U.S. STATE DEPARTMENT TO ESTABLISH SPECIAL REPRESENTATIVE FOR ARCTIC REGION

FROM:  U.S. STATE DEPARTMENT 
Secretary Kerry Announces Department Will Establish a Special Representative for the Arctic Region
Press Statement
John Kerry
Secretary of State
Washington, DC
February 14, 2014

The Arctic region is the last global frontier and a region with enormous and growing geostrategic, economic, climate, environment, and national security implications for the United States and the world.

Today I informed my two former Senate colleagues that here at the State Department we will soon have a Special Representative for the Arctic Region, a high-level official of stature who will play a critical role in advancing American interests in the Arctic Region, particularly as we prepare efforts for the United States to Chair the Arctic Council in 2015. President Obama and I are committed to elevating our attention and effort to keep up with the opportunities and consequences presented by the Arctic’s rapid transformation—a very rare convergence of almost every national priority in the most rapidly-changing region on the face of the earth.

The great challenges of the Arctic matter enormously to the United States, and they hit especially close to home for Alaska, which is why it is no wonder that Senator Begich’s very first piece of legislation aimed to create an Arctic Ambassador, or why as Foreign Relations Committee Chairman I enjoyed a close partnership with Senator Murkowski on a treaty vital to energy and maritime interests important to Alaska. Going forward, I look forward to continuing to work closely with Alaska’s Congressional delegation to strengthen America’s engagement in Arctic issues.

3-D CHIPS COULD EXPAND MICROPROCESSOR CAPACITY

FROM:  NATIONAL SCIENCE FOUNDATION 
Scientist developing 3-D chips to expand capacity of microprocessors

Novel design would consume less power and provide higher performance
Many researchers in the field of integrated circuits worry that the fast paced progress of "miniaturization" will start to slow unless they find new ways to expand the capacity of the conventional two-dimensional chips used today in virtually all electronics.

Emre Salman, an assistant professor of computer and electrical engineering at Stony Brook University, is trying to design new technology, circuits and algorithms for the next generation of microprocessors, mobile computing devices and communication chips, in order "to overcome the fundamental limitations of current electronic systems, such as high power consumption," he says.

Specifically, the National Science Foundation (NSF)-funded scientist is working on developing three-dimensional integration, an emerging technology that would vertically stack multiple wafers, a technique with the potential to enhance significantly the capability of the current two-dimensional chips.

"Today's typical electronic system on a circuit board consists of multiple chips connected with wires that are at the millimeter and centimeter scale," he explains. "These bulky connections not only slow down the circuit, but also consume power and reduce the reliability of the system."

In 3-D integration technology, on the other hand, those discrete chips, now called tiers, are stacked on top of each other before they are packaged, he says. "The entire 3-D system is placed in a single package," he says. "Vertical connections that achieve communication among the tiers are now in the micrometer scale, and getting even shorter with advances in 3-D manufacturing technology, thereby consuming less power and providing more performance. Essentially, 3-D technology enables higher and heterogeneous integration at a smaller form factor."

This goal, however, faces any number of challenges. "This expansion comes with a variety of difficulties," says Salman, who also directs Stony Brook's Nanoscale Circuits and Systems (NanoCAS) Laboratory. "For example, it is highly challenging to ensure that the diverse planes of a 3-D chip work in harmony as a single entity."

He points out that many scientists have been working on wafer level 3-D integration for more than a decade. However, "the primary emphasis has been on high performance and somewhat homogeneous chips, such as microprocessors," he says.

On the other hand, citing the 2011 edition of the International Technology Roadmap for Semiconductors (ITRS), an important guide for researchers in the field, "the third phase and long term application of 3-D technology includes highly heterogeneous integration, where sensing and communication planes are stacked with conventional data processing and memory planes," he says.

This means that a single 3-D chip will be able detect data from environment, then process and store this data using advanced algorithms, and then wirelessly transmit these data to a remote center, he says.

Unlike the dominant existing research, this relatively long term application has become his team's primary focus, an approach with the potential to enlarge the three-dimensional domain from high performance computing to relatively low power systems-on-chip (SoCs). These low power SoCs have capabilities beyond the boundaries of traditional general purpose processors, since they integrate multiple functions, including sensing, processing, storage and communication into a single 3-D chip, he says.

"Numerous applications exist in health care, energy efficient mobile computing, and environmental control, since a smaller form factor can be achieved at lower power while offering significant computing resources," he says. "Our fundamental objective is to develop a reliable 3-D analysis and design platform for these applications which will host future electronics systems that are increasingly more portable, can interact with the environment, consume low power, yet still offer significant computing capability."

He is conducting his research under an NSF Faculty Early Career Development (CAREER) award. 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 $453,809 over five years.

"We are developing design methodologies to reliably distribute power to each tier of a 3-D chip," he says. "We are also exploring novel circuit topologies for 3-D power management, thereby increasing energy efficiency. We are investigating various noise coupling paths within a 3-D system, and finding ways to protect sensitive transistors from noise. All of these activities serve for the common goal of improving power, signal and sensing integrity of a heterogeneous 3-D chip."

At the NanoCAS lab, their workstations are equipped with the latest electronic design automation software that allows the researchers to verify their algorithms, models and design methodologies. "We primarily rely on these state-of-the-art IC simulation tools that the semiconductor industry uses to design and verify their chips," he says.

As part of the grant's educational component, Salman plans to integrate these research activities at the secondary, undergraduate and graduate levels, and will involve the NanoCAS lab in an engineering summer camp for high-school students organized at Stony Brook. The program, organized jointly by the department of electrical and computer engineering and the student branch of IEEE (the Institute of Electrical and Electronics Engineers, a world-wide professional association) at Stony Brook, consists of a two-week residential camp at the university campus.

"While the primary goal is to introduce motivated high school students to the field of electrical engineering through theoretical classes and hands-on projects, the students also have an opportunity to learn and experience the university campus life," Salman says.

"At the NanoCAS lab, we offer an experimental course on fiber optic communication," he adds. "The course starts with an interesting history of communication technologies from prehistoric times to modern day. The students then learn the fundamentals of optical voice link and design their own communication link by soldering electronic components. We believe that an efficient link between education and research is essential for the advancement of science and technology to prevail."

U.S. CONGRATULATES PEOPLE OF REPUBLIC OF NAURU ON THEIR INDEPENDENCE DAY

FROM:  STATE DEPARTMENT
Republic of Nauru's Independence Day
Press Statement
John Kerry
Secretary of State
Washington, DC
January 29, 2014

On behalf of President Obama and the people of the United States, I offer warm congratulations to the people of the Republic of Nauru on the 46th anniversary of your Independence on January 31.

The United States and Nauru work together on a broad range of issues, including strengthening regional security, protecting our natural resources, and addressing the impacts of climate change.

I look forward to forging even closer ties as we build a more secure, prosperous, and sustainable world for future generations.

The United States stands with you in the spirit of our shared values and continuing cooperation.

U.S. NOTES AMENDMENT TO AGREEMENT FOR COOPERATION BETWEEN U.S.-IAEA

FROM:  STATE DEPARTMENT 
Third Amendment to the Agreement for Cooperation Between the United States of America and the International Atomic Energy Agency
Media Note
Office of the Spokesperson
Washington, DC
January 29, 2014

On January 29, 2014, President Obama submitted to Congress for its review a proposed Third Amendment to the Agreement for Cooperation between the United States of America and the International Atomic Energy Agency. The original Agreement entered into force on August 7, 1959, and was amended on May 31, 1974, and May 6, 1980. Under the proposed Amendment, the term of the Agreement would be extended an additional forty (40) years for a total term of ninety-five (95) years.

The newly amended Agreement would allow the United States and IAEA to continue their decades of nuclear cooperation. It would continue to provide a comprehensive framework for peaceful nuclear cooperation with the IAEA and facilitate our mutual objectives related to nonproliferation and the peaceful uses of nuclear energy. The Agreement exemplifies the U.S. Government’s strong support for IAEA peaceful uses activities, and the United States looks forward to expanding these cooperative efforts in the years to come.

DEFENSE SECRETARY HAGEL MEETS WITH NUCLEAR ENTERPRISE LEADERS

FROM:  DEFENSE DEPARTMENT 
Hagel Meets With Leaders of DOD Nuclear Enterprise
By Jim Garamone
American Forces Press Service

WASHINGTON, Jan. 29, 2014 – Defense Secretary Chuck Hagel met with the leaders of the Defense Department’s nuclear enterprise to discuss the health of the force.

Pentagon Press Secretary Navy Rear Adm. John Kirby told reporters Hagel considers the matter “a top national security priority.”

Air Force, Navy and U.S. Strategic Command leaders attended the meeting held in Hagel’s office where leaders addressed the personnel challenges that recently came to light in the nuclear missile force.

“It was a candid and wide-ranging discussion of the types of challenges that are faced by people who work in the nuclear enterprise, and … all the participants found it a very useful discussion,” Kirby said. The secretary directed that these conversations continue in the future, he added.

The leaders had an opportunity to talk about their perspectives on the health of the nuclear enterprise. “There were lots of good ideas floated about things that need to be considered and looked at by everybody, not just by the United States Air Force,” the admiral said.

Hagel called the meeting after revelations that 34 Air Force missile officers were implicated in cheating on qualification tests at Malmstrom Air Force Base, Mont, or knew about the cheating and did not report it. The number of officers being investigated has risen, Kirby said.

“I think the general consensus in the room was that we all need to accept the reality that there probably are systemic issues in the personnel growth and development inside the nuclear mission,” he said. “Now, exactly what they are and how to address them, well, … that's what they spent the bulk of the two hours talking about.”

