Sunday, January 26, 2014

STATE DEPARTMENT BRIEFING: SOCHI OLYMPICS

FROM:  STATE DEPARTMENT  
Background Briefing on Security at the Sochi Olympics
Special Briefing
Office of the Spokesperson
Senior Administration Officials
Teleconference
January 24, 2014

MODERATOR: Thank you so much, and thank you, everyone, for joining the call on a late Friday afternoon. I know it’s a topic we are all very interested in.

So I will introduce the folks who will be giving some brief opening remarks and who will be available to answer questions. I will let you know who these four senior Administration officials are. This is a call on background, so after I give you their names, from here on out they will be referred to as senior Administration officials.

The first speaker will be [Senior Administration Official One]. That’s Senior Administration Official One. The second speaker will be [Senior Administration Official Two], Senior Administration Official Two. The third senior Administration official we will have is [Senior Administration Official Three]. And the fourth senior Administration official we have, who won’t be making opening remarks but who’s here to answer questions, is [Senior Administration Official Four].

So with that, I will turn it over – after our folks give some opening remarks, then we will open it up for questions.

SENIOR ADMINISTRATION OFFICIAL ONE: Great. Thanks. Well, we are now two weeks away from the opening of the Sochi Olympics. We are extremely proud of our U.S. athletes, and we look forward to cheering them on as they compete in the best traditions of the Olympic spirit. We know they will showcase to the world the best of America, which is diversity, determination, and teamwork.

In the run-up to the Games, we know that in addition to the focus on the athletes, there is increasing attention on security and reports of threats to the Games. Our expectation is that we’ll see more reports in the coming weeks, and we know that people have questions about this issue. So we wanted to offer you an overview of the U.S. Government’s preparations, including specifically on security issues. So I want to start by giving you an overview of U.S. participation. Then we’ll turn to the issue of U.S. Government involvement, and then give you a status report on security concerns.

On U.S. participation, I would break this down into three categories: athletes, our official delegation, and the general public attending. On the athletes, we expect a U.S. team of 230, with 270 coaches and support staff. For our delegation, the President has asked former DHS Secretary Janet Napolitano to lead our official delegation to the opening ceremonies, and there will be four others joining her: Billie Jean King, Brian Boitano, Rob Nabors, and Ambassador Mike McFaul. Deputy Secretary of State Burns and former Olympians Caitlin Cahow, Eric Heiden, and Bonnie Blair will represent the United States at the closing ceremonies. There will also, of course, be a large contingent of corporate sponsors and private American spectators.

The U.S. Olympic Committee has made it clear that the safety and security of Team USA is its top priority. As is always the case, USOC is working with the U.S. Department of State, the local organizers, and the relevant law enforcement agencies in an effort to ensure that our delegation and other Americans traveling to Sochi are safe. For the U.S. Government’s official delegation, we are also working with USOC and the Russian Government on accreditation, logistics, and security.

On the general public, there are estimates that as many as 10,000 Americans may attend the Olympic Games as spectators. As private citizens, these individuals are responsible for their own tickets, travel, reservations, visas, and overall logistics. That said, the U.S. consular services will be in Sochi in force. And in fact, indeed U.S. officials already are on location in Sochi to provide information, support, and appropriate services for Americans visiting a foreign country.

On U.S. Government involvement, I would like to turn at this point over to my colleagues from the State Department for their comments.

SENIOR ADMINISTRATION OFFICIAL TWO: Good afternoon. We break this down into roughly three categories: support to the U.S. citizens attending the Games, assistance to the Russian Government – let me rephrase that – cooperation with and liaison with the Russian Government, and security contingency planning efforts that we’ve had underway for quite some time.

I’d like to turn it over to [Senior Administration Official Three] for a moment to talk about the consular services and the State Department efforts towards regular American citizens that are out there.

SENIOR ADMINISTRATION OFFICIAL THREE: Thank you. This is [Senior Administration Official Three]. Good afternoon, everybody. As noted earlier, we will have consular officials on the ground in Sochi. We have been very much part of the planning efforts towards the Games. And one of our – the cornerstones of our efforts to protect American citizens traveling and residing abroad is our consular information program, and that’s no different here. To make sure that Americans have good information to make sound decisions about their travel and their activities while they’re at the Games, we’ve put out a Sochi fact sheet, and we’ve also recently issued a Russian Federation Travel Alert, which, again, provides information that we think American citizens need to know before they travel to the Games. We – again, we will have consular officials on the ground, and we are strongly encouraging people traveling to the Games to enroll their visits in our Smart Traveler Enrollment Program, which is accessible through our website.

SENIOR ADMINISTRATION OFFICIAL TWO: On other types of support, U.S. Department of State Diplomatic Security Service leads an interagency group that we call the ISEG, which is the International Security Event Group, and we have been working long and hard prior to the Olympics to liaise with the Russian Government, Russian security services, and Russian forces that are there to ensure the safety and security of our Olympic team, to ensure the security of the sponsors that are out there that are American companies, American citizens, and then also to work closely with consular for the safety and security of American citizens that are there.

We will have a fairly large contingent of personnel in Sochi as well as we obviously have the United States Embassy in Moscow, which plays a huge role in this. In Sochi, we have Diplomatic Security agents and representatives from other agencies in the federal government, including the FBI and others. We will have people on the ground manning what we call a joint operations center, which is an information hub for all of us. We will be passing information out through OSAC, the Overseas Security Advisory Council, to American businesses and subscribers. We will be passing information directly to the U.S. Olympic Committee when we think that there is security information that needs to be passed. And we will be working closely with consular as well.

On the ground in Sochi, we will have enough American diplomatic security agents so that they will be accompanying the American teams to all of the venues. They’ll be on site at all times. They’ll be available to liaise with the Russian Government security services that are there. They’ll be an interface for the Olympic Committee. And they’ll be overseeing generally the levels of security that we’re getting and making sure that our Olympic teams and our Olympic participants are as safe and secure as they can be.

I think that at this point we might want to turn it over to discussion of the threat picture, and I’ll turn that back to – who do I go back to on the threat picture?

SENIOR ADMINISTRATION OFFICIAL ONE: We’ll take it back here.

SENIOR ADMINISTRATION OFFICIAL TWO: All right, [Senior Administration Official One].

SENIOR ADMINISTRATION OFFICIAL ONE: Thanks. So on the overall security picture, I’m going to state the obvious here, but everyone knows we’ve seen an uptick in threat reporting. Obviously, we’re closely following events, and will continue to do so for the duration of the Winter Olympic Games and also for the Paralympic Games.

We are aware of reports of potential threats that may occur during the Olympic Games, including the media accounts we’ve seen of female suicide bombers and a video posted online claiming responsibility for the tragic bombings in Volgograd that also promised more attacks during the Sochi Games. We take all such threats seriously.

The United States continues to work with Russian and international security partners to look into these reports, and we will continue to update our security information for American citizens as new information becomes available.

In terms of contingency planning, the United States relies first and foremost on the host country, as is the case with every Olympic Games. But obviously, both the State and Defense Departments are doing prudent planning and ensuring appropriate assets are available should they be needed by the U.S. Government or requested by the Russian Government.

So I want to reiterate that the safety and security of our athletes, our delegation, and all Americans in Sochi is our highest priority. We know that Americans have questions about security issues, given recent press reports, and although we’ve seen an increase in threat reporting, which is concerning to us, it is not entirely unusual for a major international event like this. We are ensuring that the full resources of the U.S. Government are aligned in support of our athletes, our delegation, and Americans attending the Olympics.

And I’ll turn it back over to [Moderator].

MODERATOR: Great, thank you. If the operator could remind folks on the call how to ask a question in the queue now.

OPERATOR: Certainly. Ladies and gentlemen, again it is *1 for questions. And you may remove yourself from the queue by pressing the # key. But again, *1 for questions.

We’ll go first to the line of Devlin Barrett with The Wall Street Journal. Please go ahead.

QUESTION: Hi. Thanks for doing the call. We’re told by the athletes that the State Department issued a warning to the athletes not to wear team colors or the team uniforms outside of accredited areas. I just want to understand – what is the rationale behind that warning, and has that sort of warning been issued in any past Olympics?

SENIOR ADMINISTRATION OFFICIAL TWO: Hi, this is [Senior Administration Official Two]. I’ll take this. That advice was actually given by the security coordinator for the U.S. Olympic team. I think it reflects just good common sense if, in fact, there are threats of terrorism. And I think most of us agree with many of the outside security experts that have decided that it’s probably more likely that things may be happening at soft targets outside the actual Olympic events. I think it makes sense to give people some advice in terms of how to handle themselves when they’re traveling. And I think it’s just common sense that perhaps if you’re an American Olympic athlete, you perhaps don’t want to advertise that so much directly outside of the – or far outside of the venues.

But as I say, this was advice that was given by the U.S. Olympic Committee’s security coordinator, and quite frankly, I concur with it. It’s just good common sense.

QUESTION: And just to the second issue of – has that been done before for any past Olympics?

SENIOR ADMINISTRATION OFFICIAL TWO: I’m trying to think back. I don’t think we did it in London. I am not sure about previous to that, but I think given the threats that we’re hearing about, we’re not sure of whether they’re actually true or not, how serious they are, but given those threats, I think it’s reasonable advice.

OPERATOR: Our next question --

MODERATOR: Great. Thank you. Oh, go ahead. Yeah.

OPERATOR: Our next question from Andrea Mitchell with NBC News.

QUESTION: Thank you very much for the call. Can you talk to us about the level of cooperation at the granular level between the Russian security and the U.S. security? And under what protocols would you be more engaged? Do you have enough people on the ground? Are you getting enough from the Russians in comparison to previous Olympics, such as London and Greece, and I guess Beijing as well? Thank you.

