PRESIDENT OBAMA, V.P. BIDEN ADDRESS NATIONAL GOVERNORS ASSOCIATION

FROM:  THE WHITE HOUSE 

Remarks by the President and Vice President at NGA Meeting

State Dining Room

11:15 A.M. EST

THE VICE PRESIDENT:  Thank you very much.  Thanks for making the Cabinet stand up for me.  (Laughter.)  I appreciate it.

It’s great to see you all.  And I don't know about you all, I had a great time last night and got a chance to actually do what we should be doing more of -- talking without thinking about politics and figuring how we can solve problems.

You’ve observed by now the reason the President and I like doing this every year is it’s nice dealing with people who know they got to get a job done, and they get a job done.  And I’ve gotten a chance to work directly with an awful lot of you in the days of the Recovery Act, and even when we were working on the gun violence; rebuilding from that super storm Sandy, which hit my state as well, and tornadoes and floods in a number of your states. 

But it never ceases to amaze me how you all mobilize.  You just mobilize.  When crises hit your states, you mobilize and you rebuild.  And you rebuild your infrastructure not to the standards that existed before, but to 21st century standards.  You balance your budgets, you save neighborhoods, and you bring back jobs to your communities.

And the other thing I pick up -- and I may be wrong.  I’m always labeled as the White House optimist, like I’m the kid who fell off the turnip truck yesterday, but I am the youngest here -- (laughter) -- and new.  But it always amazes me your sense of optimism.  You’re the one group of folks you go to with all the problems you have that you’re optimistic.  You're optimistic about it being able to be done, getting things done.  That is not always the mood up in the place where I spent a large portion of my career.

And last night I got to speak to a bunch of you, particularly about the job skills initiative the President asked me to lead, and I had a chance to speak with some of you specifically, and I’m going to ask to -- I’m going to get a chance to see more of you this afternoon.  But this is more than just -- at least from the President’s perspective and mine -- more than just a job skills initiative.  It’s about literally opening the aperture to the middle class.  The middle class has actually shrunk. 

And we always have these debates with our economists -- is the middle class $49,820 or $52,000.  The middle class to me, and I think to most of you, it’s really a state of mind.  It’s about being able to own your home and not have to rent it.  It’s about being able to send your kid to a park where you know you can send them out, and they’ll come home safely.  It’s about being able to send them to school, that if they do well in the school, they're going to be able to get to something beyond high school if they want to do that.  And you’re going to be able to pay for it.  And in the meantime, you may be able to take care of your mom and dad who are in tough shape and hope that your kids never have to take care of you.  That's the middle class.

And before the Great Recession, it was already beginning to shrink.  So together, we got to open -- Mary, you and I have talked about this -- about opening the aperture here for access to the middle class.  But we’ll be speaking a lot more about that in the next several months.  A couple of you invited me to come out your way, including some of my Republican friends.  And I’m going to be working with all of you. 

But today I just want to say thank you.  Thank you for what you always do.  You come to town; you come to town with answers.  You come to town with suggestions.  You come to town to get things done.  And believe me, we need that and the American people are looking for it.

And I want to welcome you back to the White House, and introduce you now to my friend, your President, Barack Obama.  (Applause.)

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

Welcome to the White House.  I know that you’ve already been doing a lot of work, and I’m glad to be able to come here and engage in a dialogue with all of you.  I want to thank Mary and John for their leadership at the NGA.  I want to thank my outstanding Vice President, Joe Biden, who is very excited I think about the jobs initiative, and is going to be -- the job training initiative, and I think is going to be doing a great job on that.

Michelle and I had a wonderful time hosting you guys last night, and I hope all the spouses enjoyed it.  And I know Alex enjoyed it.  (Laughter.)  One good thing about living here is that you can make all the noise you want and nobody is going to complain.  (Laughter.)  And I enjoyed watching some of you with your eyes on higher office size up the drapes -- (laughter) --and each other.

We don’t have a lot of time today, so I want to be very brief, go straight to Q&A and discussion.  We’re at a moment when our economy is growing; our businesses have now created over 8.5 million new jobs over the past four years.  But, as I’ve said several times, the trends that have battered the middle class for a couple of decades now are still there and still have to be addressed.  Those at the top are doing very well.  Ordinary families still feeling squeezed.  Too many Americans are working harder than ever, and just barely getting by. 

And reversing these trends are going to require us to work together around what I’m calling an opportunity agenda based on four things.  Number one, more good jobs that pay good wages.  Number two, training more Americans to be able to take the jobs that are out there right now and the jobs that are created.  Number three, guaranteeing access to a world-class education for every American child all across our 50 states and our territories.  And making sure that hard work pays off -- with wages that you can live on, savings that you can retire on, health insurance that you can count on.

And all of this is going to take some action.  So far, just in the past few weeks, I’ve acted to lift the wages of workers who work for federal contractors to pay their -- make sure their employees are getting paid at least $10.10 an hour.  We’ve ordered an across-the-board reform of our job training programs, much of it aligned with some of the work that Mary has done during her tenure as head of the NGA.  We directed our Treasury to create a new way for Americans to start saving for retirement.  We’ve been able to rally America’s business leaders to help more of the long-term unemployed find work, and to help us make sure that all of our kids have access to high-speed Internet and high-tech learning tools in the classroom.

The point is, this has to be a year of action.  And I’m eager to work with Congress wherever I can.  My hope is, is that despite this being an election year, that there will be occasions where both parties determine that it makes sense to actually get some things done in this town.  But wherever I can work on my own to expand opportunity for more Americans, I’m going to do that.  And I am absolutely convinced that the time is right to partner with the states and governors all across the country on these agendas, because I know that you guys are doing some terrific work in your own states.

There may not be much of an appetite in Congress for doing big jobs bills, but we can still grow SelectUSA.  Secretary Pritzker’s team has put together a terrific formula where we’re attracting investors from all around the world to see America as an outstanding place to invest.  And I mentioned this at the State of the Union:  For the first time last year, what we’re seeing is, is that world investors now see America as the number-one place to do business rather than China.  And it’s a sign of a lot of things converging, both on the energy front, worker productivity, our innovation, our research, ease of doing business.  And a lot of that work is as a consequence of steps we’ve taken not just at the federal level, but also at the state level.  So we’ve got to take advantage of that.

Secretary Pritzker has been helping a Belgian company create jobs in Stillwater, Oklahoma; helping an Austrian company create jobs in Cartersville, Georgia.  So we can do more of this, and we really want to engage with you over the next several months to find ways that we can help market America and your states to businesses all around the world and bring jobs back.

Since I called on Congress to raise the minimum wage last year, six states have gone ahead and done it on their own.  Last month, I asked more business leaders to raise their workers’ wages.  Last week, GAP said it would lift wages for about 65,000 of its employees.  Several of you are trying to boost wages for your workers.  I’m going to do everything I can to support those efforts. 

While Congress decides what it’s going to do on making high-quality pre-K available to more kids, there is bipartisan work being done among the folks in this room.  You’ve got governors like Robert Bentley and Jack Markell, Susana Martinez, Deval Patrick -- all expanding funding or dedicating funds to make that happen in their states.  And we want to partner with you.  This year, I’ll pull together a coalition of philanthropists, elected officials and business leaders, all of whom are excited and interested in working with you to help more kids access the high-quality pre-K that they need.

And while Congress talks about repealing the Affordable Care Act or doing this or doing that to it, places like California and Kentucky are going gangbusters and enrolling more Americans in quality, affordable health care plans.  You’ve got Republican governors here -- I won’t name them in front of the press, because I don’t want to get you all in trouble -- who have chosen to cover more people through new options under Medicaid.  And as a result, millions of people are going to get help.