The meeting looked at whether cultural problems within the missile community have made it easier to cheat or make people feel compelled to cheat, Kirby said.

U.S. STATEMENT ON SYRIA'S COMPLIANCE IN ELIMINATION OF CHEMICAL WEAPONS

FROM:  THE STATE DEPARTMENT 
Statement to the Thirty-Eighth Meeting of the Executive Council

Remarks
Ambassador Robert P. Mikulak, United States Delegation to the Executive Council Organization for the Prohibition of Chemical Weapons
The Hague, Netherlands
January 30, 2014

Mr. Chairman,

Since the last meeting of this Council on January 8th, the effort to remove chemical agent and key precursor chemicals from Syria has seriously languished and stalled. To date, only four percent of the Priority One chemicals declared by the Syrian Arab Republic have been removed, and roughly the same small percentage of the Priority Two chemicals. Let us not forget that this Council on November 15th of last year adopted specific timelines for the elimination of Syria's chemical weapons program, which required that 100 percent of the Priority One chemicals be removed from Syria by 31 December. The United States recognizes that 31 December was an ambitious goal for completing removal of the many tons of Priority One chemicals. However, the Syrian Arab Republic had not even begun the transport of Priority One chemicals to Latakia by 31 December, despite urgings from the Joint Mission Special Coordinator to "intensify" its preparation efforts.

Mr. Chairman,

Today we are one month past the 31 December completion date set by the Council. Almost none of the Priority One chemicals have been removed, and the Syrian government will not commit to a specific schedule for removal. This situation will soon be compounded by Syria's failure to meet the February 5th completion date set by this Council for the removal of all Priority Two chemicals. Syria has said that its delay in transporting these chemicals has been caused by "security concerns" and insisted on additional equipment – armored jackets for shipping containers, electronic countermeasures, and detectors for improvised explosive devices. These demands are without merit, and display a "bargaining mentality" rather than a security mentality.

The Joint Mission and the OPCW Technical Secretariat have rightly concluded that the additional equipment demanded by Syria is not needed for the safe transport of the chemicals to Latakia. And let us not forget that that these chemicals have often been moved during the ongoing conflict without such equipment, demonstrating that Syria has been able to ensure sufficient protection to date with its current capabilities, and without this additional "wish list" of equipment. As Secretary-General Ban said recently, "...the Syrian Arab Republic has sufficient material and equipment necessary to carry out multiple ground movements to ensure the expeditious removal of chemical weapons material." Secretary-General Ban added that "...it is imperative that the Syrian Arab Republic now examines the situation, intensifies its efforts to expedite in-country movements of chemical weapons material, and continues to meet its obligations." under UN Security Council Resolution 2118 and the OPCW Executive Council decisions.

Mr. Chairman,

Syria's requests for equipment and open-ended delaying of the removal operation could ultimately jeopardize the carefully timed and coordinated multi-state removal and destruction effort. For our part, the international community is ready to go, and the international operation to remove the chemicals is fully in place and ready to proceed once Syria fulfills its obligation to transport the chemicals to Latakia. On Monday, the U.S. ship Cape Ray set sail from Norfolk, Virginia, and will be in the Mediterranean shortly. The delay by Syria is increasing the costs to nations that have made donations for shipping, escort, and other services related to the removal effort.

Mr. Chairman,

The United States is deeply concerned about the failure of the Government of Syria to transport to Latakia all of the chemical agent and precursors as mandated by OPCW Executive Council decisions.

After missing the December 31, 2013, target date, the first movement of chemical agents took place on January 7, 2014. It took another three weeks, until January 27, 2014, for another shipment to take place. Syria must immediately take the necessary actions to comply with its obligations under the Chemical Weapons Convention, Executive Council decisions, and UN Security Council Resolution 2118.

It is imperative that the removal effort be conducted with regularity, rather than after long intervals. In order for obligations to be kept, it is essential that the Syrian government establish a plan that will give the international community confidence that movements will be made regularly. There should be no doubt that responsibility for the lack of progress and increasing costs rests solely with Syria. In the report for this meeting, the Council should express "deep concern" over Syria's delays in implementation of its chemical weapons elimination obligations and call for the transport of all chemicals to Latakia for removal without any further delay.

Mr. Chairman,

At this meeting, there is yet another serious issue involving the Syrian Arab Republic which must be addressed by this Council – the destruction of Syrian chemical weapons production facilities. Syria has proposed that seven hardened aircraft hangars and five underground structures previously used in connection with the production of its chemical weapons be "inactivated" and rendered inaccessible, for example, by welding doors shut and constructing interior obstacles. These proposed measures are readily reversible within days and clearly do not meet the requirement of "physically destroyed" as provided for by the Convention and the precedents for implementing that requirement.

Mr. Chairman,

With respect to the hangars, the United States is willing to explore an approach which would entail collapsing the roof, rendering them "physically destroyed" in line with the Convention.

The tunnels are a more challenging destruction problem that is complicated by Syria's revision of its initial declaration. In its conversion proposal, Syria declared the entire interior space of the tunnel as a CWPF. When its conversion proposal was rightfully rejected by this Council, Syria revised its declaration to encompass only a small fraction of the interior space of the tunnels. It is clear that Syria got it right the first time and its revised declaration lacks credibility. With respect to meeting the requirement for physical destruction, the United States has concluded that the entire tunnel need not be collapsed or filled. Instead, we would propose that the tunnel portals be collapsed and the overall structural integrity of the tunnels be compromised at key junctures.

This Council must reject Syria's proposal to "inactivate" its hangar and tunnel CWPFs, rather than physically destroying them as the CWC requires. The United States invites Council members to review the analysis and proposals contained in our recently circulated national paper.

Mr. Chairman,

This Council has before it several important decisions that once again underline the commitment of the international community to make an extraordinary effort to destroy Syrian chemical weapons. One is to approve a Model Agreement produced by the Technical Secretariat related to contract arrangements with commercial companies selected for the destruction of Syrian chemicals outside Syria. My delegation supports the Decision.

The selection of the companies will be soon completed by the Technical Secretariat on the basis of a tender process conducted in accordance with international bidding standards. To further support the Technical Secretariat's efforts, the decision before us also gives formal and specific authority to the Director General to conclude, in consultation with the relevant States Parties, commercial contracts for the destruction of the chemicals. This authorization is fully consistent with the Council's wishes, previously recorded in EC-M-34/Dec.1 and EC-M-36/Dec.2.

The Council also has before it a request for the approval of the verification measures for the destruction of isopropanol in Syria, as called for in EC-M-34/Dec.1. My delegation supports the verification plan as submitted.

Mr. Chairman,

In closing, let me thank you and the Technical Secretariat, Special Coordinator Kaag and the Joint Mission, and all of the States Parties that are participating directly in, or contributing to, the operation to remove and destroy Syrian chemical weapons agents and precursors. Thanks to these extraordinary efforts the international community is ready and poised to do its part in successfully implementing the decisions of this Council and the UN Security Council. The spotlight now is on Syria to proceed without further delay to comply with its obligations and make this effort a success.

The 27 September decision of this Council and UN Security Council resolution 2118 will be judged to be historic only if they succeed in eliminating the Syrian chemical weapons program. The eyes of the world remain upon us to achieve the promise of this effort. Today let us make clear to the Syrian Arab Republic that the eyes of this Council remain upon them.

I request that this statement be made an official document of the meeting.

Thank you, Mr. Chairman.

1ST LABOR AFFAIRS COUNCIL MEETING UNDER U.S.-PANAMA TRADE PROMOTION AGREEMENT

FROM:  LABOR DEPARTMENT 
US Department of Labor officials attend first Labor Affairs Council meeting 
under US-Panama Trade Promotion Agreement

WASHINGTON — Senior officials from the U.S. Department of Labor and the Office of the U.S. Trade Representative and their Government of Panama counterparts today concluded the first Labor Affairs Council meeting under the U.S.-Panama Trade Promotion Agreement in Panama City, Panama. During the Jan. 27-28 meetings, officials reaffirmed their commitments under the Labor Chapter of the TPA and discussed:

possible areas for future cooperation;
activities to strengthen institutional capacity and labor law enforcement and compliance;

child labor and youth employment; and areas of common interest, such as the use of temporary contracts and processes for union registration.

The council is responsible for overseeing the implementation and review of progress under the Labor Chapter of the TPA. Eric Biel, acting associate deputy undersecretary for international labor affairs at the Labor Department, and Carlos Romero, deputy assistant U.S. Trade Representative, led the U.S. delegation at the meetings, which included a public session with workers, employers, civil society organizations and the general public, attracting a crowd of more than 50 participants. Along with their counterparts from the Ministry of Labor and the Ministry of Commerce and Industry of Panama, U.S. officials issued a joint statement at the conclusion of the meetings.

"A sustained, transparent, inclusive dialogue is crucial to full implementation of the Labor Chapter," said Biel. "To that end, we are pleased that the Government of Panama has demonstrated a clear commitment to continue to work together with us to ensure that respect for labor rights is a meaningful part of this important bilateral agreement."

The joint statement is available at the department's Bureau of International Labor Affairs' in Panama page.

PIRANHA IMPORTER PLEADS GUILTY TO IMPORT VIOLATIONS

FROM:  JUSTICE DEPARTMENT
Wednesday, January 29, 2014
Tropical Fish Importer Pleads Guilty in New York Federal Court to Piranha Import Violations

Joel Rakower, along with his solely-owned corporation, Transship Discounts Ltd., pleaded guilty today in federal court in Brooklyn, N.Y., to violating the Lacey Act by mislabeling imported piranhas, announced Acting Assistant Attorney General Robert G. Dreher for the Environment and Natural Resources Division of the Department of Justice and Queens County District Attorney Richard A. Brown.