SENIOR ADMINISTRATION OFFICIAL ONE: Thanks. The cooperation between the United States and Russia on the Sochi Olympics goes back now quite some time. The – and in many venues. We have been discussing counterterrorism cooperation in our standard venues for discussing these issues, like – we have a working group under the Bilateral Presidential Commission, and as you may have seen in our readout, the issue was also discussed in the call between the presidents this week. This is repeatedly discussed at high levels between counterparts in the U.S. and Russian Government.

But then specifically on the Sochi preparations, Embassy Moscow has been leading an effort to engage with the Russian Government directly on issues of security in Sochi, to work to make sure that our liaison officers do have the right credentials and will have access to be able to do what they’re able to do within their competences at the site. And it’s been – it’s not just something that’s popped up in the last couple of weeks or in the last month. The preparations have been ongoing for quite some time.

Now, of course we always wish our partners will share more information with us, and we are always asking for more information, but the United States has many sources of information that we’re using to assess the situation and assess ourselves independently what we see the threats are or how we view the credibility of threats that we do hear about. One of the most important venues for our cooperation in this regard is with our Five Eyes partners. We have been coordinating very closely with them on the Sochi Olympics as well. So we have lots of different venues and different possibilities to get ourselves the very best information, and to convey that information as well to those for whom it would be actionable to improve the security situation at the Olympics.

In terms of comparison to past events, I wasn’t involved in them so I can’t speak directly to it. But I will say that my understanding from colleagues who have been working on this for many years is that this is a common theme in working with host governments. Different governments are set up in different ways, and so there’s always a process of working institutionally with partners. And so the form of that cooperation always varies by event, and obviously, we have closer cooperation with countries such as the UK, who is a Five Eyes member, than we do with a partner like Russia or probably with China. We don’t worry too much about those comparisons. We’re focused on doing the very best we can in each case, and that’s what we’re focused on right now with the Olympics coming up.

OPERATOR: Our next question is from Barbara Starr with CNN.

QUESTION: Thank you. I have two questions, first for [Senior Administration Official Four]. As you know, Secretary Hagel just said, and I’m quoting him, “If we need to extract our citizens, we will have appropriate arrangements with the Russians to do that.” Can you clarify, are those – has – Hagel said he had spoken to his counterpart. So have those arrangements now been put into place on a standby basis if there is a reason for the U.S. military to go in? Because Hagel says there will be appropriate arrangements.

And my second question: I’m not sure who can answer on Diplomatic Security, but I believe I heard you say DS will accompany teams to all the venues and all of their events. And I just didn’t know, has that also been typical in the past for DS to accompany the teams?

SENIOR ADMINISTRATION OFFICIAL FOUR: I think what the Secretary is referring to is simply the broad-level discussions that he has had with his counterpart, and General Dempsey had with his counterpart, and a mutual understanding between the two defense establishments that obviously, if there was a need to do something, we would be able to coordinate and consult on that and do it in a proper way. I think that’s what he was referring to. He did speak, and I can get back to you, Barb, on when the conversation was. I understand it was earlier this month, but I can get back to you on a more accurate answer.

SENIOR ADMINISTRATION OFFICIAL TWO: Barbara, this is [Senior Administration Official Two]. On your second question, yes, that’s typically what we do. That’s our role out there. That’s why we asked for the accreditation passes. That’s why we asked for the agents to be accredited, field the numbers of people that we do. And I’m not going to go into exactly the numbers, but it’s to make sure that we’ve got eyes on the teams and eyes on the events.

MODERATOR: Great, thanks. Let’s go to the next question.

OPERATOR: Our next question is from Justin Fishel with Fox News.

QUESTION: Hey. My question was basically just the same as Barbara’s, but – I mean, so Secretary – about what Secretary Hagel just said in suggesting that we will have appropriate plans to extract Americans if need be. So in other words, does – are there plans right now? I mean, I realize the Games haven’t started, but has the planning started, or would the planning only start if there was a need to extract them?

SENIOR ADMINISTRATION OFFICIAL FOUR: Justin, there are no specific evacuation plans for the Olympics per se, but as you know, our combatant commanders have on the shelf American citizen evacuation plans and general guidelines just as a rule. But as I said from the podium yesterday, there is no request to have a specific plan to evacuate right now, and if we’re called on to do that in – certainly in coordination with the State Department who makes these decisions – and we’ll be prepared to do it – but there’s no Sochi Olympics evacuation plan on the shelf that we’re ready to just pull off.

And as I also said, and this is not – and this is a key point – I mean, our commanders are doing what you expect them to do, which is to be prepared just in case. And so they’re taking a look at the assets they have available to them – General Breedlove specifically – that he has throughout the region in case he needs it for any purpose. And so that’s just part of what we do. It’s all about being prepared to act if you’re called on to act.

MODERATOR: Great, thanks. Let’s go to the next question.

OPERATOR: Our next question from Adam Goldman with The Washington Post.

QUESTION: Hey, this goes to the level of cooperation. I guess, [Senior Administration Official Two], maybe you can answer this. Were you aware that there was a suicide bomber, this Black Widow, on the loose? Did the Russians tell you that beforehand? Or did you just find out about it through the media?

SENIOR ADMINISTRATION OFFICIAL TWO: I think that particular report came to us through the media. I – we have been aware for some time that in the entire region, that that is a type of attack that has been used before. I don’t think it surprised us that that came up on the radar screen at all. In determining what levels of security, you look at what types of threats are presented, and that’s clearly one of the ones that was presented.

The specifics of the Russians putting out what I would call a “be on the lookout” for a specific person, I think that we got that just about the same time that the press got it.

MODERATOR: Great. Next question, please.

OPERATOR: Thank you. That would be from Howard LaFranchi with the Christian Science Monitor. One moment while I get his line open here. Mr. LaFranchi, your line should be open at this point.

QUESTION: Great. Okay, thank you. Yeah, there was mention earlier of General Dempsey meeting his counterpart, I believe, earlier this week. And at that meeting he spoke of potential sharing of counterterrorism technology. I wonder if there’s any update on that in terms of – I think it was IED detection and jamming technology and equipment, and that that could be shared if it was found to be compatible. I was wondering if there was any update on that.

MODERATOR: Yeah, we can take that here.

SENIOR ADMINISTRATION OFFICIAL ONE: Well, I’ll defer to [Senior Administration Official Four], but U.S.-Russian defense cooperation on different specific projects, including among them counter-IED, are actually – I wouldn’t say longstanding, but they predate the issue of Sochi. So there’s really very good defense cooperation between the U.S. military and Russian military in specific areas, and this happens to be one of the areas that we’ve cooperated on because of our common broader interests in cooperating on counterterrorism.

SENIOR ADMINISTRATION OFFICIAL FOUR: Yeah. The only thing I would jump in is, again, that we’ve simply had generic conversations with them about this technology and some of the lessons we’ve learned in Iraq and Afghanistan, as recently as this week when General Dempsey was over there, but it wasn’t done necessarily or specifically was related to the Olympics. There was no formal request by the Russians for counter-IED technology with respect to the Olympics, and there was no offer made of that technology or assistance, again, with respect to the Olympics.

But as was said earlier, and this is spot on, we have these conversations in general about the technologies and the capability.

MODERATOR: Great, thanks. Let’s go to the next question.

OPERATOR: That would be from Eli Lake with The Daily Beast.

QUESTION: Hi. Can you say anything more about the information sharing with the Russians? I mean, I think you got into it with the Black Widow answer, but there was, I guess, an allegation that was made on the Sunday shows by Chairman Mike McCaul. And if you can just add any more to that about the nature of it and anything else that he might have been talking about, about information that was not shared.

SENIOR ADMINISTRATION OFFICIAL ONE: We can’t really speak to specific conversations we have in all our channels between counterpart organizations. But we – again, I’ll repeat, we have been talking to the Russians about the regional security concerns we have. These are longstanding concerns about the North Caucasus. We have – in recent weeks as we’ve gotten closer to the Olympics, we’ve continued to have those conversations and sought information from the Russian Government. This is a tough issue because it’s an issue of intelligence. We have good relations, we have good conversations, but we always want to know more.

And so what you’re hearing is frustration that we don’t know everything. We’re frustrated we don’t know everything too, but that doesn’t necessarily mean that we aren’t working with the Russians to identify – to get better information about the threat reporting we’re seeing.

MODERATOR: Great. Let’s go to the next question, please.

OPERATOR: That would be from Kevin Johnson with USA Today. Please go ahead.

QUESTION: Hi. Thanks for the call. Somebody had mentioned earlier that these – the threat stream is common in the run-up to the Games. But I wonder in this case, how does this threat stream compare to, say, Athens, Salt Lake, and others, right after 9/11?

SENIOR ADMINISTRATION OFFICIAL ONE: It’s a different environment. Every situation is a different situation, and so we can’t – again, I don’t want to compare among them. It just – it’s not really – I appreciate the question but it’s not a meaningful question. I think we should be focusing on what we need to know and what we need to work with the Russian Government to focus on the specifics of this instance. And in that regard, I just want to reiterate that we’ve been engaged with the Russian Government for months if not years on understanding the arrangements for the Games. We’ve seen the Russians take this very seriously. They are devoting significant resources to security in the region. And so we’ll deal with this one on its own terms as appropriate.

MODERATOR: Great, thanks. Lets’ go to the next question, please.

OPERATOR: Next question from Rosalind Jordan with Al Jazeera English Television.

QUESTION: Hi. Thanks for the call. I have two questions and they might be most appropriate for officials number one and number two. The first question: Can you give a little more detail about what kind of legal access needs to be provided to U.S. Government officials in order to help provide security for the athletes, be available to respond in case of any crisis? If, heaven forbid, something were to take place, would U.S. officials be able to go into country and the paperwork be handled later?

