additional Resources

SEC Investor Alert: Ponzi Schemes Using Virtual Currencies
SEC Investor Alert: Social Media and Investing – Avoiding Fraud
SEC Investor Alert: Private Oil and Gas Offerings
SEC Investor Bulletin: Affinity Fraud
FINRA Investor Alert: Bitcoin: More Than a Bit Risky
NASAA Top Investor Threats
IRS Virtual Currency Guidance
European Banking Authority Warning to Consumers on Virtual Currencies

SCIENTISTS FIND GOOD NEWS REGARDING MIDWESTERN LAKES

FROM:  NATIONAL SCIENCE FOUNDATION 

Clarity for lake researchers' water quality questions

Studies of trends in Midwestern lakes benefit from help of local residents
Scientists engaged in a study of long-term water quality trends in Midwestern lakes found some good news: little change in water clarity in more than 3,000 lakes.

Look deeper, and the research becomes something more: a chronicle of a new source of data for scientists, data from residents of towns and villages surrounding the lakes.

The results are published in a paper in the journal PLOS ONE.

The paper co-authors analyzed almost a quarter of a million observations taken over seven decades on 3,251 lakes in eight Midwestern states.

Enter local residents

But the researchers didn't collect those data. The observations came from lakefront homeowners, boaters, anglers and other interested members of the public wanting to know more about what's going on in "their" lakes.

Noah Lottig, a co-author of the paper and a scientist at the University of Wisconsin-Madison's Center for Limnology, says that ecologists are looking at big-picture issues--such as how changes in land use or climate affect ecosystems--at state, national and continental scales.

This time, the help of local residents was key to the findings.

"This study highlights research opportunities using data collected by citizens making important environmental measurements," says Elizabeth Blood, program director in the National Science Foundation's (NSF) Directorate for Biological Sciences, which funded the work through its MacroSystems Biology Program. "Their efforts provide scientists with data at space and time scales often not available by other means."

Water clarity from a Secchi disk reading--or tens of thousands of them

Lottig and freshwater scientists from across the United States combed through state agency records and online databases. The water clarity measurements they sought were taken by non-scientists using a circular, plate-sized instrument called a Secchi disk.

Used in the aquatic sciences since the mid-1800s, Secchi disks hang from a rope and are lowered into the water until their distinct black-and-white pattern disappears from view, a distance that marks the "Secchi depth."

Lake associations and other groups have used the disks for decades to document conditions in their respective waters.

Previous studies have shown that local residents' Secchi readings are nearly as accurate as scientists' measurements, says Lottig.

With a dataset covering more than 3,000 lakes and stretching back to the late 1930s, the team decided to ask questions about long-term change.

Before and after the Clean Water Act

The Clean Water Act provided a useful frame of reference. Signed into law in 1972, the act set water quality goals for all U.S. waters.

Thanks to the data collected by residents, Lottig's team had access to water clarity measurements for decades before and after the act came into effect.

Somewhere in that data, the researchers reasoned, they might detect a landscape-scale shift over time to clearer (often an indicator of cleaner) water.

While there was a slight one percent yearly increase in water clarity for the lakes, Lottig says, "most of the lakes are just chugging along, not changing much through time."

While some lakes improved, others did not. Taken as a whole, there was no major change in clarity at the landscape scale.

Lottig is part of the "Cross-Scale Interaction" or "CSI Limnology" project, an effort to collect global data on water chemistry and aquatic biology that will add needed context.

Townspeople weigh in

For Ken Fiske, collecting data has been well worth the effort.

In 1985, Fiske saw an announcement for volunteers for a new Wisconsin lake monitoring program. Fiske had been coming to northern Wisconsin from his home in Illinois for years and had recently bought property on the shoreline of Lake Adelaide.

"My interest was in finding out what the quality of water in Lake Adelaide was and seeing what we could do to maintain it," he says.

For the next several years, Fiske went on a monthly five-hour drive to Lake Adelaide to take measurements. Eventually, he found some neighbors to help. Some 30 years later, the group is still going strong.

"We've been doing it long enough that it makes the results meaningful," Fiske says.

Scientists are harnessing efforts like Fiske's to try to answer questions about not just one lake, but 3,251--or more--of them.

-- Cheryl Dybas, NSF
Investigators
Noah Lottig
Emily Stanley
Related Institutions/Organizations
University of Wisconsin-Madison

SECRETARY HAGEL MEETS WITH GEORGIAN DEFENSE MINISTER ALASANIA

FROM:  U.S. DEFENSE DEPARTMENT 
Right:  Defense Secretary Chuck Hagel, second from left, meets with Georgian Defense Minister Irakli Alasania, second on right, at the Pentagon, May 7, 2014. DOD photo by Erin A. Kirk-Cuomo. 