In the plea agreement, Rakower admitted that his company purchased piranhas from a Hong Kong tropical fish supplier and imported them to Queens, N.Y.   Each such import must be accompanied by a packing list describing what wildlife is contained in the package being imported, and the importer must provide this packing list to the United States Fish and Wildlife Service upon import for inspection.   In March of 2011, shortly after New York City prohibited possession of piranhas, Rakower instructed the foreign supplier to falsely label the piranhas on packing lists as silver tetras, a common and unaggressive aquarium fish.   Over the course of 2011 and 2012, Transship submitted packing lists to the Fish and Wildlife Service containing false identifications of 39,548 piranhas, worth approximately $37,376, which Transship then sold to fish retailers in several states.

“Rakower flouted federal laws meant to protect people and the environment from the illegal trade in wildlife species,” said Acting Assistant Attorney General Dreher.  “Mislabeling imported wildlife presents dangers to the public and the environment and we will continue to prosecute these cases.”

Under the plea agreements, Rakower agreed to pay a $3,000 fine.   Transship agreed to  serve a two-year period of probation, pay a $35,000 fine and pay $35,000 in restitution to the State of New York’s Department of Environmental Conservation Division of Law Enforcement.  Both parties will be sentenced on April 24, 2014.

Piranhas are freshwater fish originating from South American rivers such as the Amazon, Orinoco, Guyana and the Sao Francisco river systems.  Piranhas are extremely aggressive and territorial, feeding on insects, fish, and larger prey such as amphibians, reptiles and mammals.  As a result of piranhas’ aggressiveness, 25 states have either banned or regulated piranhas, making them illegal to own or sell.  Piranhas, an injurious species, could pose a serious risk if they escaped into native water systems, potentially damaging ecosystems through aggressive predation or injuring people or pets.  Tropical fish enthusiasts can contribute to this possibility by releasing piranhas into the wild when they grow too large for a tank.  Although piranhas originate from tropical waters, they are able to withstand much cooler water temperatures, creating fear that they may even become established in more northern US waters.   Effective regulation of piranha possession and sales within the United States depends on accurate reporting of piranha imports; concealing the fish upon import facilitates their entry into the black market in states that have banned or strictly regulated piranhas to protect state waters and ecosystems.

“Driven by greed and without regard for the health and safety of people or the environment, the defendant and his company illegally trafficked in piranha by falsely labeling the imported predatory freshwater fish as being silver tetras, a far more benign fish often kept in home aquariums and having a far less street value than piranha,” said District Attorney Brown.  “I thank the New York State Department of Environmental Conservation and our federal colleagues – the U.S. Fish and Wildlife Service and the United States Department of Justice’s Environment and Natural Resources Division – for providing a reasonable and appropriate resolution of the case.”

This case was investigated by the United States Fish and Wildlife Service in conjunction with the New York State Department of Environmental Conservation Division of Law Enforcement, and is being prosecuted by Cassandra Barnum, a trial attorney in the Environmental Crimes Section of the U.S. Department of Justice’s Environment and Natural Resources Division.

PRESIDENT OBAMA MAKES REMARKS ON MINIMUM WAGE AT COSTCO IN LANHAM, MARYLAND

FROM:  THE WHITE HOUSE 
Remarks by the President on Minimum Wage -- Lanham, MD
Costco
Lanham, Maryland

10:15 A.M. EST

THE PRESIDENT:  Hello, Maryland!  (Applause.)  It’s good to see you.  I love getting outside the Beltway, even if it is just a few hundred feet away.  (Laughter.)

Well, first of all, give Teressa a great big round of applause for the great job she did.  (Applause.)  It is good to be here with all of you.  I want to acknowledge a champion for working families right here in Maryland -- Governor Martin O’Malley.  (Applause.)  Some folks who go to bat for working people every single day:  Senator Ben Cardin is here.  (Applause.)  Congresswoman Donna Edwards is here.  (Applause.)   And all of you are here.  (Applause.)

Teressa’s story proves that treating workers well is not just the right thing to do -- it is an investment.  And Teressa’s 27 years of hard work at Costco proves that investment pays off.

I talked a little bit about this last night in my State of the Union address.  Now, I only finished 12 hours ago, so these remarks will be quicker.  (Laughter.)  And I needed some time to pick up a snow shovel and one of those 50-pound bags of dog food for Bo and Sunny.  (Applause.)  I was told I'd get a big-screen TV, too, for the Super Bowl coming up -- 80-inch.  (Laughter.)   So 60 is not enough?  Got to go 80.  (Laughter.)

It is funny, though -- I was looking -- you can buy a sofa, chocolate chip cookies and a snorkel set all in the same -- (laughter and applause.)  The sofa didn’t surprise me, but the snorkel set -- (laughter) -- that was impressive.  Although I do want to ask, who’s snorkeling right now?  (Laughter.)  How many of those are you guys selling?  You never know.  (Laughter.)

But what I talked about last night was a simple but profound idea -- and it’s an idea that’s at the heart of who we are as Americans:  Opportunity for everybody.  Giving everybody a fair chance.  If they’re willing to work hard, take responsibility, give them a shot.  The idea that no matter who you are, where you come from, what you look like, what your last name is, if you work hard, you live up to your responsibilities, you can succeed; you can support a family.  (Applause.)  That's what America should be about.  Nobody is looking for a free lunch, but give people a chance.  If they’re working hard, make sure they can support a family.

Now, we’re at a moment where businesses all across the country, businesses like Costco have created 8 million new jobs over the last four years.  Our unemployment rate is the lowest it’s been in more than five years.  Our deficits have been cut in half.  Housing is rebounding.  Manufacturing is adding jobs for the first time since the ‘90s.  We sell more of what we make here in America to other places than ever before.  Business leaders are deciding that China’s not the best place to invest and create jobs -- America is.

So this could be a breakthrough year for America.  After five years of hard work, overcoming the worst recession in our lifetimes, we're better-positioned for this young century than anybody else.  But the question for folks in Washington is whether they’re going to help that progress or hinder that progress; whether they’re going to waste time creating new crises for people and new uncertainty -- like the shutdown -- or are we going to spend time creating new jobs and new opportunities.

And I know what I'm choosing to do because it’s what you do -- I'm choosing this to be a year of action.  (Applause.)   Because too many Americans are working harder than ever just to get by, much less get ahead.  The scars of the recession are real.  The middle class has been taking it on the chin since before the recession.  The economy has been growing for four years now, and corporate profits, stock prices have all soared.  But the wages and incomes of ordinary people haven’t gone up in over a decade.

So that’s why last night, I laid out some steps that we can take, concrete, common-sense proposals to speed up economic growth, strengthen the middle class, build new ladders of opportunity into the middle class.

And this opportunity agenda has four parts.  Number one, we need more new jobs.  Number two, we need to train more Americans with the skills that they need to fill those jobs.  Number three, we should guarantee every child access to a world-class education.  (Applause.)  And number four, let’s make sure hard work pays off.  (Applause.)

Now, some of my ideas I’ll need Congress.  But America can't just stand still if Congress isn’t doing anything.  I’m not going to stand still either.  Wherever I can take steps to expand opportunity for more families, I’m going to do it -- with or without Congress.  (Applause.)  Because the defining project of our time, of our generation, is to restore opportunity for everybody.

And so I’m here at Costco today to talk about the fourth part of the opportunity agenda, and that is making hard work pay off for every single American.

Five years ago I signed my first bill into law.  I didn't have any gray hair.  (Laughter.)  You think it’s distinguished?  Okay.  (Laughter.)  That's the guy with the gray beard saying -- (Laughter).  So this first bill that I signed was called the Lilly Ledbetter Fair Pay Act.  (Applause.)  Lilly was at my speech last night.  And it’s a law to help protect a woman’s right to fair pay.  But at a time when women make up about half of the workforce, but still make 77 cents for every dollar a man earns -– we’ve got to finish the job and give women the tools they need to fight for equal pay.  Women deserve equal pay for equal work.  (Applause.)  They deserve -- if they're having a baby, they shouldn’t have to sacrifice their job.  A mom deserves a day off to care for a sick child or a sick parent -– and a father does, too.

As I said last night, we got to get rid of some of these workplace policies that belong in a “Mad Men” episode, belong back in the ‘50s.  We’ve got to give every woman the opportunity she deserves.  Because when women succeed, America succeeds.  (Applause.)

Now, women happen to hold a majority of lower-wage jobs in America.  But they’re not the only ones who are stifled when wages aren’t going up.  As Americans, we understand some people are going to earn more than other people, and we don’t resent those who because they work hard, because they come up with a new idea, they achieve incredible success.  We want our kids to be successful.

And it’s funny -- Michelle and I sometimes talk -- Michelle’s dad was a blue-collar worker; her mom was a secretary. I was raised by a single mom.  We didn't go around when we were growing up being jealous about folks who had made a lot of money -- as long as if we were working hard, we could have enough.

So Americans overwhelmingly agree nobody who works full-time should ever have to raise a family in poverty.  (Applause.)  And that is why I firmly believe it’s time to give America a raise.  (Applause.)

A hundred years ago, Henry Ford started Ford Motor Company. Model T -- you remember all that?  Henry Ford realized he could sell more cars if his workers made enough money to buy the cars. He had started this -- factories and mass production and all that, but then he realized, if my workers aren’t getting paid, they won’t be able to buy the cars.  And then I can't make a profit and reinvest to hire more workers.  But if I pay my workers a good wage, they can buy my product, I make more cars.  Ultimately, I’ll make more money, they’ve got more money in their pockets -- so it’s a win-win for everybody.