And then the second question, which might be more appropriate for official number one: Given that you just expressed your frustration that there’s a lot of detail that the U.S. Government simply does not know, there’s not enough intelligence that you’ve been able to access for whatever reason, would you advise the 10,000 or so Americans who have made plans to attend these Olympics in two weeks’ time to actually go, or is the risk any higher than it would have been, say, four years ago for the Summer Olympics in Beijing?

SENIOR ADMINISTRATION OFFICIAL TWO: Hi, this is [Senior Administration Official Two]. I’ll take the first portion of that. I don’t think that we’re looking to flood large amounts of American officials in. I think you have to go back to the context of this, is that this is the Olympics in Russia. We’re relying on the Russian Government for the security for the most part. We are relying on their great efforts that they are making on this. We’re there in a liaison role.

The components that we have on site, including Diplomatic Security and the FBI and others, do bring very good capabilities should the Russians ever ask for them. I’m not sure that we think that they will be, because the Russian capabilities in many cases are quite good as well. But we have experts on scene that can help in terms of counterterrorism, in terms of IEDs, in terms of intelligence and other types of things, should we be asked. And I guess it’s true that should we be asked, like in many other cases in countries when something happens, if an official request is made to the United States, we can add other people, but I’ll tell you the truth, we’re not anticipating that.

SENIOR ADMINISTRATION OFFICIAL ONE: Yeah, I would just emphasize – [Senior Administration Official Two] did a good job, but I want to emphasize because we’re closely lashed up here back in Washington with the Embassy. And the Embassy has done a fantastic job of making sure we have the right U.S. – the right planning for exactly the contingencies you talked about. The consular services are in – partly in place. There are plans to surge more U.S. officials down into Sochi and with backup back in Moscow. The kind of contingencies you raised are exactly the kinds of contingencies in terms of legal assistance, helping people who find themselves in different kinds of situations, medical situations. That planning has been done and those resources are in place in Moscow at the Embassy and also in Sochi. So yes, that’s a big piece of what we’ve been working on.

On – I’m sorry, I suddenly forgot the second piece of the question.

MODERATOR: Whether you (inaudible) --

SENIOR ADMINISTRATION OFFICIAL ONE: Oh, the – I want to clarify. I said I was – that we’re – sure we’re frustrated we don’t know everything. I didn't say we were frustrated with the Russian Government. I said we’re frustrated we don’t know everything. We always want more information, and you always want to – that’s in any situation, not just dealing with the Sochi Olympics. It’s a – so I guess what I’m saying is, certainly there is uncertainty. There’s uncertainty in any kind of big event like this. But what I’m reassuring you, or what I am confirming to you, is that we understand the information requirements. We’re pursuing every venue and every opportunity we have for satisfying our own requirements, whether that’s in partnership with the Russian Government or in partnership with other countries, or in our own efforts to understand what’s going on and how that will let us provide for a safe and secure and enjoyable environment for the Americans who will be attending or participating in the Olympics.

MODERATOR: And just to chime in here for a second, the travel information we put out from the State Department is very clear about people should be on the lookout, they should be aware of their surroundings, but it doesn’t – we are very clear it’s not telling people not to go. I think that was your question, right: What would you say to the 10,000 people that have private plans to go? Well, look at the travel information. It very clearly lays out what they should do. And if we need to update it because of new information, we always will. So I think that’s something important to keep in mind.

Let’s go to the next question, please.

OPERATOR: That’ll be from Tim Phelps with the LA Times.

QUESTION: Hello. Could you elaborate just a little bit on what you mean by an uptick in threat reporting? Are you talking about intelligence or are you talking about public media reports? Can you tell us anything about these threats?

SENIOR ADMINISTRATION OFFICIAL ONE: All of the above. We’ve seen uptick in all those categories that you listed, and we are paying close attention to them and tracking them down and assessing them with heightened scrutiny and great attention.

MODERATOR: Great, thanks. Next question, please.

OPERATOR: The next question is from Paul Shinkman with U.S. News & World Report.

QUESTION: Yes, thanks very much for doing this call. Can you give us a sense, as specifically as you can, about how many more additional American personnel there are currently and going to be on the ground in Russia who weren’t there in the lead-up to the Olympic Games and how that compares to security preparations in previous Olympics?

SENIOR ADMINISTRATION OFFICIAL TWO: We’re not going to get into talking exact (inaudible) people we have. We work these out very carefully with the Russians. It is appropriate to what we need. As we said, we’ve addressed consular issues, we’ve addressed Overseas Security Advisory Council and private industry, we’ve addressed the sponsors, we’re addressing the athletes and the U.S. Olympic team, we’re addressing private Americans that are there. Prior to the Olympics, prior to about six months ago, there were no Americans in there. This isn’t the location of a consulate or an embassy. But we have, I would say, the appropriate numbers and they’re about the same numbers as we’ve had in Olympics in the past in other countries.

MODERATOR: Okay, let’s go ahead to the next question.

OPERATOR: That will come from Courtney Kube with NBC News.

QUESTION: Hi, this is Jim Miklaszewski with NBC, Courtney’s colleague. I just wanted to clarify or try to clarify one more time Secretary Hagel’s remarks that if we need to extract Americans, we will have appropriate arrangements in place. Now, does that mean that U.S. military aircraft personnel would be able to go land in Sochi and take Americans out, or would we still depend on the Russians to extract the Americans and put them somewhere, somehow, into American hands? Thank you.

SENIOR ADMINISTRATION OFFICIAL FOUR: Mick, I’m going to obviously defer to my State colleagues because issues of American citizens being evacuated are really coordinated at that level. As you know, sometimes evacuations are done using other assets, not military assets, whether it’s other – charter air or commercial air, and not always is the military called upon.

What I will tell you – and I’ll go back to what we said before – was that the European Command commander, General Breedlove, wants to ensure that he has complete visibility on the assets in his region that – to know what he has available, including potential airlift and perhaps even sealift if he’s called upon for that kind of a mission. We haven’t been tasked to do anything specific in that regard. Clearly, we take our lead from the State Department and only if not only does the State Department believe there’s a need that we’re answering but that they – but they, the State Department, want to use military assets to do so.

Again, all we’re doing at this point is the kind of prudent planning and research into the assets available to make sure we have a good handle on what we have and where we have it just in case we’re called. That’s the limit of what we’ve been doing right now.

SENIOR ADMINISTRATION OFFICIAL TWO: This is [Senior Administration Official Two]. I think without going deeply into all of the contingencies that we look at, I think it’s safe to say that all through the years when we’ve looked at evacuating Americans out of different situations: (a) it depends what the situation is; (b) it depends what the situation is on the ground, and we work very closely with the host government; (c) we look at a variety of assets. Everybody seems to be keying solely on DOD. DOD is an excellent asset if it has to be called, and they’ve got contingency plans in place and will work with us if that’s the need.

But we also keep track of things like regular commercial flights that are going out of there. We know that many of these delegations are coming in with their own chartered aircraft. We look at the chartered aircraft market, spot market, to determine what’s available for us to lease. And we’ll be looking at all of these contingencies as we go through this, but it’s really very event-specific and it’s – you make large-scale contingency plans and then you pick off the shelf what’s your best available options if and when something happens, which we all hope that nothing happens here at all.

MODERATOR: And we have one more thing from our end on this. Go ahead.

SENIOR ADMINISTRATION OFFICIAL ONE: And I just want to emphasize and remind everyone again, as the host country, Russia has primary responsibility – and primary capability, I would add – for dealing with the kinds of contingencies we’ve just been speculating about. Russia and a big part of what the U.S. Government has been doing is working with and liaison and discussing with the Russian Government about its assets and its capabilities for if there are medical situations or worse, the ones that are inspiring some of these questions.

So first and foremost, Russia has the responsibility in responding to and coping with situations that might affect the safety, security, and the presence of their guests. And that’s what all the American citizens there are their guests. And so the U.S. Government will work with the Russian Government on the various options should they need to be implemented that we’ve just been talking about.

MODERATOR: Great, thanks. Let’s go to the next question.

OPERATOR: That will be from Major Garrett with CBS News.

QUESTION: All right, thanks for doing the call. Can you hear me?

MODERATOR: Yes, we can hear you, Major.

QUESTION: This came up at the White House, so forgive me if it was answered previously at State or Pentagon. In all these situations, should they occur, after-action reports always talk about the need to have a point person, a central, organized, core leader onsite. And I’m wondering if, as a contingency for Sochi, either Pentagon or State has put together a team or a person in charge who is the regular instantaneous liaison with the Russian Government and is the point person for any contingency that may arrive. I’m just trying to get this into a slightly higher bureaucratic level to understand, if something goes wrong, is there a person, is there a team on a 24-hour basis that’s already identified and maybe an additional bureaucratic layer there on scene to handle whatever may arise?

SENIOR ADMINISTRATION OFFICIAL ONE: That’s a great question, and yes, that’s exactly what there is in Sochi. There is an American operations center that is staffed with exactly the array of experts, subject matter experts and officials that you would need to cope with any of the contingencies we’ve been talking about, and there is definitely a chain of command, and someone at the top of that chain of command who is responsible for exactly what you’ve just laid out.

MODERATOR: I think we just have time for a few more questions, so let’s go to the next question.

OPERATOR: Very well. That will come from Jose DelReal with Politico.

QUESTION: Hey, guys. Thanks for hosting this call. So, not to keep pushing this point on contingencies, but on the ground, how would those sorts of notifications go out? How would Americans be notified what steps they could take should they need to be evacuated?

