HHS SAYS MORE PHYSICIANS, HOSPITALS USING ELECTRONIC HEALTH RECORDS (EHRs)

FROM:  U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES 

More physicians and hospitals are using EHRs than before

CDC data provides baseline for EHR adoption among health care providers

Significant increases in the use of electronic health records (EHRs) among the nation’s physicians and hospitals are detailed in two new studies published today by the HHS Office of the National Coordinator for Health Information Technology (ONC).

The studies, published in the journal Health Affairs, found that in 2013, almost eight in ten (78 percent) office-based physicians reported they adopted some type of EHR system. About half of all physicians (48 percent) had an EHR system with advanced functionalities in 2013, a doubling of the adoption rate in 2009.

About 6 in 10 (59 percent) hospitals had adopted an EHR system with certain advanced functionalities in 2013, quadruple the percentage for 2010. Unlike the physician study, the hospital study does not have an equivalent, established measure of adoption of some type of EHR system; it only reports on adoption of EHRs with advanced functionalities.

“Patients are seeing the benefits of health IT as a result of the significant strides that have been made in the adoption and meaningful use of electronic health records,” said Karen DeSalvo, M.D., M.P.H., national coordinator for health information technology. “We look forward to working with our partners to ensure that people’s digital health information follows them across the care continuum so it will be there when it matters most.”

The information in the studies was collected by the Centers for Disease Control and Prevention’s National Center for Health Statistics and the American Hospital Association in 2013.

These data provide an early baseline understanding of provider readiness to achieve Stage 2 Meaningful Use of the Medicare and Medicaid EHR Incentive programs.  Stage 2 will begin later this year for providers who first attested to Stage 1 Meaningful Use in 2011 or 2012. About 75 percent of eligible professionals and more than 91 percent of hospitals have adopted or demonstrated Stage 1 Meaningful Use of certified EHRs.

The studies also show that more work is needed to support widespread health information exchange and providers’ ability to achieve Stage 2 Meaningful Use requirements under the Medicare and Medicaid EHR Incentive Programs. Among the details include the following:

In 2013, health information exchange among physicians was relatively low: 4 in 10 (39 percent) reported they electronically share data with other providers, but only 14 percent electronically share data with ambulatory care providers or hospitals outside their organization.
In 2013, the vast majority of hospitals had capabilities that could be used to support many Meaningful Use Stage 2 objectives but were not being used. However, 10 percent of hospitals were providing patients with online access to view, download, and transmit information about their hospital admission.
Throughout 2014, HHS has prioritized its efforts to support providers in achieving Meaningful Use Stage 2 and work toward an interoperable health system that enables nationwide health information exchange. These include:

On-the-ground support from many of the 62 ONC-funded regional extension centers to more than 150,000 providers that serve all types of patients, including Medicare, Medicaid, private pay, and uninsured, helping them use their EHRs to meet the Stage 2 measures such as those for clinical quality improvement, transitions of care, care coordination, and the privacy and security requirements;
Sharing tools and resources to support providers in engaging their patients in their health and health care using health IT tools, and to help meet the “view, download, and transmit measure” needed to achieve Meaningful Use Stage 2; and
Webinars, user guides, tip sheets, listserv subscriptions and other educational resources provided by the CMS eHealth University and available on the CMS website.

SECRETARY KERRY EXPRESSES CONCERN OVER SOUTH SUDAN PEACE TALKS

FROM:  U.S. STATE DEPARTMENT 

Deeply Concerned by Failure of South Sudan Peace Talks to Meet Region's Deadline

Press Statement

John Kerry

Secretary of State

Washington, DC

August 11, 2014

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Deadlines keep passing and innocent people keep dying. The log-rolling and delay has to end. The Government of South Sudan and the Sudan People’s Liberation Movement (SPLM) - in Opposition agreed to take no more than 60 days to form a transitional government of national unity. Regional leaders helped broker the agreement, but despite the Inter-Governmental Authority on Development (IGAD) mediation team’s best efforts, neither party engaged in peace talks seriously. Along with my Troika colleagues from Norway and the United Kingdom, we condemn these failures.

This is an outrage and an insult to the people of South Sudan. Their leaders are letting them down again and again. Peace talks have been on-going in Ethiopia for six months, while the people of South Sudan continue to suffer and the war persists. Over a million people have been displaced due to the fighting and South Sudan now faces the worst food security crisis in the world with a real risk of famine.

I condemn the recent clashes in Maban County that resulted in the deaths of at least six humanitarian workers, and am especially concerned at reports that civilians may have been systematically murdered based on their ethnicity. These killings further undermine the enormous humanitarian response needed to support the 3.9 million South Sudanese who are in desperate need of life-saving food assistance and who continue to live in fear of violence.
Regional leaders have previously called for punitive measures if the parties failed to secure peace by the agreed deadline. I call on IGAD and the African Union to immediately take appropriate action to bring peace to the people of South Sudan. We’re well past the point where enough is enough.

RUSSIAN NATIONAL INDICTED FOR HACKING INTO RETAILERS AND DISTRIBUTING CREDIT CARD DATA ON WEBSITES

FROM:  U.S. JUSTICE DEPARTMENT 

Friday, August 8, 2014

Russian National Arraigned on Indictment for Distributing Credit Card Data Belonging to Thousands of Card Holders

A Russian national indicted for hacking into point of sale systems at retailers throughout the United States and operating websites that distributed credit card data of thousands of credit card holders appeared today for arraignment in U.S. federal court, announced U.S. Attorney Jenny A. Durkan of the Western District of Washington and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.

“Cyber-criminals should take heed: distance will not protect you from the reach of justice.   We will investigate, we will locate, and we will bring foreign hackers to stand trial,” said U.S. Attorney Jenny A. Durkan.   “This defendant is presumed innocent, and will be afforded the full protections of our system of justice.   But he will do so in our courthouse, in the community where harm was done.”

“Cyber-criminals have caused enormous financial damage and innumerable invasions of Americans’ privacy, often from halfway around the world,” said Assistant Attorney General Caldwell.   “The alleged crimes in this case harmed thousands of U.S. citizens, and thanks to our law enforcement partners throughout the world, we will have the opportunity to seek justice in a U.S. courtroom.”

Roman Valerevich Seleznev, aka “Track2,” 30, of Vladivostok, Russia, was indicted by a federal grand jury in the Western District of Washington on March 3, 2011, and the indictment was unsealed on July 7, 2014.   Seleznev is charged in connection with operating several carding forums, which are websites where criminals gather to sell stolen credit card numbers, and hacking into retail point of sale systems and installing malicious software on the systems to steal credit card numbers.   Seleznev was transferred to Seattle, Washington, from Guam, where he made his initial appearance on July 7, 2014.   Today, Seleznev entered pleas of “not guilty” to the charges in the indictment.   Trial is scheduled for October 6, 2014.

According to the allegations in the indictment, Seleznev hacked into retail point of sale systems to steal credit card numbers between October 2009 and February 2011.   Seleznev also created and operated infrastructure using servers located all over the world to facilitate the theft and sale of credit card data and host carding forums.   Seleznev is charged with 29 counts: five counts of bank fraud, eight counts of intentionally causing damage to a protected computer, eight counts of obtaining information from a protected computer without authorization, one count of possession with intent to defraud of 15 or more unauthorized access devices (stolen credit card numbers), two counts of trafficking in unauthorized access devices and five counts of aggravated identity theft.