And leaders today, business leaders today, some of them understand this same concept.  Costco’s CEO, Craig Jelinek, he understands this.  He feels the same way.  He knows that Costco is going to do better, all our businesses do better when customers have more money to spend.  And listen, Craig is a wonderful guy, but he’s not in this for philanthropy.  He’s a businessman.  He’s looking at the bottom line.  But he sees that if he’s doing right by Costco’s workers, then they can buy that 80-inch TV, too.  (Laughter and applause.)  Right?

Profitable corporations like Costco see higher wages as a smart way to boost productivity and to reduce turnover.  So entry-level employees here -– stock associates, cashiers –- start out at $11.50 an hour.  (Applause.)  Start at $11.50.

AUIDENCE MEMBER:  Mr. President, we love you!

THE PRESIDENT:  Thank you.

The average hourly wage is more than $20, not including overtime or benefits.  And Costco’s commitment to fairness doesn’t stop at the checkout counter; it extends down the supply chain, including to many of the farmworkers who grow the product -- the produce that you sell.  (Applause.)

Now, what this means is that that Costco has some of the lowest employee turnover in your industry.  So you’re not constantly retraining folks because they quit.  You got people like Teressa who has been here 27 years -- because it’s a company that's looking out for workers.

And I got to tell you, when I walk around, just -- I had a little tour of the produce section, the bakery -- you could just tell people feel good about their job and they feel good about the company, and you have a good atmosphere, and the managers and people all take pride in what you do.

Now, folks who work at Costco understand that, but there are a lot of Americans who don’t work somewhere like Costco, and they’re working for wages that don’t go as far as they once did. Today, the minimum wage -- the federal minimum wage doesn’t even go as far as it did back in the 1950s.  And as the cost of living goes up, the value of the minimum wage goes down over time.  Just last year alone, workers earning the minimum wage basically got the equivalent of a $200 pay cut because the minimum wage stayed the same but costs of everything else are going up.

I don’t need to tell you this.  You go shopping.  (Laughter.)  So you’re like, mm-hmm.  (Laughter.)  For a typical minimum-wage worker, that’s a month’s worth of groceries.  It’s two months of electricity.  It’s a big deal to a lot of families.

So I brought a guy here today who knows a little bit about this -- Tom Perez is America’s Secretary of Labor -- (applause)  -- works for working families every day.  I stole him from Governor O’Malley.  (Laughter.)  He came here from Maryland.  But when he was Governor O’Malley’s labor secretary here in Maryland, he helped implement the country’s first statewide living wage law.  And that helped a lot of Maryland families.  But there are more families in Maryland and across the country who put in long days, they’ve got hard jobs -- they deserve higher wages.

In the year since I first asked Congress to raise the federal minimum wage, five states have passed laws to raise theirs.  Governor O’Malley is trying to do it here in Maryland, and lift the minimum wage to $10.10.  He says, “We all do better when we’re all doing better.”  He’s right.  Prince George’s County, Montgomery County are banding together with D.C. to raise the regional minimum wage.  And I'm here to support your efforts. (Applause.)  I’m here to support your efforts.  And as I said last night, to every governor, mayor, state legislator out there, if you want to take the initiative to raise your minimum wage laws to help more hardworking Americans make ends meet, then I’m going to be right there at your side.

While Congress decides whether it’s going to raise the minimum wage or not, people outside Washington are not waiting for Congress.  And I’m not, either.  So as a chief executive, I’m going to lead by example.  In the coming weeks, I will issue an executive order requiring federal contractors to pay their federally funded employees on new contracts a fair wage of at least $10.10 an hour.  (Applause.)  Because if you cook our troops’ meals and wash their dishes, you shouldn’t have to live in poverty.

So there’s some steps businesses are taking on their own.  There are steps that certain states and counties and cities are taking on their own.  There are steps I’m going to take as President.  But ultimately, Congress does have to do its part to catch up to the rest of the country on this.

And there’s a reason why a wide majority of Americans support increasing the minimum wage.  Look, most Americans who are working make more than the minimum wage.  So it’s interesting that the overwhelming number of Americans support raising the minimum wage.  It’s not that it’s going to necessarily affect them personally right now; it’s that they know, they understand the value behind the minimum wage.  If you work hard, you should be able to pay your rent, buy your groceries, look after your kids.  (Applause.)  If you put in a hard day’s work, you deserve decent pay for it.  That’s a principle everybody understands, everybody believes.

So right now in Congress, there’s a bill that would lift the federal minimum wage to $10.10 an hour -- 10.10 -- 10.10, it’s easy.  It will give more businesses more customers with more money to spend.  I guarantee you, if workers have a little more money in their pocket, they’ll spend more at Costco.  (Applause.) And if Costco is seeing more customers, they’ll hire some more folk.  Everybody does better.

And the thing about it is raising the minimum wage doesn’t require new spending by the federal government.  It doesn’t require a big bureaucratic program.  It would help a lot of Americans make ends meet.

So I need everybody here and everybody who’s going to be watching, tell Congress to make this happen.  Give America a raise.  Making work pay means doing more to help Americans all across this country, but it also means improving the economy -- because one of the things that’s been holding our economy back is wages and incomes being flat, which means consumers aren’t spending as much, which means businesses don’t have as many customers, which means they don’t hire as much and they don’t invest as much, and we don’t get that liftoff on the economy that we could.

If we want to make work pay, we also have to help Americans save for retirement -- and I’m going to be flying up to Pittsburgh this afternoon to talk about that.  (Applause.)  Making work pay means access to health care that’s there when you get sick.  And the Affordable Care Act means nobody can ever be dropped or denied coverage for a preexisting condition like asthma or cancer.  (Applause.)  You can’t be charged more if you’re a woman.  You can’t be charged just because your job makes your back hurt sometimes.  Those days are over.  (Laughter.)

More Americans are signing up for new private health insurance plans every day.  Already 3 million people have signed up.  So if you know somebody who isn’t covered, who doesn’t have health insurance, call them up, sit them down, help them get covered at healthcare.gov by March 31st.

So this is the opportunity agenda that I’m going to be talking about this year.  I don’t know -- I hope Congress will be talking about it, too.  But I’m not going to wait.  Because we’ve got to restore some economic security in a 21st century economy, and that means jobs that are more plentiful, skills that are more employable, savings that are more portable, health care that’s yours and can’t be canceled if you get sick.

I just focused on one piece of that opportunity agenda today -- raising the minimum wage.  But these are real, practical, achievable solutions that can help shift the odds back in favor of working and middle-class Americans who haven’t been seeing some of the benefits of growth that we’ve seen over the last four years.

And before I grab a 10-pound barrel of pretzels and -- (laughter) -- 500 golf balls -- (laughter) -- let me just leave you with something I heard from Costco’s founder, Jim Sinegal, who’s been a great friend of mine and somebody who I greatly admire.  And Jim is rightly proud of everything he’s accomplished.  “But,” he said, “here’s the thing about the Costco story.  We did not build our company in a vacuum.  We built it in the greatest country on Earth.  We built our company in a place where anyone can make it with hard work, a little luck, and a little help from their neighbors and their country.”

That’s what Jim said -- a place where anyone can make it.  That’s who we are.  That’s our story.  If we pull together, work together, put our shoulder to the wheel, keep moving forward, that’s going to be our future as well, and the future for our kids and grandkids.

Thanks so much, everybody.  God bless you.  God bless America.  (Applause.)

END  

SECRETARY OF STATE KERRY MAKES REMARKS AT ANNUAL AWARDS FOR CORPORATE EXCELLENCE

FROM:  STATE DEPARTMENT 
Remarks at the 15th Annual Awards for Corporate Excellence
Remarks
John Kerry
   Secretary of State
Patrick F. Kennedy
   Under Secretary for Management 
Kris Urs, Acting Assistant Secretary for Economic and Business Affairs
Benjamin Franklin Room
Washington, DC
January 29, 2014


ASSISTANT SECRETARY URS: Well, I want to wish a very good morning to everyone this morning. I’m delighted to welcome you here to the Benjamin Franklin Room at the State Department. I’m Kris Urs, the acting Assistant Secretary of State for Economic and Business Affairs.

The Bureau of Economic and Business Affairs works closely with U.S. businesses across a wide-range of activities, including assisting companies in their efforts to operate responsibly and sustainably overseas, negotiating trade and other international economic agreements, and promoting democracy, free markets, fairness, and other American values.

In line with the Secretary of State’s focus on the importance of economics in our foreign diplomacy, we have made economic issues a core component of our foreign policy. Partnerships with companies are essential to promote U.S. interests and values. We are here today to honor U.S. companies that contribute to that mission through their exemplary corporate citizenship.

These three U.S.-based companies have done exceptional work in giving back to the communities where they do business. They are setting the highest standards for responsible business conduct through sustainable development and showing the world that it’s indeed possible to do well by doing good.

I want to emphasize the crucial role that American businesses play around the globe, representing our country and our values. The importance that we attach to the role of U.S. companies as global ambassadors for responsible and sustainable economic growth is reflected in Secretary Kerry’s presence here today, to announce the winners of the 2013 Secretary of State’s Award for Corporate Excellence. Now I would like to introduce Patrick Kennedy, the Under Secretary of State for Management.

Patrick Kennedy chaired the 2013 ACE Interagency Principle Selection Committee that reviewed the 43 nominations submitted by our embassies overseas for the Secretary’s Award for Corporate Excellence.

(Applause.)

UNDER SECRETARY KENNEDY: Thank you very much, Kris. I’d like to extend a warm welcome to our many distinguished guests who are here today, and a very, very special welcome to those joining us by satellite from Cameroon, Honduras, and Mexico.