SENIOR ADMINISTRATION OFFICIAL THREE: This is [Senior Administration Official Three]. That’s the reason why we encourage people to enroll their presence in Russia or in Sochi with us through our Smart Traveler Enrollment Program. We’re able to use that mechanism, then, to push out information, whether it’s new threat reporting or – threat information, or here’s where we want you to go to do X, Y, or Z. So the Smart Traveler Enrollment Program, again, accessible through our website.

MODERATOR: Okay. Great. I think we probably have time for one more question. So Operator, who’s the lucky last person to ask?

OPERATOR: That will be from Taurean Barnwell with NHK.

QUESTION: Hi. I have a question that maybe Senior Administration Official Number Four can answer. I want to know if you can tell us what kind of ships the Navy is dispatching to the Black Sea, and also, in the case of any contingencies, will those ships provide any evacuation services for non-Americans?

SENIOR ADMINISTRATION OFFICIAL FOUR: We’re not going to get into identifying the ships just yet. It’s our policy with respect to transits in and out of that body of water that we don’t talk about identifying them or their schedules until they’re in the Black Sea. They are not at this point. But as you know, all our ships to some degree have multi-mission capability. They’re all designed for more than one thing depending on the class of ship, and they’re capable of lots of things, including helicopter lift if required. Certainly our ships have some limited medical capability on board.

As for the specifics of your question on non-Americans, again, we – when it comes to evacuations, we very much take our lead from the State Department in that regard, and as was said earlier, the State Department has a wide range of assets that they look at and arrangements that they make in this, and so I simply would not be able to speculate about that. And I’d have to refer to my State Department colleagues to talk about that.

MODERATOR: I can jump here. Just generally speaking, I know in the past, obviously, it depends on the situation, but we have been able to extend our capabilities to non-American citizens, but every situation’s different and I don’t want to speculate on what might happen here under some hypothetical contingency. But we have a variety of capabilities, and again, I don’t want to speculate.

So I thank you all for joining the call. For folks who jumped on late, this is all on background. Everyone was senior Administration officials. I know we’ll be talking all about this a lot in the coming weeks, but everyone have a great weekend, and thanks for jumping

IRS WARNS OF TAX SCAMS USING IRS NAME

FROM:  INTERNAL REVENUE SERVICE 
WASHINGTON — With the start of the 2014 tax season approaching on Jan. 31, the Internal Revenue Service urged taxpayers to be aware that tax-related scams using the IRS name proliferate during this time of year.

Tax scams can take many forms, with perpetrators posing as the IRS in everything from e-mail refund schemes to phone impersonators. The IRS warned taxpayers to be vigilant of any unexpected communication that is purportedly from the IRS at the start of tax season.

The IRS encourages taxpayers to be on the lookout for phone and email scams that use the IRS as a lure. The IRS does not initiate contact with taxpayers by email to request personal or financial information. This includes any type of electronic communication, such as text messages and social media channels. The IRS also does not ask for personal identification numbers (PINs), passwords or similar confidential access information for credit card, bank or other financial accounts. Recipients should not open any attachments or click on any links contained in the message.

U.S. SENDS BEST WISHES TO PEOPLE OF AUSTRALIA ON AUSTRALIA DAY

FROM:  STATE DEPARTMENT 
Australia's National Day
Press Statement
John Kerry
Secretary of State
Washington, DC
January 23, 2014

On behalf of President Obama and the people of the United States, I am delighted to send best wishes to the people of Australia as you celebrate Australia Day on January 26.

Though we live in different hemispheres and at opposite ends of the globe, the relationship between the United States and Australia really is as close as it gets.

Many years ago, as a young Naval Officer in Vietnam, I saw the strength of our partnership firsthand. And I see it again today. From the mountains of Afghanistan to the icy waters off Antarctica, Australia and the United States are working diligently, side by side, to create a better world for all people.

Our nations are bound by common values and aspirations for freedom, democracy, and shared prosperity. That’s why we are working together to complete an historic Trans-Pacific Partnership agreement that will grow our economies and create thousands of jobs in both our countries.

And that’s why we are strengthening our partnership to address critical global challenges, from climate change to promoting the peaceful denuclearization of the Korean Peninsula to supporting good governance and gender equality throughout Southeast Asia.

As you celebrate Australia Day, the United States stands with you as an unwavering partner and ally. I wish all Australians peace and prosperity in the coming year and continued success to your great nation.

Saturday, January 25, 2014

OWNER MEDICAL EQUIPMENT COMPANY ARRESTED FOR FRAUD

FROM:  JUSTICE DEPARTMENT 
Thursday, January 23, 2014
Owner of Houston Medical Equipment Companies Indicted for $3.4 Million Medicare Fraud Scheme

Huey P. Williams Jr., the owner and operator of two durable medical equipment (DME) companies, was arrested for his alleged role in a $3.4 million Medicare fraud scheme.

Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Stephen L. Morris of the FBI’s Houston Field Office, Special Agent in Charge Mike Fields of the Dallas Regional Office of HHS’s Office of the Inspector General (HHS-OIG), and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.

The indictment charges Williams, 44, of Katy, Texas, with one count of health care fraud, which carries a maximum penalty of 10 years in prison upon conviction.  Williams is expected to make his initial appearance in U.S. District Court for the Southern District of Texas in Houston.

According to the indictment, Williams orchestrated and executed a scheme to defraud Medicare beginning in 2006 and continuing until July 2010.  Williams allegedly submitted false and fraudulent claims to Medicare through his Houston-area DME companies – Hermann Medical Supplies Inc. and Hermann Medical Supplies II (Hermann Medical) – which purported to provide orthotics and other DME to Medicare beneficiaries.

Hermann Medical allegedly submitted claims to Medicare for DME, including orthotic devices, which were medically unnecessary and/or never provided.  Many of the orthotic devices were components of an arthritis kit and were purported to be for the treatment of arthritis-related conditions.  From December 2006 through July 2010, Williams submitted claims of approximately $3.4 million to Medicare.

An indictment is merely a formal accusation.  Defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The case was investigated by the FBI, HHS-OIG and MFCU and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas.   The case is being prosecuted by Trial Attorney Ashlee Caligone McFarlane of the Fraud Section.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion.  In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.

U.S. SENDS BEST WISHES TO PEOPLE OF INDIA ON THEIR REPUBLIC DAY

FROM:  STATE DEPARTMENT 
India Republic Day
Press Statement
John Kerry
Secretary of State
Washington, DC
January 25, 2014

On behalf of President Obama and the people of the United States, I am delighted to send best wishes to the people of the Republic of India as you celebrate Republic Day on January 26.

The real magic of India lies as much in its promising future as it does in its rich heritage. I'll never forget my first visit to India nearly 20 years ago on a United States Senate Congressional trade delegation. The dynamism I saw then continues today. India is a country on the move.

Beneath all the changes – and what really binds our nations and our peoples together –is our shared commitment to a strong and vibrant democratic heritage. India’s transition to democratic independence and emergence on the world stage was one of the great success stories of the 20th century. Today, it is an inspiration for so many young democracies.

When I spoke with External Affairs Minister Khurshid in Montreaux this past week, we agreed that both our peoples benefit when the world’s largest and oldest democracies work closely together. External Affairs Minister Khurshid and I affirmed that we are eager to move forward with our high-level dialogues and exchanges soon, and that our countries remain firmly committed to the indispensable U.S.-India partnership.

On this special day, I offer our congratulations to the Indian people and warmest wishes for continued prosperity and peace.


CDC SAYS DENGUE VIRUS INFECTION MAY BE UNDER REPORTED IN U.S..

FROM:  CENTERS FOR DISEASE CONTROL AND PREVENTION 

Fatal Hemophagocytic Lymphohistiocytosis Associated with Locally Acquired Dengue Virus Infection — New Mexico and Texas, 2012

Dengue may be under recognized in the United States; clinicians should request diagnostic testing of suspected dengue cases and report confirmed cases to state and local health departments. This report describes a woman who was infected with dengue virus in the southern United States and died from a rare complication of dengue called hemophagocytic lymphohistiocytosis. The woman was initially diagnosed with West Nile fever and was not suspected of having dengue because the symptoms are sometimes associated with bleeding. Most people with dengue will not have severe bleeding, which is diagnostically linked with the disease. This case may suggest that there are more unrecognized cases of dengue in the United States. Although dengue outbreaks have recently occurred in Florida, Texas and Hawaii, the largest disease burden in the 50 United States will continue to be in travelers. Individuals who travel to areas where dengue is common should protect themselves from mosquito bites to reduce their risk of infection.

SECRETARY OF LABOR PEREZ MAKES STATEMENT ON UNION MEMBERSHIP REPORT

FROM:   LABOR DEPARTMENT 
Statement by US Secretary of Labor Thomas E. Perez 
on the Bureau of Labor Statistics' 2013 Union Membership Report

WASHINGTON — U.S. Secretary of Labor Thomas E. Perez has issued the following statement regarding the department's Bureau of Labor Statistics report released today on union membership in 2013:

"Today the Bureau of Labor Statistics announced that, in 2013, the unionization rate of employed wage and salary workers was 11.3 percent. Among private-sector employees, the rate was 6.7 percent.

"The data also show that among full-time wage and salary workers, union members have higher median weekly earnings than nonunion workers. The median weekly earnings of union members were $950, compared to $750 for nonunion workers.

"Along with higher wages, other data show that union members have greater access to employment-based benefits, such as health insurance, a retirement savings plan, and sick and vacation leave.

"Workers' ability to form unions and engage in collective bargaining has been a cornerstone of a strong middle class. The decline in union membership over the last few decades has contributed to more working families struggling to get by. When workers have a seat at the table, they are better able to bargain for their fair share of the value they helped create; and that leads to greater economic security and economic mobility for everyone. As our economy continues to recover and we work to create good jobs, we need to ensure workers can lift their voices to raise wages, reduce inequality and help more people climb ladders of opportunity."