“This case will no doubt serve as a serious warning to cyber criminals.   The Secret Service will partner with law enforcement worldwide and will not relent in the pursuit of transnational cyber criminals that try to exploit the U.S. financial payment systems” said Secret Service Assistant Director Paul Morrissey of the Office of Investigations.

The case is being investigated by the U.S. Secret Service Electronic Crimes Task Force, which includes detectives from the Seattle Police Department.   The case is being prosecuted by Assistant United States Attorney Norman M. Barbosa of the Western District of Washington and Trial Attorney Ethan Arenson of the Criminal Division’s Computer Crime and Intellectual Property Section.   The Criminal Division’s Office of International Affairs and the U.S. Attorney’s Office for the District of Guam provided substantial assistance.

Seleznev has also been charged in an indictment filed in the District of Nevada that was returned on Jan. 10, 2012, and unsealed on Nov. 13, 2013, alleging that he participated in a racketeer influenced corrupt organization, conspired to engage in a racketeer influenced corrupt organization, and possessed counterfeit access devices.  Seleznev, referenced as “Track2” in the indictment, and 54 others are charged with being members of the “Carder.su” organization, which allegedly trafficked in compromised credit card account data and counterfeit identifications and committed money laundering, narcotics trafficking, and various types of computer crime.  Seleznev allegedly operated a website that sold stolen card information to members of the Carder.su organization.   Thus far, at least 25 of the defendants have been convicted, and several others are fugitives.

The Nevada investigation is being handled by Immigration and Customs Enforcement – Homeland Security Investigations and the U.S. Secret Service.   The Nevada case is being prosecuted by Assistant U.S. Attorneys Kimberly M. Frayn and Andrew W. Duncan of the District of Nevada and Trial Attorney Jonathan Ophardt of the Criminal Division’s Organized Crime and Gang Section.  

The charges contained in the indictments are only allegations.   A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.

VIDEO: "SYNPHONY OF SHARKS" BY NOAA'S FISHERIES SERVICE

COMPANY TO PAY $18 MILLION FOR ALLEGED IMPROPER SETTINGS OF TEMP MONITORS FOR VACCINE SHIPMENTS

FROM:  U.S. JUSTICE DEPARTMENT 

Friday, August 8, 2014

McKesson Corp. to Pay $18 Million to Resolve False Claims Allegations Related to Shipping Services Provided Under Centers for Disease Control Vaccine Distribution Contract

McKesson Corporation has agreed to pay $18 million to resolve allegations that it improperly set temperature monitors used in shipping vaccines under its contract with the Centers for Disease Control and Prevention (CDC), the Justice Department announced today.  McKesson is a pharmaceutical distributor with corporate headquarters in San Francisco.

“Companies must comply with the requirements they agree to when they contract with the government to provide products that protect the public,” said Assistant Attorney General Stuart F. Delery for the Justice Department’s Civil Division.  “If a contractor does not adhere to the terms it negotiated, its conduct not only hurts taxpayers but also could jeopardize the integrity of products, like vaccines, that Americans count on to be safe.”

The government alleged that McKesson failed to comply with the shipping and handling requirements of its vaccine distribution contract with the CDC.  Under the contract, McKesson provided distribution services, receiving vaccines purchased by the government from manufacturers and then distributing the vaccines to health care providers.  The government alleged that the contract required McKesson to ensure that during shipping, the vaccines were maintained at proper temperatures by, among other things, including electronic temperature monitors set to detect when the air temperature in the box reached two degrees Celsius and below or eight degrees Celsius and above.  The government alleged that, from approximately April 2007 to November 2007, McKesson failed to set the monitors to the appropriate range, and as a result, knowingly submitted false claims to the CDC for shipping and handling services that did not satisfy its contractual obligations.

According to the CDC, redundant measures were and are used to ensure vaccines are kept at appropriate temperatures during shipping.  The most important of these were validated packing procedures used to maintain proper vaccine temperatures.  Temperature monitors provided a secondary safeguard. For more information about vaccine storage and handling, please visit the CDC website or contact the CDCs press office at 404-639-3286 and media@cdc.gov .

“Ensuring the integrity and performance of government contracts is paramount, especially when they impact programs intended to protect young children” said Derrick L. Jackson, special agent in charge of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) in Atlanta.  “Holding accountable those who fail to meet their obligations – thereby violating the trust of the American taxpayer -- continues to be a top OIG priority.”

The allegations resolved by today’s settlement were originally raised in a lawsuit filed against McKesson by Terrell Fox, a former finance director at McKesson Specialty Distribution LLC, under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens with knowledge of false claims to bring civil actions on behalf of the government and to share in any recovery.  Fox’s share of the settlement has not been determined.

This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services.  The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in this effort is the False Claims Act.  Since January 2009, the Justice Department has recovered a total of more than $20.2 billion through False Claims Act cases, with more than $14 billion of that amount recovered in cases involving fraud against federal health care programs.

The case was handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Middle District of Tennessee, with assistance from HHS-OIG and Office of General Counsel.

The claims settled by this agreement are allegations only, and there has been no determination of liability.  The lawsuit is captioned United States ex rel. Fox v. McKesson Corp., No. 3:12-cv-00766 (M.D. Tenn.).

FINAL DEFENDANT IN WORK-AT-HOME SCHEME SETTLES FTC CHARGES

FROM:  U.S.  FEDERAL TRADE COMMISSION  
Defendant Behind ‘Six Figure Program’ Work-at-Home Scheme Settles FTC Charges

Banned From Selling Business and Work-at-Home Opportunities

The final defendant charged by the Federal Trade Commission in a business opportunity scheme that he falsely claimed would enable consumers to earn a significant income by affiliate marketing with websites of well-known companies such as Prada, Sony, Louis Vuitton, and Verizon has agreed to settle. Under the settlement, Benjamin Moskel, a former officer in the corporation, The Online Entrepreneur, will be banned from selling business and work-at-home opportunities.

The FTC action was part of a federal-state crackdown on scams that falsely promise jobs and opportunities to “be your own boss” to people who are unemployed or underemployed.

According to an FTC complaint filed in November 2012, the scheme, called the “Six Figure Program,” was sold as a purported no-risk opportunity for consumers to make money via their own website, by falsely claiming that, for $27, they could affiliate with well-known companies’ websites and earn commissions. After paying, consumers learned it would cost an extra $100 or more just to set up their websites.

In March 2014, the FTC announced a settlement with the other defendants in the scheme. The settlement order announced today permanently prohibits Moskel from having ownership in any non-publicly traded company that sells business or work-at-home opportunities, misrepresenting that consumers are likely to earn money and misrepresenting any material fact about a product or service; failing to disclose the terms of any offer before consumers provide billing information; and making a business opportunity, product, or service claim unless it is true and he can substantiate it. The order also bars Moskel from selling or otherwise benefitting from consumers’ personal information, and requires him to properly dispose of customer information.

The order imposes a judgment of more than $2.9 million, which will be suspended when Moskel has paid the income he earned from the scheme, $259,394, and surrendered certain bank accounts and personal property. The full judgment will become due immediately if he is found to have misrepresented his financial condition.

