FROM: U.S. JUSTICE DEPARTMENT
Friday, December 20, 2013
Justice Department and Consumer Financial Protection Bureau Reach $98 Million Settlement to Resolve Allegations of Auto Lending Discrimination by Ally
Settlement Is Department’s Third Largest Fair Lending Agreement Ever and Largest Ever Auto Lending Agreement
The Department of Justice and the Consumer Financial Protection Bureau (CFPB) today announced the federal government’s largest auto loan discrimination settlement in history to resolve allegations that Detroit-based Ally Financial Inc. and Ally Bank have engaged in an ongoing nationwide pattern or practice of discrimination against African-American, Hispanic and Asian/Pacific Islander borrowers in their auto lending since April 1, 2011. The agreement is the first joint fair lending enforcement action by the department and CFPB. With this agreement, eight of the top 10 largest fair lending settlements in the department’s history have been under Attorney General Eric Holder’s leadership.
The settlement provides $80 million in compensation for victims of past discrimination by one of the nation’s largest auto lenders and requires Ally to pay $18 million to the CFPB’s Civil Penalty Fund. Ally also must refund discriminatory overcharges to borrowers for the next three years unless it significantly reduces disparities in unjustified interest rate markups. This system will create a strong financial incentive to eliminate discriminatory overcharges.
“With this largest-ever settlement in an auto loan discrimination case, we are taking a firm stand against discrimination in a critical lending market,” said Attorney General Eric Holder. “By requiring Ally to provide refunds to those who are overcharged because of their race or national origin, this agreement will ensure relief for Americans who are victimized. It will enable the Justice Department and the CFPB to work closely with Ally and others to prevent discriminatory practices in the future. And it will reinforce our determination to respond aggressively to discrimination in America’s lending markets – wherever it is found.”
The settlement resolves claims by the department and the CFPB that Ally discriminated by charging approximately 235,000 African-American, Hispanic and Asian/Pacific Islander borrowers higher interest rates than non-Hispanic white borrowers. The agencies claim that Ally charged borrowers higher interest rates because of their race or national origin, and not because of the borrowers’ creditworthiness or other objective criteria related to borrower risk. The average victim paid between $200 and $300 extra during the term of the loan. The Equal Credit Opportunity Act (ECOA) prohibits such discrimination in all forms of lending, including auto lending. Ally’s settlement with the DOJ, which is subject to court approval, was filed today in the U.S. District Court for the Eastern District of Michigan in conjunction with the DOJ’s complaint. Ally resolved the CFPB’s claims by entering into a public administrative settlement.
“Discrimination is a serious issue across every consumer credit market,” said CFPB Director Richard Cordray. “We are returning $80 million to hard-working consumers who paid more for their cars or trucks based on their race or national origin. We look forward to working closely with the Justice Department and Ally to make sure this serious issue will be addressed appropriately in the years ahead as well.”
Rather than taking applications directly from consumers, Ally makes most of its loans through over 12,000 car dealers nationwide who help their customers pay for their new or used car by submitting their loan application to Ally. Ally’s business practice, like most other major auto lenders, allows car dealers discretion to vary a loan’s interest rate from the price Ally initially sets based on the borrower’s objective credit-related factors. Dealers receive greater payments from Ally on loans that include a higher interest rate markup. The coordinated investigations by the department and the CFPB that preceded today’s settlement determined this system of subjective and unguided pricing discretion directly results in Ally’s qualified African-American, Hispanic and Asian/Pacific Islander borrowers paying more than qualified non-Hispanic white borrowers.
The agencies claim that Ally fails to adequately monitor its interest rate markups for discrimination or require dealers to document their markup decisions. Ally’s first effort to monitor for discrimination in interest rate markups began only earlier this year after it learned of the CFPB’s preliminary findings of discrimination, and resulted in only two dealers being sanctioned and subjected to nothing more than voluntary training.
“This settlement provides relief to those who were harmed by this discrimination,” said U.S. Attorney for the Eastern District of Michigan Barbara McQuade. “Lenders must consider an individual borrower’s credit worthiness, based on income, savings, credit history and other objective factors when determining the terms of a loan. This settlement will ensure that in the future, borrowers will be able to obtain loans from Ally based on their own credit history free from discrimination based on race or national origin.”
Today’s settlement represents the first resolution of the department’s joint effort with the CFPB to address discriminatory auto lending practices. The 2010 Dodd-Frank Act gave both the DOJ and the CFPB authority to take action against large banks like Ally for violating the ECOA. Although the department has filed previously filed lawsuits alleging violations of ECOA involving car loans, today is the first ECOA lawsuit against an auto lender that operates nationwide.
In addition to the $98 million in payments for its past conduct and requirement to refund future discriminatory charges, the settlement requires Ally to improve its monitoring and compliance systems. The settlement allows Ally to experiment with different approaches toward lessening discrimination and requires it to regularly report to the department and the CFPB on the results of its efforts as well as discuss potential ways to improve results. The department commends Ally for working cooperatively to reach an appropriate resolution of this case. The department looks forward to Ally’s commitment, as part of the settlement, to work with the Civil Rights Division and the CFPB to find improved ways to fairly charge all consumers while also fairly compensating auto dealers for the services they provide.
The department’s enforcement of fair lending laws is conducted by the Fair Lending Unit of the Housing and Civil Enforcement Section in the Civil Rights Division. Since the Fair Lending Unit was established in February 2010, it has filed or resolved 30 lending matters under the Fair Housing Act, ECOA and the Servicemembers Civil Relief Act. The settlements in these matters provide for a minimum of $775 million in monetary relief for impacted communities and more than 535,000 individual borrowers.
The settlement provides for an independent administrator to locate victims and distribute payments of compensation at no cost to borrowers whom the department and the CFPB identify as victims of Ally’s discrimination. The department and the CFPB will make a public announcement and post information on their websites once more details about the compensation process become available. Borrowers who are eligible for compensation from the settlement will be contacted by the administrator, and do not need to contact the department or the CFPB at this time. Individuals who have auto loan questions or would like to submit a complaint can contact the CFPB at (855) 411-2372.
The Civil Rights Division, the U.S. Attorney’s Office for the Eastern District of Michigan and the CFPB are members of the Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes.
Thursday, December 26, 2013
NSF ON STUDYING "SOCIAL BACTERIA"
FROM: NATIONAL SCIENCE FOUNDATION
"Social" bacteria that work together to hunt for food and survive under harsh conditions
Research into multi-cell bacterium could lead to new antibiotics or to development of new pest-resistant seeds
When considering the behavior of bacteria, the word "social" doesn't often come to mind.
Yet some bacteria are quite social, chief among them Myxococcus xanthus, a soil-dwelling bacterium that organizes itself into multi-cellular, three-dimensional structures made up of thousands of cells that work together to hunt for food and survive under harsh conditions.
"For the first 100 years of microbiology, researchers were trying to find model organisms to study bacteria, and most were selected because they had some medical or industrial significance influence, such as E. coli, and because they grow very well in the standard test tube," says Oleg Igoshin, an assistant professor of bioengineering at Rice University. "But when you base your choice on their behavior in a test tube, and not on social behavior or spatial structure, you lose some interesting species to study.
"The story is quite different for Myxococcus xanthus," he adds. "They are a very social bacteria that form really cool structures, and rely on each other for survival."
Myxococcus xanthus is "predatory," meaning it eats other microbes, although it is not harmful to humans. It is of great interest to researchers because of its self-made complex spatial formations, some even visible to the naked eye, and because it can kill efficiently and digest a wide range of microbial species.
"Their three-dimensional structures contain hundreds of thousands of bacteria, plus extra cellular material that holds the bacteria together like glue," says the National Science Foundation (NSF)-funded computational biologist, who is using both data-driven modeling and simulations to learn how M. xanthus behaves when there is sufficient food available, and when there is not. "We are trying to identify the mechanisms to understand how they achieve their multi-cellular behaviors."
Studying this organism addresses fundamental biological questions about how individual cells can break their symmetry to organize into these complicated many-celled compositions, teaching scientists about the evolution of multi-cellularity. "The most primitive form of life is single-cell life," Igoshin says. "The next step up would be going from single cells to multicellular organisms. These bacteria are somewhat in the middle."
When food is plentiful, these bacteria move in coordinated swarms, called ripples, often containing thousands of cells, which secrete enzymes into the environment to kill their prey and digest it outside their structure before taking in the resulting nutrients.
"M. xanthus has the ability to produce some powerful antibiotics that kill other species and enzymes that chew up the prey proteins into small segments," Igoshin says. "Single cells can't produce enough of these antibiotics or enzymes to effectively kill their prey, which is why they hunt together as a group."
But when food is scarce, M. xanthus takes another shape, forming itself into mounds of spores called fruiting bodies, where they can survive for a long time, sometimes for many years, until conditions improve and they can germinate again. "A single spore wouldn't survive," he says. "They need to be together."
The insights gained from a better understanding of how this bacterium functions potentially could help future researchers in designing new antibiotics, or possibly have a role in agricultural practices, such as developing new pest-resistant seeds. Moreover, deciphering the basic biology of multicellular organization can help to understand its more complex manifestations, such as embryonic development.
Igoshin is using M. xanthus as a model system for his computational tools, using approaches that involve both data analysis and simulation, both of which "have become a cornerstone of biological research in the modern era of biology," he says.
"I use reverse engineering approaches to look at these microscopic structures and try to figure out what these individual cells should do in order to produce this type of behavior," he adds. "I put in parameters such as size, velocity, flexibility, speed--some we can measure, some we can guess--and see whether the computer simulations will produce structures similar to those observed."
Igoshin is conducting his research under an NSF Faculty Early Career Development (CAREER) award, which he received in 2009. The award supports junior faculty who exemplify the role of teacher-scholars through outstanding research, excellent education, and the integration of education and research within the context of the mission of their organization. NSF is funding his work with $640,000 over five years.
He is collaborating with other experimental labs to study this organism, including Roy Welch, associate professor of biology at Syracuse University; Lawrence Shimkets, professor of biology at the University of Georgia; and Heidi Kaplan, associate professor of microbiology and genetics at the University of Texas-Houston Medical School.
As part of the grant's educational component, Igoshin and his colleagues created a new interdisciplinary graduate program at Rice offering doctoral degree in systems, synthetic, and physical biology, that began in the fall of 2013. Igoshin, who co-wrote the program proposal, serves on the program steering committee, and the admission and recruitment committee.
"Answering complex biological questions in the post-genomic era will require multidisciplinary approaches combining both experimental and computational methods" he says. "Our new program aims to educate a new generation of life-scientists that have truly interdisciplinary training and therefore can work together on these challenges."
-- Marlene Cimons, National Science Foundation
Investigators
Oleg Igoshin
"Social" bacteria that work together to hunt for food and survive under harsh conditions
Research into multi-cell bacterium could lead to new antibiotics or to development of new pest-resistant seeds
When considering the behavior of bacteria, the word "social" doesn't often come to mind.
Yet some bacteria are quite social, chief among them Myxococcus xanthus, a soil-dwelling bacterium that organizes itself into multi-cellular, three-dimensional structures made up of thousands of cells that work together to hunt for food and survive under harsh conditions.
"For the first 100 years of microbiology, researchers were trying to find model organisms to study bacteria, and most were selected because they had some medical or industrial significance influence, such as E. coli, and because they grow very well in the standard test tube," says Oleg Igoshin, an assistant professor of bioengineering at Rice University. "But when you base your choice on their behavior in a test tube, and not on social behavior or spatial structure, you lose some interesting species to study.
"The story is quite different for Myxococcus xanthus," he adds. "They are a very social bacteria that form really cool structures, and rely on each other for survival."
Myxococcus xanthus is "predatory," meaning it eats other microbes, although it is not harmful to humans. It is of great interest to researchers because of its self-made complex spatial formations, some even visible to the naked eye, and because it can kill efficiently and digest a wide range of microbial species.
"Their three-dimensional structures contain hundreds of thousands of bacteria, plus extra cellular material that holds the bacteria together like glue," says the National Science Foundation (NSF)-funded computational biologist, who is using both data-driven modeling and simulations to learn how M. xanthus behaves when there is sufficient food available, and when there is not. "We are trying to identify the mechanisms to understand how they achieve their multi-cellular behaviors."
Studying this organism addresses fundamental biological questions about how individual cells can break their symmetry to organize into these complicated many-celled compositions, teaching scientists about the evolution of multi-cellularity. "The most primitive form of life is single-cell life," Igoshin says. "The next step up would be going from single cells to multicellular organisms. These bacteria are somewhat in the middle."
When food is plentiful, these bacteria move in coordinated swarms, called ripples, often containing thousands of cells, which secrete enzymes into the environment to kill their prey and digest it outside their structure before taking in the resulting nutrients.
"M. xanthus has the ability to produce some powerful antibiotics that kill other species and enzymes that chew up the prey proteins into small segments," Igoshin says. "Single cells can't produce enough of these antibiotics or enzymes to effectively kill their prey, which is why they hunt together as a group."
But when food is scarce, M. xanthus takes another shape, forming itself into mounds of spores called fruiting bodies, where they can survive for a long time, sometimes for many years, until conditions improve and they can germinate again. "A single spore wouldn't survive," he says. "They need to be together."
The insights gained from a better understanding of how this bacterium functions potentially could help future researchers in designing new antibiotics, or possibly have a role in agricultural practices, such as developing new pest-resistant seeds. Moreover, deciphering the basic biology of multicellular organization can help to understand its more complex manifestations, such as embryonic development.
Igoshin is using M. xanthus as a model system for his computational tools, using approaches that involve both data analysis and simulation, both of which "have become a cornerstone of biological research in the modern era of biology," he says.
"I use reverse engineering approaches to look at these microscopic structures and try to figure out what these individual cells should do in order to produce this type of behavior," he adds. "I put in parameters such as size, velocity, flexibility, speed--some we can measure, some we can guess--and see whether the computer simulations will produce structures similar to those observed."
Igoshin is conducting his research under an NSF Faculty Early Career Development (CAREER) award, which he received in 2009. The award supports junior faculty who exemplify the role of teacher-scholars through outstanding research, excellent education, and the integration of education and research within the context of the mission of their organization. NSF is funding his work with $640,000 over five years.
He is collaborating with other experimental labs to study this organism, including Roy Welch, associate professor of biology at Syracuse University; Lawrence Shimkets, professor of biology at the University of Georgia; and Heidi Kaplan, associate professor of microbiology and genetics at the University of Texas-Houston Medical School.
As part of the grant's educational component, Igoshin and his colleagues created a new interdisciplinary graduate program at Rice offering doctoral degree in systems, synthetic, and physical biology, that began in the fall of 2013. Igoshin, who co-wrote the program proposal, serves on the program steering committee, and the admission and recruitment committee.
"Answering complex biological questions in the post-genomic era will require multidisciplinary approaches combining both experimental and computational methods" he says. "Our new program aims to educate a new generation of life-scientists that have truly interdisciplinary training and therefore can work together on these challenges."
-- Marlene Cimons, National Science Foundation
Investigators
Oleg Igoshin
FTC REPORTS TO CONGRESS ON "DO NOT CALL REGISTRY"
FROM: U.S. FEDERAL TRADE COMMISSION
The Federal Trade Commission published a biennial report to Congress focusing on the use of the Do Not Call Registry by both consumers and businesses over the past two years. The report also highlights how the FTC is responding to new technologies that have increased the number of illegal robocalls made to telephone numbers on the Do Not Call Registry.
As of September 2013, more than 223 million active numbers were registered for Do Not Call, an increase of more than 5.8 million registrations from the previous fiscal year. The Biennial Report to Congress Under the Do Not Call Registry Fee Extension Act of 2007 notes the FTC recently launched a mobile-friendly way for consumers to sign up for Do Not Call and register Do Not Call complaints, and that the agency received 27 percent of its registrations from mobile devices.
During fiscal year 2013, a total of 2,875 businesses and other entities paid more than $14 million to access the Do Not Call Registry. Another 27,626 entities were provided access, but are exempt from paying fees (because they access five or fewer area codes free of charge or are a charity).
The report notes that voice over internet protocol (VoIP), caller ID spoofing, and automated dialing technology have made it easier for individuals and companies who disregard the law to make high volumes of calls at very little cost. This led to an increase in illegal robocalls, which peaked at approximately 200,000 complaints to the FTC per month at the end of fiscal year 2012.
To combat the increase in illegal robocalls, the FTC hosted a robocall summit, sponsored a public challenge to develop technological solutions, and produced new resources for consumers. .
The Commission vote authorizing the report to Congress was 4-0.
The Federal Trade Commission published a biennial report to Congress focusing on the use of the Do Not Call Registry by both consumers and businesses over the past two years. The report also highlights how the FTC is responding to new technologies that have increased the number of illegal robocalls made to telephone numbers on the Do Not Call Registry.
As of September 2013, more than 223 million active numbers were registered for Do Not Call, an increase of more than 5.8 million registrations from the previous fiscal year. The Biennial Report to Congress Under the Do Not Call Registry Fee Extension Act of 2007 notes the FTC recently launched a mobile-friendly way for consumers to sign up for Do Not Call and register Do Not Call complaints, and that the agency received 27 percent of its registrations from mobile devices.
During fiscal year 2013, a total of 2,875 businesses and other entities paid more than $14 million to access the Do Not Call Registry. Another 27,626 entities were provided access, but are exempt from paying fees (because they access five or fewer area codes free of charge or are a charity).
The report notes that voice over internet protocol (VoIP), caller ID spoofing, and automated dialing technology have made it easier for individuals and companies who disregard the law to make high volumes of calls at very little cost. This led to an increase in illegal robocalls, which peaked at approximately 200,000 complaints to the FTC per month at the end of fiscal year 2012.