Hagel, Georgian Defense Minister Discuss Afghanistan, Ukraine
American Forces Press Service

WASHINGTON, May 7, 2014 – Defense Secretary Chuck Hagel today thanked Georgia’s defense minister for his nation’s contributions to the International Security Assistance Force mission in Afghanistan.

Hagel also encouraged Defense Minister Irakli Alasania to continue the progress Georgia has made on defense reform and NATO interoperability, Pentagon Press Secretary Navy Rear Adm. John Kirby said in a statement summarizing the Pentagon meeting.

"The two leaders also discussed the ongoing crisis in Ukraine,” Kirby said. “They reviewed the efforts by allies and partners in the region to reinforce our international commitments and to continue to apply diplomatic and economic pressure on Moscow.

Hagel reaffirmed the importance of the U.S. partnership with Georgia, Kirby added, and pledged to continue the strong defense cooperation between their two nations.

U.S. SAYS RUSSIAN WITHDRAW FROM UKRAINE BORDER NOT EVIDENT

FROM:  U.S. DEFENSE DEPARTMENT 

No Sign of Russian Withdrawal From Ukraine Border, Official Says

By Claudette Roulo

American Forces Press Service

WASHINGTON, May 7, 2014 – Contrary to reports from Russia, there is no evidence of any troop withdrawals from its shared border with Ukraine, Pentagon spokesman Army Col. Steve Warren said today.

Russian President Vladimir Putin announced today that he had ordered troops to pull back from the border region to training areas.

Despite this announcement, Warren said, "we have seen no change in the Russian force posture along the Ukrainian border."

“We would know,” the colonel added.

The United States continues its call for Russia to withdraw its troops from the border and to work with the international community to find a peaceful solution to the crisis, he said.

REMARKS OF SECRETARY KERRY, DANISH FOREIGN MINISTER LIDEGAARD

FROM:  U.S. STATE DEPARTMENT 

Remarks With Danish Foreign Minister Martin Lidegaard Before Their Meeting

Remarks

John Kerry

Secretary of State

Treaty Room

Washington, DC

May 7, 2014

---

SECRETARY KERRY: Good morning, everybody. My great pleasure to welcome the foreign minister of Denmark, Kingdom of Denmark, Martin Lidegaard. Denmark is a country that is hitting way above its weight in many, many ways. And we’re very, very pleased and grateful for the strong relationship that we have – a NATO partner and ally, but most importantly, Denmark has been leading on the issue of Ukraine, of the importance of standing up for the elections, of providing the people of Ukraine with an opportunity to choose their future. They are tremendous leaders on climate change, environment, environmental standards, our responsibilities. They’ve also been particularly helpful with respect to the challenge of removing chemical weapons from Syria. There is a combined Norwegian-Danish boat – ship that is responsible for the collecting and moving. And they’ve also been extremely helpful on humanitarian issues. So we frankly couldn’t ask for a better partner. We’re very grateful for the leadership, and I look forward to a good conversation this morning on all of the issues of mutual concern.
Welcome, Martin. I’m happy to have you here.

FOREIGN MINISTER LIDEGAARD: Thank you very much, John. Thank you very much. The U.S. is one of the closest ally of Denmark. I have been looking very much forward to meet with you and discuss all the areas where we share views and share values. That goes for Ukraine, where I think we (inaudible) the importance of having a united voice from the EU and the U.S. side. I know you met with Chancellor Merkel on that issue. I’m looking forward to discussing it further with you, also when it comes to reassurance of our allies in the NATO, where we also would like to contribute.

That goes for Syria, as you just mentioned, and our common efforts to get the chemical weapons out. That goes for the Arctic issues where we (inaudible) the presidency of the Arctic Council and where Denmark would definitely like to assist, if we can, you in that effort. There are many important issues to take forward there, and that goes definitely also for the climate issues, where I know we share a lot of engagement and share a lot of concerns about our common climate. And I hope that we’ll be able to touch upon all these issues and move forward together, and let’s go.

SECRETARY KERRY: We will. No, I look forward to it. We will have a good conversation on all of those things. Thank you very much.

FOREIGN MINISTER LIDEGAARD: Thank you.

SECRETARY KERRY: Appreciate it. Thank you all very much.

U.S. CONGRATULATES REPUBLIC OF SOUTH AFRICA ON ELECTIONS

FROM:  U.S. STATE DEPARTMENT 

South African General Elections

Press Statement

John Kerry

Secretary of State

Washington, DC

May 7, 2014

---

The United States congratulates the Republic of South Africa on its national and provincial elections today.

It is not lost on us that this is the fifth round of inclusive elections since the end of apartheid in 1994 and the first since the passing of Nelson Mandela. Madiba knew that the future demanded that people of good faith summon the courage and conviction to move beyond the past. With each democratic election in South Africa, we see the power and purpose of that vision.

The United States looks forward to working with the new Government of South Africa, as it continues to build strong, democratic institutions and a prosperous future for its citizens.