The Commission vote authorizing the staff to file the proposed final order was 5-0. The final order was entered by the U.S. District Court for the Middle District of Florida on July 30, 2014.

ATTORNEY GENERAL HOLDER'S STATEMENT ON RECENT SHOOTING IN FERGUSON, MISSOURI

FROM:  U.S. JUSTICE DEPARTMENT 

Monday, August 11, 2014

Statement by Attorney General Holder on Recent Shooting Incident in Ferguson, Missouri

Attorney General Eric Holder released the following statement Monday regarding the shooting incident that took place Saturday afternoon in Ferguson, Missouri:

“The shooting incident in Ferguson, Missouri this weekend deserves a fulsome review. In addition to the local investigation already underway, FBI agents from the St. Louis field office, working together with attorneys from the Justice Department’s Civil Rights Division and US Attorney's Office, have opened a concurrent, federal inquiry. The federal investigation will supplement, rather than supplant, the inquiry by local authorities. At every step, we will work with the local investigators, who should be prepared to complete a thorough, fair investigation in their own right. I will continue to receive regular updates on this matter in the coming days. Aggressively pursuing investigations such as this is critical for preserving trust between law enforcement and the communities they serve.”

U.S. DEFENSE DEPARTMENT CONTRACTS FOR AUGUST 11, 2014

FROM:  U.S. DEFENSE DEPARTMENT 

CONTRACTS

DEFENSE LOGISTICS AGENCY

Valero Marketing and Supply Company, San Antonio, Texas, has been awarded a maximum $491,703,924 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for aviation turbine fuel and naval fuel. This contract was a competitive acquisition with 16 offers received. This is a one-year base contract with a 30-day carry-over period and no option periods. Locations of performance are Texas and California, with a Sept. 30, 2015 performance completion date. Using service is Defense Logistics Agency Energy. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Virginia (SP0600-14-D-0507). (Note: This contract was awarded Aug. 8, 2014.)

ExxonMobile Fuels Lubricants & Specialties Marketing Co., Fairfax, Virginia, has been awarded a maximum $373,923,333 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for aviation turbine fuel and naval fuel. This contract was a competitive acquisition with 16 offers received. This is a one-year base contract with a 30-day carry-over period and no option periods. Locations of performance are Virginia and California, with an Oct. 30, 2015 performance completion date. Using service is Defense Logistics Agency Energy. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Virginia (SP0600-14-D-0489). (Note: This contract was awarded Aug. 8, 2014.)

Equilon Enterprises, doing business as Shell Oil Products US, Houston, Texas, has been awarded a maximum $349,749,657 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for aviation turbine fuel. This contract was a competitive acquisition with 16 offers received. This is a one-year base contract with a 30-day carry-over period and no option periods. Locations of performance are Texas and California, with an Oct. 30, 2015 performance completion date. Using service is Defense Logistics Agency Energy. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Virginia (SP0600-14-D-0490). (Note: This contract was awarded Aug. 8, 2014.)

Petro Star Inc.,* Anchorage, Alaska, has been awarded a maximum $168,337,222 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for aviation turbine fuel. This contract was a competitive acquisition with 16 offers received. This is a one-year base contract with a 30-day carry-over period and no option periods. Locations of performance are Alaska and California, with a Sept. 30, 2015 performance completion date. Using service is Defense Logistics Agency Energy. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Virginia (SP0600-14-D-0501). (Note: This contract was awarded Aug. 8, 2014.)

Hawaii Independent Energy,* Kapolei, Hawaii, has been awarded a maximum $163,945,596 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for aviation turbine fuel. This contract was a competitive acquisition with 16 offers received. This is a one-year base contract with a 30-day carry-over period and no option periods. Location of performance is Hawaii, with a Sept. 30, 2015 performance completion date. Using service is Defense Logistics Agency Energy. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Virginia (SP0600-14-D-0493). (Note: This contract was awarded Aug. 8, 2014.)

Western Refining Company, L.P., El Paso, Texas, has been awarded a maximum $141,583,656 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for aviation turbine fuel. This contract was a competitive acquisition with 16 offers received. This is a one-year base contract with a 30-day carry-over period and no option periods. Location of performance is Texas, with a Sept. 30, 2015 performance completion date. Using service is Defense Logistics Agency Energy. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Virginia (SP0600-14-D-0499). (Note: This contract was awarded Aug. 8, 2014.)

Chevron USA Inc., San Ramon, California, has been awarded a maximum $104,455,466 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for aviation turbine fuel. This contract was a competitive acquisition with 16 offers received. This is a one-year base contract with a 30-day carry-over period and no option periods. Locations of performance are California and Utah, with a Sept. 30, 2015 performance completion date. Using service is Defense Logistics Agency Energy. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Virginia (SP0600-14-D-0506). (Note: This contract was awarded Aug. 8, 2014.)

BP West Coast Products, Blaine, Washington, has been awarded a maximum $59,079,000 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for aviation turbine fuel. This contract was a competitive acquisition with 16 offers received. This is a one-year base contract with a 30-day carry-over period and no option periods. Location of performance is Washington, with a Sept. 30, 2015 performance completion date. Using service is Defense Logistics Agency Energy. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Virginia (SP0600-14-D-0508). (Note: This contract was awarded Aug. 8, 2014.)

Phillips 66 Company, Bartlesville, Oklahoma, has been awarded a maximum $33,490,878 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for aviation turbine fuel. This contract was a competitive acquisition with 16 offers received. This is a one-year base contract with a 30-day carry-over period and no option periods. Locations of performance are Oklahoma, Texas, and New Mexico, with a Sept. 30, 2015 performance completion date. Using service is Defense Logistics Agency Energy. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Virginia (SP0600-14-D-0492). (Note: This contract was awarded Aug. 8, 2014.)

Epic Aviation LLC,* Salem, Oregon, has been awarded a maximum $12,002,258 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for aviation turbine fuel. This contract was a competitive acquisition with 16 offers received. This is a one-year base contract with a 30-day carry-over period and no option periods. Locations of performance are Oregon and California, with a Sept. 30, 2015 performance completion date. Using service is Defense Logistics Agency Energy. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Virginia (SP0600-14-D-0502). (Note: This contract was awarded Aug. 8, 2014.)

Calumet Montana Refining LLC, Great Falls, Montana, has been awarded a maximum $9,474,317 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for aviation turbine fuel. This contract was a competitive acquisition with 16 offers received. This is a one-year base contract with a 30-day carry-over period and no option periods. Location of performance is Montana, with a Sept. 30, 2015 performance completion date. Using service is Defense Logistics Agency Energy. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Virginia (SP0600-14-D-0497). (Note: This contract was awarded Aug. 8, 2014.)