To combat the increase in illegal robocalls, the FTC hosted a robocall summit, sponsored a public challenge to develop technological solutions, and produced new resources for consumers. .
The Commission vote authorizing the report to Congress was 4-0.
Wednesday, December 25, 2013
RECENT DOD PHOTOS: CHRISTMAS HOLIDAY 2013
FROM: U.S. DEFENSE DEPARTMENT
U.S. soldiers and civilians help unload holiday gifts for a USO Christmas convoy tour during its stop on Forward Operating Base Gamberi, Afghanistan, Dec. 19, 2013. The USO visited several locations across Afghanistan, where it delivered presents to soldiers. U.S. Army photo by Sgt. 1st Class E.L. Craig.
U.S. Air Firce Capt. Christopher Bennett poses for a photograph Christmas Holiday party on Kandahar Airfield, Afghanistan, Dec. 22, 2013. Bennett is assigned to the 451st Expeditionary Aircraft Maintenance Squadron. U.S. Air Force photo by Senior Airman Alexandria Bandin.
Tuesday, December 24, 2013
U.S. DEFENSE DEPARTMENT CONTRACTS FOR DECEMBER 24, 2013
FROM: U.S. DEFENSE DEPARTMENT
CONTRACTS
AIR FORCE
General Atomics Aeronautical Systems, Inc., doing business as GA-ASI, Poway, Calif., has been awarded a $362,193,866 cost-plus-fixed-fee contract for Predator (MQ1)/Reaper (MQ9) Unmanned Aerial Systems contractor logistic support sustainment. Contract performance includes, but is not limited to, program management, logistics support, configuration management, technical manual and software maintenance, contractor field service representative support, inventory control point management, flight operations support, depot repair, and depot field maintenance. Work will be performed at Poway, Calif., and is expected to be completed Dec. 31, 2014. This award is the result of a sole-source acquisition. Fiscal 2014 operations and maintenance funds in the amount of $89,976,837 are being obligated at time of award. Air Force Life Cycle Management Center/WIKBA at Robins Air Force Base, Ga., is the contracting activity (FA8528-14-C-0001).
Gulfstream Aerospace Corp., Savannah, Ga., is being awarded a $22,458,901 modification (P00002) on firm-fixed-price contract (FA8106-13-D-0001) for contractor logistics support services for the C-37 aircraft. This is a three month extension of services on the existing contract. Work will be performed at Savannah, Ga., and is expected to be completed by March 2014. Fiscal 2014 Operations and Maintenance funds in the amount of $7,732,945 are being obligated at time of award. Air Force Life Cycle Management Center/WLKLB, Tinker Air Force Base, Okla., is the contracting activity.
Raytheon Intelligence and Information Systems, Aurora, Colo., has been awarded an unpriced change order (P00112) with a not-to-exceed of $8,595,748 on an existing contract (FA8807-10-C-0001) for M-Code Implementation on the Operational Control System. The contract modification is to assure implementation of M-Code Capabilities across OCX Block 1 and 2. Work will be performed at Aurora, Colo., and is expected to be completed by Aug. 31, 2016. Fiscal 2014 research and development funds will be obligated at definitization. The Air Force Space and Missile Systems Contracting Directorate, Los Angeles Air Force Base, Calif., is the contracting activity.
CORRECTION: The contract modification (P00024) released on Dec 13, 2013 to existing firm-fixed-price contract (FA8807-13-C-0001) to Boeing Co., Seal Beach Calif., listed an inaccurate award amount. The actual award amount was $56,867,404.
ARMY
Four Thirteen, Inc., Texarkana, Texas, (W911RQ-14-D-0004); Blackhawk Milcon LLC, San Antonio, Texas, (W911RQ-14-D-0005); Altec, Inc., Texarkana, Texas, (W911RQ-14-D-0006); PentaCon, LLC, Catoosa, Okla., (W911RQ-14-D-0007); American Contractor and Technology Inc., Scott, La., (W911RQ-14-D-0008); Abba Construction, Inc., Jacksonville, Fla., (W911RQ-14-D-0009); Jireh Group, LLC doing business as Blackwood Services, Texarkana, Texas, (W911RQ-14-D-0010); LeeTex Construction, LLC, Dallas, Texas, (W911RQ-14-D-0011) were awarded a $48,000,000 firm-fixed-price, multiple-award, indefinite-delivery/indefinite-quantity contract for construction, alteration, repair, and rehabilitation of buildings, highways and other real property at the Red River Army Depot, Texarkana, Texas. Funding will be determined with each order. Estimated completion date is Dec. 19, 2018. Bids were solicited via the internet with twenty-four received. Army Contracting Command, Red River Army Depot, Texarkana,
Texas is the contracting activity.
Computer Sciences Corp. was awarded an $11,420,438 modification (P00006) to contract W81K04-13-C-0001 for U.S. Army Reserve specialty medical training, equipment and site maintenance, administrative support and all training for combat support hospitals. Fiscal 2014 operations and maintenance (Army) funds in the amount of $11,420,438 were obligated at the time of the award. Estimated completion date is Dec. 31, 2017. Bids were solicited via the Internet with six received. Work will be performed in Dublin, Calif., Augusta, Ga., and Monroe, Wisc. U.S. Army Medical Command Contracting Center, Fort Sam Houston, Texas is the contracting activity.
CONTRACTS
AIR FORCE
General Atomics Aeronautical Systems, Inc., doing business as GA-ASI, Poway, Calif., has been awarded a $362,193,866 cost-plus-fixed-fee contract for Predator (MQ1)/Reaper (MQ9) Unmanned Aerial Systems contractor logistic support sustainment. Contract performance includes, but is not limited to, program management, logistics support, configuration management, technical manual and software maintenance, contractor field service representative support, inventory control point management, flight operations support, depot repair, and depot field maintenance. Work will be performed at Poway, Calif., and is expected to be completed Dec. 31, 2014. This award is the result of a sole-source acquisition. Fiscal 2014 operations and maintenance funds in the amount of $89,976,837 are being obligated at time of award. Air Force Life Cycle Management Center/WIKBA at Robins Air Force Base, Ga., is the contracting activity (FA8528-14-C-0001).
Gulfstream Aerospace Corp., Savannah, Ga., is being awarded a $22,458,901 modification (P00002) on firm-fixed-price contract (FA8106-13-D-0001) for contractor logistics support services for the C-37 aircraft. This is a three month extension of services on the existing contract. Work will be performed at Savannah, Ga., and is expected to be completed by March 2014. Fiscal 2014 Operations and Maintenance funds in the amount of $7,732,945 are being obligated at time of award. Air Force Life Cycle Management Center/WLKLB, Tinker Air Force Base, Okla., is the contracting activity.
Raytheon Intelligence and Information Systems, Aurora, Colo., has been awarded an unpriced change order (P00112) with a not-to-exceed of $8,595,748 on an existing contract (FA8807-10-C-0001) for M-Code Implementation on the Operational Control System. The contract modification is to assure implementation of M-Code Capabilities across OCX Block 1 and 2. Work will be performed at Aurora, Colo., and is expected to be completed by Aug. 31, 2016. Fiscal 2014 research and development funds will be obligated at definitization. The Air Force Space and Missile Systems Contracting Directorate, Los Angeles Air Force Base, Calif., is the contracting activity.
CORRECTION: The contract modification (P00024) released on Dec 13, 2013 to existing firm-fixed-price contract (FA8807-13-C-0001) to Boeing Co., Seal Beach Calif., listed an inaccurate award amount. The actual award amount was $56,867,404.
ARMY
Four Thirteen, Inc., Texarkana, Texas, (W911RQ-14-D-0004); Blackhawk Milcon LLC, San Antonio, Texas, (W911RQ-14-D-0005); Altec, Inc., Texarkana, Texas, (W911RQ-14-D-0006); PentaCon, LLC, Catoosa, Okla., (W911RQ-14-D-0007); American Contractor and Technology Inc., Scott, La., (W911RQ-14-D-0008); Abba Construction, Inc., Jacksonville, Fla., (W911RQ-14-D-0009); Jireh Group, LLC doing business as Blackwood Services, Texarkana, Texas, (W911RQ-14-D-0010); LeeTex Construction, LLC, Dallas, Texas, (W911RQ-14-D-0011) were awarded a $48,000,000 firm-fixed-price, multiple-award, indefinite-delivery/indefinite-quantity contract for construction, alteration, repair, and rehabilitation of buildings, highways and other real property at the Red River Army Depot, Texarkana, Texas. Funding will be determined with each order. Estimated completion date is Dec. 19, 2018. Bids were solicited via the internet with twenty-four received. Army Contracting Command, Red River Army Depot, Texarkana,
Texas is the contracting activity.
Computer Sciences Corp. was awarded an $11,420,438 modification (P00006) to contract W81K04-13-C-0001 for U.S. Army Reserve specialty medical training, equipment and site maintenance, administrative support and all training for combat support hospitals. Fiscal 2014 operations and maintenance (Army) funds in the amount of $11,420,438 were obligated at the time of the award. Estimated completion date is Dec. 31, 2017. Bids were solicited via the Internet with six received. Work will be performed in Dublin, Calif., Augusta, Ga., and Monroe, Wisc. U.S. Army Medical Command Contracting Center, Fort Sam Houston, Texas is the contracting activity.
LABOR DEPARTMENT ANNOUNCES $5 MILLION AWARD TO REDUCE CHILD LABOR IN MOROCCO
FROM: U.S. DEPARTMENT OF LABOR
$5M grant to reduce child labor in Morocco awarded by US Labor Department
WASHINGTON — The U.S. Department of Labor's Bureau of International Labor Affairs today announced the award of a $5 million cooperative agreement to Creative Associates International to implement a project to reduce child labor in Morocco.
The project aims to reduce child labor in the Marrakesh-Tensift-Al-Haouz region of Morocco by promoting children's participation in educational programs and delivering vocational training focused on sectors, such as farming and ecotourism. Additionally, it will offer support to youth of legal working age to secure quality employment opportunities.
"This grant will fund a multifaceted project to protect children and families in Morocco," said Deputy Undersecretary of Labor for International Affairs Carol Pier. "Especially for those children at risk of engaging in the worst forms of child labor, education and vocational training hold the promise of a safer and more secure economic future."
Creative Associates International will promote access to social services for families and help them improve their livelihoods by providing access to microlending and savings programs and other activities to increase household resilience. It will also strengthen the capacity of government at the national and local levels to address child labor and of civil society organizations to provide assistance to working children and their families.
The project will collaborate with key government agencies and ministries at the national, regional and local levels, including the Ministry of Employment and Social Affairs.
Since 1995, ILAB projects have rescued approximately 1.7 million children from exploitative child labor. The Labor Department has funded 275 such projects implemented by more than 65 organizations in 93 countries. ILAB currently oversees more than $245 million of active programming to combat the worst forms of child labor.
$5M grant to reduce child labor in Morocco awarded by US Labor Department
WASHINGTON — The U.S. Department of Labor's Bureau of International Labor Affairs today announced the award of a $5 million cooperative agreement to Creative Associates International to implement a project to reduce child labor in Morocco.
The project aims to reduce child labor in the Marrakesh-Tensift-Al-Haouz region of Morocco by promoting children's participation in educational programs and delivering vocational training focused on sectors, such as farming and ecotourism. Additionally, it will offer support to youth of legal working age to secure quality employment opportunities.
"This grant will fund a multifaceted project to protect children and families in Morocco," said Deputy Undersecretary of Labor for International Affairs Carol Pier. "Especially for those children at risk of engaging in the worst forms of child labor, education and vocational training hold the promise of a safer and more secure economic future."
Creative Associates International will promote access to social services for families and help them improve their livelihoods by providing access to microlending and savings programs and other activities to increase household resilience. It will also strengthen the capacity of government at the national and local levels to address child labor and of civil society organizations to provide assistance to working children and their families.
The project will collaborate with key government agencies and ministries at the national, regional and local levels, including the Ministry of Employment and Social Affairs.
Since 1995, ILAB projects have rescued approximately 1.7 million children from exploitative child labor. The Labor Department has funded 275 such projects implemented by more than 65 organizations in 93 countries. ILAB currently oversees more than $245 million of active programming to combat the worst forms of child labor.
"PIRACY OFF THE COAST OF SOMALIA: QUARTERLY UPDATE"
FROM: U.S. STATE DEPARTMENT
Contact Group on Piracy off the Coast of Somalia: Quarterly Update
Fact Sheet
Bureau of Political-Military Affairs
December 24, 2013
The Contact Group on Piracy off the Coast of Somalia was created on January 14, 2009 pursuant to UN Security Council Resolution 1851. This voluntary ad hoc international forum brings together over 80 countries, organizations, and industry groups with a shared interest in combating piracy. Chaired in 2013 by the United States, the Contact Group coordinates political, military, and non-governmental efforts to tackle piracy off the coast of Somalia, ensure that pirates are brought to justice, and support regional states to develop sustainable maritime security capabilities. The European Union will assume the chairmanship in 2014.
Through its five thematic working groups, the Contact Group draws on a wide range of international expertise and adopts a problem-solving approach to piracy, working closely with Somali officials from the central government and regional administrations and officials in Indian Ocean States. Working Group 1, chaired by the United Kingdom, focuses on operational naval coordination, information sharing, and capacity building; Working Group 2, chaired by Denmark, addresses legal and judicial issues; Working Group 3, chaired by the Republic of Korea, works closely with the shipping industry to enhance awareness and build capabilities among seafarers transiting the region; Working Group 4, chaired by Egypt, aims at raising public awareness of the dangers of piracy; and Working Group 5, chaired by Italy, focuses on disrupting the pirate criminal enterprise ashore, including the illicit financial flows associated with maritime piracy.
This unique international partnership is contributing to a significant decline in piracy off the Horn of Africa. Thanks in part to the Contact Group’s concerted efforts, there has not been a successful pirate attack on a commercial vessel off the Horn of Africa in more than a year and a half, and pirates no longer control a single hijacked vessel.
Recent Developments
• On November 18, the United Nations Security Council adopted Resolution 2125, renewing the call for international action to fight piracy off the Coast of Somalia.
• The Contact Group convened November 10-15 for Counter Piracy Week in Djibouti. This first ever extended duration gathering of the CGPCS included meetings of all five working groups, a number of stand-alone thematic discussions, and the 15th Plenary. In all, the event drew 55 delegations totaling approximately 220 participants. Notably, the first ever plenary session in the Horn of Africa included active participation by the Federal Government of Somalia and a number of regional partners in the fight against piracy. Participants agreed that, while significant progress has been made in the last two years, the underlying conditions that allowed piracy to flourish remain. Somalia will continue require significant capacity building assistance to ensure pirate gangs cannot return to peak. The 15th Plenary also marked the handover of the Contact Group chairmanship from the United States to the European Union, which will chair during 2014.
• On October 11, India detained the Sierra Leone-flagged S/V SEAMAN GUARD OHIO and later charged 33 men aboard for failing to produce papers authorizing the carriage of weapons in Indian waters. A U.S. maritime company, Advanfort, operates the ship with a crew that includes British, Estonian, Indian and Ukrainian nationals.
• On November 13, Japan’s parliament enacted a bill to allow security guards to carry rifles aboard Japanese-registered vessels to counter piracy in waters off Somalia and elsewhere. The new law allows armed guards employed by foreign security contractors to fire warning shots at approaching pirates.
• On December 3, France announced it would change its laws to allow private armed guards to protect its shipping fleet against pirates. News reports indicated that although tougher ship security and Western naval patrols have reduced attacks from Somali pirates, French ships are increasingly being targeted in the Gulf of Guinea off West Africa, where France has trade ties with former colonies.
Apprehensions at Sea
• On October 18, the Combined Task Force (CTF)-151 reported the capture of nine suspected pirates believed responsible for two attacks in the Indian Ocean. The RFA FORT VICTORIA, HMAS MELBOURNE and ROKS WANG GEON from CTF-151 were involved, as well as the European Union flagship HMLMS JOHAN DE WITT and a Seychelles based maritime patrol aircraft. Pirates exchanged gunfire with security personnel aboard a super tanker on October 11 before attacking a Spanish fishing vessel three days later. CTF-151 apprehended the suspects and destroyed two skiffs and associated pirate equipment.
• On November 10, the Danish warship HDMS ESBERN SNARE, part of NATO’s OPERATION OCEAN SHIELD, arrested nine suspected pirates in the Indian Ocean. The warship tracked down a pirate skiff and mother ship (a whaler) overnight after the suspects attacked the MV TORM Kansas, a Danish flagged oil tanker on November 9. A skiff of five armed pirates had approached the tanker, exchanging fire with private security guards on board before breaking off. On November 30, Seychelles agreed to try the suspects, which were then handed over.
Piracy Trials and Prosecution Support
• On November 26, seven Somalis convicted of piracy in Kenya were repatriated to Somalia by the UNODC upon the completion of their sentence. They were flown to Galkayo.
• Also in Kenya, judgment in the piracy case concerning an attack on the vessel ARIA has been delayed until 23 December 2013.
• Forty Somalis held in Maldives have been repatriated to Somalia by UNODC. They were detained on suspicion of engaging in piracy, but were not charged as Maldives has no legislation on the subject. They were held as prohibited immigrants prior to their return to Somalia. UNODC is engaging with Maldives to develop its piracy legislation.
• On November 14, a U.S. District Court Judge passed life sentences on the last two Somali pirates convicted of killing four Americans on a yacht off the Horn of Africa in 2011. The third convicted pirate was sentenced on November 12. All three were given 21 life sentences. Eleven others previously pled guilty and are serving life sentences.