U.S. CONGRATULATES PHILIPPINE GOVERNMENT, ISLAMIC LIBERATION FRONT ON PEACE AGREEMENT

FROM:  STATE DEPARTMENT 
Finalization of the Philippines - Moro Islamic Liberation Front Framework Agreement on the Bangsamoro
Press Statement
John Kerry
Secretary of State
Washington, DC
January 25, 2014

The United States Government congratulates the Government of the Philippines and the Moro Islamic Liberation Front for concluding negotiations toward an historic, comprehensive peace agreement.

This agreement offers the promise of peace, security, and economic prosperity now and for future generations in Mindanao.

Both sides are moving closer to the vision of a just and peaceful solution as outlined in the October 2012 Framework Agreement on Bangsamoro.

The United States also commends the Government of Malaysia, facilitator of the talks, as well as the International Contact Group, for its constructive role in helping resolve a decades-long conflict.

PRESIDENT OBAMA'S WEEKLY ADDRESS FOR JANUARY 25, 2014

FROM:  THE WHITE HOUSE 
Weekly Address: Taking Action to End Sexual Assault
Saturday, January 25, 2014.

WASHINGTON, DC—In his weekly address, President Obama said that the Administration has taken another important step to protect women at college by establishing the White House Task Force on Protecting Students from Sexual Assault. An estimated 1 in 5 women is sexually assaulted at college, and the President said that we will keep taking actions like strengthening the criminal justice system, reaching out to survivors, and changing social norms so that all Americans can feel safe and protected as they pursue their own piece of the American dream.


Remarks of President Barack Obama

Weekly Address

The White House

January 25, 2014

Hi, everybody.  This week, I called members of my Cabinet to the White House to deal with a challenge that affects so many families and communities – the crime, the outrage, of sexual violence.

Sexual assault is an affront to our basic decency and humanity.  And it’s about all of us – the safety of those we love most: our moms, our wives, our daughters and our sons.

Because when a child starts to question their self-worth after being abused, and maybe starts withdrawing… or a young woman drops out of school after being attacked… or a mother struggles to hold down a job and support her kids after an assault… it’s not just these individuals and their families who suffer.  Our communities – our whole country – is held back.

Over the past five years, we’ve stepped up our efforts stop these crimes.  And this week, we took another important step to protect young women at college.  An estimated 1 in 5 women is sexually assaulted at college – and that’s totally unacceptable.  So I’ve created the White House Task Force to Protect Students from Sexual Assault.  We’re going to help schools do a better job of preventing and responding to sexual assault on their campuses.  Because college should be a place where our young people feel secure and confident, so they can go as far as their talents will take them.

And we’re going to keep working to stop sexual assaults wherever they occur.  We’ll keep strengthening our criminal justice system, so police and prosecutors have the tools and training to prevent these crimes and bring perpetrators to justice.  We’ll keep reaching out to survivors, to make sure they’re getting all the support they need to heal.  We’re going to keep combating sexual assault in our armed forces, because when a member of our military is attacked by the very people he or she trusts and serves with, that’s an injustice that no one who volunteers to protect our nation should ever endure.

Some of this is a job for government.  But really, it’s up to all of us.  We’ve got to teach young people – men and women – to be brave enough to stand up and help put an end to these crimes.  We’ve especially got to teach young men to show women the respect they deserve.  I want every young man in America to know that real men don’t hurt women.  And those of us who are fathers have a special obligation to make sure every young man out there understands that being a man means recognizing sexual violence and being outraged by it, and doing their part to stop it.

Perhaps most important, we need to keep saying to anyone out there who has ever been assaulted:  you are not alone.  We have your back.  I’ve got your back.

I’m going to keep pushing for others to step up – across my administration, in Congress, in state capitals, college campuses and military bases all across our country.  This is a priority for me, not only as President and Commander-in-Chief, but as a husband and a father of two extraordinary girls.  And I hope it’s a priority for you.  Because here in the United States of America, every man and woman, every girl and boy, has the right to be safe and protected and to pursue their own piece of the American dream.

Let’s all do our part to make it happen.  Thanks, and have a great weekend.

CDC ON TREATING HEAD LICE

FROM:  CENTERS FOR DISEASE CONTROL AND PREVENTION

Head lice. Every parent’s nightmare.
A year-round problem, the number of cases seems to peak when the kids go back to school in the fall and again in January, says Patricia Brown, M.D., a dermatologist at the Food and Drug Administration (FDA).

An estimated 6 to 12 million cases of head lice infestation occur each year in the United States in children 3 to 11 years of age, according to the Centers for Disease Control and Prevention. Head lice are most common among preschool children attending child care, elementary school children, and household members of children who have lice.

Contrary to myth, head lice are not caused by poor hygiene, Brown says. They are spread mainly by direct head-to-head contact with a person who already has head lice. You cannot get head lice from your pets; lice feed only on humans.

Lice don’t fly or jump; they move by crawling. But because children play so closely together and often in large groups, lice can easily travel from child to child, especially when they touch heads during playing or talking.


Blood-Sucking Bugs

Head lice are blood-sucking insects about the size of a sesame seed and tan to grayish-white in color. They attach themselves to the skin on the head and lay eggs (nits) in the hair.

According to Brown, you can check for head lice or nits by parting the hair in several spots. You can use a magnifying glass and a bright light to help spot them. Because head lice can move fast it may be easier to spot the nits. Nits can look like dandruff, but you can identify them by picking up a strand of hair close to the scalp and pulling your fingernail across the area where you suspect a nit. Dandruff will come off easily, but nits will stay firmly attached to the hair, Brown explains.

FDA-approved treatments for head lice include both over-the-counter (OTC) and prescription drugs, such as Nix and Rid, in the form of shampoos, creams and lotions. “Many head lice products are not for use in children under the age of 2, so read the label carefully before using a product to make sure it is safe to use on your child,” Brown says.

Although OTC drugs are available for treatment of head lice, Brown says your health care professional may prescribe drugs recently approved by the FDA, such as Ulesfia (approved in 2009), Natroba (approved in 2011) or Sklice (approved in 2012).


Steps for Safe Use

Follow these steps to use any head lice treatment safely and appropriately:
After rinsing the product from the hair and scalp, use a fine-toothed comb or special “nit comb” to remove dead lice and nits.

Apply the product only to the scalp and the hair attached to the scalp—not to other body hair.

Before treating young children, talk with the child’s doctor or your pharmacist for recommended treatments based on a child’s age and weight.
Use medication exactly as directed on the label and never more often than directed unless advised by your health care professional.
Use treatments on children only under the direct supervision of an adult.

Heading Off Head Lice

Teach children to avoid head-to-head contact during play and other activities at home, school, and elsewhere (sports activities, playgrounds, slumber parties, and camps).

Teach children not to share clothing and supplies, such as hats, scarves, helmets, sports uniforms, towels, combs, brushes, bandanas, hair ties, and headphones.
Disinfest combs and brushes used by a person with head lice by soaking them in hot water (at least 130°F) for 5–10 minutes.

Do not lie on beds, couches, pillows, carpets, or stuffed animals that have recently been in contact with a person with head lice.

Clean items that have been in contact with the head of a person with lice in the 48 hours before treatment. Machine wash and dry clothing, bed linens, and other items using hot water (130°F) and a high heat drying cycle. Clothing and items that are not washable can be dry-cleaned or sealed in a plastic bag and stored for two weeks.

Vacuum the floor and furniture, particularly where the person with lice sat or lay. Head lice survive less than one or two days if they fall off the scalp and cannot feed.

Do not use insecticide sprays or fogs; they are not necessary to control head lice and can be toxic if inhaled or absorbed through the skin.

After finishing treatment with lice medication, check everyone in your family for lice after one week. If live lice are found, contact your health care professional.
Heading Off Head Lice source: Centers for Disease Control and Prevention
This article appears on FDA's Consumer Updates page, which features the latest on all FDA-regulated products.

Updated: January 23, 2014

KPMG CHARGED IN CONFLICT OF INTEREST CASE INVOLVING CLIENT AUDITS

FROM:  SECURITIES AND EXCHANGE COMMISSION

 The Securities and Exchange Commission today charged public accounting firm KPMG with violating rules that require auditors to remain independent from the public companies they’re auditing to ensure they maintain their objectivity and impartiality.

The SEC issued a separate report about the scope of the independence rules, cautioning audit firms that they’re not permitted to loan their staff to audit clients in a manner that results in the staff acting as employees of those companies.

An SEC investigation found that KPMG broke auditor independence rules by providing prohibited non-audit services such as bookkeeping and expert services to affiliates of companies whose books they were auditing.  Some KPMG personnel also owned stock in companies or affiliates of companies that were KPMG audit clients, further violating auditor independence rules.

KPMG agreed to pay $8.2 million to settle the SEC’s charges.

“Auditors are vital to the integrity of financial reporting, and the mere appearance that they may be conflicted in exercising independent judgment can undermine public confidence in our markets,” said John T. Dugan, associate director for enforcement in the SEC’s Boston Regional Office.  “KPMG compromised its role as an independent audit firm by providing prohibited non-audit services to companies that it was supposed to be auditing without any potential conflicts.”

According to the SEC’s order instituting settled administrative proceedings, KPMG repeatedly represented in audit reports that it was “independent” despite providing services to three audit clients that impaired KPMG’s independence.  The violations occurred at various times from 2007 to 2011.