States that don’t expand Medicaid are going to be leaving up to 5.4 million Americans uninsured.  And that doesn’t have to happen.  Work with us to get this done.  We can provide a lot of flexibility.  Folks like Mike Beebe in Arkansas have done some terrific work designing programs that are right for their states but also provide access to care for people who need it.  And I think Kathleen Sebelius, a former governor herself, has shown herself willing to work with all of you to try to find ways to get that done.

On the West Coast, you’ve got Governors Brown, Inslee, Kitzhaber who are working together to combat the effects of climate change on their states.  We’ve set up a taskforce of governors and mayors and tribal leaders to help communities prepare for what we anticipate are going to be intensifying impacts of climate change.  And we’re setting up climate hubs in seven states across the country to help farmers and ranchers adapt their operations to a changing environment. 

In the budget that I’ll send to Congress next week, I’m going to propose fundamentally reforming the way federal governments fund wildfire suppression and prevention to make it more stable and secure, and this is an idea that’s supported by both Democrats and Republicans.

And finally, I want to thank those of you who have worked with Michelle and Jill Biden on their Joining Forces initiative to support our military families.  At your meeting here two years ago, they asked for your help to make it easier for servicemembers and their spouses to carry licenses for professions like teaching or nursing from state to state, rather than have to get a new one every time they were reassigned.  At the time, only 12 states had acted to make this easier for spouses; only nine had acted to make it easier for servicemembers.  Today, 42 states have passed legislation to help spouses; 45 states have made it easier for servicemembers.  We’ve got a few states remaining.  Let’s get it done for everybody, because it’s the right thing to do for those men and women who are working every day to make sure we stay free and secure. 

The point is, even when there is little appetite in Congress to move on some of these priorities, at the state level you guys are governed by practical considerations.  You want to do right by your people and you see how good policy impacts your citizens, and you see how bad policy impacts your citizens, and that means that there’s less room for posturing and politics, and more room for getting stuff done. 

We want to work with you.  And I’m committed to making sure that every single member of my Cabinet, every single person in the White House, every single member of my team will be responsive to you.  We won’t agree on every single issue every single time, but I guarantee you that we will work as hard as we can to make sure that you succeed -- because when you succeed, the people in your states succeed and America succeeds, and that’s our goal. 

So thank you very much, and I look forward to having a great discussion.  Thank you, everybody.  (Applause.)

END
11:27 A.M. EST

DEFENSE SECRETARY HAGEL DISCUSSED AFFECTS OF BUDGET

FROM:  U.S. DEFENSE DEPARTMENT 
Hagel Outlines Budget Reducing Troop Strength, Force Structure
By Nick Simeone
American Forces Press Service

WASHINGTON, Feb. 24, 2014 – Defense Secretary Chuck Hagel has proposed cuts in military spending that include further reductions in troop strength and force structure in every military service in the coming year as part of an effort to prioritize U.S. strategic interests in the face of reduced resources after more than a decade of war.

At a Pentagon news conference today detailing President Barack Obama’s proposed Pentagon budget for fiscal year 2015, Hagel called the reductions -- including shrinking the Army to its smallest size since before World War II and eliminating an entire fleet of Air Force fighter planes -- “difficult choices” that will change defense institutions for years to come, but designed to leave the military capable of fulfilling U.S. defense strategy and defending the homeland against strategic threats.

Under a Pentagon budget that will shrink by more than $75 billion over the next two years -- with deeper cuts expected if sequestration returns in fiscal year 2016 -- Hagel and other senior defense and military officials acknowledged that some of the budget choices will create additional risks in certain areas.

Some of that risk, Hagel said, is associated with a sharp drawdown in the size of the Army, which the proposed budget calls for reducing to as low as 440,000 active duty soldiers from the current size of 520,000, while ensuring the force remains well trained and equipped.

The cuts assume the United States no longer becomes involved in large, prolonged stability operations overseas on the scale of Iraq and Afghanistan. “An Army of this size is larger than required to meet the demands of our defense strategy,” Hagel said. “It is also larger than we can afford to modernize and keep ready.” But he said the smaller force still would be capable of decisively defeating aggression in one major war “while also defending the homeland and supporting air and naval forces engaged in another theater against an adversary.”

The budget request calls for special operations forces to grow by nearly 4,000 personnel, bringing the total to 69,700, a reflection of the asymmetrical threats the nation is likely to face in the future, Hagel said.

The restructuring and downsizing are in line with a two-year budget agreement that the president and Congress worked out in December, which limits defense spending to $496 billion. But Hagel warned today that if the budget for fiscal year 2016 returns to the steep, automatic spending cuts imposed by sequestration, “we would be gambling that our military will not be required to respond to multiple major contingencies at the same time.”

Asked to define that increased risk, a senior Defense Department official expressed it simply. “If the force is smaller, there’s less margin for error,” the official said. “Let’s face it -- things are pretty uncertain out there.”

The proposed budget also envisions a 5-percent reduction in the Army National Guard and Army Reserve. “While it is true that reserve units are less expensive when they are not mobilized, our analysis shows that a reserve unit is roughly the same cost as an active duty unit when mobilized and deployed,” Hagel said.
In addition, the Army Guard’s Apache attack helicopters would be transferred to the active force, while Black Hawk helicopters would be transferred to the National Guard, part of a broader realignment of Army aviation designed to modernize the fleet and increase capability.

Within the Air Force, the defense budget calls for saving $3.5 billion by retiring the A-10 fleet and replacing it with the F-35 by the early 2020s.

“The A-10 is a 40-year old, single-purpose airplane originally designed to kill enemy tanks on a Cold War battlefield,” Hagel said. “It cannot survive or operate effectively where there are more advanced aircraft or air defenses.” In addition, the service also will retire the 50 year-old U-2 surveillance plane in favor of the unmanned Global Hawk.

Hagel warned that much deeper cuts in Air Force structure and modernization will be necessary if sequestration is not avoided in 2016.
Among other proposals in the budget request:

-- The Army will cancel the Ground Combat Vehicle program;

-- The Navy would be able to maintain 11 carrier strike groups, but any steep future cuts could require mothballing the aircraft carrier USS George Washington;

-- Half of the Navy’s cruiser fleet, 11 ships, will be placed in reduced operating status while they are modernized and given a longer lifespan;

-- The Navy will continue buying two destroyers and attack submarines per year;
-- The Marine Corps will draw down from about 190,000 to 182,000, but would have to shrink further if sequestration returns;

-- An additional 900 Marines will be devoted to securing U.S. embassies;
and
-- The Defense Department is asking Congress for another round of base closings and realignments in 2017.

Hagel said most of the recommendations in the budget were accepted by senior military officers. Addressing reporters alongside him, Army Gen. Martin E. Dempsey, chairman of the Joint Chiefs of Staff, said the spending plan reflects a balancing of the military while ensuring it remains the world’s finest.

“It reflects in real terms how we’re reducing our cost and making sure the force is in the right balance,” Dempsey said.

Dempsey and Hagel will testify on the budget before Congress next week. Lawmakers will have the final say on spending decisions.

“This is the first time in 13 years we will be presenting a budget to Congress that is not a war footing budget,” Hagel noted.