• On November 5, there was a procedural delay in the Mauritius trial of nine suspected Somali pirates. One of the accused demanded the presence of the French officer who arrested him. The court advised the defendant to enter a motion to that effect.
• On October 30, a court in Madrid convicted six Somalis for piracy and sentenced them to between eight and 12 and a half years in jail for attacking a Spanish warship in 2012 off the coast of Somalia. The six were caught following a firefight when they tried to board the SPS PATINO, a Spanish navy supply ship supporting the European Union's OPERATION ATALANTA.
• On October 23, four Somali pirates were sentenced to seven years each in prison on by a Kenyan court that found them guilty of hijacking a fishing dhow in the Indian Ocean in 2010. The men were arrested by Spanish naval forces and handed over to Kenyan authorities.
• On October 18, a French court sentenced three Somali pirates to nine years in prison each for the 2009 hijacking off the Somali coast of a French yacht that led to the death of its skipper. The three pirates had asked for leniency, saying they were forced into piracy by lives of abject poverty. French troops stormed a sailboat in April 2009 and captured the trio during a bid to free the captain, his wife, their three-year-old son and two crew members.
• On November 26, a federal jury in the U.S. State of Virginia acquitted Ali Mohammed Ali of piracy charges in connection with the takeover of a Danish merchant ship, the CEC FUTURE, in the Gulf of Aden in 2008. Ali worked as a translator for both ship owners and pirates as they negotiated terms for release of the ship and crew. The jury deadlocked on two hostage-taking charges against Ali. U.S prosecutors said that they will retry Ali on those two allegations.
• On November 29 in Seychelles, the conviction for piracy of a Somali man was overturned on appeal. The man, who was originally sentenced in December 2010, claimed to be 16 years old at the time of the offences. He is being held in custody due to his immigration status and will be repatriated to Somalia by UNODC at the earliest opportunity.
Related Meetings
• On October 15-16, the United Nations’ Interregional Crime and Justice Research Institute hosted the second of a series of workshops for legal experts in Rome on to draft a code of conduct on Rules for the Use of Force by Privately Contracted Armed Security Personnel on board merchant ships.
• On November 8 and 9, UNODC conducted a tour for CGPCS Trust Fund donors in Puntland and Somaliland. Representatives from Denmark, DPA, the EU, Germany, UNODC HQ, Norway, the UK and the US were able to visit the projects in Garowe, Berbera and Hargeisa that they have supported through the Trust Fund.
Significant Developments
• On the night of 8 November 2013, Al-Shabaab fighters launched a deadly attack on Bosasso Prison in Puntland, which was substantially rebuilt in previous years by UNODC using money from the CGPCS Trust Fund. The Deputy Commander of the prison and one guard were killed. Prison defense forces fought off the attack and no prisoners escaped.
• The UN Assistant Secretary-General for Political Affairs told Counter-Piracy Week in Djibouti participants that the Trust Fund to Support Initiatives of States Countering Piracy off the Coast of Somalia (Trust Fund) will fund the Hostage Support Programme, administered by the UN Office on Drugs and Crime, for an additional 18 months.
• The Trust Fund Board of Directors also approved a project submitted by INTERPOL and the International Maritime Bureau which will support debriefing of former hostages held by Somali pirates in support of law enforcement investigations.
• RAPPICC, the Regional Anti-Piracy Prosecutions Intelligence Coordination Centre, changed its name to REFLECS3, the Regional Fusion Law Enforcement Centre for Safety and Security at Sea, to better describe its new three-part mission – combating transnational organized crime; improving maritime shipping information sharing; and coordinating local and regional capacity building programs. Additionally, the Seychelles government agreed to enact legislation to incorporate the Centre as a legal entity. The Steering Group also decided to invite countries from the East African and South Asian regions to join as new members.
• On November 22, the EU/UNODC launched its Programme to Support Maritime Security, known as MASE. The 5 million Euro (approx. 6.8 million USD) MASE programme will address maritime crime in the Indian Ocean including piracy, drugs and arms smuggling, human trafficking, illegal fishing and maritime pollution.
Hostages in Custody
• At least 49 seafarers remain in pirate custody, including:
-- 27 (Taiwanese, Chinese, Cambodian, Filipino, Vietnamese and Indonesian) from the F/V NAHAM 3, Omani-flagged, hijacked March 26, 2012, now aground in Somalia;
-- 11 (7 Bangladeshi, 2 Sri Lankan, 1 Indian, 1 Iranian) from the M/V ALBEDO, Malaysian-flagged, hijacked November 26, 2010, which sank at anchor on July 8, 2013, with a further 4 (Sri Lankans) missing;
-- 4 (Thais) from the M/V PRANTALAY 12, Thailand-flagged, held since April 18, 2010; which was grounded after the anchor chain broke July, 20, 2011; and
-- 7 (Indians) held since September 29, 2010 from M/V ASHPALT VENTURE, Panama-flagged; the ship and other crew were released April 15, 2011.
Contact Group on Piracy off the Coast of Somalia: Quarterly Update
Fact Sheet
Bureau of Political-Military Affairs
December 24, 2013
The Contact Group on Piracy off the Coast of Somalia was created on January 14, 2009 pursuant to UN Security Council Resolution 1851. This voluntary ad hoc international forum brings together over 80 countries, organizations, and industry groups with a shared interest in combating piracy. Chaired in 2013 by the United States, the Contact Group coordinates political, military, and non-governmental efforts to tackle piracy off the coast of Somalia, ensure that pirates are brought to justice, and support regional states to develop sustainable maritime security capabilities. The European Union will assume the chairmanship in 2014.
Through its five thematic working groups, the Contact Group draws on a wide range of international expertise and adopts a problem-solving approach to piracy, working closely with Somali officials from the central government and regional administrations and officials in Indian Ocean States. Working Group 1, chaired by the United Kingdom, focuses on operational naval coordination, information sharing, and capacity building; Working Group 2, chaired by Denmark, addresses legal and judicial issues; Working Group 3, chaired by the Republic of Korea, works closely with the shipping industry to enhance awareness and build capabilities among seafarers transiting the region; Working Group 4, chaired by Egypt, aims at raising public awareness of the dangers of piracy; and Working Group 5, chaired by Italy, focuses on disrupting the pirate criminal enterprise ashore, including the illicit financial flows associated with maritime piracy.
This unique international partnership is contributing to a significant decline in piracy off the Horn of Africa. Thanks in part to the Contact Group’s concerted efforts, there has not been a successful pirate attack on a commercial vessel off the Horn of Africa in more than a year and a half, and pirates no longer control a single hijacked vessel.
Recent Developments
• On November 18, the United Nations Security Council adopted Resolution 2125, renewing the call for international action to fight piracy off the Coast of Somalia.
• The Contact Group convened November 10-15 for Counter Piracy Week in Djibouti. This first ever extended duration gathering of the CGPCS included meetings of all five working groups, a number of stand-alone thematic discussions, and the 15th Plenary. In all, the event drew 55 delegations totaling approximately 220 participants. Notably, the first ever plenary session in the Horn of Africa included active participation by the Federal Government of Somalia and a number of regional partners in the fight against piracy. Participants agreed that, while significant progress has been made in the last two years, the underlying conditions that allowed piracy to flourish remain. Somalia will continue require significant capacity building assistance to ensure pirate gangs cannot return to peak. The 15th Plenary also marked the handover of the Contact Group chairmanship from the United States to the European Union, which will chair during 2014.
• On October 11, India detained the Sierra Leone-flagged S/V SEAMAN GUARD OHIO and later charged 33 men aboard for failing to produce papers authorizing the carriage of weapons in Indian waters. A U.S. maritime company, Advanfort, operates the ship with a crew that includes British, Estonian, Indian and Ukrainian nationals.
• On November 13, Japan’s parliament enacted a bill to allow security guards to carry rifles aboard Japanese-registered vessels to counter piracy in waters off Somalia and elsewhere. The new law allows armed guards employed by foreign security contractors to fire warning shots at approaching pirates.
• On December 3, France announced it would change its laws to allow private armed guards to protect its shipping fleet against pirates. News reports indicated that although tougher ship security and Western naval patrols have reduced attacks from Somali pirates, French ships are increasingly being targeted in the Gulf of Guinea off West Africa, where France has trade ties with former colonies.
Apprehensions at Sea
• On October 18, the Combined Task Force (CTF)-151 reported the capture of nine suspected pirates believed responsible for two attacks in the Indian Ocean. The RFA FORT VICTORIA, HMAS MELBOURNE and ROKS WANG GEON from CTF-151 were involved, as well as the European Union flagship HMLMS JOHAN DE WITT and a Seychelles based maritime patrol aircraft. Pirates exchanged gunfire with security personnel aboard a super tanker on October 11 before attacking a Spanish fishing vessel three days later. CTF-151 apprehended the suspects and destroyed two skiffs and associated pirate equipment.
• On November 10, the Danish warship HDMS ESBERN SNARE, part of NATO’s OPERATION OCEAN SHIELD, arrested nine suspected pirates in the Indian Ocean. The warship tracked down a pirate skiff and mother ship (a whaler) overnight after the suspects attacked the MV TORM Kansas, a Danish flagged oil tanker on November 9. A skiff of five armed pirates had approached the tanker, exchanging fire with private security guards on board before breaking off. On November 30, Seychelles agreed to try the suspects, which were then handed over.
Piracy Trials and Prosecution Support
• On November 26, seven Somalis convicted of piracy in Kenya were repatriated to Somalia by the UNODC upon the completion of their sentence. They were flown to Galkayo.
• Also in Kenya, judgment in the piracy case concerning an attack on the vessel ARIA has been delayed until 23 December 2013.
• Forty Somalis held in Maldives have been repatriated to Somalia by UNODC. They were detained on suspicion of engaging in piracy, but were not charged as Maldives has no legislation on the subject. They were held as prohibited immigrants prior to their return to Somalia. UNODC is engaging with Maldives to develop its piracy legislation.
• On November 14, a U.S. District Court Judge passed life sentences on the last two Somali pirates convicted of killing four Americans on a yacht off the Horn of Africa in 2011. The third convicted pirate was sentenced on November 12. All three were given 21 life sentences. Eleven others previously pled guilty and are serving life sentences.
• On November 5, there was a procedural delay in the Mauritius trial of nine suspected Somali pirates. One of the accused demanded the presence of the French officer who arrested him. The court advised the defendant to enter a motion to that effect.
• On October 30, a court in Madrid convicted six Somalis for piracy and sentenced them to between eight and 12 and a half years in jail for attacking a Spanish warship in 2012 off the coast of Somalia. The six were caught following a firefight when they tried to board the SPS PATINO, a Spanish navy supply ship supporting the European Union's OPERATION ATALANTA.
• On October 23, four Somali pirates were sentenced to seven years each in prison on by a Kenyan court that found them guilty of hijacking a fishing dhow in the Indian Ocean in 2010. The men were arrested by Spanish naval forces and handed over to Kenyan authorities.
• On October 18, a French court sentenced three Somali pirates to nine years in prison each for the 2009 hijacking off the Somali coast of a French yacht that led to the death of its skipper. The three pirates had asked for leniency, saying they were forced into piracy by lives of abject poverty. French troops stormed a sailboat in April 2009 and captured the trio during a bid to free the captain, his wife, their three-year-old son and two crew members.
• On November 26, a federal jury in the U.S. State of Virginia acquitted Ali Mohammed Ali of piracy charges in connection with the takeover of a Danish merchant ship, the CEC FUTURE, in the Gulf of Aden in 2008. Ali worked as a translator for both ship owners and pirates as they negotiated terms for release of the ship and crew. The jury deadlocked on two hostage-taking charges against Ali. U.S prosecutors said that they will retry Ali on those two allegations.
• On November 29 in Seychelles, the conviction for piracy of a Somali man was overturned on appeal. The man, who was originally sentenced in December 2010, claimed to be 16 years old at the time of the offences. He is being held in custody due to his immigration status and will be repatriated to Somalia by UNODC at the earliest opportunity.
Related Meetings
• On October 15-16, the United Nations’ Interregional Crime and Justice Research Institute hosted the second of a series of workshops for legal experts in Rome on to draft a code of conduct on Rules for the Use of Force by Privately Contracted Armed Security Personnel on board merchant ships.
• On November 8 and 9, UNODC conducted a tour for CGPCS Trust Fund donors in Puntland and Somaliland. Representatives from Denmark, DPA, the EU, Germany, UNODC HQ, Norway, the UK and the US were able to visit the projects in Garowe, Berbera and Hargeisa that they have supported through the Trust Fund.
Significant Developments
• On the night of 8 November 2013, Al-Shabaab fighters launched a deadly attack on Bosasso Prison in Puntland, which was substantially rebuilt in previous years by UNODC using money from the CGPCS Trust Fund. The Deputy Commander of the prison and one guard were killed. Prison defense forces fought off the attack and no prisoners escaped.
• The UN Assistant Secretary-General for Political Affairs told Counter-Piracy Week in Djibouti participants that the Trust Fund to Support Initiatives of States Countering Piracy off the Coast of Somalia (Trust Fund) will fund the Hostage Support Programme, administered by the UN Office on Drugs and Crime, for an additional 18 months.
• The Trust Fund Board of Directors also approved a project submitted by INTERPOL and the International Maritime Bureau which will support debriefing of former hostages held by Somali pirates in support of law enforcement investigations.
• RAPPICC, the Regional Anti-Piracy Prosecutions Intelligence Coordination Centre, changed its name to REFLECS3, the Regional Fusion Law Enforcement Centre for Safety and Security at Sea, to better describe its new three-part mission – combating transnational organized crime; improving maritime shipping information sharing; and coordinating local and regional capacity building programs. Additionally, the Seychelles government agreed to enact legislation to incorporate the Centre as a legal entity. The Steering Group also decided to invite countries from the East African and South Asian regions to join as new members.
• On November 22, the EU/UNODC launched its Programme to Support Maritime Security, known as MASE. The 5 million Euro (approx. 6.8 million USD) MASE programme will address maritime crime in the Indian Ocean including piracy, drugs and arms smuggling, human trafficking, illegal fishing and maritime pollution.
Hostages in Custody
• At least 49 seafarers remain in pirate custody, including:
-- 27 (Taiwanese, Chinese, Cambodian, Filipino, Vietnamese and Indonesian) from the F/V NAHAM 3, Omani-flagged, hijacked March 26, 2012, now aground in Somalia;
-- 11 (7 Bangladeshi, 2 Sri Lankan, 1 Indian, 1 Iranian) from the M/V ALBEDO, Malaysian-flagged, hijacked November 26, 2010, which sank at anchor on July 8, 2013, with a further 4 (Sri Lankans) missing;
-- 4 (Thais) from the M/V PRANTALAY 12, Thailand-flagged, held since April 18, 2010; which was grounded after the anchor chain broke July, 20, 2011; and
-- 7 (Indians) held since September 29, 2010 from M/V ASHPALT VENTURE, Panama-flagged; the ship and other crew were released April 15, 2011.
RECENT U.S. DEFENSE DEPARTMENT PHOTOS
FROM: U.S. DEFENSE DEPARTMENT
U.S. Marine Corps Cpl. Dylan Tucker patrols during an operation in Qul'ah Zer in Helmand province, Afghanistan, Dec. 20, 2013. Tucker, a rifleman, is assigned to India Company, 3rd Battalion, 7th Marine Regiment. U.S. Marine Corps photo by Lance Cpl. James Mast.
U.S. Marine Corps Lance Cpl. Richard Munoz provides security during an operation in Qul'ah Zer in Helmand province, Afghanistan, Dec. 20, 2013. Munoz, a rifleman, is assigned to India Company, 3rd Battalion, 7th Marine Regiment. U.S. Marine Corps photo by Lance Cpl. James Mast.
AFRICA COMMAND REPOSITIONS FORCES
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U.S. soldiers and East Africa Response Force soldiers depart a U.S. Air Force C-130 Hercules aircraft in Juba, Sudan, Dec. 18, 2013. The U.S. State Department requested the assistance of U.S. military forces in evacuating personnel from the embassy in Juba to Nairobi, Kenya, amid political and ethnic violence in South Sudan. DOD photo by Tech. Sgt. Micah Theurich, U.S. Air Force
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FROM: U.S. DEFENSE DEPARTMENT
Africa Command Repositions Forces to Increase Flexibility
By Jim Garamone
American Forces Press Service
WASHINGTON, Dec. 23, 2013 – The commander of U.S. Africa Command is repositioning forces in East Africa in an effort to attain maximum flexibility to respond to State Department requests, Pentagon spokesman Army Col. Steve Warren told reporters here today.
Warren also told reporters that three of the four U.S. personnel who were wounded Dec. 21 when they attempted to evacuate Americans from the town of Bor, South Sudan, will be evacuated to Landstuhl Army Hospital in Germany. The fourth will be evacuated when his condition stabilizes.
The four injured U.S. service members are currently in a hospital in Nairobi, the Kenyan capital. They were hit by small-arms fire when their Osprey aircraft attempted to land in Bor.
Based on the current situation in South Sudan, Army Gen. David M. Rodriguez, the commander of Africom, moved elements from the Special-Purpose Marine Air-Ground Task Force Crisis Response from Moron, Spain, to Camp Lemonnier, Djibouti.
“By positioning these forces forward, we are able to more quickly respond to crisis in the region, if required,” a defense official said. The Djiboutian government fully agrees with the movement.
The moves are precautionary, and there is risk associated with this or any other military operation, the colonel said.
“As everyone would expect, the combatant commander is repositioning forces in the region in an effort to give himself the maximum flexibility to respond to any follow-on request from the Department of State,” Warren said.
Defense Secretary Chuck Hagel has been following the situation very closely, and is in nearly continuous communication with the combatant commander, the official said.