NAVY

General Electric Co., Lynn, Massachusetts, is being awarded a $311,491,670 modification to a previously awarded firm-fixed-price contract (N00019-11-C-0045) for the procurement of 75 Lot 14 F/A-18E/F F414-GE-400 engines and associated devices for U.S. Navy (48 install) and for the government of Australia (24 install and three spare engines). In addition, this modification provides for the procurement of after burner modules, fan modules, high pressure combustor modules, combustor modules, and high and low pressure turbine modules for the U.S. Navy and the government of Australia. Work will be performed in Lynn, Massachusetts (59 percent); Hooksett, New Hampshire (18 percent); Rutland, Vermont (12 percent); and Madisonville, Kentucky (11 percent), and is expected to be completed in September 2016. Fiscal 2013 and fiscal 2014 aircraft procurement (Navy) and foreign military sales funds in the amount of $311,491,642 will be obligated at time of award, none of which will expire at the end of the current fiscal year. This modification combines purchases for the U.S. Navy ($194,856,028; 63 percent) and the government of Australia ($116,635,642; 37 percent) under the Foreign Military Sales Program. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity.

PAE Applied Technologies LLC, Fort Worth, Texas, is being awarded a $69,783,348 cost-plus-fixed-fee contract to procure range engineering, and operations and maintenance services in support of the Naval Air Warfare Center Aircraft Division’s Atlantic Test Range and Atlantic Targets and Marine Operations Division. These support services include system operations, laboratory and field testing, marine operations and target support services, engineering, range sustainability, maintenance, data reduction and analysis. Work will be performed in Patuxent River, Maryland, and is expected to be completed in August 2015. Fiscal 2014 Navy working capital funds in the amount of $5,417,240 are being obligated at time of award, none of which will expire at the end of the current fiscal year. This contract was competitively procured via an electronic request for proposals, and two offers were received. The Naval Air Warfare Center Aircraft Division, Patuxent River, Maryland, is the contracting activity (N00421-14-C-0038).

G4S Parsons Pacific LLC, Palm Beach Gardens, Florida, is being awarded a $63,561,125 modification under a previously awarded firm-fixed-price, indefinite-delivery/indefinite-quantity contract (N62742-12-D-3601) to exercise 12 months of the second option period for base operations support services at U.S. Navy Support Facility, Diego Garcia. The work to be performed provides for general management and administration services; command and staff; public safety; air operations; port operations; supply; morale, welfare and recreation support; galley; bachelor quarters; facilities support; utilities; base support vehicles and equipment; and environmental to provide integrated Base Operating Services. The total contract amount after award of this modification will be $175,643,963. Work will be performed in Diego Garcia, British Indian Ocean Territory, and work for this option period is expected to be competed August 2015. Fiscal 2014 operation and maintenance (Navy and Air Force), fiscal 2014 non-appropriated funds and fiscal 2015 (subject to availability) funds in the amount of $45,903,435 are obligated on this award; $23,508,201 will expire at the end of the current fiscal year; $22,395,234 is subject to the availability of funds for the next fiscal year. The Naval Facilities Engineering Command Pacific, Pearl Harbor, Hawaii, is the contracting activity.

Lockheed Martin Mission Systems and Training, Manassas, Virginia, is being awarded a not-to-exceed $59,728,305 modification to a previously awarded contract (N00024-13-C-5225) for the Navy’s fiscal 2014 AN/SQQ-89A(V)15 Surface Ship Undersea Warfare (USW) System and shore site development systems. The AN/SQQ-89A(V)15 is a USW combat system with the capabilities to search, detect, classify, localize and track undersea contacts, and to engage and evade submarines, mine-like small objects and torpedo threats. The contract is for development and production of the Technical Insertion 14 baseline of the AN/SQQ-89A(V)15 USW systems. This contract combines purchases for the U.S. Navy and the government of Japan (25.4 percent) under the Foreign Military Sales Program. Work will be performed in Lemont Furnace, Pennsylvania (56 percent); Syracuse, New York (23 percent); Clearwater, Florida (14 percent); and Owego, New York (7 percent), and is expected to be completed by August 2016. Fiscal 2014 other procurement (Navy);foreign military sales; fiscal 2013, 2014 shipbuilding and conversion (Navy); and fiscal 2014 research and development contract funds in the amount of $29,864,153 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity.

G4S Government Solutions Inc., Palm Beach Gardens, Florida, is being awarded a $24,435,969 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for base operating services at Naval Base Guantanamo Bay. Base operating support services will include family housing, facility management, facility investment, other (swimming pools), custodial, pest control, integrated solid waste management, grounds maintenance and landscaping, base support vehicles and equipment, electrical, wastewater, water, and limited facilities support functions. The maximum dollar value, including the base period and four option years, is $117,844,933. Work will be performed in Guantanamo Bay, Cuba, and is expected to be completed by November 2015. No funds will be obligated at time of award and no funds will expire at the end of the current fiscal year. Funds will be obligated on individual task orders as they are issued. This contract was competitively procured via the Navy Electronic Commerce Online website with five proposals received. The Naval Facilities Engineering Command, Southeast, Jacksonville, Florida, is the contracting activity (N69450-14-D-7999).

Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $46,197,710 cost-plus-fixed-fee, fixed-price-incentive firm modification to a previously awarded advance acquisition contract (N00019-13-C-0008) for production non-recurring technical assistance in support of F-35 Lightning II Joint Strike Fighter aircraft for the U.S. Marine Corps, U.S. Air Force, U.S. Navy, and international partners. Work will be performed in El Segundo, California (38 percent); Fort Worth, Texas (24 percent); Samlesbury, United Kingdom (16.5 percent); San Diego, California (14 percent); Orlando, Florida (3.4 percent); Nashua, New Hampshire (2.3 percent); Palmdale, California (1.2 percent); Marietta, Georgia (0.3 percent); Amityville, New York (0.2 percent); Laval, Canada (0.1 percent), and is expected to be completed in May 2017. Fiscal 2012 aircraft procurement (Air Force); fiscal 2013 aircraft procurement (Navy and Marine Corps); and international partner funds in the amount of $46,197,710 are being obligated at time of award, $18,185,731 of which will expire at the end of the current fiscal year. This modification combines purchases for the U.S. Air Force ($18,185,731; 39.3 percent); U.S. Navy ($9,092,864; 19.7 percent); U.S. Marine Corps ($9,092,864; 19.7 percent), and international partners ($9,826,251; 21.3 percent). The Naval Air Systems Command, Patuxent River, Maryland, is the contracting authority.

ARMY

Bristol General Contractors LLC,* Anchorage, Alaska (W912PP-14-D-0021); Grancor Enterprises Inc., Albuquerque, New Mexico (W912PP-14-D-0022); JWC CMS JV, Alamogordo, New Mexico (W912PP-14-D-0023); Rocky Mountain Excavating Inc., Albuquerque, New Mexico (W912PP-14-D-00240); and Sheffield Korte Joint Venture, Lawton, Oklahoma (W912PP-14-D-0025), were awarded a $49,000,000 firm-fixed-price, indefinite- delivery/indefinite-quantity multiple award task order contract to design/build and design-bid-build vertical construction for the Albuquerque District, U.S. Army Corps of Engineers. Funding and work location will be determined with each order with an estimated completion date of Aug. 8, 2016. Bids were solicited via the Internet with 28 received. U.S. Army Corps of Engineers, Albuquerque, New Mexico, is the contracting activity. 