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

FROM:  THE DEFENSE DEPARTMENT 
CONTRACTS

NAVY

General Dynamics Electric Boat Corp., Groton, Conn., is being awarded a $36,137,340 cost-plus-fixed-fee modification to previously awarded contract (N00024-13-C-4311) to provide a Nuclear Regional Maintenance Department (NRMD).  Under the terms of the contract, Electric Boat will provide NRMD tasks in support of operational nuclear submarines at the Naval Submarine Support Facility, Naval Submarine Base, New London, Conn.  The contract will require project management, technical analysis, engineering and planning, training, inspection and nuclear services to accomplish intermediate-level nuclear submarine maintenance, modernization, and repairs in support of operational nuclear submarines, including maintaining and modernizing Government-owned facilities and equipment and providing off-hull support of submarine maintenance.  Work will be performed in New London, Conn., and is expected to be completed by March 2015.  Fiscal 2014 operations & maintenance, Navy contract funds in the amount of $25,000,000 will be obligated at time of award and will expire at the end of the current fiscal year.  The Naval Sea Systems Command, Washington, D.C., is the contracting activity.

NRG Energy, Inc.*, Princeton, N.J. (N62583-10-D-0326); Chevron Energy Solutions Co., San Francisco, Calif. (N62583-10-D-0327); Solarstar California XV, LLC, Richmond, Calif. (N62583-10-D-0328); Sun Edison LLC*, Beltsville, Md. (N62583-10-D-0329); and SunDurance Energy, LLC*, Edison, N.J. (N62583-10-D-0330), are each being awarded option year four under a previously awarded indefinite-quantity/indefinite-delivery, firm-fixed-price multiple award contract for the purchase of renewable electrical power through power purchase agreements at Naval and Marine Corps installations in the Naval Facilities Engineering Command (NAVFAC) Southwest area of responsibility (AOR).  The combined total value for all five contractors is $25,000,000.  No task orders are being awarded at this time.  The work to be performed provides the generation of electric power from renewable power systems that are constructed, owned, operated, and maintained by the contractor on Government property located within the installation boundaries.  The government will procure the power through Power Purchase Agreements.  The contract value amount after exercise of this option will be $200,000,000.  Work will be performed at various federal sites within the NAVFAC Southwest AOR including but not limited to California (80 percent) and Arizona (20 percent), and work is expected to be completed February 2015.  No funds will be obligated with this award.  Contract funds will not expire at the end of the current fiscal year.  The Naval Facilities Engineering and Expeditionary Warfare Center, Port Hueneme, Calif., is the contracting activity.

Raytheon Co., McKinney, Texas, is being awarded $14,304,303 for firm-fixed-price delivery order 7008 under a previously awarded Basic Ordering Agreement (N00383-11-G-003D) for various quantities of repair parts to support the H-53and V-22 aircraft.  Work will be performed in Jacksonville, Fla., and work is expected to be completed by Feb. 28, 2016.  Fiscal 2014 Navy working capital funds in the amount of $14,304,303 will be obligated at the time of award and will not expire at the end of the current fiscal year.  The contract was not competitively procured in accordance with FAR 6.302-1.   The NAVSUP Weapon Systems Support, Philadelphia, Pa., is the contracting activity.

Raytheon Co., McKinney, Texas, is being awarded $9,430,218 for ceiling priced delivery order 7009 under a previously awarded basic ordering agreement (N00383-10-G-003D) for the repair of one weapon repairable assembly and four shop replaceable assemblies of the Advanced Targeting Forward Looking Infrared system used in support of the F/A-18 aircraft.  Work will be performed in McKinney, Texas, and work is expected to be completed by February 2016.  Fiscal 2014 Navy working capital funds in amount of $4,620,806 will be obligated at the time of award, and will not expire at the end of the current fiscal year. The contract was not competitively procured in accordance with 10 U.S.C. 2304(c)(1).   The NAVSUP Weapon Systems Support, Philadelphia, Pa., is the contracting activity.

RWT, LLC*, Provo, Utah, is being awarded $7,404,262 for firm-fixed-price task order 00120 under a previously multiple award construction contract (N62478-13-D-4004) to construct a new low pressure air compressor plant at Facility S1161 and install new low pressure air compressors at Building 641, Joint Base Pearl Harbor - Hickam.  Work will be performed in Oahu, Hawaii, and is expected to be completed by July 2015.  Fiscal 2013 military construction, Defense Agencies contract funds in the amount of $7,404,262 are being obligated on this award and will not expire at the end of the current fiscal year.  Seven proposals were received for this task order.  The Naval Facilities Engineering Command, Hawaii, Joint Base Pearl Harbor-Hickam, Hawaii, is the contracting activity.

DEFENSE LOGISTICS AGENCY

Alcon Laboratories, Inc., Fort Worth, Texas, has been awarded a maximum $23,485,218 modification (P00005) exercising the first option year on a one-year base contract (SPM2D0-13-D-0004) with seven one-year option periods for various pharmaceutical products.  This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract.  Location of performance is Texas with a Feb. 26, 2015 performance completion date.  Using military services are Army, Navy, Air Force and Marine Corps.  Type of appropriation is fiscal 2014 war-stopper funds.  The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.

Hitachi Aloka Medical, Ltd., Wallingford, Conn., has been awarded a maximum $14,420,708 modification (P00001) exercising the fifth option year on a one-year base contract (SPM2D1-09-D-8329) with seven one-year option periods for radiology systems, subsystems, accessories, service, manual and repair parts.  This is a fixed-price with economic-price adjustment, indefinite-delivery/indefinite-quantity contract.  Location of performance is Connecticut with a Feb. 26, 2015 performance completion date.  Using military services are Army, Navy, Air Force, Marine Corps and federal civilian agencies.  Type of appropriation is fiscal 2014 defense working capital funds.  The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.

Omega Medical Imaging., Inc.* Sanford, Fla., has been awarded a maximum $14,014,205 modification (P00101) exercising the fifth option year on a one-year base contract (SPM2D1-09-D-8336) with seven one-year option periods for radiology systems, subsystems and components. This is a fixed-price with economic adjustment contract.  Location of performance is Florida with a Feb. 24, 2015 performance completion date.  Using military services are Army, Navy, Air Force, Marine Corps and federal civilian agencies.  Type of appropriation is fiscal 2014 defense working capital funds.  The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.

FN Manufacturing, Columbia, S.C., has been awarded a maximum $7,620,000 firm-fixed price, indefinite-delivery/indefinite-quantity contract for cartridge receivers for the MK19 grenade launcher.  This contract is a competitive acquisition, and four offers were received.  This is a three-year base contract.  Location of performance is S.C., with a Feb. 24, 2017 performance completion date.  Using military service is Army.  Type of appropriation is fiscal 2014 Army working capital funds.  The contracting activity is the Defense Logistics Agency Land – Warren, Warren, Mich., (SPRDL1-14-D-0022).

M&M Manufacturing, LLC,* Lajas, Puerto Rico., has been awarded a maximum $7,039,102 firm-fixed-price, total set-aside contract for men’s and women’s rip-stop airmen battle uniform coats, trousers, maternity coats and slacks. This is a one-year base contract with four one-year option periods.  Location of performance is Puerto Rico with a Feb. 23, 2015 performance completion date.  Using military service is Air Force.  Type of appropriation is fiscal 2014 through fiscal 2015 defense working capital funds.  The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPE1C1-14-D-1015).