There has been no discussion about the U.S. military helping reposition United Nations forces, Warren said.
Defense Department and other government contracted aircraft have evacuated more than 300 personnel out of South Sudan’s capital of Juba including about 100 yesterday.
HHS SAYS 123 ACCOUNTABLE CARE ORGANIZATIONS SHOULD IMPROVE MEDICARE
FROM: U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
More partnerships between doctors and hospitals strengthen coordinated care for Medicare beneficiaries
123 New Accountable Care Organizations Join Program to Improve Care for Medicare beneficiaries
Doctors, hospitals and other health care providers have formed 123 new Accountable Care Organizations (ACOs) in Medicare, providing approximately 1.5 million more Medicare beneficiaries with access to high-quality coordinated care across the United States, Health and Human Services Secretary Kathleen Sebelius announced today.
Doctors, hospitals and health care providers establish ACOs in order to work together to provide higher-quality coordinated care to their patients, while helping to slow health care cost growth. Since passage of the Affordable Care Act, more than 360 ACOs have been established, serving over 5.3 million Americans with Medicare. Beneficiaries seeing health care providers in ACOs always have the freedom to choose doctors inside or outside of the ACO. ACOs share with Medicare any savings generated from lowering the growth in health care costs when they meet standards for high quality care.
“Accountable Care Organizations are delivering higher-quality care to Medicare beneficiaries and are using Medicare dollars more efficiently,” Secretary Sebelius said. “This is a great example of the Affordable Care Act rewarding hospitals and doctors that work together to help our beneficiaries get the best possible care.”
“This program puts the control in the hands of physicians and allows them to take the lead in an innovative way to deliver the right care to the right patient at the right time,” said Kelly A. Conroy, executive director of the Palm Beach ACO and South Florida ACO. “We are honored to be a Medicare Shared Savings Program Accountable Care Organization, and after 18 months in the program, can proudly say that we have seen measurable success. We are so impressed with our participating physicians’ enthusiasm towards the cultural shift, and it demonstrates that physicians are primed for the future of medicine.”
The ACOs must meet quality standards to ensure that savings are achieved through improving care coordination and providing care that is appropriate, safe, and timely. The Centers for Medicare & Medicaid Services (CMS) evaluates ACO quality performance using 33 quality measures on patient and caregiver experience of care, care coordination and patient safety, appropriate use of preventive health services, and improved care for at-risk populations.
The new ACOs include a diverse cross-section of health care providers across the country, including providers delivering care in underserved areas. More than half of ACOs are physician-led organizations that serve fewer than 10,000 beneficiaries. Approximately 1 in 5 ACOs include community health centers, rural health clinics, and critical access hospitals that serve low-income and rural communities.
Affordable Care Act provisions have a substantial effect on reducing the growth rate of Medicare spending. Growth in Medicare spending per beneficiary hit historic lows during the 2010-2012 period, and this trend has continued into 2013. Projections by both the Office of the Actuary at CMS and the Congressional Budget Office estimate that Medicare spending per beneficiary will grow at approximately the rate of growth of the economy for the next decade, breaking a decades-old pattern of spending growth outstripping economic growth.
The next application period for organizations interested in participating in the Shared Savings Program beginning January 2015 will be in summer 2014.
More partnerships between doctors and hospitals strengthen coordinated care for Medicare beneficiaries
123 New Accountable Care Organizations Join Program to Improve Care for Medicare beneficiaries
Doctors, hospitals and other health care providers have formed 123 new Accountable Care Organizations (ACOs) in Medicare, providing approximately 1.5 million more Medicare beneficiaries with access to high-quality coordinated care across the United States, Health and Human Services Secretary Kathleen Sebelius announced today.
Doctors, hospitals and health care providers establish ACOs in order to work together to provide higher-quality coordinated care to their patients, while helping to slow health care cost growth. Since passage of the Affordable Care Act, more than 360 ACOs have been established, serving over 5.3 million Americans with Medicare. Beneficiaries seeing health care providers in ACOs always have the freedom to choose doctors inside or outside of the ACO. ACOs share with Medicare any savings generated from lowering the growth in health care costs when they meet standards for high quality care.
“Accountable Care Organizations are delivering higher-quality care to Medicare beneficiaries and are using Medicare dollars more efficiently,” Secretary Sebelius said. “This is a great example of the Affordable Care Act rewarding hospitals and doctors that work together to help our beneficiaries get the best possible care.”
“This program puts the control in the hands of physicians and allows them to take the lead in an innovative way to deliver the right care to the right patient at the right time,” said Kelly A. Conroy, executive director of the Palm Beach ACO and South Florida ACO. “We are honored to be a Medicare Shared Savings Program Accountable Care Organization, and after 18 months in the program, can proudly say that we have seen measurable success. We are so impressed with our participating physicians’ enthusiasm towards the cultural shift, and it demonstrates that physicians are primed for the future of medicine.”
The ACOs must meet quality standards to ensure that savings are achieved through improving care coordination and providing care that is appropriate, safe, and timely. The Centers for Medicare & Medicaid Services (CMS) evaluates ACO quality performance using 33 quality measures on patient and caregiver experience of care, care coordination and patient safety, appropriate use of preventive health services, and improved care for at-risk populations.
The new ACOs include a diverse cross-section of health care providers across the country, including providers delivering care in underserved areas. More than half of ACOs are physician-led organizations that serve fewer than 10,000 beneficiaries. Approximately 1 in 5 ACOs include community health centers, rural health clinics, and critical access hospitals that serve low-income and rural communities.
Affordable Care Act provisions have a substantial effect on reducing the growth rate of Medicare spending. Growth in Medicare spending per beneficiary hit historic lows during the 2010-2012 period, and this trend has continued into 2013. Projections by both the Office of the Actuary at CMS and the Congressional Budget Office estimate that Medicare spending per beneficiary will grow at approximately the rate of growth of the economy for the next decade, breaking a decades-old pattern of spending growth outstripping economic growth.
The next application period for organizations interested in participating in the Shared Savings Program beginning January 2015 will be in summer 2014.
A FAMILY WORKING TOGETHER IN A PYRAMID AND PONZI ENTERPRISE
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
SEC Charges Woman and Stepson for Involvement in Zeekrewards Pyramid and Ponzi Scheme; Parallel Criminal Charges and Plea Agreements Also Announced
On December 20, 2013, the Securities and Exchange Commission filed suit in the United States District Court for the Western District of North Carolina against Dawn Wright-Olivares and Daniel Olivares for their roles in perpetrating the fraudulent unregistered offer and sale of securities through Rex Venture Group LLC d/b/a ZeekRewards.com, an internet-based combined Ponzi and pyramid scheme. According to the Complaint, from approximately January 2011 until August 2012 when the ZeekRewards website was shut down, Rex Venture Group raised more than $850 million from approximately one million internet customers nationwide and overseas through the website. Both defendants have agreed to settle the Commission’s allegations against them, and their settlement papers were submitted to the Court for its consideration.
The Complaint alleged that defendants solicited investors through the internet and other means to participate in the ZeekRewards program, a self-described “affiliate advertising division” for the companion website, Zeekler.com, through which the defendants operated penny auctions. The ZeekRewards program offered customers several ways to earn money, two of which — the “Retail Profit Pool” and the “Matrix” — involved purchasing securities in the form of investment contracts. These securities offerings were not registered with the SEC as required under the federal securities laws.
According to the Complaint, Wright-Olivares and others lured investors to ZeekRewards by promising investors a share of the company’s daily net profits in the form of daily profit share awards. The company’s purported calculations consistently resulted in daily award averaging approximately 1.5 percent per day, fraudulently conveying the false impression that the company was extremely profitable. In fact, the daily award percentage was fabricated and investor payouts bore no relation to the company’s net profits. Approximately 98% of ZeekRewards’ total revenues and the “net profits” paid to investors were comprised of funds received from new investors in classic Ponzi scheme fashion. When the company was shut down in August 2012, it was teetering on collapse.
The Complaint further alleged that Wright-Olivares conceived of the idea for operating penny auctions, helped develop the technical specifications for the Zeekler.com program and its key features, marketed ZeekRewards to investors, managed some of RVG’s operations, and helped design and implement features that concealed the fraud. She was a principal spokesperson for ZeekRewards, and she also served as chief operating officer from September 2011 to June 2012. For the duration of the company’s existence, Olivares was the chief architect of the company’s computer databases that tracked all investments (including subscription and bid purchases), managed the electronic operations, and perpetuated the illusion of a successful retail business.
The Commission alleged that Wright-Olivares offered and sold securities in violation of the registration provisions of Section 5 of the Securities Act, and both defendants violated the antifraud provisions of the Section 17 of the Securities Act and Section 10(b) of the Securities Exchange Act and Rule 10b-5 thereunder. The Complaint requested permanent injunctions, disgorgement of ill-gotten gains plus prejudgment interest, and civil penalties against the defendants. Without denying the allegations—and while also admitting the facts set forth in the Factual Summary filed contemporaneously with their respective plea agreements in the parallel criminal case — both defendants have agreed to settle the Commission’s charges against them, and their settlement papers were submitted to the Court for its consideration. In particular, both consented to permanent injunctions against future violations of the respective registration and antifraud provisions with which they were each charged. Wright-Olivares also agreed to disgorge at least $8,184,064.94 and Olivares agreed to disgorge at least $3,272,934.58 — amounts that represent the entirety of their ill-gotten gains plus prejudgment interest. In light of their anticipated incarceration, no civil penalty will be imposed. The settlements are subject to approval by the court. In a parallel action, the U.S. Attorney’s Office for the Western District of North Carolina simultaneously announced criminal charges against, and plea agreements by, the pair.
The SEC acknowledges the assistance of the United States Attorney’s Office for the Western District of North Carolina and the United States Secret
SEC Charges Woman and Stepson for Involvement in Zeekrewards Pyramid and Ponzi Scheme; Parallel Criminal Charges and Plea Agreements Also Announced
On December 20, 2013, the Securities and Exchange Commission filed suit in the United States District Court for the Western District of North Carolina against Dawn Wright-Olivares and Daniel Olivares for their roles in perpetrating the fraudulent unregistered offer and sale of securities through Rex Venture Group LLC d/b/a ZeekRewards.com, an internet-based combined Ponzi and pyramid scheme. According to the Complaint, from approximately January 2011 until August 2012 when the ZeekRewards website was shut down, Rex Venture Group raised more than $850 million from approximately one million internet customers nationwide and overseas through the website. Both defendants have agreed to settle the Commission’s allegations against them, and their settlement papers were submitted to the Court for its consideration.
The Complaint alleged that defendants solicited investors through the internet and other means to participate in the ZeekRewards program, a self-described “affiliate advertising division” for the companion website, Zeekler.com, through which the defendants operated penny auctions. The ZeekRewards program offered customers several ways to earn money, two of which — the “Retail Profit Pool” and the “Matrix” — involved purchasing securities in the form of investment contracts. These securities offerings were not registered with the SEC as required under the federal securities laws.
According to the Complaint, Wright-Olivares and others lured investors to ZeekRewards by promising investors a share of the company’s daily net profits in the form of daily profit share awards. The company’s purported calculations consistently resulted in daily award averaging approximately 1.5 percent per day, fraudulently conveying the false impression that the company was extremely profitable. In fact, the daily award percentage was fabricated and investor payouts bore no relation to the company’s net profits. Approximately 98% of ZeekRewards’ total revenues and the “net profits” paid to investors were comprised of funds received from new investors in classic Ponzi scheme fashion. When the company was shut down in August 2012, it was teetering on collapse.
The Complaint further alleged that Wright-Olivares conceived of the idea for operating penny auctions, helped develop the technical specifications for the Zeekler.com program and its key features, marketed ZeekRewards to investors, managed some of RVG’s operations, and helped design and implement features that concealed the fraud. She was a principal spokesperson for ZeekRewards, and she also served as chief operating officer from September 2011 to June 2012. For the duration of the company’s existence, Olivares was the chief architect of the company’s computer databases that tracked all investments (including subscription and bid purchases), managed the electronic operations, and perpetuated the illusion of a successful retail business.
The Commission alleged that Wright-Olivares offered and sold securities in violation of the registration provisions of Section 5 of the Securities Act, and both defendants violated the antifraud provisions of the Section 17 of the Securities Act and Section 10(b) of the Securities Exchange Act and Rule 10b-5 thereunder. The Complaint requested permanent injunctions, disgorgement of ill-gotten gains plus prejudgment interest, and civil penalties against the defendants. Without denying the allegations—and while also admitting the facts set forth in the Factual Summary filed contemporaneously with their respective plea agreements in the parallel criminal case — both defendants have agreed to settle the Commission’s charges against them, and their settlement papers were submitted to the Court for its consideration. In particular, both consented to permanent injunctions against future violations of the respective registration and antifraud provisions with which they were each charged. Wright-Olivares also agreed to disgorge at least $8,184,064.94 and Olivares agreed to disgorge at least $3,272,934.58 — amounts that represent the entirety of their ill-gotten gains plus prejudgment interest. In light of their anticipated incarceration, no civil penalty will be imposed. The settlements are subject to approval by the court. In a parallel action, the U.S. Attorney’s Office for the Western District of North Carolina simultaneously announced criminal charges against, and plea agreements by, the pair.
The SEC acknowledges the assistance of the United States Attorney’s Office for the Western District of North Carolina and the United States Secret
THE WHITE HOUSE CONDEMNS ONGOING AIR ASSAULT IN SYRIA
FROM: THE WHITE HOUSE
Statement by Press Secretary Jay Carney on the Ongoing Air Assaults by the Syrian Government
The United States condemns the ongoing air assault by Syrian government forces on civilians, including the indiscriminate use of SCUD missiles and barrel bombs in and around Aleppo over the last week. The attacks over the weekend killed more than 300 people, many of them children. The Syrian government must respect its obligations under international humanitarian law to protect the civilian population. The Syrian government must fulfill its November commitment to do more to facilitate the safe and unhindered delivery of humanitarian assistance, so that millions of Syrian men, women, and children have access to urgently needed services. To bring the suffering of the Syrian people to an end, it is imperative that Syrians reach a comprehensive and durable political solution to end the crisis in Syria. The United States remains committed to advancing a political settlement to help end the bloodshed in Syria.
Statement by Press Secretary Jay Carney on the Ongoing Air Assaults by the Syrian Government
The United States condemns the ongoing air assault by Syrian government forces on civilians, including the indiscriminate use of SCUD missiles and barrel bombs in and around Aleppo over the last week. The attacks over the weekend killed more than 300 people, many of them children. The Syrian government must respect its obligations under international humanitarian law to protect the civilian population. The Syrian government must fulfill its November commitment to do more to facilitate the safe and unhindered delivery of humanitarian assistance, so that millions of Syrian men, women, and children have access to urgently needed services. To bring the suffering of the Syrian people to an end, it is imperative that Syrians reach a comprehensive and durable political solution to end the crisis in Syria. The United States remains committed to advancing a political settlement to help end the bloodshed in Syria.
NSF REVEALS HOW SCIENTISTS LOOKED AT HOW MARINE SNAILS SWIM
FROM: NATIONAL SCIENCE FOUNDATION
Oh, the places you'll go--if you're an Atlantic slipper shell
New research reveals the biomechanics of how marine snails swim
December 18, 2013
Walk the beach or peer into a tidepool anywhere along the northeastern U.S. coast, and you'll find shells stacked on top of one another. They're most likely common Atlantic slipper shells, a species of marine snail.
Scientists took a closer look at these ubiquitous snails, and discovered that how their larvae swim is key to the species' seeming residence in every nook and cranny along the coast. And to how the snails may be able to invade new territory.
Equipped with high-speed, high-resolution video, the researchers discovered how the larvae of these marine snails swim, a behavior that determines individual dispersal and ultimately, survival.
Researchers at the Woods Hole Oceanographic Institution (WHOI) and Stony Brook University grew Atlantic slipper limpet larvae, which can become slightly larger than a grain of rice, and recorded videos of them swimming.
In previous studies, it was thought that the larvae swim faster when they beat their hair-like cilia faster. However, this new research shows that's not the case.
"I was very surprised when I saw that there was no relationship between cilia beat frequency and how fast these animals swim," says Karen Chan, a WHOI scientist and the lead author of a paper published today in the journal PLOS ONE.
The larvae control how fast they swim by subtly shifting the position of their velar lobes--flat, disc-shaped wings fringed with cilia.
The ability to make small movements with these velar lobes, akin to how a bird adjusts the angle of its wings while soaring, demonstrates complex neuromuscular control.
"This careful study tells us a lot about how organisms interact with the marine environment, knowledge we need in a time of environmental change," says David Garrison, program director in the National Science Foundation's Division of Ocean Sciences, which funded the research.
The Atlantic slipper shell is a marine snail native to the northeastern United States. It has become an invasive species elsewhere in the world, especially in Europe.
The slipper shell has many common names, including Atlantic slippersnail, boat shell and quarterdeck shell. It is known in the United Kingdom as the common slipper limpet. The species is a medium-sized sea snail, a marine gastropod mollusk in the family Calyptraeidae, the slipper snails and the cup-and-saucer snails.
Paper co-author Dianna Padilla of Stony Brook University collected the snails from the North Shore of Long Island, N.Y. She grew the larvae in her lab, which were then sent to WHOI for video analysis.
Houshuo Jiang, a scientist at WHOI and collaborator on the project, says the goal is to understand the limpet's role in shaping the marine ecosystem.
With support from NSF, Jiang built a customized, vertically-oriented optical system that can magnify and record high-speed, high-resolution video of microorganisms swimming in seawater at 2,000 frames per second.