In recognizing American firms for their exemplary corporate social responsibility, the Secretary of State’s Award for Corporate Excellence underpins an important aspect of America’s economic diplomacy. Secretary Kerry is committed to putting economic work squarely at the center of our foreign policy. Our active economic engagement ties to State Department toward Americans, whether they work on farms or in factories, offices and stores, care about jobs. We’re helping to create opportunities for upward mobility and economic growth for our nation and our children’s future. I can tell you the State Department is committed to those goals, and is working tirelessly to fulfill them. And as we continue this work, the State Department demonstrates to American businesses, workers, farmers, and innovators, that what we do in this Department, and in our embassies around the world, clearly and directly benefits them at home, and we will strive to make that link even more apparent.

Essential to supporting world-class U.S. businesses is cooperation with these firms, in stressing the commercial and technical merits of U.S. exports and the competitiveness of U.S. workers. And make no mistake: American firms active around the world represent America and its values. The quality of their products and people and the business practices they adopt overseas is for many millions of people abroad the face of America. And before we get to that, now we have the honor of hearing from Secretary Kerry, who has been a tireless advocate of American businesses abroad, and is the driving force for all that we do in this vital area of American policy.

Please join me in extending a warm welcome to our Secretary of State.

Mr. Secretary.

(Applause.)

SECRETARY KERRY: Thank you very much. Thank you. Thank you.

Thank you very, very much, Under Secretary Kennedy, Pat, thank you very, very much. I don't know how Pat does all he does for us, but he somehow juggles this magnificently large portfolio, and he does an incredible job for the Department and the country. And I appreciate his leadership and his partnership in so many different initiatives. I also want to thank Assistant Secretary Kris Urs and his team for the very important work that they have done around the ACE awards and that they do around them every year.

And I’m particularly pleased to welcome all of you here today to the State Department to this wonderful resplendent Ben Franklin room where we can share the significance of these three awards being made today.

I’m delighted to welcome Ambassador Bienvenu Foe-Atangana from Cameroon, Ambassador Milla from Honduras, and Ambassador Medina Mora from Mexico. And we’re very, very grateful for their presence here. And I’m also happy to see – somewhere, where – he was here a minute ago – Congressman Farr from California is here in the audience today because one of his constituents is receiving an award. And I assure you there was no collusion in that at all. (Laughter.)

I particularly want to welcome those who are joining us, participating via satellite in Mexico City, Tegucigalpa, and also Yaounde. They are part of the webcast, and we’re delighted to have them, which are locations of these plants. We’re happy to have them with us here today.

The Secretary’s Award for Corporate Excellence is a special event in my view, to underscore what both Kris and Pat Kennedy have emphasized to you. I do believe that increasingly in this globalized world of extraordinary voracious competition for resources, jobs, revenues, and everything else, economics plays a more and more significant role – the choices that we make in terms of helping our businesses, where our businesses locate, how they locate, what they’re doing, how they do it. All of these things have a profound impact on people’s lives and people’s perceptions of the United States and of other competitors.

There’s a difference between the way we do some business and the way a lot of other countries do some business, and I think we carry in our businesses and in our enterprises our values. And that is a huge part of American foreign policy, our values.

So this is important. It’s important because – it’s important anyway with a burgeoning youth population around the world, extraordinary explosion in numbers of people in various countries, so that 60, 65 percent of some countries are under the age of 30; 50 percent are under the age of 25 or 21; and 40 percent under the age of 18. If these people don’t have jobs, and if we don’t provide them with opportunity, then a lot of bad things can happen. And that affects our security, it affects our prosperity, it affects our choices. That is why it is so important.

It’s also important because in an age of diminishing budgets, being able to attract the private sector to help us leverage engagement in countries can sometimes be the difference between whether or not those countries will be stable or able to market to their populations the prospects of the future, which too many of their citizens, given the world of the internet, are aware of out there. There’s no lack of contact with the rest of the world with everybody nowadays. It’s changed leadership. It’s changed politics. And it has changed diplomacy. We need to change with it, and we need to adopt policies that reflect this.

I also want you to know I have a special appreciation for what it takes to run a small business, or any business. I was chairman of the Small Business Committee for a number of years in the Senate, but more importantly, I started a small business. When I was a board attorney in Boston, I walked out of a restaurant one night with a friend of mine, probably having had too much of a good bottle of wine, and looked out and saw an empty space in Faneuil Hall marketplace. And desperately craving a good chocolate chip cookie at that hour of night, I decided that I was going to make sure they were available for the future. And so within a week, I found myself negotiating with The Rouse Company, then the landlord of Faneuil Hall marketplace, and next thing I knew, I was opening a gourmet food store in Faneuil Hall marketplace in addition to my law practice.

And I learned firsthand just how complicated it is with all of the health requirements and certifications and lease and part-time employees and tax forms, and you name it, to do this simple enterprise. More importantly, I learned about a week before I opened that if I was going to sell cookies I needed a recipe, and I better make some cookies pretty quickly. (Laughter.)

So I want you to know that I turned up the stove at home and I learned about the chemistry of food as I magnified my recipes many times over, and proudly can tell you that in the first year of our existence, we won the Best of Boston, as we did for a number years thereafter until I sold the store so nobody would accuse me of having conflict of interest or anything. But I am proud to tell you – I think I started this in 1980, 1981 – it’s still there today. And I’m very proud of that. (Applause.)

So I have a lot of respect for business, and I think it’s hard enough to do well; it’s even harder to do good as you’re doing well. And those are important choices that we are celebrating here today. Every single one of the winners today have set a high standard, and they’ve all done really remarkable work in communities around the world as a result of the choices that they have made in the corporate board room.

There’s a reason that this award comes from the Secretary of State, because here at the State Department, our mission is to create more secure, democratic, and prosperous – a more prosperous world. But obviously, everywhere that we are in our 275 posts, this is our mission. And we want to benefit the American people and the international community by exemplifying the role that U.S. businesses play in helping our businesses to be able to play this role. I talked earlier about all of the stakes and what it means.

We can only do what we do with the cooperation of the private sector. And through innovative business models and investment in local communities around the world, countless United States businesses are today markedly improving the ability of our nation to continue advancing our economic leadership around the world. We are working hand in hand. We are linked hand to hand, toe to toe. This is really a partnership.

The State Department wants to tell America’s story, and we want to promote our values at the same time. And as I have underscored to you, the relationship with all of our companies around the world is critical in the end to doing that. If people feel they’re just exploited, we lose. If people feel we’re there working with them and for them in a joint effort and respecting their lives, as these companies have chosen to and as many companies do, it makes all the difference.

So let me begin with these awards with the small business category. This year, that award goes to a company that any serious guitar player or any faux guitar player like me knows well – (laughter) – and that is Taylor Guitars.

When Bob Taylor started Taylor Guitars back in 1974, he made a commitment to produce the best instruments from the best materials. And quality ebony is near the top of that list. You all know guitar necks and you see ebony on many of them, most of them. But over the years, ebony has become harder and harder to obtain, and it’s increasingly threatened with extinction because of the illegal harvesting practices that have become common throughout Central African forests. I might add, ebony is one example of this. There are a lot of hardwoods in the Philippines and Burma and other parts of the world where logging practices, illegal smuggling of forest and so forth, is destroying sustainable harvestry and ultimately making extinct various types of wood.

So instead of joining the race to the bottom, in order to procure as much ebony as was possible as cheaply as possible, which is sometimes an instinct people follow, Bob decided to change the race altogether. And what he did was he bought an ebony mill in Cameroon, the only country in the world where it’s still legal to harvest ebony. And through that mill, Bob and Taylor Guitars have fundamentally changed the entire ebony trade.

To start, today we can point to an ebony trade that is more sustainable than ever before. And Bob spent a year in Cameroon after purchasing the mill, and he found out that harvesters used to cut down 10 trees before they found one that contained the all-black wood, which was the kind that would sell internationally. So obviously, 10 for one is the definition of unsustainable. And today, Taylor Guitars uses, as Bob puts it, “the ebony that our forests give us,” and no matter what color it is. He has also gotten competitors on board, so that today guitar makers around the world are changing their definition of “usable” ebony in order to help ensure that it will still be available for decades to come.

The ebony trade is also, as a result of this, safer and more ethical, and – guess what – more lucrative than ever before. Taylor Guitars has become an effective advocate for legal and policy reforms to improve the permitting process around the ebony trade to better protect both the environment and the rights and needs of other forest users. Taylor ensures that its works are protected, and they ensure that their workers likewise benefit as a result of this. The 70 workers that they employ in Cameroon work with state-of-the-art equipment and machinery. This is a huge upgrade from the very dangerous and antiquated machinery that Bob found when he first went to the mill. And the company also provides education and training to its employees so they can make the most out of their skills and reap greater economic benefit from the local resources. And on top of all of that, they’ve doubled the wages that their employees receive.

So ladies and gentlemen, this is absolutely the example of how people ought to do business. We’re so proud to be able to tell this story, as each of these stories, because they’re a wonderful example of the best of corporate citizenship globally. It’s an honor for me to present the 2013 Award for Corporate Excellence to Taylor Guitars, and to invite their president Bob Taylor to the stage to say a few words. (Applause.)

MR. TAYLOR: Wow. Well, I came through these rooms 15 years ago as a tourist on a hot summer day, and it’s quite a different event today – and I’m not just talking about the weather. And Secretary Kerry, if you’d be so kind to travel with me and be my person that gives my speeches, you do a much better job than me. (Laughter.) Thank you very much.