AIR FORCE

Raytheon Company Missile Systems, Tucson Ariz., has been awarded a $20,000,000 indefinite-delivery/indefinite-quantity contract for support of requirements associated with performance of the AMRAAM Aircraft Integration, aircraft operational testing related activities and flight test support.  The primary objective of this effort is to provide the necessary aircraft lab, flight test, flight clearance and simulation support during all aircraft integration efforts.  Additionally, it covers the required effort to maintain or repair assets or support equipment needed for direct support to aircraft integration related efforts.  This effort includes all necessary troubleshooting, failure analysis or other activities required to understand anomalies or failures that occur during aircraft or AMRAAM missile OT related activities as well as provide needed support during these OT related activities.  Work will be performed at Fort Worth, Texas; Eglin Air Force Base, Fla.,; Hill AFB, Utah; Edwards AFB, Calif.;  Nellis AFB, Nev.; White Sands Missile Range, N.M.: China Lake/Point Mugu, Calif.; St. Louis, Mo.; Seattle, Wash.: Baltimore, Md., and Tucson, Ariz., and is expected to be completed by September 2019.  Fiscal 2013 and 2014 research and development funds totaling $3,062,736 will be obligated for five task orders (TO 0001 Simulation Support, TO 0002 Integration Support, TO 0003 Flight Clearances, TO 0004 Tech Support and TO 0005 Management/Financial Support) at time of award.  This award is the result of a sole-source acquisition.  Air Force Life Cycle Management Center/EBA, Eglin AFB, Fla., is the contracting activity (FA8675-14-D-0009).

Alliant TechSystems Operations, LLC Defense Electronic Systems Division, Clearwater, Fla., has been awarded an $8,021,810 modification (P00062) on an existing firm-fixed-price contract (FA8626-06-C-2060) for the procurement of various Common Munition Built-in-Test (BIT) Reprogramming Equipment (CMBRE) system components. The contract modification provides for the exercise of an option for the purchase of additional W-17 cables (200 each), ADU 891 V/1E's (34 each), CMBRE Plus' (24 each), and initial spares kits (ten each) under the basic contract in support of U.S. Air Force, Navy and foreign military sales users.  Work will be performed at Clearwater, Fla., and is expected to be completed by Feb. 23, 2015.  This action relates to unclassified U.S. Air Force and U.S. Navy (20 percent) support as well as unclassified FMS (80 percent) in Australia, Belgium, Canada, Finland, India, Israel, Korea, Netherlands, Oman, Poland, Singapore, and Turkey.  Air Force Life Cycle Management Center/WNKBBA, Robins Air Force Base, Ga., is the contracting activity.

ARMY

ATK Tactical Propulsion & Ordinance, Rocket Center, W. Va., was awarded a $10,700,000 firm-fixed-price contract for 60mm high explosive enhanced fragmentation M1061 cartridges. Fiscal 2014 other procurement funds in the amount of $4,300,014 and Fiscal 2013 other procurement funds in the amount of $6,399,986 were obligated at the time of the award. Estimated completion date is Sept. 30, 2015.  One bid was solicited and one received.  Work will be performed in Rocket Center, W.Va. Army Contracting Command, Picatinny Arsenal, N.J. is the contracting activity (W15QKN-14-C-0035).

Fidelity Technologies Corporation, Reading, Pa., was awarded an $84,400,000 firm-fixed-price contract for the purchase of power distribution illumination system electrical units.  Funding and performance location will be determined with each order.  Estimated completion date is Feb. 23, 2019.  Bids were solicited via the Internet with nine received.  Army Contracting Command, Alexandria, Va. is the contracting activity (W909MY-14-D-0005).

U.S. STATEMENT ON NEW LGBT LAW

FROM:   THE WHITE HOUSE 

Statement by the Press Secretary on Uganda

Instead of standing on the side of freedom, justice, and equal rights for its people, today, regrettably, Ugandan President Museveni took Uganda a step backward by signing into law legislation criminalizing homosexuality.  As President Obama has said, this law is more than an affront and a danger to the gay community in Uganda, it reflects poorly on the country's commitment to protecting the human rights of its people and will undermine public health, including efforts to fight HIV/AIDS.  We will continue to urge the Ugandan government to repeal this abhorrent law and to advocate for the protection of the universal human rights of LGBT persons in Uganda and around the world.

RECENT DEFENSE DEPARTMENT PHOTOS

FROM:  U.S. DEFENSE DEPARTMENT 
Navy Petty Officer 2nd Class Daniel Russell, left, watches as Navy Petty Officer 1st Class Nicholas Casamassa jumps from a C2-A Greyhound aircraft during jump requalification in San Diego, Feb. 11, 2014. Requalification included static line and free fall parachute jumps conducted by Explosive Ordinance Disposal Training and Evaluation Unit 1. U.S. Navy photo by Seaman Eric Coffer.

A U.S. Air Force F-16 Fighting Falcon aircraft takes off on a mission at dawn from Bagram Airfield, Afghanistan, Feb. 11, 2014. U.S. Air Force photo by Senior Master Sgt. Gary J. Rihn.

FACT SHEET ON CREATING GLOBAL COMMUNITY ENGAGEMENT AND RESILIENCE FUND (GCERF)

FROM:  U.S. STATE DEPARTMENT 
Co-Chairs' Fact Sheet: Creating a Global Fund for Community Engagement and Resilience

Fact Sheet
Bureau of Public Affairs, Office of the Spokesperson
Washington, DC
February 21, 2014

Creating a Global Community Engagement and Resilience Fund:

On September 27, 2013, at the Ministerial Plenary meeting of the Global Counterterrorism Forum in New York, the intent to establish a Global Community Engagement and Resilience Fund (GCERF) was announced. GCERF will be the first global effort to harness the skills, capabilities and resources of both the public and private sectors to support local, community-based projects on education, vocational training, civic engagement, media, and women’s advocacy aimed at strengthening resilience against violent extremist agendas, which can create significant barriers to political and economic development. It is anticipated that GCERF will raise more than $200 million over the next ten years for this purpose.

THE CHALLENGE: Terrorism is Global but Starts Local

Terrorism is a transnational and global problem frequently driven by local forces. While military, intelligence and law enforcement operations can help address the threat that terrorists pose, to succeed in the long-term, we must reduce their ability to recruit at the community level by addressing local drivers of radicalization to violence.

THE GAP: Lack of Funding Opportunities for Local Organizations

Many local organizations with innovative project ideas have been unable to get off the ground because of the difficulty of attracting the necessary seed funding. Even where they have grown and had impact, they have faced challenges in securing sufficient funding to sustain their work beyond a single six-month or one-year project cycle. Local entities also often have difficulty navigating the application processes that foundations and large donors have in place. Many donors also prefer recipients from larger organizations, often international NGOs, with proven track records, and lack the broad networks and contacts to find trusted community-based partners in priority locations. As a result, small local organizations, which could have the greatest impact at the community level, struggle to find funding.

THE SOLUTION: A Global Partnership to Bolster Community-Based Efforts

GCERF will be a public-private global partnership offering a unique and practical model to enable the international community to bolster grass-roots efforts where radicalization and recruitment are occurring. It will be an independent institution governed by a mix of government and non-government stakeholders that will fund locally driven projects and thus help close the gap between the needs of local organizations (whether civil society, NGO or local government) and the resources available to support their work. GCERF will include a robust vetting process and monitoring and evaluation mechanism, providing donors with confidence that the projects supported advance the goals that led them to contribute to this fund.

Why is GCERF Different?

What distinguishes GCERF’s objectives from broader development efforts is its emphasis on youth engagement, education, vocational training, and women’s advocacy to promote resilience among at-risk populations. Such initiatives can contribute to economic growth and development in countries where international businesses are active, and provide opportunities to those susceptible to violent extremists’ messages.

Where does the Private Sector Fit In?

Terrorism, and the violent extremism that underpins it, not only destroys innocent lives around the world, it also affects businesses globally. Terrorism disrupts the markets where businesses work, the supply chains that businesses depend on, and the communities that comprise the local labor market. GCERF represents an opportunity for both private sector and government entities to jointly advance the political and economic stability of many of these local, at-risk communities by promoting resilience through positive programs that provide an alternative to violent extremism. GCERF also offers an opportunity to encourage social entrepreneurship and other innovative approaches to local investment.

GCERF Framework

Partners involved in developing GCERF will continue to refine the following principles, scope, and approach over the next several months until GCERF is operational in mid-2014.