"Much more can be observed in great detail using this setup than looking through a microscope," Jiang says.
Jiang found that in a single day, slipper shell larvae could vary their speed from swimming one body length per second to four body lengths per second.
"What this means is they have a lot of control over how fast they swim," Chan says. How they swim can determine where they go.
And where they might turn up next.
"These results show the flexibility these little animals have," says Padilla, "which is likely what makes them so successful in their environment."
In addition to NSF, the Croucher Foundation, the Royal Swedish Academy of Sciences and WHOI provided support for the project.
-NSF-
Oh, the places you'll go--if you're an Atlantic slipper shell
New research reveals the biomechanics of how marine snails swim
December 18, 2013
Walk the beach or peer into a tidepool anywhere along the northeastern U.S. coast, and you'll find shells stacked on top of one another. They're most likely common Atlantic slipper shells, a species of marine snail.
Scientists took a closer look at these ubiquitous snails, and discovered that how their larvae swim is key to the species' seeming residence in every nook and cranny along the coast. And to how the snails may be able to invade new territory.
Equipped with high-speed, high-resolution video, the researchers discovered how the larvae of these marine snails swim, a behavior that determines individual dispersal and ultimately, survival.
Researchers at the Woods Hole Oceanographic Institution (WHOI) and Stony Brook University grew Atlantic slipper limpet larvae, which can become slightly larger than a grain of rice, and recorded videos of them swimming.
In previous studies, it was thought that the larvae swim faster when they beat their hair-like cilia faster. However, this new research shows that's not the case.
"I was very surprised when I saw that there was no relationship between cilia beat frequency and how fast these animals swim," says Karen Chan, a WHOI scientist and the lead author of a paper published today in the journal PLOS ONE.
The larvae control how fast they swim by subtly shifting the position of their velar lobes--flat, disc-shaped wings fringed with cilia.
The ability to make small movements with these velar lobes, akin to how a bird adjusts the angle of its wings while soaring, demonstrates complex neuromuscular control.
"This careful study tells us a lot about how organisms interact with the marine environment, knowledge we need in a time of environmental change," says David Garrison, program director in the National Science Foundation's Division of Ocean Sciences, which funded the research.
The Atlantic slipper shell is a marine snail native to the northeastern United States. It has become an invasive species elsewhere in the world, especially in Europe.
The slipper shell has many common names, including Atlantic slippersnail, boat shell and quarterdeck shell. It is known in the United Kingdom as the common slipper limpet. The species is a medium-sized sea snail, a marine gastropod mollusk in the family Calyptraeidae, the slipper snails and the cup-and-saucer snails.
Paper co-author Dianna Padilla of Stony Brook University collected the snails from the North Shore of Long Island, N.Y. She grew the larvae in her lab, which were then sent to WHOI for video analysis.
Houshuo Jiang, a scientist at WHOI and collaborator on the project, says the goal is to understand the limpet's role in shaping the marine ecosystem.
With support from NSF, Jiang built a customized, vertically-oriented optical system that can magnify and record high-speed, high-resolution video of microorganisms swimming in seawater at 2,000 frames per second.
"Much more can be observed in great detail using this setup than looking through a microscope," Jiang says.
Jiang found that in a single day, slipper shell larvae could vary their speed from swimming one body length per second to four body lengths per second.
"What this means is they have a lot of control over how fast they swim," Chan says. How they swim can determine where they go.
And where they might turn up next.
"These results show the flexibility these little animals have," says Padilla, "which is likely what makes them so successful in their environment."
In addition to NSF, the Croucher Foundation, the Royal Swedish Academy of Sciences and WHOI provided support for the project.
-NSF-
Monday, December 23, 2013
PRESIDENT'S MESSAGE TO CONGRESS REGARDING WAR POWERS RESOLUTION INVOLVING SOUTH SUDAN
FROM: THE WHITE HOUSE
Message to the Congress -- War Powers Resolution Regarding South Sudan
TEXT OF A LETTER FROM THE PRESIDENT
TO THE SPEAKER OF THE HOUSE OF REPRESENTATIVES
AND THE PRESIDENT PRO TEMPORE OF THE SENATE
December 22, 2013
Dear Mr. Speaker: (Dear Mr. President:)
In my report to the Congress of December 19, 2013, I provided information on the deployment of U.S. forces to support the security of U.S. personnel and our Embassy in South Sudan. I am providing this additional report, consistent with the War Powers Resolution (Public Law 93-148), to help ensure that the Congress is kept fully informed on U.S. military activities in South Sudan.
On December 21, 2013, approximately 46 additional U.S. military personnel deployed by military aircraft to the area of Bor, South Sudan, to conduct an operation to evacuate U.S. citizens and personnel. After the aircraft came under fire as they approached Bor, the operation was curtailed due to security considerations, and the aircraft and all military personnel onboard departed South Sudan without completing the evacuation.
The purpose of this operation was to protect U.S. citizens, personnel, and property. As I monitor the situation in South Sudan, I may take further action to support the security of U.S. citizens, personnel, and property, including our Embassy, in South Sudan.
This action has been directed consistent with my responsibility to protect U.S. citizens both at home and abroad, and in furtherance of U.S. national security and foreign policy interests, pursuant to my constitutional authority to conduct U.S. foreign relations and as Commander in Chief and Chief Executive.
I appreciate the support of the Congress in these actions.
Sincerely,
BARACK OBAMA
Message to the Congress -- War Powers Resolution Regarding South Sudan
TEXT OF A LETTER FROM THE PRESIDENT
TO THE SPEAKER OF THE HOUSE OF REPRESENTATIVES
AND THE PRESIDENT PRO TEMPORE OF THE SENATE
December 22, 2013
Dear Mr. Speaker: (Dear Mr. President:)
In my report to the Congress of December 19, 2013, I provided information on the deployment of U.S. forces to support the security of U.S. personnel and our Embassy in South Sudan. I am providing this additional report, consistent with the War Powers Resolution (Public Law 93-148), to help ensure that the Congress is kept fully informed on U.S. military activities in South Sudan.
On December 21, 2013, approximately 46 additional U.S. military personnel deployed by military aircraft to the area of Bor, South Sudan, to conduct an operation to evacuate U.S. citizens and personnel. After the aircraft came under fire as they approached Bor, the operation was curtailed due to security considerations, and the aircraft and all military personnel onboard departed South Sudan without completing the evacuation.
The purpose of this operation was to protect U.S. citizens, personnel, and property. As I monitor the situation in South Sudan, I may take further action to support the security of U.S. citizens, personnel, and property, including our Embassy, in South Sudan.
This action has been directed consistent with my responsibility to protect U.S. citizens both at home and abroad, and in furtherance of U.S. national security and foreign policy interests, pursuant to my constitutional authority to conduct U.S. foreign relations and as Commander in Chief and Chief Executive.
I appreciate the support of the Congress in these actions.
Sincerely,
BARACK OBAMA
U.S. DEFENSE DEPARTMENT CONTRACTS FOR DECEMBER 23, 2013
FROM: U.S. DEFENSE DEPARTMENT
CONTRACTS
AIR FORCE
Raytheon Co., Space and Airborne Systems, Marlborough, Mass., has been awarded an $134,399,631 fixed-price-incentive (firm target) contract for the design and development of Global Aircrew Strategic Network Terminals Increment I, with firm-fixed-price and cost-plus-fixed-fee options for manufacturing, installation, and sustainment. Global ASNT Increment I is a secure, survivable multi-path communication system used to disseminate nuclear command and control messages from national-level decision authorities to wing command posts and bomber, tanker and reconnaissance aircrews at geographically dispersed locations. Work will be performed at, Marlborough, Mass., and the design and development is expected to be complete in December 2016, with production, installation, and sustainment options extending to December 2020. This award is the result of a competitive acquisition with one offer received. Fiscal 2013 research, development, test & evaluation funds in the amount of $1,395,000 are being obligated at time of award. Air Force Lifecycle Management Center, Hanscom Air Force Base, Mass., is the contracting authority (FA8705-14-C-0001).
Lockheed Martin Aeronautics Corp., Fort Worth, Texas, has been awarded an $108,194,928 cost-plus-fixed-price modification (P00501) for an existing contract (FA8611-08-C-2897) for F-22 sustainment. The contract modification is for calendar year 2014 F-22 Depot throughput and touch-labor. Work will be performed at Fort Worth, Texas, and is expected to be completed by Dec. 31, 2014. Fiscal 2014 aircraft procurement and operations and maintenance funding in the amount of $36,291,036.00 will be obligated for this effort. This contract is not a multiyear contract. Air Force Life Cycle Management Center/WWUKH, Hill Air Force Base, Utah, is the contracting activity.
Exelis Inc. Radar, Reconnaissance & Undersea Systems, Van Nuys, Calif., has been awarded a $76,164,504 contract for the procurement and installation of nine ground control approach radars 2000 Systems (GCA-2000) plus associated operator and maintenance training for installation at nine airbases in Poland in support of the Polish Armed Forces for the Polish Armaments
Directorate. The contractor will manufacture, assemble, test, install systems to be used for aircraft approach and landing guidance, airspace control services and support of air traffic control operations, mission requirements and operator maintenance training. Work will be performed in Poland, and is expected to be complete by Nov. 2018. This award is 100 percent foreign military sales for Poland. Air Force Life Cycle Management Center/HBAK, Hanscom Air Force Base, Mass., is the contracting activity (FA8730-14-C-0009).
Raytheon Co., Goleta, Calif., has been awarded a not-to-exceed $70,000,000 firm-fixed-price contract for eight Advanced Countermeasures Electronic Systems (ACES) full systems for in country spares, three full systems to support software sustainment activities, 13 ACES Line Replaceable Units (LRU) to create a repair and return spares pool, and 21 ACES LRUs to support operation of ACES reprogramming benches at Warner Robins and Eglin Air Force
Bases, plus a lifetime supply of diminishing manufacturing source parts to support future repair and return and production. Work will be performed at Goleta, Calif., and is expected to be completed March 2017. This award is the result of a sole-source acquisition. This contract is 100 percent foreign military sales for the governments of Morocco, Egypt and Iraq. Air Force Life Cycle Management Center/WWMK, Wright-Patterson AFB, Ohio, is the contracting activity (FA8615-14-C-6022).
CORRECTION: In the Dec. 18, 2013 release of contract FA8616-14-C-6061 to Rockwell Collins, Inc. Government Systems, Cedar Rapids, Iowa, the contract amount should have read $43,812,122.
NAVY
BAE Systems Technology Solutions and Services, Rockville, Md., is being awarded a $48,860,666 cost-plus-fixed-fee, cost reimbursable contract for services in support of the Program Executive Office for Ships, Naval Sea Systems Command, PEO C41, and the Naval Air Warfare Center Aircraft Division. Services provided will include the design, integration, testing, installation, training, and support of shipboard Command, Control, Communications, Computers, & Intelligence (C4I) electronic communication systems for ships of the U.S. Navy. Work will be performed in St. Inigoes, Md. (50 percent); California, Md. (48 percent); Bath, Maine (1 percent); and Pascagoula, Miss. (1 percent), and is expected to be completed in June 2019. Fiscal 2011 and 2012 shipbuilding and conversion, Navy contract funds in the amount of $48,860,666 will be obligated on this 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 Warfare Center Aircraft Division, Patuxent River, Md., is the contracting activity (N00421-14-C-0011).
Lockheed Martin, Maritime Systems and Sensors, Moorestown, N.J., is being awarded a $37,133,082 modification to previously awarded contract (N00024-09-C-5103) to incrementally fund the Aegis Platform Systems Engineering Agent (PSEA) activities and Aegis Modernization Advanced Capability Build engineering. The Aegis PSEA manages the in-service combat systems configurations as well as the integration of new or upgraded capability into the CG57 Class of ships and the DDG 51 Class of ships. Aegis Modernization will provide upgrades to Aegis cruisers and Aegis destroyers and will be applicable to all Aegis ships with a computer program that is backfit compatible to Baseline 2 cruisers. Work is being performed in Moorestown, N.J., and is expected to be completed by September 2014. Fiscal 2014 research, development, test and evaluation, Fiscal 2014 operations and maintenance, Navy and Fiscal 2014 other procurement, Navy funds in the amount of $37,133,082 will be obligated at the time of the award. Contract funds in the amount of $3,988,400 will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington D.C., is the contracting activity.
Defense Support Services LLC*, Mount Laurel, N.J., is being awarded a $24,903,892 indefinite-delivery requirements contract for instructional support services to conduct basic and advanced courses on the Navy's Cargo Offload and Discharge System (COLDS), including the operation and maintenance of Navy Lighterage and Improved Navy Lighterage System powered and non-powered craft, other COLDS subsystems, and continued Contractor Instruction, Maintenance, Operations and Training Support, which yields qualified COLDS graduates. Work will be performed in Coronado, Calif. (65 percent) and Norfolk, Va. (35 percent), and is expected to be completed in December 2018. No funds will be obligated at time of award. Funds will be obligated on individual delivery orders as they are issued. No funds will expire at the end of the current fiscal year. This contract was competitively procured via an electronic request for proposals, with one offer received. The Naval Air Warfare Center, Training Systems Division, Orlando, Fla., is the contracting activity (N61340-14-D-0001).
Lockheed Martin Corp., Baltimore, Md., is being awarded a $23,275,441 modification to previously awarded contract (N00024-11-C-2300) to exercise an option for Littoral Combat Ship core class services. Lockheed Martin will provide engineering and design services as well as affordability efforts to reduce LCS acquisition and lifecycle costs. Work will be performed in Moorestown, N.J. (36 percent), Hampton, Va. (30 percent), Washington, D.C. (23 percent), and Marinette, Wis. (11 percent), and is expected to be complete by December 2014. Fiscal 2013 shipbuilding and conversion, Navy funds in the amount of $12,056,601 will be obligated at time of award. Contract funds will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.
Austal USA LLC., Mobile, Ala., is being awarded a $14,057,992 modification to previously awarded contract (N00024-11-C-2301) to exercise options for class service efforts for the Littoral Combat Ship (LCS) program. Austal USA will provide engineering and design services as well as affordability efforts to reduce LCS acquisition and lifecycle costs. Work will be performed in Mobile, Ala. (72 percent) and Pittsfield, Mass. (28 percent), and is expected to be complete by December 2014. Fiscal 2013 shipbuilding and conversion, Navy and Fiscal 2014 research, development, test and evaluation contract funds in the amount of $3,984,807 will be obligated at time of award. Contract funds will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.
EDO Corp., Panama City, Fla., is being awarded a $13,168,340 firm-fixed-priced, indefinite-delivery/indefinite-quantity contract for depot level repair, maintenance and modifications of the MK105 Magnetic Minesweeping Gear and MH-53E Airborne Mine Neutralization System (AMNS53) Launch and Recovery System and tracking system to support the Navy for the currently deployed Airborne Mine Countermeasures legacy systems. The contract includes the technical support, analysis, repair, modification, interface equipment, and engineering support for the MK105 and AMNS53 systems. The MK105 and AMNS53 are currently fielded for use in the Navy's capability to conduct quick response, high speed airborne mine countermeasures. This includes all depot repairs and incorporation of engineering change proposals, including the generation of all Integrated Logistics Support documentation to support the conversions. This contract includes options which, if exercised, would bring the cumulative value of this contract to $53,877,327. Work will be performed in Panama City, Fla., and is expected to be completed by December 2014. Fiscal 2014 operations and maintenance, Navy funds in the amount of $70,000 will be obligated at time of award and will expire at the end of the current fiscal year. This contract was not competitively procured in accordance with 10 U.S.C. 2304(c)(1) - only one responsible source and no other supplies or services will satisfy agency requirements. Naval Surface Warfare Center Panama City Division, Panama City, Fla., is the contracting activity (N61331-14-D-0002).
Marine Hydraulics International,* Norfolk, Va., was awarded an $11,559,768 modification to previously awarded contract (N00024-10-C-4405) to exercise options for the accomplishment of USS Gonzalez (DDG-66) FY14 Selected Restricted Availability (SRA). An SRA includes the planning and execution of depot-level maintenance, alterations, and modernizations that will update and improve the ship's military and technical capabilities. Work will be performed in Norfolk, Va., and is expected to be completed by July 2014. Fiscal 2014 operations and maintenance, Navy funds in the amount of $11,559,768 will be obligated at time of award and will expire at the end of the current fiscal year. The Norfolk Ship Support Activity, Norfolk, Va., is the contracting activity.
3 Phoenix, Inc., Chantilly, Va., is being awarded a $10,576,352 cost-plus-fixed-fee modification to previously awarded contract (N00024-11-C-6287) for the procurement of engineering services for development, integration, and logistic support of the Torpedo Warning System (TWS). The TWS provides surface ships with the ability to detect threat torpedoes and thereby employ defensive measures including maneuver and hard and soft kill countermeasures. Work will be performed in Chantilly, Va., (46 percent); Fairfax, Va., (28 percent); Houston, Texas, (18 percent); Wake Forest, N.C., (6 percent), and Hanover, Md., (2 percent), and is expected to be completed by October 2014. Fiscal 2014 research, development, test and evaluation funding in the amount of $7,566,566 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, D.C., is the contracting activity.
Northrop Grumman Technical Services, Herndon, Va., is being awarded a $9,531,889 cost-plus-fixed-fee contract to provide maintenance services for E-2C, E-2D, and C-2 aircraft in support of the VX-20 Squadron. Work will be performed at the Naval Air Station, Patuxent River, Md. (95 percent) and in St. Augustine, Fla. (5 percent), and is expected to be completed in December 2014. Fiscal 2014 Navy working capital fund in the amount of $4,175,000 will be 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 Warfare Center Aircraft Division, Patuxent River, Md., is the contracting activity (N00421-14-C-0009).