Thank you, Secretary Kerry and Under Secretary Kennedy, Acting Assistant Secretary Urs, and the State Department and other U.S. Government agencies represented here, as well as His Excellency, the Ambassador of Cameroon to the United States. I would also like to extend my gratitude to Ambassador Robert Jackson, Deputy Chief of Mission Greg Thome, and the staff of the U.S. Embassy in Cameroon, who have proven vital in securing resources and offering guidance in navigating the cultural complexities of business abroad. I’d also like to recognize Kurt Listug, my business partner of 40 years in Taylor Guitars, and Vidal de Teresa, our business partner in Crelicam. Without their support and insight, this venture would not be possible and I would not be here before you today.

Three years ago, we began the difficult task of assuming ownership of Crelicam, a small sawmill that cuts ebony located just outside of Yaounde, the capital of Cameroon. We purchased the business to ensure the legal harvesting of this important species and to guarantee our compliance with the spirit and the law of recent legislation regarding wood harvesting. Our purchase of the business was underscored by the rapid decline of the world’s ebony forests, therefore making Cameroon one of the last places on Earth to harvest ebony.

But we shared a much larger vision, a vision which would serve both the forest and the people by providing business solutions to an environmental problem. Our vision was to transform the way that ebony is harvested, processed, and sold into a new model of responsible social forestry while enriching the lives of our 75 employees through meaningful work. To accomplish this, we assumed the role of guardian of the forest and we operate with the philosophy to use what the forest gives us. To us, this means using ebony of all colors and all variegations, including wood that features spotted or streaked coloring, wood which prior to our involvement would have been left to deteriorate on the forest floor.

In our ongoing work, we are achieving greater transparency in our supply chain through GPS tracking and traceability programs, and establishing ethical sourcing requirements for our suppliers, thereby setting new standards for harvesting ebony. In our mill, we are mentoring sawyers who have previously not been taught to consider preservation of the resource and installing better machinery to maximize yield and minimize waste with the ultimate result of keeping more trees in the forest.

By banishing accepted quid pro quo practices and combatting corruption, we are able to operate transparently and with integrity, demonstrating respect for the forest, our employees, and clients of Crelicam. We have worked with Cameroon forestry officials to strengthen the local forestry laws, and more importantly, to enforce them. Rather than allow illegal operators to contribute to the degradation of the species, Crelicam prides itself on being a part of the solution to the long-term sustainability of the ebony trade and to retain the value of the wood in Cameroon for the Cameroonian people.

Although our primary focus is to harvest ebony, we recognize our moral duty to act in the spirit of compassionate capitalism, to enrich the lives of our employees, and to instill their ownership in the natural resources that their country offers us. As part of this, we have made considerable investments in our employees, offering technical training led by staff from Taylor Guitars in California and Madinter Trade in Spain. We have doubled employee salaries and we offer lunch prepared on an onsite kitchen, clean drinking water, and two breaks per day. Basic safety gear, a standard in Western factories, is now provided and required. Opportunities for teambuilding through recreational activities and monthly birthday celebrations demonstrate our appreciation and have helped to establish an open dialogue between employees and mill leadership, thereby making them partners in our vision. In the words of one of our sawyers, “We have a strong team with open, respectful dialogue, and the management keeps their word. Thus, the working man finds his joy.”

Nonetheless, operating in Cameroon has presented a myriad of complex cultural and business difficulties. The lack of basic infrastructure, from running water to stable electricity, has altered our production goals and the timeline by which we are able to make needed improvements. Continued development of employee skillsets through workforce education and training has been a top priority for us. Machinery and tools, custom designed at our headquarters in California, have been brought in to make improvements in our operations. However, we still find there is need for so much more. Yet with great difficulty comes great reward. And while many more challenges await us, it is with firm resolve that we hold true to our vision, and it is vital to the health of the forest and the people of Cameroon. We say to ourselves that we like to get in for more rather than to get out for less.

The reception of the Award for Corporate Excellence is a wonderful recognition of our accomplishments to date, and I am tremendously honored to accept this award on behalf of my business partner, Madinter Trade, our employees, and the forests of Cameroon. Thank you very much. (Applause.)

SECRETARY KERRY: Bob, thank you very, very much, and thank you to all of your workers and partners and – we are enormously appreciative.

Next up we have the ACE in the large business category, and this year that honor goes to Fruit of the Loom for its efforts in Honduras. Fruit of the Loom first opened its doors in Honduras because they saw the country as a promising place to complement the company’s textile production and distribution facilities in the southeastern United States. But the company, it had to overcome some pretty formidable challenges over the years, and that included the long history of management-labor strife throughout the country – again, one of the reasons that investment in corporate behavior is so critical.

After a contentious labor dispute in 2009 at one of the factories, Fruit of the Loom recognized it was time for a major change. So they partnered with civil society groups in order to develop a groundbreaking collective bargaining agreement with their employees. And this agreement is widely regarded as the most progressive in Honduran labor history. It includes investments in better machinery, free transportation to and from work, free lunches, wage increases – the list goes on. It’s a 180 from the widely accepted unfortunate standards of the past which created a lot of strife and tension, and obviously, difficult perceptions between countries.

It’s become the norm at every single Fruit of the Loom factory in Honduras. And today, the firm’s approach to organized labor and company management has become a model, not just in Honduras but throughout Central America. Let me also add that they’re also making remarkable strides on the environmental front. They currently operate a biomass energy generation plant in Honduras and purchase additional electricity from a hydroelectric facility. Thanks to these and other efforts, they are on track to have 100 percent of their electricity supply for Honduran operations come from renewable sources.

Now, these are truly remarkable achievements, and I am very, very delighted to present the 2013 Large Business Award for Corporate Excellence to Fruit of the Loom. And I would like to welcome Rick Medlin here, the CEO, to come up and accept the award on behalf of Fruit of the Loom. Thank you, Rick. (Applause.) He’s a former Clemson football player, folks. (Laughter.)

MR. MEDLIN: That’s why the orange. (Laughter.) Good morning. It’s my honor this morning on behalf of all of the Fruit of the Loom employees, but especially for our many employees in Honduras. I want to thank Secretary Kerry, the State Department staff, and other members of the selection committee for this prestigious award. We were honored to have been selected as a finalist for the Secretary’s Award for Corporate Excellence, but to actually have been chosen as a winner from amongst such esteemed group of U.S. companies is something that we will celebrate with 32,000 employees in 75 locations around the world.

As Fruit of the Loom – at Fruit of the Loom, our operational guidance is driven by our core values, the basic premise of which is respect for people. We believe that our employees are our most valued asset, and that each and every one of us has a shared responsibility to each other and to the company’s success. Several years ago, when employees in one of our Honduran facilities elected to organize, we knew we needed to forge a new model of labor-management relations if we were going to ensure the long-term sustainability of our operations in Honduras and the many jobs that those operations provide.

Working together with our local Honduran management, the local union board, the CGT labor Federation in Honduras, and labor experts in the U.S., we set about to create that model which had to include the principles of freedom of association, labor’s recognition of the role of management in operating the company’s factories, and responsible collective bargaining on both sides. In order to ensure bipartisan guidance, we established an oversight committee made up of outstanding third-party leaders from labor and business.

As a result of this model, we completed the first real collective bargain agreement in the apparel sector in Central America in 2011. We have now replicated that model successfully in a second Honduran plant, and we are currently in collective bargaining for a third plant. We know that creating the model does not reflect the completion of our journey. We face challenges every day. But the true belief that the model we have created with our Honduran associates and our oversight committee provides a framework for long-term success.

Environmental sustainability is another of our core values at Fruit of the Loom. Mitigating the impact of our operations on the environment has been one of our goals for as long as I can remember. We have almost totally eliminated the waste we send to landfills and have substantially reduced the use of hazardous chemicals throughout our supply chain. But two years ago, we undertook our most ambitious sustainability project to date when we began construction of a biomass electric generation facility in Honduras to supply renewable energy to our plants. This facility will be fueled by king grass grown locally in Honduras.

By the end of this year, we anticipate that our biomass plant, along with our commitment to purchase energy from a hydroelectric facility being built in Honduras, will allow us to transition our entire electric supply for our Honduran operations to renewable resources. These initiatives will also allow us to reach a global corporate goal of reducing our carbon dioxide emissions by 40 percent worldwide.

We’re fortunate to have customers who believe in and support the commitments we have made to people and the environment. Receiving the ACE Award represents, for our company, the validation that the hard work and dedication to the values we believe in are recognized and appreciated.

I cannot even attempt to name all the people who have made this recognition possible. I will say a special thanks to our people in Honduras, who have shown great leadership in forging new models of success for the future. We are extremely proud of their accomplishments, and I wish every one of them could be here to accept this award. But on their behalf, I want to express our appreciation for being recognized of this award. Thank you. (Applause.)

SECRETARY KERRY: Rick, thank you very, very much. Appreciate the accomplishment and your comments very much.

I’m going to have to exit out of here for a phone call with a foreign minister that is coming up momentarily, and I hope you will all forgive me for doing that. But I will introduce our speaker and try and stay through as much of his comments as I can.

I am really pleased to be able to announce that our first ever ACE award for a medium-sized business will be awarded to Plantronics for its work in Tijuana, Mexico. Plantronics – many of you may have used their product; I have. It’s a leader when it comes also to environmental responsibility. And their plant in Tijuana today contains the largest rooftop solar facility in Latin America, which generates enough power to meet 70 percent of the company’s Mexican operating needs. The premium that Plantronics places on environmental stewardship alone probably would be enough to earn them the award of the ACE. But it’s what they do with their employees that really sets them apart. Plantronics does not just value their associates; they invest in them in every way – in their health, in their success, and in their happiness. Their workforce can take advantage of the preventative health care services that Plantronics offers its employees. They can pursue vocational training and career development. More than 2,300 associates have already received master’s degrees and other formal education thanks to programs that Plantronics subsidizes.