• Principles: GCERF would be guided by a series of principles and activities which might include:

Serving as mechanism to raise, disburse, and monitor funds for valuable CVE projects
Ensuring that projects have the requisite political support from national governments as well as contribute to the implementation of the UN Global Counter-Terrorism Strategy
Evaluating proposals through an independent and transparent review process
Complementing and advancing ongoing national, regional, and international efforts
Performing evaluations of projects to ensure funds are being spent effectively and wisely
Encouraging social entrepreneurship and other innovative approaches to investment in grassroots programming
Operating with transparency and accountability
Emphasizing country-led, bottom-up approaches to programming and activities
Supporting projects – particularly at the sub-national level – that offer positive alternative to violent extremism
• Scope: Support from GCERF would complement ongoing efforts of governments and community-based organizations to address violent extremism and build resilience to violent extremist agendas. GCERF will emphasize multi-sectoral participation and results-driven approach to develop solutions to the local drivers of radicalization and recruitment to terrorism. It will allow non-government and municipal government organizations to apply for grants in a range of areas depending upon local requirements/needs. These might include:

Providing life-skills, vocational training, and other alternatives to youth at risk of recruitment and radicalization to extremist violence
Supporting victims and survivors of terrorism, highlighting terrorism’s impact on families, communities, and countries
Providing platforms for community leaders and activities to promote and provide positive alternatives to violent extremism.
Designing education campaigns around messages of pluralism, diversity, and tolerance
Designing and implementing mentorship programs and exchange programs for at-risk youth

• Approach: GCERF will be established as a non-profit foundation in Geneva, Swtizerland. It would be composed of a Secretariat with oversight from a multi-stakeholder governing board that includes a geographically diverse group with representatives of governments, the private sector, foundations, and non-government organizations. The GCERF will engage locally through Country Committee Mechanisms composed of public and private representatives, to help better direct funds to local priorities coordinate transparent proposal reviews.

Support for the GCERF

Meetings on GCERF’s mandate, structure, and legal foundation took place in Lucerne and Geneva, Switzerland in late 2013 and culminated with a final Steering Group meeting in Washington, DC, on February 20, 2014. Carol Bellamy, former UNICEF Executive Director and former Chair of the Global Education Partnership, facilitated the process. In this final meeting, over 35 governments, the United Nations, the World Bank, NGOs, the private sector, and foundation representatives reviewed and refined the mandate and organizational architecture of the GCERF which will be established in Geneva, Switzerland by mid-2014.

Several countries already pledged financial contributions, and a number of others have expressed strong support with contributions expected to follow. Several recipient countries have also indicated an interest in serving as GCERF “pilot” countries whereby local organizations in their countries would benefit from GCERF grants. In addition, several multinational companies and foundations have shown strong interest in contributing expertise and resources to the GCERF.

JUDGE ORDERS ARREST OF 'CASH GRANT INSTITUTE' ROBOCALLER

FROM:  FEDERAL TRADE COMMISSION
FTC Action Leads to Arrest Warrant for ‘Cash Grant Institute’ Robocaller Who Ignored Court Order to Pay More Than $20 Million in Penalties

In a case brought by the Federal Trade Commission, a federal judge ordered the arrest and incarceration of Paul Navestad, known legally as Paul Richard Jones, for violating a court order requiring him to pay more than $20 million for his role in a phony government grant scheme.

The court had ordered Navestad to pay $20 million in civil penalties – the largest civil penalty against a defendant in an FTC case – and give up more than $1.1 million in ill-gotten gains, for making millions of robocalls falsely claiming consumers could get grants from federal, state, and local governments, private foundations, and individuals. At the FTC’s request, the court subsequently found him in contempt for ignoring the order.

Navestad is believed to be residing overseas. The court has ordered his arrest upon his return to the United States and his incarceration until he pays the money due.

The U.S. District Court for the Western District of New York issued the arrest warrant on December 2, 2013.

SPA DOCTOR PLEADS GUILTY IN MEDICARE FRAUD SCHEME

FROM:  U.S. JUSTICE DEPARTMENT 
Friday, February 21, 2014
New Jersey Doctor Who Provided Spa Services Pleads Guilty in Medicare Fraud Scheme

Dr. Chang Ho Lee, 68, of Palisades Park, N.J., pleaded guilty today to health care fraud and agreed to forfeit more than $3.4 million in fraud proceeds.

Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Loretta Lynch of the Eastern District of New York, Assistant Director in Charge George Venizelos of the FBI’s New York Field Office and Special Agent in Charge Thomas O’Donnell of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.

According to court documents, Lee, who is a medical doctor, and two others recruited patients by offering free lunches and recreational classes and provided them with spa services, such as massages and facials, then falsely billed Medicare for more than $13 million using those patients’ Medicare numbers.   Lee and the others billed Medicare for physical therapy, lesion removals and other services that were neither medically necessary nor provided.   The scheme took place at three clinics: URI Medical Center and Sarang Medical PC in Flushing, N.Y., and 999 Medical Clinic in Brooklyn, N.Y.   Lee received more than $3.4 million through the submission of the fraudulent claims.

Lee is scheduled to be sentenced by United States District Judge Raymond J. Dearie of the Eastern District of New York on June 13, 2014.   At sentencing, he faces a maximum sentence of 10 years in prison and approximately $3.4 million in mandatory restitution.

The case was investigated by the FBI and HHS-OIG and 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 Eastern District of New York.   The case is being prosecuted by Senior Trial Attorney Nicholas Acker and Trial Attorney Bryan D. Fields from the Criminal Division’s 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 and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.

SEC CHARGES INVESTMENT BANKER WITH INSIDER TRADING FOR ALMOST $1 MILLION IN PROFITS

FROM:  SECURITIES AND EXCHANGE COMMISSION 
The Securities and Exchange Commission today announced an emergency action against a New York City-based investment banker charged with insider trading for nearly $1 million in illicit profits.

The SEC alleges that while working on Wall Street, Frank “Perk” Hixon Jr. regularly logged into the brokerage account of Destiny “Nicole” Robinson, the mother of his young child.  He executed trades based on confidential information he obtained on the job, sometimes within minutes of learning it.  Illegal trades also were made in his father’s brokerage account.  When his firm confronted him about the trading conducted in these accounts, Hixon Jr. pretended not to recognize the names of his father or his child’s mother.  However, text messages between Hixon Jr. and Robinson suggest he was generating the illegal proceeds in lieu of formal child support payments.

In a parallel action, the U.S. Attorney’s Office for the Southern District of New York today announced criminal charges against Hixon Jr.

“Hixon Jr. violated the trust of his employer and clients by abusing his special access to nonpublic market-moving information,” said David Woodcock, director of the SEC’s Fort Worth Regional Office.  “Hixon Jr. went to great lengths to hide his wrongdoing and even denied knowing his father or the mother of his child.”

A federal judge has granted the SEC’s request and issued an emergency order freezing Robinson’s brokerage account, which the SEC alleges contains the majority of proceeds from Hixon Jr.’s illegal trading with a balance of approximately $1.2 million.

According to the SEC’s complaint unsealed today in federal court in Austin, Texas, Hixon Jr. illegally tipped or traded in the securities of three public companies.  He traded ahead of several major announcements by his client Westway Group in 2011 and 2012.  He traded based on nonpublic information he learned about potential client Titanium Metals Corporation ahead of its merger announcement in November 2012.  And Hixon even illegally traded in the securities of his own firm Evercore Partners prior to its announcement of record earnings in January 2013.  Hixon Jr. generated illegal insider trading profits of at least $950,000.