Bell Boeing Joint Project Office, Amarillo, Texas, is being awarded an $8,991,254 modification to a previously awarded cost-plus-fixed-fee, firm-fixed-price contract (N00019-13-C-0021) to exercise an option for two V-22 Block A to B 50-69 series upgrade kits. Work will be performed in Philadelphia, Pa. (60 percent) and Fort Worth, Texas (40 percent), and is expected to be completed in November 2015. Fiscal 2014 aircraft procurement, Navy contract funds in the amount of $8,991,254 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air System Command, Patuxent River, Md., is the contracting activity.
Hornbeck Offshore Services, LLC, Covington, La., is being awarded an $8,080,209 modification under a previously awarded firm-fixed-price contract (N00033-11-C-2000) to exercise a one-year option for the time charter of one offshore supply vessel, HOS Dominator. The ship's primary mission will be to provide submarine rescue diving and recompression system support service, in support of Commander, Submarine Forces, U.S. Pacific Fleet. Work will be performed at sea on the U.S. East Coast, U.S. West Coast, Hawaii and Alaska, and is expected to be completed by December 2014. Fiscal 2014 Working capital contract funds in the amount of $6,090,691 will be obligated on this award, and will not expire at the end of the current fiscal year. The U.S. Navy's Military Sealift Command is the contracting activity (N00033-11-C-2000).
General Dynamics Bath Iron Works, Bath, Maine, was awarded a $7,684,132 cost-plus-fixed-fee delivery order under Basic Ordering Agreement (N00024-12-G-4330) for the accomplishment of the Planning Yard Services in support of LCS-2 and LCS-4. Planning yard functions ensure well-integrated and executed planned and emergent maintenance support, and in-service sustainment. These services will include: vendor training and crew familiarization; in-service engineering support; trainer support; availability advanced planning; long lead time material planning and procurement; material warehousing; logistics product updates; and class sustainment management. Work will be performed in Bath, Maine, and is expected to be completed by Dec. 21, 2014. Fiscal 2014 operations and maintenance, Navy contract in the amount of $1,000,000 will be obligated at the time of award and will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington D.C., is the contracting activity.
The Boeing Co., Seattle, Wash., is being awarded a $6,781,461 modification to a previously awarded fixed-price-incentive-firm contract (N00019-12-C-0112) for initial spares in support of eight P-8A Low Rate initial Production Lot IV aircraft. Work will be performed in Grand Rapids, Mich. (24.9 percent); Torrance, Calif. (18.8 percent); Greenlawn, N.Y. (15 percent); Irvine, Calif. (14.5 percent); Freeland, Wash. (8.5 percent); Avenel, N.J. (5.2 percent); Rockford, Ill. (3.3 percent); Wilson, N.C. (3.1 percent); Manfield, Ohio (2.8 percent); Rochester, N.Y. (1.8 percent); West Chester, Ohio (1.5 percent); Sarasota, Fla. (.5 percent), and Wichita, Kansas (.1 percent). Work is expected to be completed in April 2017. Fiscal 2013 aircraft procurement Navy contract funds in the amount of $6,781,461 are being obligated on this award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.
ARMY
Sikorsky Aircraft Corp., Stratford, Conn., was awarded a $723,998,360 modification (P00127) to contract W58RGZ-12-C-0008 to fund program year three for 33 UH-60M helicopters and 24 HH-60M helicopters, and associated program management, systems engineering, provisioning, technical publications, and integrated logistics support. Also provided for are advance procurement funding (termination liability) for program years four and five. Fiscal 2014 other procurement funds in the amount of $723,998,360 were obligated at the time of the award. Estimated completion date is June 30, 2015. Work will be performed in Stratford, Conn. Army Contracting Command, Redstone Arsenal, Ala. is the contracting activity.
Oshkosh Corp., Oshkosh, Wisc., was awarded a $104,944,411 modification (000721) to contract W56HZV-09-D-0159 to add an additional 545 medium tactical vehicles, 79 trailers, and applicable federal excise tax to the contract. Fiscal 2014 other procurement Army funds in the amount of $104,944,411were obligated at the time of the award. Estimated completion date is Nov. 30, 2015. Bids were solicited via the Internet with three received. Work will be performed in Oshkosh, Wisc. Army Contracting Command, Warren, Mich. is the contracting activity.
AAI Corp., Hunt Valley, Md. was awarded a $23,024,245 modification (P00009) to contract W58RGZ-13-C-0016 for logistics support for the "One System Remote Video Terminal" in Afghanistan. Fiscal 2014 operations and maintenance (Army) funds in the amount of $23,024,245 were obligated at the time of the award. Estimated completion date is Dec. 30, 2014. Work will be performed in Hunt Valley, Md. Army Contracting Command, Redstone Arsenal, Ala. is the contracting activity.
Lockheed Martin Missiles and Fire Control, Orlando, Fla., was awarded a $14,500,852 modification (P00047) to contract W58RGZ-11-C-0120 for engineering and logistics services to implement and field the Modernized Target Acquisition Designation Sight High Reliability Turret. Fiscal 2014 other procurement funds in the amount of $14,500,852 were obligated at the time of the award. Estimated completion date is Sept. 30, 2017. Bids were solicited via the Internet with one received. Work will be performed in Orlando, Fla. Army Contracting Command, Redstone Arsenal, Ala. is the contracting activity.
Navistar Defense, LLC, Lisle, Ill. was awarded a $6,920,507 modification (P00086) to contract W56HZV-10-C-0011 for field service support in the continental United States and overseas for Mine Resistant Ambush Protected MaxxPro vehicles. Fiscal 2014 operations and maintenance (Army) funds in the amount of $6,920,507 were obligated at the time of the award. Estimated completion date is Dec. 31, 2014. Bids were solicited via the Internet with one received. Work will be performed in Lisle, Ill., and Afghanistan. Army Contracting Command, Warren, Mich. is the contracting activity.
DEFENSE LOGISTICS AGENCY
Eagle Crusher Company Inc., Galion, Ohio, has been awarded a maximum $157,500,000 fixed-price with economic-price-adjustment contract for the procurement of commercial type environmental equipment. This contract is a competitive acquisition, and sixteen offers were received. This contract is one of up to ten contracts being issued against solicitation number SPM8EC-11-R-0006 and with requirements that specifically call for environmental equipment within the product line and will be competed amongst other contractors who receive a contract under this solicitation. This is a five-year base. Location of performance is Ohio with a Dec. 22, 2018 performance completion date. Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies. Type of appropriation is fiscal year 2014 through fiscal year 2019 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPE8EC-14-D-0004).
Revision Military,* Essex Junction, Vt., has been awarded a maximum $21,139,200 firm-fixed-price, definite-quantity contract for the procurement of advanced combat helmets. This contract is a competitive acquisition, and two offers were received. Location of performance is Vermont with an Apr. 15, 2015 performance completion date. Using military services are Army, Navy, Air Force, and Marine Corps. Type of appropriation is fiscal year 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPM1C1-14-C-0006).
CORRECTION: In the Dec. 20, 2013 contract announcements, the award to CFM International, Cincinnati, Ohio, had an incorrect contract number. The correct number is SPRTA1-14-G-0002-0002.
*Small Business
CONTRACTS
AIR FORCE
Raytheon Co., Space and Airborne Systems, Marlborough, Mass., has been awarded an $134,399,631 fixed-price-incentive (firm target) contract for the design and development of Global Aircrew Strategic Network Terminals Increment I, with firm-fixed-price and cost-plus-fixed-fee options for manufacturing, installation, and sustainment. Global ASNT Increment I is a secure, survivable multi-path communication system used to disseminate nuclear command and control messages from national-level decision authorities to wing command posts and bomber, tanker and reconnaissance aircrews at geographically dispersed locations. Work will be performed at, Marlborough, Mass., and the design and development is expected to be complete in December 2016, with production, installation, and sustainment options extending to December 2020. This award is the result of a competitive acquisition with one offer received. Fiscal 2013 research, development, test & evaluation funds in the amount of $1,395,000 are being obligated at time of award. Air Force Lifecycle Management Center, Hanscom Air Force Base, Mass., is the contracting authority (FA8705-14-C-0001).
Lockheed Martin Aeronautics Corp., Fort Worth, Texas, has been awarded an $108,194,928 cost-plus-fixed-price modification (P00501) for an existing contract (FA8611-08-C-2897) for F-22 sustainment. The contract modification is for calendar year 2014 F-22 Depot throughput and touch-labor. Work will be performed at Fort Worth, Texas, and is expected to be completed by Dec. 31, 2014. Fiscal 2014 aircraft procurement and operations and maintenance funding in the amount of $36,291,036.00 will be obligated for this effort. This contract is not a multiyear contract. Air Force Life Cycle Management Center/WWUKH, Hill Air Force Base, Utah, is the contracting activity.
Exelis Inc. Radar, Reconnaissance & Undersea Systems, Van Nuys, Calif., has been awarded a $76,164,504 contract for the procurement and installation of nine ground control approach radars 2000 Systems (GCA-2000) plus associated operator and maintenance training for installation at nine airbases in Poland in support of the Polish Armed Forces for the Polish Armaments
Directorate. The contractor will manufacture, assemble, test, install systems to be used for aircraft approach and landing guidance, airspace control services and support of air traffic control operations, mission requirements and operator maintenance training. Work will be performed in Poland, and is expected to be complete by Nov. 2018. This award is 100 percent foreign military sales for Poland. Air Force Life Cycle Management Center/HBAK, Hanscom Air Force Base, Mass., is the contracting activity (FA8730-14-C-0009).
Raytheon Co., Goleta, Calif., has been awarded a not-to-exceed $70,000,000 firm-fixed-price contract for eight Advanced Countermeasures Electronic Systems (ACES) full systems for in country spares, three full systems to support software sustainment activities, 13 ACES Line Replaceable Units (LRU) to create a repair and return spares pool, and 21 ACES LRUs to support operation of ACES reprogramming benches at Warner Robins and Eglin Air Force
Bases, plus a lifetime supply of diminishing manufacturing source parts to support future repair and return and production. Work will be performed at Goleta, Calif., and is expected to be completed March 2017. This award is the result of a sole-source acquisition. This contract is 100 percent foreign military sales for the governments of Morocco, Egypt and Iraq. Air Force Life Cycle Management Center/WWMK, Wright-Patterson AFB, Ohio, is the contracting activity (FA8615-14-C-6022).
CORRECTION: In the Dec. 18, 2013 release of contract FA8616-14-C-6061 to Rockwell Collins, Inc. Government Systems, Cedar Rapids, Iowa, the contract amount should have read $43,812,122.
NAVY
BAE Systems Technology Solutions and Services, Rockville, Md., is being awarded a $48,860,666 cost-plus-fixed-fee, cost reimbursable contract for services in support of the Program Executive Office for Ships, Naval Sea Systems Command, PEO C41, and the Naval Air Warfare Center Aircraft Division. Services provided will include the design, integration, testing, installation, training, and support of shipboard Command, Control, Communications, Computers, & Intelligence (C4I) electronic communication systems for ships of the U.S. Navy. Work will be performed in St. Inigoes, Md. (50 percent); California, Md. (48 percent); Bath, Maine (1 percent); and Pascagoula, Miss. (1 percent), and is expected to be completed in June 2019. Fiscal 2011 and 2012 shipbuilding and conversion, Navy contract funds in the amount of $48,860,666 will be obligated on this 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 Warfare Center Aircraft Division, Patuxent River, Md., is the contracting activity (N00421-14-C-0011).
Lockheed Martin, Maritime Systems and Sensors, Moorestown, N.J., is being awarded a $37,133,082 modification to previously awarded contract (N00024-09-C-5103) to incrementally fund the Aegis Platform Systems Engineering Agent (PSEA) activities and Aegis Modernization Advanced Capability Build engineering. The Aegis PSEA manages the in-service combat systems configurations as well as the integration of new or upgraded capability into the CG57 Class of ships and the DDG 51 Class of ships. Aegis Modernization will provide upgrades to Aegis cruisers and Aegis destroyers and will be applicable to all Aegis ships with a computer program that is backfit compatible to Baseline 2 cruisers. Work is being performed in Moorestown, N.J., and is expected to be completed by September 2014. Fiscal 2014 research, development, test and evaluation, Fiscal 2014 operations and maintenance, Navy and Fiscal 2014 other procurement, Navy funds in the amount of $37,133,082 will be obligated at the time of the award. Contract funds in the amount of $3,988,400 will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington D.C., is the contracting activity.
Defense Support Services LLC*, Mount Laurel, N.J., is being awarded a $24,903,892 indefinite-delivery requirements contract for instructional support services to conduct basic and advanced courses on the Navy's Cargo Offload and Discharge System (COLDS), including the operation and maintenance of Navy Lighterage and Improved Navy Lighterage System powered and non-powered craft, other COLDS subsystems, and continued Contractor Instruction, Maintenance, Operations and Training Support, which yields qualified COLDS graduates. Work will be performed in Coronado, Calif. (65 percent) and Norfolk, Va. (35 percent), and is expected to be completed in December 2018. No funds will be obligated at time of award. Funds will be obligated on individual delivery orders as they are issued. No funds will expire at the end of the current fiscal year. This contract was competitively procured via an electronic request for proposals, with one offer received. The Naval Air Warfare Center, Training Systems Division, Orlando, Fla., is the contracting activity (N61340-14-D-0001).
Lockheed Martin Corp., Baltimore, Md., is being awarded a $23,275,441 modification to previously awarded contract (N00024-11-C-2300) to exercise an option for Littoral Combat Ship core class services. Lockheed Martin will provide engineering and design services as well as affordability efforts to reduce LCS acquisition and lifecycle costs. Work will be performed in Moorestown, N.J. (36 percent), Hampton, Va. (30 percent), Washington, D.C. (23 percent), and Marinette, Wis. (11 percent), and is expected to be complete by December 2014. Fiscal 2013 shipbuilding and conversion, Navy funds in the amount of $12,056,601 will be obligated at time of award. Contract funds will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.
Austal USA LLC., Mobile, Ala., is being awarded a $14,057,992 modification to previously awarded contract (N00024-11-C-2301) to exercise options for class service efforts for the Littoral Combat Ship (LCS) program. Austal USA will provide engineering and design services as well as affordability efforts to reduce LCS acquisition and lifecycle costs. Work will be performed in Mobile, Ala. (72 percent) and Pittsfield, Mass. (28 percent), and is expected to be complete by December 2014. Fiscal 2013 shipbuilding and conversion, Navy and Fiscal 2014 research, development, test and evaluation contract funds in the amount of $3,984,807 will be obligated at time of award. Contract funds will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.
EDO Corp., Panama City, Fla., is being awarded a $13,168,340 firm-fixed-priced, indefinite-delivery/indefinite-quantity contract for depot level repair, maintenance and modifications of the MK105 Magnetic Minesweeping Gear and MH-53E Airborne Mine Neutralization System (AMNS53) Launch and Recovery System and tracking system to support the Navy for the currently deployed Airborne Mine Countermeasures legacy systems. The contract includes the technical support, analysis, repair, modification, interface equipment, and engineering support for the MK105 and AMNS53 systems. The MK105 and AMNS53 are currently fielded for use in the Navy's capability to conduct quick response, high speed airborne mine countermeasures. This includes all depot repairs and incorporation of engineering change proposals, including the generation of all Integrated Logistics Support documentation to support the conversions. This contract includes options which, if exercised, would bring the cumulative value of this contract to $53,877,327. Work will be performed in Panama City, Fla., and is expected to be completed by December 2014. Fiscal 2014 operations and maintenance, Navy funds in the amount of $70,000 will be obligated at time of award and will expire at the end of the current fiscal year. This contract was not competitively procured in accordance with 10 U.S.C. 2304(c)(1) - only one responsible source and no other supplies or services will satisfy agency requirements. Naval Surface Warfare Center Panama City Division, Panama City, Fla., is the contracting activity (N61331-14-D-0002).
Marine Hydraulics International,* Norfolk, Va., was awarded an $11,559,768 modification to previously awarded contract (N00024-10-C-4405) to exercise options for the accomplishment of USS Gonzalez (DDG-66) FY14 Selected Restricted Availability (SRA). An SRA includes the planning and execution of depot-level maintenance, alterations, and modernizations that will update and improve the ship's military and technical capabilities. Work will be performed in Norfolk, Va., and is expected to be completed by July 2014. Fiscal 2014 operations and maintenance, Navy funds in the amount of $11,559,768 will be obligated at time of award and will expire at the end of the current fiscal year. The Norfolk Ship Support Activity, Norfolk, Va., is the contracting activity.
3 Phoenix, Inc., Chantilly, Va., is being awarded a $10,576,352 cost-plus-fixed-fee modification to previously awarded contract (N00024-11-C-6287) for the procurement of engineering services for development, integration, and logistic support of the Torpedo Warning System (TWS). The TWS provides surface ships with the ability to detect threat torpedoes and thereby employ defensive measures including maneuver and hard and soft kill countermeasures. Work will be performed in Chantilly, Va., (46 percent); Fairfax, Va., (28 percent); Houston, Texas, (18 percent); Wake Forest, N.C., (6 percent), and Hanover, Md., (2 percent), and is expected to be completed by October 2014. Fiscal 2014 research, development, test and evaluation funding in the amount of $7,566,566 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, D.C., is the contracting activity.