AIR FORCE

Northrop Grumman Technical Services Inc., Hill Air Force Base, Utah, has been awarded a $12,597,184 cost-plus-incentive-fee modification (P04014) to F42610-98-C-0001 for the ICBM Operational Software Sustainment Program (IOSSP). The total cumulative face value of the contract is $9,892,257,714. The contract modification provides for the exercise of option CLIN 7885 for the sustainment of the IOSSP of the ICBM weapon system under the ICBM partial bridge contract. Work will be performed at Hill Air Force Base, Utah, and work is expected to be completed by Sept. 30, 2015. Fiscal 2014 operations and maintenance funds in the amount of $12,030,311 are being obligated at time of award. Air Force Nuclear Weapons Center/PZBE, Hill Air Force Base, Utah, is the contracting activity.

*Small business

READOUT: PRESIDENT OBAMA'S CALL WITH PRIME MINISTER RENZI OF ITALY

FROM:  THE WHITE HOUSE 

Readout of the President's Call with Prime Minister Renzi of Italy

The President spoke this morning with Italian Prime Minister Matteo Renzi about the latest developments in Iraq, Libya, and Ukraine, as well as the Ebola outbreak in West Africa.  On Iraq, the two leaders agreed on the need to ensure humanitarian assistance is reaching vulnerable Iraqis, continue to seek the safety of the civilians on Mount Sinjar, and work together to develop options that will secure the safety of the civilians on Mount Sinjar.  Renzi expressed his support for the United States’ efforts in Iraq.  Both leaders noted the urgency of efforts to counter the threat ISIL poses against all Iraqis and discussed the latest developments in Iraq’s political transition.  On Ukraine, the President and Prime Minister considered the developing situation and reiterated that any intervention under the guise of “humanitarian” assistance must be provided only with the formal, express consent and authorization of the Government of Ukraine, and noted ongoing efforts by the Ukrainian government to deliver humanitarian aid through the ICRC and other recognized international organizations.  They agreed that any Russian steps not in accordance with these requirements would be unacceptable, would violate international law, and would lead to additional sanctions.  On Libya, they emphasized their support for the democratically-elected Council of Representatives and the need to encourage full participation by all elected members while working to end the fighting between militias.  Regarding the growing Ebola outbreak in West Africa, the leaders supported World Health Organization efforts to assist national health services in the region, and agreed on the need for the international provision of additional resources to this effort.

SECRETARY KERRY MAKES STATEMENT ON STEP TO FORM GOVERNMENT IN IRAQ

FROM:  U.S. STATE DEPARTMENT 

U.S. Welcomes Important Step in Iraq's Government Formation Process

Press Statement

John Kerry

Secretary of State

Washington, DC

August 11, 2014

---

The United States welcomes Iraqi President Fuad Masum’s charging of the nominee of the largest bloc in the Council of Representatives, Dr. Haider Al-Abadi, with the formation of a new government. This signifies the successful completion of the third step in Iraq’s constitutionally mandated government formation process, following the election of the Speaker of Parliament and the election of the President of the Republic in July.

The United States applauds President Masum’s fulfillment of his constitutional duties and urges the Prime Minister-designate to form a government that is representative of the Iraqi people and inclusive of Iraq’s religious and ethnic identities. The Prime-Minister designate should present the members of his proposed new government to the Council of Representatives consistent with Iraq’s constitutional timeline.

The United States will continue to support Iraq’s democratic process and stand with the Iraqi people in their fight against terrorism.

READOUT: PRESIDENT OBAMA'S CALL WITH UKRAINE'S PRESIDENT POROSHENKO

FROM:  THE WHITE HOUSE 

Readout of the President’s Call with President Poroshenko of Ukraine

The President spoke this morning with Ukrainian President Petro Poroshenko about the ongoing crisis in eastern Ukraine.  President expressed his strong support for Ukraine’s sovereignty and territorial integrity.  The two leaders agreed that any Russian intervention in Ukraine without the formal, express consent and authorization of the Ukraine government would be unacceptable and a violation of international law.  President Poroshenko also noted the continued shelling of Ukraine’s territory from Russia.  President Poroshenko updated the President on his engagement with the International Committee of the Red Cross (ICRC) on the effort to deliver multilateral humanitarian aid to the distressed populations in eastern Ukraine.  The President noted the urgency of such humanitarian efforts and encouraged President Poroshenko to continue to exercise restraint and caution in military operations in order to avoid civilian casualties.  In light of the ongoing violence and instability, the President and President Poroshenko agreed that all parties should prioritize diplomatic efforts toward finding a political resolution to the crisis.

VICE PRESIDENT BIDEN'S READOUTS WITH IRAQI PRESIDENT FUAD MASUM AND PRIME MINISTER-DESIGNATE HAIDER AL-ABADI

FROM:  THE WHITE HOUSE 

Readout of the Vice President’s Call with Iraqi President Fuad Masum

Vice President Biden called Iraqi President Fuad Masum this morning to discuss the ongoing government formation process in Baghdad and to express the United States’ full support for his role as guarantor of the Iraqi Constitution. President Masum discussed with the Vice President the nomination of Hayder al-Abadi to be the next prime minister. The Vice President commended Masum for meeting this key milestone and reiterated President Obama’s repeated calls for the timely creation of a new, more inclusive government that will be able to address the legitimate concerns of all Iraqis. Vice President Biden also emphasized President Obama’s desire to boost coordination with a new Iraqi government and Iraqi Security Forces to roll back gains by the Islamic State of Iraq and Levant. President Masum thanked the Vice President for his continued support.

Readout of the Vice President’s Call with Iraqi Prime Minister-designate Haider al-Abadi

Vice President Joe Biden called Iraqi Prime Minister-designate Haider al-Abadi to congratulate him on his nomination to form a new government and develop a national program pursuant to Iraq’s constitutional process. The Prime Minister-designate expressed his intent to move expeditiously to form a broad-based, inclusive government capable of countering the threat of the Islamic State of Iraq and the Levant, and building a better future for Iraqis from all communities. The Vice President relayed President Obama’s congratulations and restated his commitment to fully support a new and inclusive Iraqi government, particularly in its fight against ISIL. The two leaders also discussed practical steps towards fully activating the bilateral Strategic Framework Agreement in all of its fields, including economic, diplomatic, and security cooperation. Prime Minister-designate Abadi thanked Vice President Biden for the call, and they agreed to stay in regular communication as the government formation process proceeds.

STATE OF KANSAS CHARGED WITH SECURITIES FRAUD BY SEC

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 

The Securities and Exchange Commission today announced securities fraud charges against the state of Kansas stemming from a nationwide review of bond offering documents to determine whether municipalities were properly disclosing material pension liabilities and other risks to investors.  According to the SEC’s cease-and-desist order instituted against Kansas, the state’s offering documents failed to disclose that the state’s pension system was significantly underfunded, and the unfunded pension liability created a repayment risk for investors in those bonds.

Shortly after its nationwide review of municipal bond disclosures began, the SEC brought its first-ever enforcement action against a state when it sanctioned New Jersey for failing to disclose to investors that it was underfunding the state’s two largest pension plans.  Around the same time, the SEC began questioning the disclosures surrounding eight bond offerings through which Kansas raised $273 million in 2009 and 2010.  As the SEC began its inquiry, Kansas began adopting new policies and procedures to improve disclosures about its pension liabilities.  Kansas has now fully implemented those remedial actions, and has agreed to settle the SEC’s charges for its prior incomplete disclosures.

The SEC also charged Illinois last year for its misleading pension disclosures, and the state similarly implemented a number of remedial actions.