According to the SEC’s order, KPMG provided various non-audit services – including restructuring, corporate finance, and expert services – to an affiliate of one company that was an audit client.  KPMG provided such prohibited non-audit services as bookkeeping and payroll to affiliates of another audit client.  In a separate instance, KPMG hired an individual who had recently retired from a senior position at an affiliate of an audit client.  KPMG then loaned him back to that affiliate to do the same work he had done as an employee of that affiliate, which resulted in the professional acting as a manager, employee, and advocate for the audit client.  These services were prohibited by Rule 2-01 of Regulation S-X of the Securities Exchange Act of 1934.

The SEC’s order finds that KPMG’s actions violated Rule 2-02(b) of Regulation S-X and Rule 10A-2 of the Exchange Act, and caused violations of Section 13(a) of the Exchange Act and Rule 13a-1.  The order further finds that KPMG engaged in improper professional conduct as defined by Section 4C of the Exchange Act and Rule 102(e) of the Commission’s Rules of Practice.  Without admitting or denying the findings, KPMG agreed to pay $5,266,347 in disgorgement of fees received from the three clients plus prejudgment interest of $1,185,002.  KPMG additionally agreed to pay a penalty of $1,775,000 and implement internal changes to educate firm personnel and monitor the firm’s compliance with auditor independence requirements for non-audit services.  KPMG will engage an independent consultant to evaluate such changes.

The SEC’s investigation separately considered whether KPMG’s independence was impaired by the firm’s practice of loaning non-manager tax professionals to assist audit clients on-site with tax compliance work performed under the direction and supervision of the clients’ management.  While the SEC did not bring an enforcement action against KPMG on this basis, it has issued a report of investigation noting that by their very nature, so-called “loaned staff arrangements” between auditors and audit clients appear inconsistent with Rule 2-01 of Regulation S-X, which prohibits auditors from acting as employees of their audit clients.

The report also emphasized:

An auditor may not provide otherwise permissible non-audit services (such as permissible tax services) to an audit client in a manner that is inconsistent with other provisions of the independence rules.

An arrangement that results in an auditor acting as an employee of the audit client implicates Rule 2-01 regardless of whether the accountant also acts as an officer or director, or performs any decision-making, supervisory, or ongoing monitoring functions, for the audit client.

Audit firms and audit committees must carefully consider whether any proposed service may cause the auditors to resemble employees of the audit client in function or appearance even on a temporary basis.

The SEC’s Office of the Chief Accountant has a Professional Practice Group that is devoted to addressing questions about auditor independence among other matters.  Auditors and audit committees are encouraged to consult the SEC staff with questions about the application of the auditor independence rules, including the permissibility of a contemplated service.

“The accounting profession must carefully consider whether engagements are consistent with the requirements to be independent of audit clients,” said Paul A. Beswick, the SEC’s chief accountant.  “Resolving questions about permissibility of non-audit services is always best done before commencing the services.”

The SEC’s investigation was conducted by Britt K. Collins, Dawn A. Edick, Michael Foster, Heidi M. Mitza, and Kathleen Shields.  The SEC appreciates the assistance of the Public Company Accounting Oversight Board.

CDC SAYS "OPPORTUNITY FOR CHOICE" EXISTS IF SODIUM LOWERED IN RESTAURANT FOODS

FROM:  CENTERS FOR DISEASE CONTROL AND PREVENTION 
Press Release Reducing sodium in restaurant foods is an opportunity for choice
Communities reduce, replace, reformulate to offer lower-sodium options

Americans eat out at fast food or dine-in restaurants four or five times a week. Just one of those meals might contain more than an entire day’s recommended amount of sodium. CDC has strategies for health departments and restaurants to work together to offer healthier choices for consumers who want to lower their sodium intake. The report, “From Menu to Mouth: Opportunities for Sodium Reduction in Restaurants,” is published in today’s issue of CDC’s journal, Preventing Chronic Disease.

On average, foods from fast food restaurants contain 1,848 mg of sodium per 1,000 calories and foods from dine-in restaurants contain 2,090 mg of sodium per 1,000 calories. The U. S. Dietary Guidelines recommend the general population limit sodium to less than 2,300 mg a day. Too much sodium can cause high blood pressure, one of the leading causes of heart disease and stroke.

“The bottom line is that it’s both possible and life-saving to reduce sodium, and this can be done by reducing, replacing and reformulating,” said CDC Director Tom Frieden, M.D., M.P.H. “When restaurants rethink how they prepare food and the ingredients they choose to use, healthier options become routine for customers.”

TWO ORTHOPEDIC CLINICS TO PAY $1.85 MILLION TO SETTLE FALSE CLAIMS ACT ALLEGATIONS

FROM:  JUSTICE DEPARTMENT 
Friday, January 24, 2014
Tennessee and Virginia Orthopedic Clinics to Pay $1.85 Million to Settle Allegations of Billing Medicare for Reimported Products

Two orthopedic clinics will pay a combined $1.85 million to resolve state and federal False Claims Act allegations that they knowingly billed state and federal health care programs for reimported osteoarthritis medications, known as viscosupplements, the Department of Justice announced today.  Tennessee Orthopaedic Clinics P.C., headquartered in Knoxville, Tenn., will pay $1.3 million, and Appalachian Orthopaedic Clinics P.C., headquartered in Kingsport, Tenn., will pay $550,000.

“The Department of Justice will not tolerate the conduct of companies that impermissibly shift risks onto patients in order to increase their own profits,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery.  “The department is committed to maintaining the integrity of the health care system, ensuring that patients receive drugs and devices that are safe and effective and taking action against companies that take chances with the health of consumers so as to improve their own bottom lines.”

Viscosupplements, such as Synvisc and Orthovisc, are injections approved by the Food and Drug Administration for the treatment of osteoarthritis pain in the knee.  Viscosupplements are reimbursed by Medicare, Medicaid and other federal health care programs at a set rate based on the average sales price of the domestic product.  The government contended that the clinics knowingly purchased deeply discounted viscosupplements that were reimported from foreign countries and billed them to state and federal health care programs in order to profit from the reimbursement system, when such reimported viscosupplements were not reimbursable by those programs.  Allegedly, the reimported product included labeling in foreign languages and in English for additional uses not approved in the United States, which demonstrated that the product was reimported.  Moreover, because the product was reimported, the government alleged there was no manufacturer assurance that it had not been tampered with or that it was stored appropriately.  

“This scheme is yet another example of illegal actions by health care providers to profit from drugs imported into the United States,” said U.S. Attorney for the Eastern District of Tennessee William C. Killian.  “Medicare and FDA requirements are designed to prevent potential harm to patients.  Noncompliance with the law to increase profit at the risk of patients will be pursued by the Department of Justice.”
         
“Attempts to increase profits by circumventing the law will not be tolerated,” said Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General in Atlanta Derrick L. Jackson.  “Health care providers buying cut-rate, cheap drugs from foreign sources will end up paying a steep price.”

The allegations resolved by the settlement were first raised in a lawsuit filed against the clinics under the qui tam, or whistleblower, provisions of the False Claims Act by Douglas Estey, a physician’s assistant who was occasionally paid by Genzyme Corp. to speak to medical providers about the use of Synvisc.  The Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery.  Estey will receive $323,750.

The government’s investigation was a coordinated effort by the Civil Division of the Department of Justice, the U.S. Attorney’s Office for the Eastern District of Tennessee, the Department of Health and Human Services Office of Inspector General and Office of General Counsel, the Food and Drug Administration Office of Criminal Investigations and Office of Chief Counsel, the Federal Bureau of Investigation and the Tennessee Bureau of Investigation.

This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Secretary of Health and Human Services Kathleen Sebelius.  The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in this effort is the False Claims Act.  Since January 2009, the Justice Department has recovered a total of more than $17.1 billion through False Claims Act cases, with more than $12.2 billion of that amount recovered in cases involving fraud against federal health care programs.

The case is captioned United States ex rel. Estey v. Tennessee Orthopaedic Clinics P.C., Appalachian Orthopaedic Associates P.C. and Appalachian Orthopaedic Partners LLC, Docket No. 3:12-cv-85 Varlan/Guyton.  The claims settled by these agreements are allegations only; there have been no determinations of liability.  

ATLAS V ROCKET READIED TO TAKE IMPORTANT SATELLITE INTO SPACE

FROM:  NASA 

A United Launch Alliance Atlas V rocket with NASA's Tracking and Data Relay Satellite (TDRS-L) spacecraft on board arrives at the launch pad at Cape Canaveral Air Force Station's Launch Complex 41. Liftoff is scheduled for Thursday, Jan. 23 at 9:05 p.m. EST, the opening of a 40-minute launch window.

Live coverage on NASA TV begins at 6:30 p.m. The TDRS-L spacecraft is the second of three new satellites designed to ensure vital operational continuity for NASA by expanding the lifespan of the Tracking and Data Relay Satellite System (TDRSS) fleet, which consists of eight satellites in geosynchronous orbit.

The spacecraft provide tracking, telemetry, command and high bandwidth data return services for numerous science and human exploration missions orbiting Earth. These include NASA's Hubble Space Telescope and the International Space Station. TDRS-L has a high-performance solar panel designed for more spacecraft power to meet the growing S-band communications requirements. TDRSS is one of NASA's three Space Communications and Navigation (SCaN) networks providing space communications to NASA missionsImage Credit: NASA/Daniel Casper

Friday, January 24, 2014

4 CHARGED IN ANDROID MOBILE APP PIRACY CASE

FROM:  JUSTICE DEPARTMENT 
Friday, January 24, 2014
Four Alleged Members of Android Mobile Device App Piracy Groups Charged
First Time Members of Mobile Device App Piracy Groups Charged

Four individuals have been charged in the Northern District of Georgia for their alleged roles in piracy groups engaged in the illegal distribution of copies of copyrighted Android mobile device applications, or “apps.”