One employee, a woman by the name of Cristina Morales, finished high school, got her bachelor’s degree, and today is hard at work on her master’s – all with funding from Plantronics. And I understand that Plantronics even helps its staff get married. (Laughter.) Every year, the company helps dozens of couples to navigate the bureaucracy around getting married in Mexico and hosts a Valentine’s Day wedding ceremony at its offices. They provide invitations, photos – even a wedding gift. And Plantronics helps the newlyweds even apply for housing as a married couple.

Folks, that’s a full-service company. (Laughter.) If that isn’t going above and beyond, I don’t know.

It’s really no wonder that the company has been named the best place to work in Mexico three years in a row. I am really proud that today the State Department can add another title to that list. It’s an honor to present Plantronics with the 2013 Award for Corporate Excellence. And as I welcome Ken Kannappan up here, the CEO, really you ought to applaud for all three of these companies because what you’re seeing here today really is the future now. And it’s exemplary. We are so honored by all of them. But Ken, come on up here and share your thoughts. Congratulations to you. (Applause.)

MR. KANNAPPAN: Thank you, Secretary Kerry, Under Secretary Kennedy, and Acting Assistant Secretary Urs. Good morning, everyone. It is an honor for me to be able to represent the 3,500 men and women of Plantronics. And it’s a privilege to be able to accept this award on their behalf.

There are many remarkable things about Plantronics, but as Secretary Kerry said, it is really our people and our culture that set us apart. I remember when business was booming and the unemployment rate in Tijuana was 0.2 percent. We had 50 openings, and overnight we had 2,000 people applying for positions just through word of mouth. Because people need jobs, but they want careers, and they want an opportunity to contribute something meaningful.

There’s an old story about a couple of workers in a quarry. Somebody comes by and says, “What are you doing?” The first one says, “I’m digging rocks.” The second one says, “I’m building a cathedral.” The difference between perspiration and inspiration is vast. The people at Plantronics are not just making the world’s greatest headsets. We’re helping business people exchange ideas, we’re helping friends to catch up, we’re having families share their love, and if you’re driving in a car, we’re helping you to do it more safely.

The inspiration this has given our team in Tijuana has given us literally hundreds of ideas that we implement each year to improve our quality and to reduce our costs. We know our headsets have to be depended on, whether it is someone working at a 911 station dispatching fire, police, or emergency medical, or someone from the moon. When Neil Armstrong said “That’s one small step for man, one giant leap for mankind” with a Plantronics headset, the headset had to work. (Laughter.) The FAA told me that as a matter of public safety, they considered it crucial that air traffic controllers use Plantronics headsets.

Mexico has a national quality award. Plamex entered that competition and won. And as a national quality award winner, we were eligible to compete in two international competitions against over 50 other country national award winners, including the Malcolm Baldridge Award winner from the United States, and the Deming Award winner from Japan. We won both of those competitions, which is a real testimony to the extraordinary quality of our products as well as the Plamex organization that produces them.

But of course, whether you’re a Fortune 100 company or somebody looking to play games on your computer, you want great products but you want them at an affordable price. The team at Plamex has come up with ideas that have saved us over $100 million through improvements in product cost and processes. But it isn’t just our existing products that they contribute to. We have a team of over 120 people in Tijuana in our design and develop center that are developing us new products that have added to our revenues, including one that won a Best of Innovations Award at the Consumer Electronics Show in Las Vegas. This has also, in turn, helped us add to our resources, including in California and the United States, increasing our staffing levels.

Secretary Kerry was kind enough to mention some of the things that we do for our people, and it really is what sets us apart. And as I said, it is that focus combined with our policies towards community engagement, which Alejandro Bustamante will talk about, as well as environmental stewardship that really set us apart.

Across the globe, we are very careful with our conservation of water, of energy, and our waste production. Globally, we have solar facilities in Santa Cruz, in Chattanooga, in the United Kingdom, and in Tijuana. Seventy percent of our power comes from solar. You, hopefully, have seen some images of our plant in the background. Let me tell you that there are very few factory floors with ceilings that are at the lowest point – 35 feet high – with louvered roofs to provide natural light, much less where you can get health services and have sports facilities.

The opportunity for Plantronics to work with our associates and become a global communications leader has really set us apart. Our shareholders have benefited from record levels of revenue and profit; our customers from phenomenal quality and innovation; and our associates in Mexico who help us develop, produce, support, and sell our products. I am very, very fortunate to be able to work with such talented people. The cross-border partnerships that we’ve established with Plamex is a win-win for our customers, for Tijuana, for Santa Cruz, for Mexico, and for the United States.

Thank you very, very much. (Applause.)

MODERATOR: Thank you very much, Ken. Congratulations again to Taylor Guitars, Plantronics, and Fruit of the Loom, and to everyone tuning in from Mexico, from Honduras, and from Cameroon. Thank you all for setting such an exemplary example.

As our 2013 ACE winners have shown, American corporate leadership isn’t only about selling guitars or headphones or t-shirts. It’s about bringing our values and our standards to every corner of the world, and that’s what our winners and so many other American businesses are doing every day. Thank you all very much, and let me pass the microphone back to Kris. Thank you. (Applause.)

ASSISTANT SECRETARY URS: I wanted just to start by thanking Secretary Kerry and Under Secretary Kennedy for joining us this morning. Thanks very much for their participation. And I want to just reiterate once again, for the guests of honor, congratulations – really marvelous, marvelous achievements.

Ladies and gentlemen, I’d now like to turn your attention to one of the three screens in the room. Our chief of missions in the winning countries have been watching the ceremony, and you may have seen them. They’ve peeked on to the coverage from here from moment to moment. Now we’re going to ask them and the local representative of each company to offer a few remarks.

First, I’d like to introduce Greg Thome – Gregory Thome, our Charge d’Affaires at the U.S. Embassy in Cameroon. Greg, will you take it away?

MR. THOME: (Inaudible) play guitar all over the world. We are very – just absolutely thrilled that the committee chose Taylor Guitars as one of the recipients of the Secretary’s Award for Corporate Excellence. Of course, everyone knows that Cameroon is blessed with ebony trees, but we all know that ebony is under threat from overexploitation all over the world. We’re very encouraged in Cameroon that one of the most important guitar makers in the world is doing its part to help conserve this species for the production of musical instruments and for other things for generations to come.

Bob Taylor and Secretary Kerry spoke very eloquently about the risks that Taylor took in coming to Cameroon, and about the great things they’ve done not just to help conserve ebony, but also to better the lives of their workers. We’re very proud of them for that. And I can say for those of us who have seen Taylor and Crelicam’s operations up close, it’s no exaggeration to say that this is really what the Secretary’s Award for Corporate Excellence is all about. Taylor exemplifies responsible corporate governance, creating decent jobs and paying fair wages in a developing country, honestly and sustainably harvesting endangered tropical wood, and even ensuring that local communities share in the profit.

But outside of Cameroon, if I could also add, Taylor’s really changing the worldwide conversation about how we use ebony. Everyone understands that ebony-producing countries like Cameroon need to take responsibility for sustainably harvesting this valuable wood. But Taylor is also teaching musicians and guitar players and guitar buyers and hopefully those who listen to the guitar that if the countries where guitars are consumed don’t play a role, the countries where the ebony is produced can’t succeed.

As was mentioned earlier, Bob Taylor has been sending a message out that different varieties of ebony can be used and still produce the world’s best guitars, and as we know, when Bob Taylor talks to guitar players, we all listen. So to this end, this ACE award does more than just honor the good work that Taylor’s doing in Cameroon. It also strengthens Taylor’s efforts to protect ebony far into the future.

So with that, again, congratulations to Taylor, and if I could, I’d like to turn it over to Anne Middleton, who operates the Crelicam plant here, and have her say a few words.

MS. MIDDLETON: Thanks, Greg. I would also like time to personally thank Ambassador Robert Jackson and his wife, and Deputy Chief of Mission Greg Thome and his wife, and the staff at the U.S. Embassy in Cameroon, who have not only tirelessly supported our business endeavors, but have also become great allies and great friends.

Despite the many challenges, we have an excellent team of people working to make this project succeed. And it is with great honor that we are here today to accept this award. Included on that team, of course, are the 75 employees here in Yaounde whose indefatigable work ethic and playful spirit have helped shape what this company is today and what it will be tomorrow.

Businesses can help become solutions to environmental and economic problems, especially if a business is willing to put in the extra effort and investment. We are. And we are very proud to be the recipient of this prestigious award. Thank you to all involved, especially you, Bob. Merci beaucoup. (Applause.)

MR. THOME: Thank you, and with that, we turn it back over to you, Secretary Urs.

ASSISTANT SECRETARY URS: (Inaudible) to Taylor Guitars and to our Embassy in Yaounde and thanks very much for joining us.

Let me now turn, if I can, by phone, I believe, to Ambassador Lisa Kubiske who is our Ambassador at the U.S. Embassy in Tegucigalpa, Honduras. Lisa, are you there?

AMBASSADOR KUBISKE: I am here. Thank you very much, Secretary Urs. The – it’s very exciting and wonderful for Fruit of the Loom to be one of the winners of the ACE Award this year. It is a company that is doing things that help both its own bottom line and the security in Honduras and our message about the importance of good working conditions for workers as a way of recognizing them as people, and also contributing to the stability of the country.

So the Fruit of the Loom operates in a sector called the maquila sector, which is manufacturing for export that provides more than 120,000 jobs in Honduras. So it has an enormous impact. It started with its own companies – or its own plants in Honduras, but now the model is resonating and it’s quite possible that other companies will adopt it as well. So the power of what they have done goes far beyond their own plants.