“We’re pleased that our actions have resulted in improved disclosure of pension liabilities in states that were not making investors aware of a significant repayment risk,” said Andrew Ceresney, director of the SEC Enforcement Division.  “Investors must be given adequate information to evaluate the impact of pension fund liability on a state’s overall financial condition.”

According to the SEC’s order against Kansas, the series of bond offerings were issued through the Kansas Development Finance Authority (KDFA) on behalf of the state and its agencies.  According to one study at the time, the Kansas Public Employees Retirement System (KPERS) was the second-most underfunded statewide public pension system in the nation.  In the offering documents for the bonds, however, Kansas did not disclose the existence of the significant unfunded liability in KPERS.  Nor did the documents describe the effect of such an unfunded liability on the risk of non-appropriation of debt service payments by the Kansas state legislature.  The SEC’s investigation found that the failure to disclose this material information resulted from insufficient procedures and poor communications between the KDFA and the Kansas Department of Administration, which provided the KDFA with the information to include in the offering materials.

“Kansas failed to adequately disclose its multi-billion-dollar pension liability in bond offering documents, leaving investors with an incomplete picture of the state’s finances and its ability to repay the bonds amid competing strains on the state budget,” said LeeAnn Ghazil Gaunt, chief of the SEC Enforcement Division’s Municipal Securities and Public Pensions Unit.  “In determining the settlement, the Commission considered Kansas’s significant remedial actions to mitigate these issues as well as the cooperation of state officials with SEC staff during the investigation.”

According to the SEC’s order, Kansas has since adopted new policies and procedures to help ensure that appropriate disclosures about pension liabilities are being made in its offering documents.  Kansas designated responsible parties in state agencies critical to the disclosure process, mandated closer communication and cooperation among those agencies, established a disclosure committee, and now requires annual training of key personnel.  Without admitting or denying the findings, Kansas consented to the SEC’s order to cease and desist from committing or causing any violations and any future violations of Sections 17(a)(2) and 17(a)(3) of the Securities Act of 1933.

The SEC’s investigation was conducted by Robert Hannan and Eric Werner in the Fort Worth Regional Office with assistance from members of the Municipal Securities and Public Pensions Unit including Joseph Chimienti, Creighton Papier, Jonathan Wilcox, and Mark Zehner (deputy chief).

DOD VIDEO: HAGEL: AIRSTRIKES AGAINST ISIL SUCCESSFUL

DARPA VIDEO: TESTIMONY TO HASC SUBCOMMITTEE ON INTELLIGENCE

NASA VIDEO: LDSD: SUPERSONIC TEST FLIGHT (HD)

NSF: "HELPING HEALTHCARE TECHNOLOGIES COMMUNICATE

FROM:  NATIONAL SCIENCE FOUNDATION 

Helping healthcare technologies communicate

Doctor develops open-source software to link healthcare systems at home and in hospitals

Julian Goldman, a physician at Massachusetts General Hospital, knows better than most the frustrations that doctors face when they're confronted with computer systems and devices that just won't communicate with each other.

The research team at his lab has been a pioneer in developing open-source software and standards designed to integrate the various technologies used in homes and hospitals. Goldman's lab created a computing platform called Open ICE (Integrated Clinical Environment) to begin to address these problems.

The effort, in turn, led to the development of a community of like-minded researchers and manufacturers that would like to break barriers in healthcare through better information exchange, better communication among and between medical devices and electronic health records, and ultimately through smart apps designed to improve patient safety and decrease the cost of health care.

"Our involvement with Smart America has been an exciting, six-month, wild ride," said Goldman, who co-chaired the Closed Loop Healthcare team with Marge Skubic, director of the Center for Eldercare and Rehabilitation Technology at the University of Missouri.

"We've all learned a lot from each other," he said. "Our contact, and our work together, has influenced our perception of our work, including how to make our own work more accessible to collaborators. That is extremely valuable and typically very hard to do."

The Smart America Expo brought together leaders from academia, industry and government to demonstrate the ways that smarter cyber-physical systems--sometimes called the Internet of Things--can lead to improvements in healthcare, transportation, energy and emergency response, and other critical areas.

-- Aaron Dubrow, NSF
Investigators
Tracy Rausch
Julian Goldman
Related Institutions/Organizations
Massachusetts General Hospital

SECRETARY KERRY'S BURMA PRESS AVAILABILITY AFTER MEETINGS

FROM:  U.S. STATE DEPARTMENT 

Press Availability on the Attended Ministerial Meetings

Press Availability

John Kerry

Secretary of State

Lake Garden Hotel

Naypyitaw, Burma

August 10, 2014

---

SECRETARY KERRY: Good afternoon, everybody. I want to thank President Thein Sein for his government’s warm welcome here during the course of this conference, for his leadership as chair of ASEAN, and for serving as the United States-ASEAN country coordinator.
Burma has made a significant amount of progress over the course of the last years, and when I was last here in 1999, I visited with Aung San Suu Kyi, who was then under house arrest. Today, she sits in parliament, and the people here are openly debating the future direction of this country. The Burmese people have made a very clear statement about their desire to build a democratic, peaceful, and economically vibrant country, and many have struggled and sacrificed in order to reach this stage.

But I do want to emphasize, despite the progress, there is still obviously a lot of work yet to be done, and the leaders that I met with acknowledged that and indicated a willingness and a readiness to continue to do that in order to ensure the full promise of human rights and of justice and of democracy in this country. So yes, there’s work to done – to be done, and we certainly are prepared to work hand in hand with the government in an effort to try to make sure we move continually in the direction that people want.

The government, among other things, still needs to complete the task – the difficult task – of ending the decades-long, multiple array of civil wars involving more than a dozen groups. And they need also to expand the space for civil society, protect the media, address land rights, prevent intercommunal violence, and enshrine into their laws basic freedoms. What is interesting is that some of the freedoms that people enjoy today, because the government has made a decision to permit it, are not exactly yet enshrined in the law themselves, and it is obviously vital that that occur.

The serious crisis in Rakhine State and elsewhere, profound development challenges to raise the country’s standard of living, ethnic and religious violence that still exists, fundamental questions regarding constitutional reform, and of course the role of the military – all of these remain significant challenges of the road ahead.

Next year’s election will absolutely be a benchmark moment for the whole world to be able to asses the direction that Burma is moving in. And it is important – in fact, beyond important – that that election be inclusive, accountable, open, free, fair, accessible to all, that it wind up being a credible election that leads to the peaceful transfer of power in 2016.

I discussed each of these issues directly with the president and the members of his cabinet and the chairmen of key committees and the speaker, and we had a long and – in fact, a long discussion that made us late for everything else the rest of the day. But it was – because it was important and because it was comprehensive that that occurred. Each of the leaders that I met with – the chairmen of committees, the speaker, the president, the members of his cabinet – they indicated that they recognized the job is not complete, they understand the difficulties, and they indicated a willingness to continue to move.

I invited the speaker and his key committee chairmen to come to Washington soon and to spend time with our legislators, with the members of the House and the Senate. And hopefully doing so, which is certainly the conviction that President Obama and I share, is that that kind of exchange can assist them and encourage them as they make decisions about their constitution and the reforms for the country.