Acting Assistant Attorney General Mythili Raman of the Department of Justice’s Criminal Division, U.S. Attorney Sally Quillian Yates of the Northern District of Georgia and Acting Special Agent in Charge Ricky Maxwell of the FBI’s Atlanta Field Office made the announcement.

“These crimes involve the large-scale violation of intellectual property rights in a relatively new and rapidly growing market,” said Acting Assistant Attorney General Raman.  “While this represents the first counterfeit apps case by the Department of Justice, it exemplifies our longstanding commitment to prosecute those who steal the creative works of others.”

“Copyright laws are designed to protect creative thinkers and encourage them to use their talents in ways that benefit society,” said U.S. Attorney Yates. “These defendants are charged with violating the law by stealing copyrighted apps, thereby depriving the creators of the apps the fruits of their labor. We are committed to protecting copyright owners, and we will continue to vigorously prosecute those who steal all forms of copyrighted work.”

“The protection of intellectual property is the cornerstone of a free market that rewards innovation and forward thinking,” said FBI SAC Maxwell.   “The federal charges presented in this case illustrates the problems facing technology based companies in particular but also highlights the FBI and U.S. government response to those engaged in such wholesale criminal activity involving the piracy of copyrighted products.”

An information filed on Jan. 23, 2014, charges Kody Jon Peterson, 22, of Clermont, Fla., with one count of conspiracy to commit criminal copyright infringement.   A separate information filed today charges Thomas Allen Dye, 21, of Jacksonville, Fla.; Nicholas Anthony Narbone, 26, of Orlando, Fla.; and Thomas Pace, 38, of Oregon City, Ore., with one count of conspiracy to commit criminal copyright infringement.   Peterson was arraigned on Jan. 23, 2014, and Dye, Narbone and Pace were arraigned today.

According to the information filed yesterday, Peterson and his fellow conspirators identified themselves as the SnappzMarket Group.   From May 2011 until August 2012, Peterson conspired with other members of the SnappzMarket Group to reproduce and distribute over one million copies of copyrighted Android mobile device apps through the SnappzMarket alternative online market, without permission from the software developers and other copyright owners of the apps, who would otherwise sell copies of the apps on legitimate online markets for a fee.

According to the information filed today, Dye, Narbone, Pace and their fellow conspirators identified themselves as the Appbucket Group.   From August 2010 to August 2012, defendants conspired with other members of the Appbucket Group to reproduce and distribute over one million copies of copyrighted Android mobile device apps through the Appbucket alternative online market without permission from the copyright owners of the apps.

The informations charge the SnappzMarket Group and the Appbucket Group with renting computer servers to host websites such as www.snappzmarket.com and www.appbucket.net , respectively, to provide digital storage for the pirated copies of copyrighted Android apps that each group distributed to their members or subscribers.   On Aug. 21, 2012, seizure orders were executed against these two website domain names for the illegal distribution of copies of copyrighted Android mobile device apps – the first time website domains involving mobile device app marketplaces have been seized.

The maximum prison sentence for the charge of conspiracy to commit criminal copyright infringement is five years in prison.

Charges contained in a criminal information are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The investigation of the case was conducted by the FBI.   Assistant Deputy Chief for Litigation John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Christopher Bly of the Northern District of Georgia are prosecuting the case on behalf of the United States, with the assistance of Assistant U.S. Attorney Brian M. Pearce of the Northern District of Georgia.   The Office of International Affairs provided assistance in the matter.   Significant assistance in the case has also been provided by the CCIPS Cybercrime Lab.

WHITE HOUSE READOUT: U.S. CONFERENCE OF MAYORS

FROM:  THE WHITE HOUSE 

Readout of the Panel Discussion with the U.S. Conference of Mayors

Thursday, Senior Advisor to the President Valerie Jarrett, Secretary of Labor Thomas Perez, Secretary of Housing and Urban Development Shaun Donovan, Secretary of Transportation Anthony Foxx, and Secretary of Education Arne Duncan participated in a panel discussion with over 250 mayors to discuss the President’s commitment to partnering with local communities and cities to promote opportunity for hardworking Americans across the nation.

During the discussion, the Cabinet Secretaries reiterated the Administration’s commitment to working hand in hand with mayors to identify ways to deliver the services in their cities to help people succeed. The Administration Officials said they looked forward to working with mayors this year on expanding educational and economic opportunity and investing in infrastructure.  The Administration continues to work with mayors across the nation to explore new ideas, identify best practices, and develop ways forward to build upon these partnerships at the federal level.

As part of President Obama’s commitment to making 2014 a year of action, Cabinet Secretaries and senior administration officials will be traveling across the country in the coming weeks to advance the President’s priorities of strengthening our economy, creating jobs, rewarding hard work, and building a strong middle class. Mayors throughout the nation have been invaluable partners in creating platforms for success in their communities, and the Obama Administration is committed to ensuring that the Federal government remains an active partner in supporting local priorities for communities across America.

PRESIDENT OBAMA, VICE PRESIDENT BIDEN AT U.S. CONFERENCE OF MAYORS RECEPTION

FROM:  THE WHITE HOUSE 
Remarks by the President and the Vice President at U.S. Conference of Mayors Reception
East Room
January 23, 2014
5:30 P.M. EST

THE VICE PRESIDENT:  Well, welcome to the White House.  My name is Joe Biden.  I work for President Obama.  (Laughter.)  Best job I ever had.

Hey, folks, look, there's a reason the President and I like talking to mayors.  You're the one group of elected officials that get things done, in large part because you have no option but to get things done.  (Laughter.)  And also, most of the innovation is coming from you all.

Today, I got further evidence of that when I talked with a few of you about what we can do together on the jobs, skills and workforce development.  We promised, back in 2009, there would be -- we'd be a strong partner with you, and I'm confident in saying that because of the man I'm about to introduce, we've kept that promise.

President Obama understands cities better than most American presidents have in American history.  He knows cities face unique challenges when it comes to building infrastructure and creating jobs, and that’s why he nominated a big city mayor, Anthony Foxx -- he doesn’t have all the money in the world, but he's ready to help.

And also, I've gotten a chance to work directly with so many of you during the Recovery Act.  The only reason it worked, the only reason there was less than 1 percent waste or fraud -- including with our Republican friends who investigated -- is because of you.  You made it work.  You're used to getting things done on time -- mostly under budget -- and getting answers back to people immediately.  And it never ceases to amaze me the tough political decisions, you guys and women, you make every single day in doing your job -- to save your neighborhoods, to rebuild and balance your budgets, and to bring jobs back to your communities.

So I'm honored to have you here, we're honored to have you here.  And I'm really honored to introduce the best friend the cities have ever had in this White House, President Barack Obama.  (Applause.)

THE PRESIDENT:  Thank you so much.  Thank you, everybody.  (Applause.)  Thank you.  Please have a seat.

Well, welcome to the White House.  It is great to have you.  For those of you who have been here before, welcome back.  I see a lot of friends and a lot of familiar faces around the room, but I've also already had a chance to meet some newly elected mayors.  So to all of you, congratulations -- and make sure you're shoveling the snow.  (Laughter.)  Just a little piece of advice.  It's been cold.

We've got more than 250 mayors here from more than 45 states and territories.  You represent about 40 million Americans.  And over the last five years, thanks in part to the partnerships that we've been able to forge with mayors in this room and across the country, we've accomplished some big things on behalf of the American people.

But you know as well as anybody that while our economy is growing stronger, and we are optimistic about growth this year and in subsequent years, we've got a lot more work to do to make sure that everybody has a chance to get ahead.  If they're willing to work hard and take responsibility, they've got to be able to participate in that growth.  And every day, mayors are proving that you don’t have to wait for the gridlock to clear in Congress in order to make things happen.

Now, Mayor Greg Stanton in Phoenix and Mayor Ralph Becker in Salt Lake City have ended chronic homelessness among veterans.  (Applause.)  In San Antonio, Mayor Castro has launched an early childhood education program designed to reach more than 22,000 four year olds over the next eight years.  In Fresno, Mayor Ashley Swearengin is spearheading projects to develop her city's downtown, including a high-speed rail station that's going to help attract jobs and businesses to the Central Valley.  In Philadelphia, Mayor Nutter is helping young people reach higher during their summers by working with partners across the city to create thousands of summer jobs.  In Tampa, Mayor Bob Buckhorn has gone, in his words, "all in," helping his constituents get covered with quality, affordable health insurance.

So mayors from both parties are a part of the climate task force, helping to make sure that cities have what it takes to withstand changes that may be taking place in our atmosphere in the years to come.  More than a thousand mayors across America have signed agreements to cut dangerous carbon pollutions.  I want to work with Congress whenever and wherever I can, but the one thing I'm emphasizing to all my Cabinet members is we're not going to wait.  Where Congress is debating things and hasn't been able to pull the trigger on stuff, my administration is going to move forward and we're going to do it in partnership with all of you.  I've got a pen and I've got a phone.  And that's all I need.  (Applause.)

Because with a pen I can take executive actions.  With a phone I can rally folks from around the country to help grow the economy and restore opportunity.  And that's what today, hopefully, has been about.  You've met with members of the administration.  You've gotten to know each other, but also, hopefully, they've given you some insight into where we see the most promising programs, things that are working, best practices.  And we want to cooperate and coordinate with you as effectively as we can to make sure that whatever works is getting out there and hitting the streets and actually having an impact on people's lives.  And, frankly, there are a lot of things that folks in this town could learn from all of you.