According to the SEC’s complaint, when Hixon Jr.’s employer asked him in 2013 whether he knew anything about suspicious trading in accounts belonging to Destiny Robinson and his father Frank P. Hixon Sr., who lives in suburban Atlanta, Hixon Jr. denied recognizing either name.  When later confronted with information that he did in fact know these individuals, Hixon Jr. continued his false claims, saying he didn’t know Robinson as “Destiny” and asserting in a sworn declaration that when approached he didn’t recognize the name of the city where his father lived for more than 25 years.  Hixon Jr. was subsequently terminated by his employer.

The SEC’s complaint alleges that Hixon Jr. violated the antifraud provisions of the Securities Exchange Act of 1934.  In addition to the asset freeze, the complaint seeks permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, and financial penalties.  Hixon Sr. and Robinson have been named as relief defendants for the purposes of recovering the illegal trading profits held in their accounts.

The SEC’s investigation has been conducted by Tamara McCreary, Ty Martinez, and Jonathan Scott of the Fort Worth Regional Office.  The SEC's litigation will be led by Timothy Evans and David Reece.  The SEC appreciates the assistance of the U.S. Attorney’s Office for the Southern District of New York, Federal Bureau of Investigation, and Financial Industry Regulatory Authority.

DOJ STATEMENT ON JOAQUIN GUZMAN LOERA CAPTURE

FROM:  U.S. JUSTICE DEPARTMENT 
Saturday, February 22, 2014
Statement on the Apprehension of Joaquin "Chapo" Guzman Loera

Today Mexican authorities announced the capture of Joaquin "Chapo" Guzman Loera, the alleged leader of the Sinaloa Cartel. The Sinaloa Cartel is designated a Significant Foreign Narcotics Trafficker by the U.S. Government.

Attorney General Holder stated:  "Today's apprehension of Joaquin "Chapo" Guzman Loera by Mexican authorities is a landmark achievement, and a victory for the citizens of both Mexico and the United States.  Guzman was one of the world's most wanted men and the alleged head of a drug-running empire that spans continents.  The criminal activity Guzman allegedly directed contributed to the death and destruction of millions of lives across the globe through drug addiction, violence, and corruption. We salute the Government of Mexico, and the professionalism and courage of the Mexican authorities, for this arrest.  We are pleased that we were able to work effectively with Mexico through the cooperative relationship that U.S. law enforcement agencies have with their Mexican counterparts.  We look forward to ongoing cooperation, and future successes."

Secretary of Homeland Security Johnson stated: "The operation led by the Mexican government overnight to capture Joaquin "Chapo" Guzman Loera is a significant victory and milestone in our common interest of combating drug trafficking, violence and illicit activity along our shared border. We congratulate our Mexican partners in this achievement and we will continue to work collaboratively with them to ensure a border region that is safe and secure, for the communities and citizens of both our nations."

STATEMENT ON ATTACKS BY BOKO HARAM IN NORTHERN NIGERIA

FROM:  U.S. STATE DEPARTMENT 

Recent Attacks by Boko Haram

Press Statement

John Kerry
Secretary of State

Washington, DC

February 23, 2014

---

Unspeakable violence and acts of terror like the ones committed by Boko Haram last week in northern Nigeria are horrific, wrong, and have no place in our world. Last Saturday, a brazen attack on the village of Izge, Nigeria, near the border with Cameroon took the lives of more than one hundred innocent people. Not less than a week had passed before Boko mounted another attack in Bama, setting 1,500 buildings ablaze, killing more than 115 people and leaving many others injured. We support Nigerian authorities' efforts to investigate these cowardly acts and to bring the perpetrators to justice.The people of northern Nigeria deserve to live free from violence and from terror. That’s why the United States is providing counterterrorism assistance to help Nigerian authorities develop a comprehensive approach to combat the threat posed by Boko Haram while protecting civilians and ensuring respect for human rights. We stand with the people of Northern Nigeria in their struggle against violent extremism, and remain a committed partner of the Government of Nigeria as it works to root out Boko Haram and associated groups.

$193.7 MILLION TO BE PAID BY DRUG COMPANIES TO RESOLVE UNAPPROVED MARKETING

FROM:  U.S. JUSTICE DEPARTMENT 
Friday, February 21, 2014

Endo Pharmaceuticals and Endo Health Solutions to Pay $192.7 Million to Resolve Criminal and Civil Liability Relating to Marketing of Prescription Drug Lidoderm for Unapproved Uses

Pharmaceutical company Endo Health Solutions Inc. and its subsidiary Endo Pharmaceuticals Inc. (Endo) have agreed to pay $192.7 million to resolve criminal and civil liability arising from Endo’s marketing of the prescription drug Lidoderm for uses not approved as safe and effective by the Food and Drug Administration (FDA), the Justice Department announced today.   The resolution includes a deferred prosecution agreement and forfeiture totaling $20.8 million and civil false claims settlements with the federal government and the states and the District of Columbia totaling $171.9 million.   Endo Pharmaceuticals Inc. is a Delaware corporation headquartered in Malvern, Pa.

“FDA’s drug approval process is designed to ensure that companies market their products for uses that are proven to be safe and effective,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery.   “We will hold accountable those who circumvent that process in pursuit of financial gain.”
           
In a criminal information filed today in the Northern District of New York, the government charged that, between 2002 and 2006, Endo Pharmaceuticals Inc. introduced into interstate commerce Lidoderm that was misbranded under the Federal Food, Drug and Cosmetic Act (FDCA).   The FDCA requires a company, such as Endo Pharmaceuticals Inc., to specify the intended uses of a product in its new drug application to the FDA.   Once approved, a drug may not be introduced into interstate commerce for unapproved or “off-label” uses until the company receives FDA approval for the new intended uses.   During the period of 2002 to 2006, Lidoderm was approved by the FDA only for the relief of pain associated with post-herpetic neuralgia (PHN), a complication of shingles.   The information alleges that, during the relevant time period, the Lidoderm distributed nationwide by Endo Pharmaceuticals Inc. was misbranded because its labeling lacked adequate directions for use in the treatment of non-PHN related pain, including low back pain, diabetic neuropathy and carpal tunnel syndrome.   These uses were intended by Endo Pharmaceuticals Inc. but never approved by the FDA.   The information further alleges that certain Endo Pharmaceuticals Inc. sales managers provided instruction to certain sales representatives concerning how to expand sales conversations with doctors beyond PHN and encouraged promotion of Lidoderm in workers’ compensation clinics.

In a deferred prosecution agreement to resolve the charge, Endo Pharmaceuticals Inc. admitted that it intended that Lidoderm be used for unapproved indications and that it promoted Lidoderm to health care providers for those unapproved indications.   Under the terms of the deferred prosecution agreement, Endo Pharmaceuticals Inc. will pay a total of $20.8 million in monetary penalties and forfeiture.   Endo Pharmaceuticals Inc. further agreed to implement and maintain a number of enhanced compliance measures, including making publicly available the results of certain clinical trials and requiring an annual review and certification of its compliance efforts by the Chief Executive Officer of its parent company, Endo Health Solutions.   The deferred prosecution agreement will not be final until accepted by the U.S. District Court for the Northern District of New York.

“The safety and efficacy of drugs must be shown by science, not sales pitches,” said U.S. Attorney for the Northern District of New York Richard S. Hartunian.   “Drugs marketed for intended uses not approved by the FDA are misbranded because their labeling lacks adequate directions for those uses.   This settlement emphasizes that public health is protected by labeling based on product performance, rather than profitability, and promotes enhanced efforts to ensure compliance with all requirements.”