One of the things that characterized by conversations with the president and his team was that we were both able to really talk very candidly and very directly about each of these issues. And we talked, I think and I hope, as friends about the full range of possibilities and the challenges facing Myanmar.

Myanmar’s potential is limitless, and it’s blessed by a rich diversity of people and by an abundant source of natural resources. But it’s ultimately up to the leaders to make the right choices in the days, months, and years ahead. If they do and if people in Myanmar can overcome the differences that exist between them, if they can join together in common purpose, then Myanmar can complete the transition to democracy. And the United States will absolutely remain a partner in the effort to help Myanmar be able to do that.

In the last two days, I participated also in five ministerial meetings – the ASEAN-U.S. ministerial, the East Asia Summit, the ASEAN Regional Forum, the Lower Mekong Initiative, and the Friends of the Lower Mekong. All of these meetings underscored the depth and the intensity of the United States engagement with Asia, and they reinforced and strengthened the role of the institutions, which are at the heart of the problem and the heart of the efforts to solve the problems that exist in the Asia Pacific.

In the effort to solve those problems, ASEAN is really a central player. ASEAN is central to regional peace, to stability, to prosperity. And during my meetings with ASEAN foreign ministers, we affirmed our commitment to sustainable economic growth and to regional development. And American companies are already investing responsibility in order to develop jobs and help to create the economic base that could be really transformative for the people of Myanmar.

Ultimately, it is our hope that those investments will produce initiatives, companies, exciting enterprises that can become models for good corporate behavior and improve the standard of living throughout the region. I’m very proud of what our businesses are doing and I look forward to their continued partnership in the effort to help Myanmar develop.

We’re also focused on our shared interest in protecting the environment. We took practical steps to deepen our cooperation with ASEAN on climate change, on – which is a challenge, obviously, that demands elevated urgency and attention from all of us. At the end of the day, some of you may have been there when they rolled out a logo for the meeting that will take place, which China and Malaysia will host, with respect for preparedness for disasters. And as the disasters were listed – the tsunami and the typhoon and one type of disaster after another that comes from the changes of the climate – it became apparent to all that there’s literally trillions of dollars of cost being spent now with greater prospect of that expenditure in the future, where all of it could be impacted by good decisions about energy policy and good decisions to deal with climate change ahead of time.

We also addressed key security issues. There was an extensive discussion on multiple occasions about the South China Sea. I expressed the concerns of many, which are shared, about the rise in tensions that have occurred. But we all underscored the importance of negotiations on a binding code of conduct. And I stressed the importance of everybody clarifying claims under international law and proceeding under the legal process through the law, through arbitration, and also through bilateral relationships in order to try to resolve these issues. And our hope is that the claimants ultimately can agree among themselves and proceed forward.

We did discuss the concept of freezing in place the actions that people choose to take on a purely voluntary basis. And these – this is a way of actually locking into place the very promises that people have already made under the Declarations of Conduct that were made in 2002. And I’m very pleased that there is positive language that came out in the communique issued by ASEAN foreign ministers yesterday as a result of that discussion that embraces this idea of resolving these issues in a thoughtful and peaceful way.

We also discussed North Korea and North Korea’s actions with respect to its nuclear program. These are actions which present a very serious threat to international peace and stability. I reaffirmed the commitment of the United States to the verifiable denuclearization of the Korean Peninsula. China joined in that, others. I think there is a unanimity within this meeting here – with one exception, needless to say, present this afternoon at the regional forum – about the need to adhere to the United Nations Security Council resolutions and to live up to the international standards with respect to nonproliferation.

So on behalf of President Obama and certainly from myself, I want to thank ASEAN for its committed partnership and very much look forward to continuing what has already been a very productive trip here to the region. I will be meeting with Aung San Suu Kyi later today. And I appreciate enormously the efforts of our hosts to have provided for a very constructive and comprehensive discussion over the course of these two days. And we certainly look forward to President Obama’s visit here in November, when the heads of state will meet to pick up where we left off today.

With that, I’d be delighted to open up to any questions.

MS. PSAKI: The first question will be from Anne Gearan of The Washington Post.

QUESTION: Thank you, Mr. Secretary. Two things quickly. On Myanmar, you’ve taken quite a lot of criticism from Congress, including from Democrats, that the Administration has moved too quickly and been too willing to take at face value the assurances from the Burmese leaders that they really were doing all of the things you’ve asked them to do and the things that I gather they’ve tried to show you today that they are doing. In your remarks a moment ago, you invited some Burmese leaders to come to Washington and I take it face its Congressional critics directly. What would you like to see come out of that kind of conversation? And what is your response to the sort of underlying criticism from Congress that you guys have been too eager to get this done quickly?

And then on the South China Sea, you said you were pleased by the language that was enshrined in the ASEAN document, but it doesn’t go quite as far as you all had hoped. China appears to still flatly disagree with the idea that binding international arbitration or the Law of the Sea ought to rule the day here. So where does this all leave you and what’s your next step? Thank you.

SECRETARY KERRY: Well, let me begin with this issue of whether we’re moving too quickly or not. We are not basing anything that we are doing in Myanmar on the basis of blind trust or some naive sense of what the challenges are. I just listed a long list of challenges, and I went through every single one of those challenges with our hosts in a very, very direct way. We talked about the need to end the civil war and the efforts that could be made to do it; we talked about the treatment of minorities; we talked about Rakhine State; we talked about the challenges of putting into law those things that people are allowed to do today but which might disappear in the future if they’re not put into law; we talked about constitutional reform.

The speaker particularly was enthusiastic about what America has done and the way America has done it and the kinds of things that our Constitution has enshrined and was very anxious to be able to come and interact with members of Congress in order to make some of the choices that they will be making as they go forward.

We talked about ethnic and religious violence, about the need to deal with these 12 or 15 or so groups that have been engaged in civil war. This is hard work, but you just don’t achieve results by the consequence of looking at somebody and ordering them to do it or telling them they either do it or else. This is country; these are the people with a history and with their own culture and with their own beliefs and aspirations and feelings and thoughts. And it is an amazing journey that has already been traveled to get to where we are today.

And there is no question about those things that have to happen to get to where we want to go. But I believe the Administration has acted very thoughtfully. Some of the sanctions have been reduced, not all. Sanctions are now very much focused on members of the junta and on key individuals who may still be representing a challenge to achieving some of these goals. But this is fundamentally a new government, in a new moment, with a possibility for an election next year.

Now is everything hunky-dory? No, not yet, absolutely not. And I think Aung San Suu Kyi, who I will visit with shortly, will be the first to say that, and I’ll be the second right behind her, saying that there are still things that need to be done. But the key is to have an effective manner of trying to achieve those things and to recognize where there may be a legitimate effort if, in fact, it is being exhibited.

And we will continue to work very, very carefully, without jumping ahead of anybody’s rights and without turning a blind eye to anything that violates our notion of fairness and accountability and human rights and the standards by which America always stands. And those will be forefront in all of our discussions, as they were throughout the last two days.

The other piece was on the --

QUESTION: South China Sea and whether this language goes far enough.

SECRETARY KERRY: No, I think the language does go far enough. I think we made the points that we came to make. We weren’t seeking to pass something, per se. We were trying to put something on the table that people could embrace. A number of countries have decided that’s what they’re going to do. It’s a voluntary process. We absolutely laid it out as a voluntary series of potential steps. And I think it has helped to be able to achieve the language that we do have. But by the same token, I think there’s a way to achieve some progress, and I think we’ll see some progress with respect to the South China Sea, based on the conversations that we’ve had here.