Northrop Grumman Technical Services, Herndon, Va., is being awarded a $9,531,889 cost-plus-fixed-fee contract to provide maintenance services for E-2C, E-2D, and C-2 aircraft in support of the VX-20 Squadron. Work will be performed at the Naval Air Station, Patuxent River, Md. (95 percent) and in St. Augustine, Fla. (5 percent), and is expected to be completed in December 2014. Fiscal 2014 Navy working capital fund in the amount of $4,175,000 will be 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 Warfare Center Aircraft Division, Patuxent River, Md., is the contracting activity (N00421-14-C-0009).
Bell Boeing Joint Project Office, Amarillo, Texas, is being awarded an $8,991,254 modification to a previously awarded cost-plus-fixed-fee, firm-fixed-price contract (N00019-13-C-0021) to exercise an option for two V-22 Block A to B 50-69 series upgrade kits. Work will be performed in Philadelphia, Pa. (60 percent) and Fort Worth, Texas (40 percent), and is expected to be completed in November 2015. Fiscal 2014 aircraft procurement, Navy contract funds in the amount of $8,991,254 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air System Command, Patuxent River, Md., is the contracting activity.
Hornbeck Offshore Services, LLC, Covington, La., is being awarded an $8,080,209 modification under a previously awarded firm-fixed-price contract (N00033-11-C-2000) to exercise a one-year option for the time charter of one offshore supply vessel, HOS Dominator. The ship's primary mission will be to provide submarine rescue diving and recompression system support service, in support of Commander, Submarine Forces, U.S. Pacific Fleet. Work will be performed at sea on the U.S. East Coast, U.S. West Coast, Hawaii and Alaska, and is expected to be completed by December 2014. Fiscal 2014 Working capital contract funds in the amount of $6,090,691 will be obligated on this award, and will not expire at the end of the current fiscal year. The U.S. Navy's Military Sealift Command is the contracting activity (N00033-11-C-2000).
General Dynamics Bath Iron Works, Bath, Maine, was awarded a $7,684,132 cost-plus-fixed-fee delivery order under Basic Ordering Agreement (N00024-12-G-4330) for the accomplishment of the Planning Yard Services in support of LCS-2 and LCS-4. Planning yard functions ensure well-integrated and executed planned and emergent maintenance support, and in-service sustainment. These services will include: vendor training and crew familiarization; in-service engineering support; trainer support; availability advanced planning; long lead time material planning and procurement; material warehousing; logistics product updates; and class sustainment management. Work will be performed in Bath, Maine, and is expected to be completed by Dec. 21, 2014. Fiscal 2014 operations and maintenance, Navy contract in the amount of $1,000,000 will be obligated at the time of award and will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington D.C., is the contracting activity.
The Boeing Co., Seattle, Wash., is being awarded a $6,781,461 modification to a previously awarded fixed-price-incentive-firm contract (N00019-12-C-0112) for initial spares in support of eight P-8A Low Rate initial Production Lot IV aircraft. Work will be performed in Grand Rapids, Mich. (24.9 percent); Torrance, Calif. (18.8 percent); Greenlawn, N.Y. (15 percent); Irvine, Calif. (14.5 percent); Freeland, Wash. (8.5 percent); Avenel, N.J. (5.2 percent); Rockford, Ill. (3.3 percent); Wilson, N.C. (3.1 percent); Manfield, Ohio (2.8 percent); Rochester, N.Y. (1.8 percent); West Chester, Ohio (1.5 percent); Sarasota, Fla. (.5 percent), and Wichita, Kansas (.1 percent). Work is expected to be completed in April 2017. Fiscal 2013 aircraft procurement Navy contract funds in the amount of $6,781,461 are being obligated on this award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.
ARMY
Sikorsky Aircraft Corp., Stratford, Conn., was awarded a $723,998,360 modification (P00127) to contract W58RGZ-12-C-0008 to fund program year three for 33 UH-60M helicopters and 24 HH-60M helicopters, and associated program management, systems engineering, provisioning, technical publications, and integrated logistics support. Also provided for are advance procurement funding (termination liability) for program years four and five. Fiscal 2014 other procurement funds in the amount of $723,998,360 were obligated at the time of the award. Estimated completion date is June 30, 2015. Work will be performed in Stratford, Conn. Army Contracting Command, Redstone Arsenal, Ala. is the contracting activity.
Oshkosh Corp., Oshkosh, Wisc., was awarded a $104,944,411 modification (000721) to contract W56HZV-09-D-0159 to add an additional 545 medium tactical vehicles, 79 trailers, and applicable federal excise tax to the contract. Fiscal 2014 other procurement Army funds in the amount of $104,944,411were obligated at the time of the award. Estimated completion date is Nov. 30, 2015. Bids were solicited via the Internet with three received. Work will be performed in Oshkosh, Wisc. Army Contracting Command, Warren, Mich. is the contracting activity.
AAI Corp., Hunt Valley, Md. was awarded a $23,024,245 modification (P00009) to contract W58RGZ-13-C-0016 for logistics support for the "One System Remote Video Terminal" in Afghanistan. Fiscal 2014 operations and maintenance (Army) funds in the amount of $23,024,245 were obligated at the time of the award. Estimated completion date is Dec. 30, 2014. Work will be performed in Hunt Valley, Md. Army Contracting Command, Redstone Arsenal, Ala. is the contracting activity.
Lockheed Martin Missiles and Fire Control, Orlando, Fla., was awarded a $14,500,852 modification (P00047) to contract W58RGZ-11-C-0120 for engineering and logistics services to implement and field the Modernized Target Acquisition Designation Sight High Reliability Turret. Fiscal 2014 other procurement funds in the amount of $14,500,852 were obligated at the time of the award. Estimated completion date is Sept. 30, 2017. Bids were solicited via the Internet with one received. Work will be performed in Orlando, Fla. Army Contracting Command, Redstone Arsenal, Ala. is the contracting activity.
Navistar Defense, LLC, Lisle, Ill. was awarded a $6,920,507 modification (P00086) to contract W56HZV-10-C-0011 for field service support in the continental United States and overseas for Mine Resistant Ambush Protected MaxxPro vehicles. Fiscal 2014 operations and maintenance (Army) funds in the amount of $6,920,507 were obligated at the time of the award. Estimated completion date is Dec. 31, 2014. Bids were solicited via the Internet with one received. Work will be performed in Lisle, Ill., and Afghanistan. Army Contracting Command, Warren, Mich. is the contracting activity.
DEFENSE LOGISTICS AGENCY
Eagle Crusher Company Inc., Galion, Ohio, has been awarded a maximum $157,500,000 fixed-price with economic-price-adjustment contract for the procurement of commercial type environmental equipment. This contract is a competitive acquisition, and sixteen offers were received. This contract is one of up to ten contracts being issued against solicitation number SPM8EC-11-R-0006 and with requirements that specifically call for environmental equipment within the product line and will be competed amongst other contractors who receive a contract under this solicitation. This is a five-year base. Location of performance is Ohio with a Dec. 22, 2018 performance completion date. Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies. Type of appropriation is fiscal year 2014 through fiscal year 2019 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPE8EC-14-D-0004).
Revision Military,* Essex Junction, Vt., has been awarded a maximum $21,139,200 firm-fixed-price, definite-quantity contract for the procurement of advanced combat helmets. This contract is a competitive acquisition, and two offers were received. Location of performance is Vermont with an Apr. 15, 2015 performance completion date. Using military services are Army, Navy, Air Force, and Marine Corps. Type of appropriation is fiscal year 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPM1C1-14-C-0006).
CORRECTION: In the Dec. 20, 2013 contract announcements, the award to CFM International, Cincinnati, Ohio, had an incorrect contract number. The correct number is SPRTA1-14-G-0002-0002.
*Small Business
JUSTICE ANNOUNCES RECOVERY OF $3.8 BILLION FROM FALSE CLAIM ACT CASES IN FISCAL 2013
FROM: U.S. JUSTICE DEPARTMENT
Friday, December 20, 2013
Justice Department Recovers $3.8 Billion from False Claims Act Cases in Fiscal Year 2013
Second Largest Annual Recovery in History Whistleblower Lawsuits Soar to 752
The Justice Department secured $3. 8 billion in settlements and judgments from civil cases involving fraud against the government in the fiscal year ending Sept. 30, 2013, Assistant Attorney General for the Civil Division Stuart F. Delery announced today. This dollar amount, which is the second largest annual recovery of its type in history, brings total recoveries under the False Claims Act since January 2009 to $ 17 billion – nearly half the total recoveries since the Act was amended 27 years ago in 1986.
The Justice Department’s fiscal year 2013 efforts recovered more than $3 billion for the fourth year in a row and are surpassed only by last year’s nearly $5 billion in recoveries. As in previous years, the largest recoveries related to health care fraud, which reached $2. 6 billion. Procurement fraud (related primarily to defense contracts) accounted for another $ 890 million – a record in that area.
“It has been another banner year for civil fraud recoveries, but more importantly, it has been a great year for the taxpayer and for the millions of Americans, state agencies and organizations that benefit from government programs and contracts,” said Assistant Attorney General Delery. “The $3. 8 billion in federal False Claims Act recoveries in fiscal year 2013, plus another $443 million in recoveries for state Medicaid programs, restores scarce taxpayer dollars to federal and state governments. The government’s success in these cases is also a strong deterrent to others who would misuse public funds, which means government programs designed to keep us safer, healthier and economically more prosperous can do so without the corrosive effects of fraud and false claims.”
The False Claims Act is the government’s primary civil remedy to redress false claims for government funds and property under government contracts, including national security and defense contracts, as well as under government programs as varied as Medicare, veterans benefits, federally insured loans and mortgages, transportation and research grants, agricultural supports, school lunches and disaster assistance. In 1986, Congress strengthened the Act by amending it to increase incentives for whistleblowers to file lawsuits on behalf of the government, which has led to more investigations and greater recoveries.
Most false claims actions are filed under the Act’s whistleblower, or qui tam, provisions, which allow private citizens to file lawsuits alleging false claims on behalf of the government. If the government prevails in the action, the whistleblower, known as a relator, receives up to 30 perc ent of the recovery. The number of qui tam suits filed in fiscal year 2013 soared to 752 –100 more than the record set the previous fiscal year. Recoveries in qui tam cases during fiscal year 2013 totaled $2. 9 billion , with whistleblowers recovering $345 million.
Health Care Fraud
The $2. 6 billion in health care fraud recoveries in fiscal year 2013 marks four straight years the department has recovered more than $2 billion in cases involving health care fraud. This steady, significant and continuing success can be attributed to the high priority the Obama Administration has placed on fighting health care fraud. In 2009, Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius announced the creation of an interagency task force, the Health Care Fraud Prevention and Enforcement Action Team (HEAT), to increase coordination and optimize criminal and civil enforcement. This coordination has yielded historic results: From January 2009 through the end of the 2013 fiscal year, the department used the False Claims Act to recover $12 .1 billion in federal health care dollars. Most of these recoveries relate to fraud against Medicare and Medicaid. Additional information on the government’s efforts in this area is available at StopMedicareFraud.gov, a webpage jointly established by the Departments of Justice and Health and Human Services.
Some of the largest recoveries this past fiscal year involved allegations of fraud and false claims in the pharmaceutical and medical device industries. Of the $2. 6 billion in federal health care fraud recoveries, $1.8 billion were from alleged false claims for drugs and medical devices under federally insured health programs that, in addition to Medicare and Medicaid, include TRICARE, which provides benefits for military personnel and their families, veterans’ health care programs and the Federal Employees Health Benefits Program. The department recovered an additional $443 million for state Medicaid programs.
Many of these settlements involved allegations that pharmaceutical manufacturers improperly promoted their drugs for uses not approved by the Food and Drug Administration (FDA) – a practice known as “off-label marketing.” For example, drug manufacturer Abbott Laboratories Inc. paid $1.5 billion to resolve allegations that it illegally promoted the drug Depakote to treat agitation and aggression in elderly dementia patients and schizophrenia when neither of these uses was approved as safe and effective by the FDA. This landmark $1.5 billion settlement included $575 million in federal civil recoveries, $225 million in state civil recoveries and nearly $700 million in criminal fines and forfeitures. In another major pharmaceutical case, biotech giant Amgen Inc. paid the government $762 million, including $598.5 million in False Claims Act recoveries, to settle allegations that included its illegal promotion of Aranesp, a drug used to treat anemia, in doses not approved by the FDA and for off-label use to treat non-anemia-related conditions. For details, see Abbott, Abbott sentencing, and Amgen.
The department also settled allegations relating to the manufacture and distribution of adulterated drugs. For example, generic drug manufacturer Ranbaxy USA Inc. paid $505 million to settle allegations of false claims to federal and state health care programs for adulterated drugs distributed from its facilities in India. The settlement included $237 million in federal civil claims, $118 million in state civil claims and $150 million in criminal fines and forfeitures. For details, see Ranbaxy.
Adding to its successes under the False Claims Act, the Civil Division’s Consumer Protection Branch, together with U.S. Attorneys across the country, obtained 16 criminal convictions and more than $1. 3 billion in criminal fines, forfeitures and disgorgement under the Federal Food, Drug and Cosmetic Act (FDCA). The FDCA protects the health and safety of the public by ensuring, among other things, that drugs intended for use in humans are safe and effective for their intended uses and that the labeling of such drugs bears true, complete and accurate information.
In other areas of health care fraud, the department obtained a $237 million judgment against South Carolina-based Tuomey Healthcare System Inc., after a four-week trial, for violating the Stark Law and the False Claims Act. The Stark Law prohibits hospitals from submitting claims to Medicare for patients referred to the hospital by physicians who have a prohibited financial relationship with the hospital. Tuomey’s appeal of the $237 million judgment is pending. If the judgment is affirmed on appeal, this will be the largest judgment in the history of the Stark Law. For the court’s opinion, see Tuomey.
The department also recovered $26.3 million in a settlement with Steven J. Wasserman M.D., a dermatologist practicing in Florida, to resolve allegations that he entered into an illegal kickback arrangement with Tampa Pathology Laboratory that resulted in increased claims to Medicare. Tampa Pathology Laboratory previously paid the government $950,000 for its role in the alleged scheme. The $26.3 million settlement is one of the largest with an individual in the history of the False Claims Act. For details, see Wasserman.
Procurement Fraud
Fiscal year 2013 was a record year for procurement fraud matters. The department secured more than $887 million in settlements and judgments based on allegations of false claims and corruption involving government contracts. Prominent among these successes was the department’s $664 million judgment against Connecticut-based defense contractor United Technologies Corp. (UTC). A federal court found UTC liable for making false statements to the Air Force in negotiating the price of a contract for fighter jet engines. In 2004, the department had won a smaller judgment after a three-month trial. Both sides appealed, but the government’s arguments prevailed, resulting in the case being returned to the trial court to reassess damages. The $664 million judgment, which UTC has appealed, is the largest judgment in the history of the False Claims Act and, if the appellate court affirms, will be the largest procurement recovery in history. For details, see UTC.
The department also settled allegations of false claims with two companies in connection with their contracts with the General Services Administration (GSA) to market their products through the Multiple Award Schedule (MAS) program. To be awarded a MAS contract, and thereby gain access to the broad government marketplace, contractors must provide GSA with complete, accurate and current information about their commercial sales practices, including discounts afforded to their commercial customers. The government alleged that W.W. Grainger Inc., a national hardware distributor headquartered in Illinois, and Ohio-based RPM International Inc. and its subsidiary, Tremco Inc., a roofing supplies and services firm, failed to disclose discounts given to their commercial customers, which resulted in government customers paying higher prices. The department recovered $70 million from W.W. Grainger in a settlement that also included allegations relating to a U.S. Postal Services contract and $61 million from RPM International Inc. and Tremco. For details, see Grainger, RPM/Tremco.
Other Fraud Recoveries
A $45 million settlement with Japan-based Toyo Ink S.C. Holdings Co. Ltd. and its Japanese and United States affiliates (collectively Toyo) demonstrates the breadth of cases the department pursues. This settlement resolved allegations that Toyo misrepresented the country of origin on documents presented to the Department of Homeland Security’s U.S. Customs and Border Protection to evade antidumping and countervailing duties on imports of the colorant carbazole violet pigment into the United States. These duties protect U.S. businesses by offsetting unfair foreign pricing and foreign government subsidies. For details, see Toyo.
The False Claims Act also is used to redress grant fraud. In a significant case involving a grant from the Department of Education, Education Holdings Inc. (formerly The Princeton Review Inc.) paid $10 million to resolve allegations that the company fabricated attendance records for thousands of hours of afterschool tutoring of students that was funded by the federal grant. For details, see Education Holdings.
Recoveries in Whistleblower Suits
Of the $3. 8 billion the department recovered in fiscal year 2013, $2. 9 billion related to lawsuits filed under the qui tam provisions of the False Claims Act. During the same period, the department paid out more than $345 million to the courageous individuals who exposed fraud and false claims by filing a qui tam complaint. (The average share paid to whistleblowers in fiscal year 2013 cannot be determined from these numbers because the awards paid to whistleblowers in one fiscal year do not always coincide with the fiscal year in which the case was resolved, and the fiscal year’s recoveries may include amounts to settle allegations outside the whistleblower’s complaint.)
Whistleblower lawsuits were in the range of three to four hundred per year from 2000 to 2009, when they began their climb from 433 lawsuits in fiscal year 2009 to 752 lawsuits in fiscal year 2013. Due to the complexity of fraud investigations generally, the outcomes of many of the qui tam cases filed this past fiscal year are not yet known, but the growing number of lawsuits filed since 2009 have led to increased recoveries. Qui tam recoveries exceeded $2 billion for the first time in fiscal year 2010 and have continued to exceed that amount every year since. Qui tam recoveries this past fiscal year bring the department’s totals since January 2009 to $13.4 billion. During the same period, the department paid out $1.98 billion in whistleblower awards.