And I want to close by personally saying how much it means to me to have you here today.  As Joe mentioned, I know a little something about cities.  I got my professional career started as somebody working in some of the toughest neighborhoods in Chicago.  But I also saw how hard work can transform communities block by block, neighborhood by neighborhood.  And to see the resilience and the strength of people, and the incredible vibrancy that cities bring to not just those who live within the boundaries of cities but entire regions, that's what you understand.  And I want to make sure that I've got your back in everything that you do.

So I want to say thank you to all of you for making sure that your constituents are well-served.  But, as a consequence, America is well-served.

U.S. DEFENSE DEPARTMENT CONTRACTS FOR JANUARY 24, 2014

FROM:  DEFENSE DEPARTMENT
CONTRACTS

ARMY

AMEC Environment and Infrastructure Inc., Plymouth Meeting, Pa. (W9133L-14-D-0002); CH2M Hill Inc, Atlanta, Ga., (W9133L-14-D-0003); AECOM Technical Services Inc. Alexandria, Va., (W9133L-14-D-0001); EA Engineering, Science And Technology Inc.*, Hunt Valley, Md., (W9133l-14-D-0004); Earth Resources Technology Inc.*, Laurel, Md., (W9133l-14-D-0005); J. M. Waller Associates Inc.*, Fairfax, Va., (W9133l-14D-0006); SAIC, McLean, Va., (W9133l-14-D-0007); Tec-Weston Joint Venture, Charlottesville, Va., (W9133L-14-D-0008); Tetra Tech, Inc., Pittsburgh, Pa., (W9133l-14-D-0009); URS Group Inc., Herndon, Va., (W9133L-14-D-0010) were awarded a $243,000,000 firm-fixed-price contract for environmental engineering support services.  Funding and location will be determined with each order.  Estimated completion date is Jan. 23, 2017.  Bids were solicited via the Internet with 21 received.  National Guard Bureau, Arlington, Va., is the contracting activity.

General Dynamics C4 Systems, Orlando, Fla., was awarded a $48,000,000 modification (P00014) to contract W900KK-10-D-0001 to continue the existing project manager for training devices live training transformation product line until the next consolidated product line management award.  Funding and location will be determined with each order.  Estimated completion date is Feb. 28, 2015.  Army Program Executive Office Simulation, Training and Instrumentation, Orlando, Fla., is the contracting activity.

Five Stones Research Corp.*, was awarded a $43,653,541 cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity contract for headquarters and directorate support services for the Army Test and Evaluation Command, Redstone Test Center.  Funding and location will be determined with each order.  Estimated completion date is Jan. 31, 2019.  Sixty-three bids were solicited with six received.  Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity (W31P4Q-14-D-0002).

Arcadis Inc., Highlands Ranch, Colo., (W912DR-14-D-0003); Nova Consulting Inc.*, Washington, D.C., (W912DR-14-D-0004); CH2M Hill Inc., Chantilly, Va., (W912DR-14-D-0005); Black and Veatch Inc., Overland Park, Kan., (W912DR-14-D-0006) were awarded a $9,900,000 firm-fixed-price contract for architectural and engineering services for the Washington Aqueduct.  Funding and location will be determined with each order.  Estimated completion date is Jan. 23, 2017.  Bids were solicited via the Internet with six received.  Army corps of Engineers, Baltimore, Md., is the contracting activity.

AIR FORCE

Northrop Grumman Guidance and Electronics Company Inc., Woodland Hills, Calif., has been awarded a $200,000,000 indefinite-delivery/indefinite-quantity contract to perform acquisition and sustainment for the Embedded Global Positioning System Inertial Navigation System (EGI).  The acquisition and sustainment will consist of platform integration, modernization, diminishing manufacturing sources, flight test support, technical support following integration efforts, training, engineering support/studies, contractor depot repair, spares, and data for the standard EGI.   Work will be performed at Woodland Hills, Calif., and is expected to be complete by Dec. 31, 2018.  This award is the result of a sole-source acquisition.  This contract allows for orders to support foreign military sales countries; it is estimated that unclassified FMS sales will account for approximately 45 percent of the total contract ceiling.  Contract contains five ordering periods in total.  The first order placed against this IDIQ contract will obligate $2,027,004 of FMS funding in support of unclassified Iraq EGI sales and $722,192 of FMS funding in support of unclassified Thailand EGI sales.  Air Force Life Cycle Management Center/WNKCB, Robins Air Force Base, Ga., is the contracting activity (FA8540-14-D-0001).

B3H Corp., Shalimar, Fla., has been awarded a $6,856,100 firm-fixed-price task order (SK02) for an existing contract (FA4890-12-D-0014) for English language instructors and an English language training program using Defense Language Institute English Language Center courseware, methodology and processes.  This modification provides for the exercise of the first option year.  Work will be performed at King Abdul Aziz Air Base, Dhahran, and is expected to be completed by Jan. 31, 2015.  This contract is 100 percent foreign military sales for the government of Saudi Arabia.  338 SCONS, Joint Base San Antonio, Texas, is the contracting activity.

DEFENSE ADVANCED RESEARCH PROJECTS AGENCY

Lockheed Martin Corp., Orlando, Fla., has been awarded a $20,618,247 modification to cost-plus-fixed-fee contract HR0011-09-C-0096 to perform risk reduction and technical maturity efforts associated with the Long Range Anti-Ship Missile program, design to engineering, manufacturing and development phase.  The contractor will execute Systems Requirement Review 2 and support a preliminary design review.  Lockheed will conduct demonstration and performance assessment of all subsystems through testing, analysis, simulation and analogy.  Work will be performed in Orlando, Fla., (69.92 percent); Nashua, N.H., (26.35 percent) and Palm Bay, Fla., (3.73 percent).  The estimated completion date is Dec. 31, 2014.  Fiscal 2013 research and development funds are being obligated at time of award.  The contracting activity is DARPA, Arlington, Va.

Goodrich Corp., Jacksonville, Fla., has been awarded a $7,598,764 cost contract for engineering design services and fabrication of a full scale prototype submarine rotor component under the Hybrid Demonstration program.  Work will be performed in Jacksonville, Fla., (38 percent); Groton, Conn., (13 percent); Arvonia, Va., (17 percent) and Huntsville, Ala., (32 percent).  The estimated completion date is April 15, 2015.  Fiscal 2013 research and development funds are being obligated at time of award.  The contracting activity is DARPA, Arlington, Va., (HR0011-14-C-0054).

NAVY

Wolf Creek Federal Services Inc.*, Anchorage, Alaska, is being awarded a $12,960,577 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for housing operations and maintenance services and change of occupancy maintenance services at Naval Base Guam and Andersen Air Force Base, Commander Joint Region Marianas.  The contract contains four option years, which if exercised, would bring the contract value to $95,323,477.  Work will be performed in Santa Rita, Guam (60 percent) and Yigo, Guam (40 percent), and is expected to be completed by October 2014.  Fiscal 2014 family housing operation and maintenance, Navy; fiscal 2014 quarter operations, Navy; fiscal 2014 sustainment, Navy; and fiscal 2014 family housing operation and maintenance, Air Force contract funds in the amount of $8,362,773 are obligated on this award and will expire at the end of the current fiscal year.  This contract was competitively procured via the Federal Business Opportunities Online website, with three proposals received.  The Naval Facilities Engineering Command Marianas, Guam, is the contracting activity (N40192-14-D-9000).

Patriot Contract Services LLC, Concord, Calif., is being awarded a $7,236,660 modification under a previously awarded firm-fixed price contract (N0003-10-C-5301) to exercise a one-year option period for the operation and maintenance of four large, medium-speed, roll-on/roll-off ships.  These four ships support the deployed military forces worldwide.  Work will be performed worldwide at sea and is expected to be completed by January 2015.  Working capital contract funds in the amount of $7,236,660 are obligated for fiscal 2014, and will expire at the end of the current fiscal year.  The U.S. Navy’s Military Sealift Command, Washington, D.C., is the contracting activity.

MISSILE DEFENSE AGENCY

CORRECTION:  The contract modification announced Jan. 22, 2014 had incorrect dollar values associated with the award and obligated amounts.  The correct amounts are:  Lockheed Martin Space Systems Co. (LMSSC) of Huntsville, Ala., was awarded a $31,674,868 modification (P00004) to firm-fixed-price and cost-plus-fixed-fee contract HQ0147-14-C-0004 to provide highly specialized services to support Ballistic Missile Defense System flight test activities using LMSSC developed target hardware.  The work will be performed at several LMSSC facilities, and government test sites and is expected to be completed Dec. 31, 2014.  Fiscal 2014 research, development, test and evaluation funds in the amount of $6,582,845 are being obligated at time of award.  The Missile Defense Agency, Huntsville, Ala., is the contracting activity.


*Small Business

KEY WHITE HOUSE POSTS ANNOUNCED

FROM:  THE WHITE HOUSE
President Obama Announces Key White House Posts

WASHINGTON, DC – Today, President Obama announced the following individuals will serve in key White House posts:

David Simas, Assistant to the President and Director of the Office of Political Strategy and Outreach

Broderick Johnson, Assistant to the President and Cabinet Secretary

Amy Brundage, Deputy Assistant to the President and Deputy Communications Director

Anne Wall, Deputy Assistant to the President for Legislative Affairs & Senate Liaison

Amy Rosenbaum, Deputy Assistant to the President for Legislative Affairs

President Obama said, “Ed Pagano is a true public servant, and I am grateful to him for his tireless work on behalf of the American people.  Ed’s strong relationships with leaders in the Senate, his experience, his commitment, and his ability to forge consensus and get things done have made this country stronger.  I wish Ed all the best in his future endeavors.

The American people will be greatly served by the talent and dedication that David, Broderick, Amy, Anne and Amy bring to their new roles. I look forward to working with them in the months and years ahead as we continue to move our country forward.”

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