MS. PSAKI: The next question is from Aye Thu San of 7Day Daily.

QUESTION: Good evening, sir. So I would like to ask --

SECRETARY KERRY: Can you pull it very close so I can hear you? Thank you.

QUESTION: Yes. Good evening, sir. I would like to ask about the relation in United States foreign policy between Myanmar and United States. So in yesterday meeting with the President Thein Sein said to you United States will be – United States will (inaudible) the democratization process in Myanmar rather than talking about the criticisms. So Myanmar have many --

SECRETARY KERRY: I couldn’t hear that. I’m sorry. Rather than talking about what?

QUESTION: Rather than talking about the criticisms.

SECRETARY KERRY: Criticisms.

QUESTION: Yes, yes. Myanmar have many support from United States in the last three year. But Myanmar have to face conflict, human rights (inaudible) issue according to the Congress letter to you. So I will like to ask, how do you see on the democratization process in Myanmar in the last three year? And what is your comments and views on the United States foreign policy about Myanmar? Thank you.

SECRETARY KERRY: Well, let me make it clear to everybody – again, I will reiterate, I think I said this in my opening comments – we had a very frank discussion with the president and with his team. And we raised every single issue that exists with respect to this relationship. It was very comprehensive. We talked about human rights; we talked about the law; we talked about democracy and how you move to it; we talked about the election and the need for it to be open and free and fair; we talked about people’s full participation without penalty; we talked about journalists who recently have been arrested. We talked about all of these things and made it very clear that these are important changes that need to take place in the course of the evolution of Myanmar into a full democracy.

Now it doesn’t happen overnight anywhere. It didn’t happen overnight in the United States of America. We started out with a constitution that had slavery written into it before 100 years later it was finally written out of it. It sometimes takes time to manage change. Now that doesn’t allow you to turn a blind eye to things that are critical, and we’re not. You have to call them to account. And I believe we’ve been very clear about that.

Burma is undertaking very important changes right now, and it clearly faces significant challenges that take time to address. There are some people in the public life of Burma who don’t want to see those changes, and there are some people who are very passionate about them and do want to see them. And so that’s why there’s an election. But this relationship right now is not a relationship about Burma meeting U.S. demands every day. It’s about Burma meeting the potential of the country. And that’s what has to happen over the course of these next months, and particularly this next year leading into the election.

So during this visit, I made it very clear that the country needs to do more. Myanmar needs to do more, and we made that very, very clear. And it will not be able to reach its full potential, whether that’s foreign investment coming in or whether it’s the full participation of people in a democracy here in the country – it just won’t do it unless they address the issues that exist right here at home. And I think we made that very, very clear.

So we want to work with the government. We want to work with the people. And we will be very clear, as I have been here today and was in my conversations, about those things where greater progress needs to be made. But we also need to be realistic about what’s achievable at what pace and at what particular moment. We will never stop fighting for the human rights and basic rights of the people of Myanmar, Burma, whatever somebody chooses to call. That’s what we’re fighting for.

MS. PSAKI: Thank you, everyone.

SECRETARY KERRY: That’s it?

MS. PSAKI: Yes.

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

DOD VIDEO: EXACTO DEMOSTRATES FIRST-EVER GUIDED .50-CALIBAR BULLETS

SECRETARY KERRY'S REMARKS AT LOWER MEKONG INITIATIVE MINISTERIAL MEETING

FROM:  U.S. STATE DEPARTMENT

Remarks at the Lower Mekong Initiative Ministerial Meeting

Remarks

John Kerry

Secretary of State

Myanmar International Conference Center

Naypyitaw, Burma

August 9, 2014

---

Thank you very much, Mr. Minister, and again, we all thank you for your hospitality in convening us here and for your leadership. And we particularly are grateful for the efforts of your meeting through ASEAN as well as your efforts with the Lower Mekong Initiative. I also want to thank all of the foreign ministers of the LMI countries and the Secretary General of ASEAN for participating in this meeting.

This is, in my judgment, a very important initiative because this is an extraordinary river, which provides livelihood, movement of goods, commercial traffic, food, sustenance to millions of people. And it's a river that I got to know very well years ago. And I saw not only the natural beauty, but I got to see the remarkable amount of commerce and movement and importance of this river to the entire framework of the region. It is central to the economic lifeblood of the entire region. It sustains the lives of more than 70 million people.

So last winter, I had a chance to revisit the Ca Mau Peninsula, and I've spent some time on the Delta. In small boats, we were traveling around, looking at some of the impacts of the environment. It was very, very clear to me that the communities that I passed through are as connected and tied to that body of water as they ever have been. These are for understandable reasons. Vietnam is among the top rice exporters of the world, and 90 percent of their rice comes straight from the Mekong Delta.

Obviously, the waters of the Mekong Delta also provide a lot of other benefits, some of which like hydropower could even conflict with the other benefits. So you have this tension between the purposes, unless they're approached thoughtfully and correctly. We all know that the short-term economic gains, no matter how promising they are, cannot come at the expense of the long-term economic stability and ecosystem of the river.

I believe that all of us together have a responsibility and the ability to be able to find a way to build on the economic growth that this region is seeing and to increase the access to both energy and food at the same time. But we can only do that if we continue to make ourselves the thoughtful stewards of the Lower Mekong Basin, and it has to be a priority.

The United States sees the Lower Mekong Initiative as one primary means to promote prosperity among all five of the partner countries: Myanmar, Cambodia, Lao PDR, Thailand, and Vietnam. And we also see it as a critical means of achieving ASEAN's own goal of narrowing the development gap between ASEAN countries. That's part of the integrated economic zone that ASEAN seeks, or as it has been called, the ASEAN Economic Community.

So as we look to the next five years, we're prepared to pursue a path that is focused on the cross-cutting challenges that face all of the LMI partners, including the intersection of water, energy, and food security. We think we're already on our way with the recent success of signature programs like the Smart Infrastructure for the Mekong Program, the SIM Program, which connects U.S. Government officials to partners who need technical and scientific assistance pursuing sustainable development along the Mekong. We launched them last year, and we've already received a dozen requests for assistance from LMI-member countries. And progress on several of these requests is already underway.

With LMI's newly focused approach, we hope to even pool more resources to achieve clear concrete policy objectives. A big part of that will be the new LMI Eminent and Expert Persons Group, the EEPG, which we're very pleased to announce here today. This group will include government and nongovernment specialists from a wide range of nations. Together, they will serve as a sort of intellectual steering committee. They can help us find new ways to promote a sustainable future for the Mekong.

So we're very optimistic, and I believe we have reason to be. And that's why I'm asking the Counselor of the United States State Department, Tom Shannon, to travel to the region this fall to discuss these issues and to build on the work that we are doing here today.

I very much look forward to the conversation that we're about to have, as well as the meeting a little later on with the friends of the Lower Mekong. And I think it's possible for my co-chair to maybe streamline this a bit because I know we're running behind, and we could probably bring them in sooner. But I don't want to shorten anybody's ability to make the comments we need to make now.

Thank you, sir.