In addition, Endo agreed to settle its potential civil liability in connection with its marketing of Lidoderm.   The government alleged that, from March 1999 through December 2007, Endo caused false claims to be submitted to federal health care programs, including Medicaid, a jointly funded federal and state program, by promoting Lidoderm for unapproved uses, some of which were not medically accepted indications and, therefore, were not covered by the federal health care programs.   Of the $171.9 million Endo has agreed to pay to resolve these civil claims, Endo will pay $137.7 million to the federal government and $34.2 million to the states and the District of Columbia.

“Off-label marketing can undermine the doctor-patient relationship and adversely influence the clear and honest judgment of doctors that their patients rely on and trust,” said U.S. Attorney for the Eastern District of Pennsylvania Zane D. Memeger.   “Pharmaceutical companies have a legal obligation to promote their drugs for only FDA-approved uses.   This obligation takes precedence over the company’s bottom line.”

“The settlement announced today demonstrates the government’s continued scrutiny of pharmaceutical companies that interfere with FDA’s mission of ensuring that drugs are safe and effective for the American public,” said Special Agent in Charge of the FDA’s Office of Criminal Investigations’ New York Field Office Mark Dragonetti.  “We will continue to work with our law enforcement partners to investigate and prosecute pharmaceutical companies that disregard the drug approval process and jeopardize the public health by engaging in the nationwide distribution of misbranded products.”

“Endo Pharmaceutical enriched themselves at the expense of the public,” said Special Agent in Charge Andrew W. Vale of the Albany Division of the Federal Bureau of Investigation.   “Patients will search for drug therapies to assist in pain management, and they deserve the right to drugs approved for such use.   The FBI will continue to work with our federal partners to investigate companies such as Endo Pharmaceuticals to ensure patients are safe.”

Also as part of the settlement, Endo Pharmaceuticals Inc. has agreed to enter into a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General that requires Endo to implement measures designed to avoid or promptly detect conduct similar to that which gave rise to this resolution.   Among other things, the CIA requires Endo to implement an internal risk assessment and mitigation program and requires numerous internal and external reviews of promotional and other practices.   The CIA also requires key executives and individual board members to sign certifications about compliance, and it requires the company to publicly report information about its financial arrangements with physicians.

“By marketing Lidoderm for uses not covered by federal health care programs, Endo profited at the expense of taxpayers and could have put patients at risk,” said Inspector General of the U.S. Department of Health and Human Services Daniel R. Levinson.   “Under our CIA, Endo agrees to promote its products legally, while board members and top executives are specifically held accountable for compliance.”

The civil settlement resolves three lawsuits pending in federal court in the Eastern District of Pennsylvania under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the government and to share in any recovery.   The actions were filed by Peggy Ryan, a former Lidoderm sales representative, Max Weathersby, another former Lidoderm sales representative and Gursheel S. Dhillon, a physician.   The whistleblowers’ share of the settlement has not been determined.

This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by 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 $19 billion through False Claims Act cases, with more than $13.4 billion of that amount recovered in cases involving fraud against federal health care programs.

The civil settlement was handled by the U.S. Attorney’s Office for the Eastern District of Pennsylvania and the Civil Division’s Commercial Litigation Branch.   The criminal case was handled by the U.S. Attorney’s Office for the Northern District of New York and the Civil Division’s Consumer Protection Branch.   These matters were investigated by the Federal Bureau of Investigation, the Food and Drug Administration Office of Criminal Investigation, the Department of Health and Human Services Office of Inspector General Office of Investigations, the Defense Criminal Investigative Service of the Department of Defense, the U.S. Postal Service Office of Inspector General and the Office of Personnel Management Office of Inspector General with assistance from the Department of Health and Human Services Office of Counsel to the Inspector General and Office of General Counsel and Center for Medicare and Medicaid Services, the Food and Drug Administration’s Office of Chief Counsel and the National Association of Medicaid Fraud Control Units.

Except as to conduct admitted in connection with the deferred prosecution agreement, the claims settled by the civil agreement are allegations only, and there has been no determination of civil liability.   The civil lawsuits are captioned United States ex rel. Ryan v. Endo Pharmaceuticals Inc.,  Civil Action No. 05-cv-3450, United States ex rel. Weathersby, et al. v. Endo Pharmaceuticals Inc., et al, Civil Action No. 10-cv-2039 and United States ex rel. Dhillon v. Endo Pharmaceuticals, Civil Action No. 11-cv-7767, all docketed in the Eastern District of Pennsylvania.

DEFENSE DEPARTMENT HAS STRATEGY FOR ELECTROMAGNETIC SPECTRUM

FROM:  U.S. DEFENSE DEPARTMENT 
IMMEDIATE RELEASE
Release No: NR-091-14
February 20, 2014
DoD Releases Electromagnetic Spectrum Strategy

The Department of Defense announced today the release of its Electromagnetic Spectrum Strategy (EMS) to increase available spectrum in order to meet growing demand from the commercial wireless industry while maintaining critical military capabilities.

“The Department’s Electromagnetic Spectrum Strategy addresses the ever increasing need for spectrum to achieve national security goals,” said Teri Takai, DoD chief information officer. “This strategy also addresses short and long-term spectrum challenges as it relates to the growing US demand for wireless broadband services. To achieve the balance required between national security and economic growth, DoD will continue to work in close collaboration with federal regulatory agencies and policymakers, including the National Telecommunications and Information Administration (NTIA), Federal Communications Commission, and the White House Office of Science and Technology Policy (OSTP), as well as with commercial industry.
Together we must identify ways to make more spectrum available for commercial use, and find technologies that enhance spectrum sharing, all while improving how DoD accesses spectrum, where and when needed to ensure mission success.”

The DoD EMS Strategy and its supporting roadmap and action plan will establish key goals and objectives that focus on developing systems that are efficient, flexible, and adaptable in their use of the spectrum; increasing our operational agility in use of the spectrum; and participating in the development of national and international policies and regulations needed to enable these improvements. The strategy follows the release of a memorandum issued in 2010 by President Obama titled “Unleashing the Wireless Broadband Revolution,” which requires 500 MHz of spectrum be made available for commercial use by 2020 and one issued in June 2013 titled “Expanding America's Leadership in Wireless Innovation” which directed federal agencies and offices to accelerate efforts to allow and encourage shared access to spectrum allocated for federal use. The president mandated that federal agencies free up a significant portion of wireless spectrum so that it can be used by individuals and businesses to spur domestic economic growth and help keep the U.S. on top of the technological hierarchy.

“In order to reach balanced decisions about relocating from or sharing spectrum, we need time, funding and comparable spectrum,” said Ms. Takai. “Through the established goals and objectives of the EMS Strategy and our close work with the White House OSTP, the NTIA and industry partners, we are confident in our ability to meet the requirements set forth by the president while maintaining the needs of our nation’s military requirements.”

U.S. SENDS CONGRATULATIONS TO PEOPLE OF BRUNEI DARUSSALAM ON THEIR NATIONAL DAY

FROM:  U.S. STATE DEPARTMENT 
Brunei Darussalam National Day
Press Statement
John Kerry
Secretary of State
Washington, DC
February 20, 2014

On behalf of President Obama and the people of the United States, I send my most heartfelt congratulations to the people of Brunei Darussalam as you celebrate your 30th National Day on February 23.

Our formal diplomatic relations began in 1984, but the friendship between our two countries goes back more than 160 years. The depth and value of this relationship was plain for me to see during my two visits to your wonderful “Abode of Peace” last year. Our excellent cooperation in both bilateral and multilateral settings is vital to the prosperity and stability of the region. Brunei’s chairmanship of the Association of Southeast Asian Nations during 2013 was commendable in every way.

From English language training to energy cooperation, our robust relationship is a force for good in the region. I wish all the people of Brunei the very best on this special anniversary and look forward to many more years of working closely together.