I want to also recognize the labor confederation with which they were negotiating in the local plant. I’ve spoken to them many times, as I have with the Fruit of the Loom managers, and I can tell you that they have an enormous sense of satisfaction and pride in having been able to show a model in which there are profits for the company and the shareholders, but also workers’ rights according to the ILO’s definition of decent work.

So just to close this out, what Fruit of the Loom has done absolutely, as the Secretary said at the beginning, reflects U.S. values. It’s one of the best things that we can do to recognize the great work that they and their workers have done. Thank you. (Applause.)

ASSISTANT SECRETARY URS: Ambassador Kubiske, thanks very much for those remarks, and congratulations to Fruit of the Loom and to our Embassy in Honduras.

And then, finally, I’d like ask Ambassador Anthony Wayne in Mexico to make some remarks. Tony, are you there?

AMBASSADOR WAYNE: Can you hear us yet? Okay, good.

It’s a great pleasure to join all of you and to offer my congratulations to Plantronics for winning this year’s Award for Corporate Excellence from the Secretary of State. It’s a special pleasure that they have won the first ever ACE for medium-sized businesses. Having participated in this process for six years, I know a lot about the excellence of American companies operating overseas, and this recognition is very close to my heart.

When I first heard about all that Plantronics is doing, I knew they were in the top category up there with the best the U.S. shares around the world. Plamex, which is the name of the company in Mexico, is really living the best practices of policies that U.S. companies bring to their communities. Felicidades and congratulations to Ken Kannappan, to Alejandro Bustamante with me here today, to Rosa Ruvalcaba, who’s with you, and to all of the employees of Plantronics, Mexico. This is a very special opportunity.

When I visited the plant recently, I could really see all that you’ve heard a little bit about that they’re putting into practice. They are building high-quality products and creating a workplace that really takes care of its employees, that serves its community, and that’s working comprehensively for a better world. Plantronics’ innovative manufacturing practices have moved operations well beyond the traditional maquiladora assembly in Mexico to a high-tech manufacturing and innovation model with just-in-time production that allows for a highly diverse mix of products. From partnerships with Baja, California’s best universities, to the environmentally responsible practices that you heard about in its newly inaugurated LEED-certified plant, they produce 14 million headset devices annually.

They’re demonstrating every day this exemplary commitment to socially responsible corporate practices. They’ve been an innovator in implementing self-improvement and morale-building opportunities for their employees, as the Secretary mentioned. That includes the career development programs that he cited of continuing in education and includes onsite healthcare for the whole family; it includes parenting classes; it includes a workplace art program that features opera singers and orchestra performances on the assembly floor. And as the Secretary very generously pointed out, it includes supporting employee weddings and wedding receptions and much more.

During my visit to Plamex, I also learned that they have an employee-led committee to decide on what corporate social responsibility efforts they are going to make. And they choose the NGOs and other institutions that they’re supporting based on what causes matter to the employees.

So Plantronics and its workers in Tijuana have given time, effort, and funds to supporting the training center for the visually impaired, a foundation for special-needs children, the Children’s Hospital, the Red Cross, the Tijuana Fire Department, several local orphanages and homes for the elderly, and going out and cleaning up the beaches of Tijuana. These are just some of the examples of all the innovative employment practices that brought Plantronics the honor of three years in a row of Best Place to Work in Mexico.

Congratulations again to Ken, Alejandro, Rosa, and the 2,200 associates who work in Tijuana for demonstrating the very best that U.S. companies can operate when operating overseas. I wish you all continued success in Mexico, around the world, and in the United States. And I want to turn now to Alejandro and ask him to share a few thoughts with us.

MR. BUSTAMANTE: Thank you, Ambassador. Thank you to the State Department, to Ambassador Wayne, to Consul General Erickson. We are very honored for this award. Thank you, Ken, and all Plantronics associates around the world for their support.

Our team in Mexico has done extraordinary work in finding the right balance for us in meeting our stakeholders’ requirements. While creating programs that promote and improve the quality of life of our associates, engaging and exciting associates means that they in turn generate the productivity and efficiencies that our stockholders expect: building systems and processes the delivered products that – and services that delight our customers, and also creating the programs that generate value to our community.

The Plantronics, Mexico operation has become a worldwide benchmark in the fields of manufacturing, customer service, human resources, logistics, technology, environmental protection, and corporate social responsibility, winning more than 200 national or international awards during the last ten years. Our work culture is based on living our values, and for the three consecutive years, we have been named the Best Place to Work in Mexico.

We have developed 188 programs focused on the well-being of our associates, their families, and our community. For example, every year we sponsor a local orphanage with programs focused on bringing to them love and compassion that might be in short supply in their lives. We take these young people to the movies, we take them camping, to pro sports, and also do more activities. One of our associates becomes, in fact, the godfather, buying them gifts, and spending time with them. We talk about values, we buy them school uniforms and books, we go and improve their housing infrastructure. So far, more than 1,600 kids have been benefitted by this program.

Twice a year, our associates and their families volunteer to go participate in cleaning the beaches of Tijuana. Over the last few years, over 1,500 associates have participated in this program. Plantronics (inaudible) environmental best practices with more than 260,000 people in universities, schools, environmental seminars, expos and conferences.

To change the image of Tijuana, we helped coordinated the first (inaudible) conference, a 14-day event attended by more than 600,000 people, that highlighted the best the city has to offer. Our medical services offer professional care to our associates and their families to promote good health and to prevent illness. We also offer 32 different health campaigns such as lose weight and gain health. Our blood donors club and influenza prevention programs have been modeled for other companies in the community.

We offer a career plan for associates so they can prepare for the future, and also look for new opportunities. During the last five years, more than 1,000 associates have been able to grow to a new position within Plantronics, not needing to go outside and find new opportunities to grow.

We created and supported the kids symphony orchestra with our associates’ children. This program was created in conjuncture with the Baja, California Symphony Orchestra, where 32 children are taught to play different musical instruments and playing community events. Our associates’ children learn how to say no to drugs, alcoholism, and smoking, in our annual D.A.R.E program, offered in conjunction with the Tijuana police department. Kids go 30 – through 30 consecutive weeks of lectures of being able to finish the program. As of today, we have graduated 454 kids.

We truly believe that these activities and progress make Plantronics Mexico not only a great place to work; they make us a better business, able to consistently provide to our customers the most innovative and reliable products on the market. Congratulations Plantronics, and thank you all.

(Applause.)

PARTICIPANT: Thank you, Alejandro.

UNDER SECRETARY KENNEDY: Thank you Embassy Mexico, and congratulations to Plantronics and also to the Embassy for preparing the – one of the winning submissions.

Guests of honor, ladies and gentlemen, friends and colleagues in Cameroon, Honduras, and Mexico, thank you for joining us today for the Secretary’s Award for Corporate Excellence ceremony. I’m sorry I can’t invite our guests who are participating by either teleconference or phone in Cameroon, Honduras, and Mexico to join us, but I do invite all of us here, everyone here in the Benjamin Franklin Room, to our reception downstairs in the Exhibit Hall, which will begin as soon as we leave. So thank you very much for participating in today’s ceremony, and congratulations to all the winners. Thank you.

(Applause.)

GSA, DOD REPORT ON ACQUISITION AND CYBERSECURITY ALIGNMENT

FROM:  GENERAL SERVICES ADMINISTRATION 
GSA and DoD Announce Acquisition Cybersecurity and Resilience Recommendations

Washington, DC --- The U.S. General Services Administration (GSA) Administrator Dan Tangherlini, and the Secretary of Defense, Chuck Hagel, today announced six planned reforms to improve the cybersecurity and resilience of the Federal Acquisition System.

The jointly issued Department of Defense (DoD) and GSA report,  Improving Cybersecurity and Resilience through Acquisition, was submitted to the President in accordance with Section 8(e) of Executive Order (EO) 13636.

Recommended Reforms

The report provides a path forward to aligning Federal cybersecurity risk management and acquisition processes.  It provides strategic recommendations for addressing relevant issues, suggests how challenges might be resolved, and identifies important considerations for the implementation of the recommendations.
The six recommended reforms are the following:

Institute baseline cybersecurity requirements as a condition of contract award for appropriate acquisitions
Include cybersecurity in acquisition trainings
Develop common cybersecurity definitions for federal acquisitions
Institute a federal acquisition cyber risk management strategy
Include a requirement to purchase from original equipment manufacturers, their authorized resellers, or other trusted sources
Increase government accountability for cyber risk management
The report is one component of the government-wide implementation of EO 13636 and Presidential Policy Directive (PPD) 21, and was prepared by a working group comprised of subject matter experts selected from across the Federal government.

The working group benefitted from a high level of engagement from public and private sector stakeholders, and the report provides realistic recommendations that will improve the cybersecurity and resilience of the nation when implemented.

DoD and GSA are committed to implementing the recommendations through integration with the numerous ongoing related activities like supply chain threat assessments and anti-counterfeiting.

The agencies will use a structured approach, with continued dedication to stakeholder engagement, and develop a repeatable process to address cyber risks in the development, acquisition, sustainment, and disposal lifecycles for all Federal procurements.  The implementation will also harmonize the recommendations with existing risk management processes under Federal Information Security Management Act and OMB guidance.


GSA Administrator Dan Tangherlini weighs in:
“The ultimate goal of the recommendations is to strengthen the federal government’s cybersecurity by improving management of the people, processes, and technology affected by the Federal Acquisition System. GSA and the Department of Defense will use continue to engage stakeholders to develop a repeatable process to address cyber risks in the development, acquisition, sustainment, and disposal lifecycles for all Federal procurements.”

A request for public comment on the draft implementation plan will be published in the Federal Register next month.