“These recoveries would not have been possible without the brave contributions made by ordinary men and women who made extraordinary sacrifices to expose fraud and corruption in government programs,” said Assistant Attorney General Delery. “We are also grateful to Congress and its continued support of strengthening the False Claims Act, including its qui tam provisions, giving the department the tools necessary to pursue false claims.”
In 1986, Senator Charles Grassley and Representative Howard Berman led successful efforts in Congress to amend the False Claims Act to, among other things, encourage whistleblowers to come forward with allegations of fraud. In 2009, Senator Patrick J. Leahy, along with Senator Grassley and Representative Berman, championed the Fraud Enforcement and Recovery Act of 2009, which made additional improvements to the False Claims Act and other fraud statutes. And in 2010, the passage of the Affordable Care Act provided additional inducements and protections for whistleblowers and strengthened the provisions of the federal health care Anti-Kickback Statute.
Assistant Attorney General Delery also expressed his deep appreciation for the dedicated public servants who investigated and pursued these cases. These individuals include attorneys, investigators, auditors and other agency personnel throughout the Justice Department’s Civil Division, the U.S. Attorneys’ Offices, the Departments of Defense and Health and Human Services, the various Offices of Inspector General and the many other federal and state agencies that contributed to the department’s recoveries this past fiscal year.
“The department’s continued success in recovering fraudulent claims for taxpayer money this past fiscal year is a product of the tremendous skill and dedication of the people who worked on these cases and investigations and continue to work hard to protect against the misuse of taxpayer dollars,” said Delery.
Friday, December 20, 2013
Justice Department Recovers $3.8 Billion from False Claims Act Cases in Fiscal Year 2013
Second Largest Annual Recovery in History Whistleblower Lawsuits Soar to 752
The Justice Department secured $3. 8 billion in settlements and judgments from civil cases involving fraud against the government in the fiscal year ending Sept. 30, 2013, Assistant Attorney General for the Civil Division Stuart F. Delery announced today. This dollar amount, which is the second largest annual recovery of its type in history, brings total recoveries under the False Claims Act since January 2009 to $ 17 billion – nearly half the total recoveries since the Act was amended 27 years ago in 1986.
The Justice Department’s fiscal year 2013 efforts recovered more than $3 billion for the fourth year in a row and are surpassed only by last year’s nearly $5 billion in recoveries. As in previous years, the largest recoveries related to health care fraud, which reached $2. 6 billion. Procurement fraud (related primarily to defense contracts) accounted for another $ 890 million – a record in that area.
“It has been another banner year for civil fraud recoveries, but more importantly, it has been a great year for the taxpayer and for the millions of Americans, state agencies and organizations that benefit from government programs and contracts,” said Assistant Attorney General Delery. “The $3. 8 billion in federal False Claims Act recoveries in fiscal year 2013, plus another $443 million in recoveries for state Medicaid programs, restores scarce taxpayer dollars to federal and state governments. The government’s success in these cases is also a strong deterrent to others who would misuse public funds, which means government programs designed to keep us safer, healthier and economically more prosperous can do so without the corrosive effects of fraud and false claims.”
The False Claims Act is the government’s primary civil remedy to redress false claims for government funds and property under government contracts, including national security and defense contracts, as well as under government programs as varied as Medicare, veterans benefits, federally insured loans and mortgages, transportation and research grants, agricultural supports, school lunches and disaster assistance. In 1986, Congress strengthened the Act by amending it to increase incentives for whistleblowers to file lawsuits on behalf of the government, which has led to more investigations and greater recoveries.
Most false claims actions are filed under the Act’s whistleblower, or qui tam, provisions, which allow private citizens to file lawsuits alleging false claims on behalf of the government. If the government prevails in the action, the whistleblower, known as a relator, receives up to 30 perc ent of the recovery. The number of qui tam suits filed in fiscal year 2013 soared to 752 –100 more than the record set the previous fiscal year. Recoveries in qui tam cases during fiscal year 2013 totaled $2. 9 billion , with whistleblowers recovering $345 million.
Health Care Fraud
The $2. 6 billion in health care fraud recoveries in fiscal year 2013 marks four straight years the department has recovered more than $2 billion in cases involving health care fraud. This steady, significant and continuing success can be attributed to the high priority the Obama Administration has placed on fighting health care fraud. In 2009, Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius announced the creation of an interagency task force, the Health Care Fraud Prevention and Enforcement Action Team (HEAT), to increase coordination and optimize criminal and civil enforcement. This coordination has yielded historic results: From January 2009 through the end of the 2013 fiscal year, the department used the False Claims Act to recover $12 .1 billion in federal health care dollars. Most of these recoveries relate to fraud against Medicare and Medicaid. Additional information on the government’s efforts in this area is available at StopMedicareFraud.gov, a webpage jointly established by the Departments of Justice and Health and Human Services.
Some of the largest recoveries this past fiscal year involved allegations of fraud and false claims in the pharmaceutical and medical device industries. Of the $2. 6 billion in federal health care fraud recoveries, $1.8 billion were from alleged false claims for drugs and medical devices under federally insured health programs that, in addition to Medicare and Medicaid, include TRICARE, which provides benefits for military personnel and their families, veterans’ health care programs and the Federal Employees Health Benefits Program. The department recovered an additional $443 million for state Medicaid programs.
Many of these settlements involved allegations that pharmaceutical manufacturers improperly promoted their drugs for uses not approved by the Food and Drug Administration (FDA) – a practice known as “off-label marketing.” For example, drug manufacturer Abbott Laboratories Inc. paid $1.5 billion to resolve allegations that it illegally promoted the drug Depakote to treat agitation and aggression in elderly dementia patients and schizophrenia when neither of these uses was approved as safe and effective by the FDA. This landmark $1.5 billion settlement included $575 million in federal civil recoveries, $225 million in state civil recoveries and nearly $700 million in criminal fines and forfeitures. In another major pharmaceutical case, biotech giant Amgen Inc. paid the government $762 million, including $598.5 million in False Claims Act recoveries, to settle allegations that included its illegal promotion of Aranesp, a drug used to treat anemia, in doses not approved by the FDA and for off-label use to treat non-anemia-related conditions. For details, see Abbott, Abbott sentencing, and Amgen.
The department also settled allegations relating to the manufacture and distribution of adulterated drugs. For example, generic drug manufacturer Ranbaxy USA Inc. paid $505 million to settle allegations of false claims to federal and state health care programs for adulterated drugs distributed from its facilities in India. The settlement included $237 million in federal civil claims, $118 million in state civil claims and $150 million in criminal fines and forfeitures. For details, see Ranbaxy.
Adding to its successes under the False Claims Act, the Civil Division’s Consumer Protection Branch, together with U.S. Attorneys across the country, obtained 16 criminal convictions and more than $1. 3 billion in criminal fines, forfeitures and disgorgement under the Federal Food, Drug and Cosmetic Act (FDCA). The FDCA protects the health and safety of the public by ensuring, among other things, that drugs intended for use in humans are safe and effective for their intended uses and that the labeling of such drugs bears true, complete and accurate information.
In other areas of health care fraud, the department obtained a $237 million judgment against South Carolina-based Tuomey Healthcare System Inc., after a four-week trial, for violating the Stark Law and the False Claims Act. The Stark Law prohibits hospitals from submitting claims to Medicare for patients referred to the hospital by physicians who have a prohibited financial relationship with the hospital. Tuomey’s appeal of the $237 million judgment is pending. If the judgment is affirmed on appeal, this will be the largest judgment in the history of the Stark Law. For the court’s opinion, see Tuomey.
The department also recovered $26.3 million in a settlement with Steven J. Wasserman M.D., a dermatologist practicing in Florida, to resolve allegations that he entered into an illegal kickback arrangement with Tampa Pathology Laboratory that resulted in increased claims to Medicare. Tampa Pathology Laboratory previously paid the government $950,000 for its role in the alleged scheme. The $26.3 million settlement is one of the largest with an individual in the history of the False Claims Act. For details, see Wasserman.
Procurement Fraud
Fiscal year 2013 was a record year for procurement fraud matters. The department secured more than $887 million in settlements and judgments based on allegations of false claims and corruption involving government contracts. Prominent among these successes was the department’s $664 million judgment against Connecticut-based defense contractor United Technologies Corp. (UTC). A federal court found UTC liable for making false statements to the Air Force in negotiating the price of a contract for fighter jet engines. In 2004, the department had won a smaller judgment after a three-month trial. Both sides appealed, but the government’s arguments prevailed, resulting in the case being returned to the trial court to reassess damages. The $664 million judgment, which UTC has appealed, is the largest judgment in the history of the False Claims Act and, if the appellate court affirms, will be the largest procurement recovery in history. For details, see UTC.
The department also settled allegations of false claims with two companies in connection with their contracts with the General Services Administration (GSA) to market their products through the Multiple Award Schedule (MAS) program. To be awarded a MAS contract, and thereby gain access to the broad government marketplace, contractors must provide GSA with complete, accurate and current information about their commercial sales practices, including discounts afforded to their commercial customers. The government alleged that W.W. Grainger Inc., a national hardware distributor headquartered in Illinois, and Ohio-based RPM International Inc. and its subsidiary, Tremco Inc., a roofing supplies and services firm, failed to disclose discounts given to their commercial customers, which resulted in government customers paying higher prices. The department recovered $70 million from W.W. Grainger in a settlement that also included allegations relating to a U.S. Postal Services contract and $61 million from RPM International Inc. and Tremco. For details, see Grainger, RPM/Tremco.
Other Fraud Recoveries
A $45 million settlement with Japan-based Toyo Ink S.C. Holdings Co. Ltd. and its Japanese and United States affiliates (collectively Toyo) demonstrates the breadth of cases the department pursues. This settlement resolved allegations that Toyo misrepresented the country of origin on documents presented to the Department of Homeland Security’s U.S. Customs and Border Protection to evade antidumping and countervailing duties on imports of the colorant carbazole violet pigment into the United States. These duties protect U.S. businesses by offsetting unfair foreign pricing and foreign government subsidies. For details, see Toyo.
The False Claims Act also is used to redress grant fraud. In a significant case involving a grant from the Department of Education, Education Holdings Inc. (formerly The Princeton Review Inc.) paid $10 million to resolve allegations that the company fabricated attendance records for thousands of hours of afterschool tutoring of students that was funded by the federal grant. For details, see Education Holdings.
Recoveries in Whistleblower Suits
Of the $3. 8 billion the department recovered in fiscal year 2013, $2. 9 billion related to lawsuits filed under the qui tam provisions of the False Claims Act. During the same period, the department paid out more than $345 million to the courageous individuals who exposed fraud and false claims by filing a qui tam complaint. (The average share paid to whistleblowers in fiscal year 2013 cannot be determined from these numbers because the awards paid to whistleblowers in one fiscal year do not always coincide with the fiscal year in which the case was resolved, and the fiscal year’s recoveries may include amounts to settle allegations outside the whistleblower’s complaint.)
Whistleblower lawsuits were in the range of three to four hundred per year from 2000 to 2009, when they began their climb from 433 lawsuits in fiscal year 2009 to 752 lawsuits in fiscal year 2013. Due to the complexity of fraud investigations generally, the outcomes of many of the qui tam cases filed this past fiscal year are not yet known, but the growing number of lawsuits filed since 2009 have led to increased recoveries. Qui tam recoveries exceeded $2 billion for the first time in fiscal year 2010 and have continued to exceed that amount every year since. Qui tam recoveries this past fiscal year bring the department’s totals since January 2009 to $13.4 billion. During the same period, the department paid out $1.98 billion in whistleblower awards.
“These recoveries would not have been possible without the brave contributions made by ordinary men and women who made extraordinary sacrifices to expose fraud and corruption in government programs,” said Assistant Attorney General Delery. “We are also grateful to Congress and its continued support of strengthening the False Claims Act, including its qui tam provisions, giving the department the tools necessary to pursue false claims.”
In 1986, Senator Charles Grassley and Representative Howard Berman led successful efforts in Congress to amend the False Claims Act to, among other things, encourage whistleblowers to come forward with allegations of fraud. In 2009, Senator Patrick J. Leahy, along with Senator Grassley and Representative Berman, championed the Fraud Enforcement and Recovery Act of 2009, which made additional improvements to the False Claims Act and other fraud statutes. And in 2010, the passage of the Affordable Care Act provided additional inducements and protections for whistleblowers and strengthened the provisions of the federal health care Anti-Kickback Statute.
Assistant Attorney General Delery also expressed his deep appreciation for the dedicated public servants who investigated and pursued these cases. These individuals include attorneys, investigators, auditors and other agency personnel throughout the Justice Department’s Civil Division, the U.S. Attorneys’ Offices, the Departments of Defense and Health and Human Services, the various Offices of Inspector General and the many other federal and state agencies that contributed to the department’s recoveries this past fiscal year.
“The department’s continued success in recovering fraudulent claims for taxpayer money this past fiscal year is a product of the tremendous skill and dedication of the people who worked on these cases and investigations and continue to work hard to protect against the misuse of taxpayer dollars,” said Delery.
AIR FORCE COMMITS TO USE OF GSA'S OASIS CONTRACT FOR COMPLEX PROFESSIONAL SERVICES
FROM: U.S. GENERAL SERVICES ADMINISTRATION
Air Force Signs On the Line, Commits to Primary Use of GSA’s OASIS Contract for Complex Professional Services
December 19, 2013
WASHINGTON -- In a ceremony held today at U.S. General Services Administration headquarters, GSA and the United States Air Force signed a Memorandum of Understanding (MoU) securing Air Force’s use of GSA’s One Acquisition Solution for Integrated Services (OASIS) and OASIS Small Business contracts for procurement of complex professional services. OASIS is a first-of-its kind contract that will provide the government with a total solution contract vehicle for complex professional services projects.
“OASIS will save Air Force, and our folks in the field, a tremendous amount of time and effort. It will allow us to aggressively go after our small business goal with access to highly capable and vetted companies, and it significantly reduces our manpower requirements to conduct complex acquisitions,” said Randall D. Culpepper, Program Executive Officer for Combat and Mission Support, Office of the Assistant Secretary of the Air Force for Acquisition. "Our partnership with GSA on OASIS allows us preserve precious resources while putting in place a tool that is exceptionally responsive to the needs of defense organizations supporting the warfighter. We think this will be a great long-term relationship that will get us a lot of bang for the acquisition bucks that we have.
Through OASIS and OASIS Small Business, Air Force will:
Reduce excess costs associated with award and administration of multiple IDIQ and/or standalone contracts
Reduce the lead time and administrative efforts it currently takes agencies to acquire complex professional services
Gain insight into spend volume and labor types and costs across the Federal Government and facilitate negotiation of lower pricing at the task order level
Improve and reduce time associated with task order proposal comparison process by creating “apples to apples” comparisons of proposed labor costs
Eliminate need for Task Order Contracting Officers to evaluate proposals from poor performers
The response period for OASIS and OASIS-Small Business Requests for Proposal (RFPs) came to a close last month; the OASIS team expects to award contracts in early 2014.
OASIS will be designed to address agencies' needs for any one or combination of the following professional service requirements that:
Span multiple professional service disciplines
Contain significant IT components, but are not IT requirements in and of themselves
Contain Ancillary Support components commonly referred to as ODCs
Require flexibility for all contract types at the task order level including cost reimbursement
OASIS will be able to provide both commercial and non-commercial services. The core disciplines of the contract will include program management services, management consulting services, logistics services, engineering services, scientific services, and financial services.
Air Force Signs On the Line, Commits to Primary Use of GSA’s OASIS Contract for Complex Professional Services
December 19, 2013
WASHINGTON -- In a ceremony held today at U.S. General Services Administration headquarters, GSA and the United States Air Force signed a Memorandum of Understanding (MoU) securing Air Force’s use of GSA’s One Acquisition Solution for Integrated Services (OASIS) and OASIS Small Business contracts for procurement of complex professional services. OASIS is a first-of-its kind contract that will provide the government with a total solution contract vehicle for complex professional services projects.
“OASIS will save Air Force, and our folks in the field, a tremendous amount of time and effort. It will allow us to aggressively go after our small business goal with access to highly capable and vetted companies, and it significantly reduces our manpower requirements to conduct complex acquisitions,” said Randall D. Culpepper, Program Executive Officer for Combat and Mission Support, Office of the Assistant Secretary of the Air Force for Acquisition. "Our partnership with GSA on OASIS allows us preserve precious resources while putting in place a tool that is exceptionally responsive to the needs of defense organizations supporting the warfighter. We think this will be a great long-term relationship that will get us a lot of bang for the acquisition bucks that we have.
Through OASIS and OASIS Small Business, Air Force will:
Reduce excess costs associated with award and administration of multiple IDIQ and/or standalone contracts
Reduce the lead time and administrative efforts it currently takes agencies to acquire complex professional services
Gain insight into spend volume and labor types and costs across the Federal Government and facilitate negotiation of lower pricing at the task order level
Improve and reduce time associated with task order proposal comparison process by creating “apples to apples” comparisons of proposed labor costs
Eliminate need for Task Order Contracting Officers to evaluate proposals from poor performers
The response period for OASIS and OASIS-Small Business Requests for Proposal (RFPs) came to a close last month; the OASIS team expects to award contracts in early 2014.
OASIS will be designed to address agencies' needs for any one or combination of the following professional service requirements that:
Span multiple professional service disciplines
Contain significant IT components, but are not IT requirements in and of themselves
Contain Ancillary Support components commonly referred to as ODCs
Require flexibility for all contract types at the task order level including cost reimbursement
OASIS will be able to provide both commercial and non-commercial services. The core disciplines of the contract will include program management services, management consulting services, logistics services, engineering services, scientific services, and financial services.
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