INFLUENZA ACTIVITY AND VACCINE EFFECTIVENESS

FROM:  CENTERS FOR DISEASE CONTROL AND PREVENTION 
1. Interim Estimates of 2013–14 Seasonal Influenza Vaccine Effectiveness — United States, February 2014

This season’s influenza vaccine reduced the risk for influenza-associated medical visits by approximately 60 percent across all age groups. Children at least 6 months old and older who have not yet received the 2013–14 influenza vaccine should be vaccinated. CDC recommends yearly flu vaccination for children 6 months old or older and adults. Because flu viruses change from season to season, CDC conducts studies each year to determine how well the flu vaccine works against the specific flu viruses that are circulating. This mid-season report presents data on 2,319 children and adults enrolled in the U.S. Flu Vaccine Effectiveness Network from December 2, 2013 to January 23, 2014. The study found that getting flu vaccine this season reduced the risk of flu-related doctor’s visits by 61 percent for all age groups. Influenza vaccination offered substantial protection against the flu virus circulating this season, pH1N1, and the same virus that emerged in 2009 and spread in a worldwide pandemic.

2. Update: Influenza Activity — United States, September 29, 2013–February 8, 2014

This influenza season, characterized as a pH1N1 season, has been more severe for young and middle-aged adults than in the most recent seasons. This is a reminder that influenza can cause severe illness in people of any age and that everyone aged 6 months and older should be vaccinated. When people do get the flu, antiviral treatment can reduce severe outcomes, especially when administered early. Influenza activity in the United States began increasing in mid-November and remained elevated as of February 8; elevated activity will likely continue for several more weeks. Surveillance data provide a reminder that while some age groups are at increased risk of influenza complications every year, influenza can cause severe illness in persons of any age, even in adults 18–64 years.CDC recommends that health-care providers continue to offer vaccine to all unvaccinated persons ≥6 months now and throughout the season.

SPACE SMART SPHERES

FROM:  NASA 
Smart SPHERES Are About to Get A Whole Lot Smarter

Smart devices – such as tablets and phones – increasingly are an essential part of everyday life on Earth. The same can be said for life off-planet aboard the International Space Station. From astronaut tweets to Google+ Hangouts, our reliance on these mobile and social technologies means equipment and software upgrades are an everyday occurrence – like buying a new pair of shoes to replace a pair of well-worn ones.

That’s why the Intelligent Robotics Group at NASA’s Ames Research Center in Moffett Field, Calif., with funding from the Technology Demonstration Missions Program in the Space Technology Mission Directorate, is working to upgrade the smartphones currently equipped on a trio of volleyball-sized free-flying satellites on the space station called Synchronized Position Hold, Engage, Reorient, Experimental Satellites (SPHERES). In 2011 on the final flight of space shuttle Atlantis, NASA sent the first smartphone to the station and mounted it to SPHERES.

Each SPHERE satellite is self-contained with power, propulsion, computing and navigation equipment as well as expansion ports for additional sensors and appendages, such as cameras and wireless power transfer systems. This is where the SPHERES' smartphone upgrades are attached.

By connecting a smartphone, the SPHERES become Smart SPHERES. They now are more intelligent because they have built-in cameras to take pictures and video, sensors to help conduct inspections, powerful computing units to make calculations and Wi-Fi connections to transfer data in real time to the computers aboard the space station and at mission control.

"With this latest upgrade, we believe the Smart SPHERES will be a step closer to becoming a ‘mobile assistant' for the astronauts,” said DW Wheeler, lead engineer with SGT Inc. in the Intelligent Robotics Group at Ames. "This ability for Smart SPHERES to independently perform inventory and environmental surveys on the space station can free up time for astronauts and mission control to perform science experiments and other work.”

Later this year, NASA will launch a Project Tango prototype Android smartphone developed by Google’s Advanced Technology and Projects division of Mountain View, Calif. The prototype phone includes an integrated custom 3-D sensor, which means the device is capable of tracking its own position and orientation in real time as well as generating a full 3-D model of the environment.

“The Project Tango prototype incorporates a particularly important feature for the Smart SPHERES – a 3-D sensor,” said Terry Fong, director of the Intelligent Robotics Group at Ames. “This allows the satellites to do a better job of flying around on the space station and understanding where exactly they are.”
Later this month, Ames engineers will fly the prototype phone several times aboard an airplane that is capable of simulating microgravity by performing a parabolic flight path. The team has modified the motion-tracking and positioning code developed by Google that tells the phone where it is to work in the microgravity conditions of the space station. To verify that the phone will work, they must take the phone out of the lab at Ames and test it in a microgravity environment.

The SPHERES facility aboard the space station provides affordable opportunities to test a wide range of hardware and software. It acts as a free-flying platform that can accommodate various mounting features and mechanisms in order to test and examine the physical or mechanical properties of materials in microgravity.

SPHERES also provides a test bed for space applications including physical sciences investigations, free-flying spatial analyses, multi-body formation flying and various multi-spacecraft control algorithm verifications and analyses.

SPHERES also is used for the annual Zero Robotics student software programming competition. Ames operates and maintains the SPHERES facility, which is funded by the Human Exploration and Operations Mission Directorate at NASA Headquarters in Washington.

To date, astronauts have conducted 77 investigations using SPHERES to test techniques to advance automated dockings, satellite servicing, spacecraft assembly and emergency repairs. Now researchers are preparing to control the SPHERES in real time from ground control stations on Earth and from space.

In the long run, free-flying robots like SPHERES could also be used to inspect the exterior of the space station or future deep space vehicles. Robots like the smartphone-enhanced SPHERES and NASA's Robonaut 2, will provide some of the help of another crew member; SPHERES' cameras can act as another set of eyes, while Robonaut 2 literally adds another set of hands to act as an assistant with small and bulky items alike. An added bonus is that robots do not require any additional life support.

As with Robonaut 2, all tests to date have occurred in the safety of the space station's interior. However, in the future, upgraded SPHERES may venture outside the orbiting outpost.

“This is no ordinary upgrade – we’ve customized cutting-edge commercial technologies to help us answer questions like: How can robots help humans live and work in space? What will happen when humans explore other worlds with robots by their side? Can we make this happen sooner, rather than later?" said Fong. "Building on our experience in controlling robots on the space station, one day we'll be able to apply what we've learned and have humans and robots working together everywhere from Earth's orbit, to the moon, asteroids and Mars."
Rachel Hoover

Ames Research Center, Moffett Field, Calif.

SECRETARY KERRY'S STATEMENT ON SECURITY COUNCIL RESOLUTION ON SYRIA

FROM:  U.S. STATE DEPARTMENT 
UN Security Council Resolution on Syria
Press Statement
John Kerry
Secretary of State
Washington, DC
February 22, 2014

This could be a hinge-point in the tortured three years of a Syria crisis bereft of hope. This overdue resolution, if fully implemented, will ensure humanitarian aid reaches people in Syria whose very lives depend on it. This is all about saving innocent lives and relieving the burden on Syria's neighboring countries.

After three years of slaughter and savagery, people rightfully will question whether progress is possible, but this resolution holds the promise of something real. The proof is on paper. By naming the areas in Syria where sieges must be lifted, demanding that hospitals, schools and other places where civilians gather must be demilitarized, insisting that aid must be allowed to cross borders and follow the most direct routes to the suffering, and by underscoring that attacks against civilians, including barrel bombing, must end, the international community hasn't minced words. This is a resolution of concrete steps to answer the worst humanitarian crisis in the world today.

But these steps are only first steps. Just as shipments of humanitarian aid mean little without access to beleaguered areas, resolutions demanding access mean little without full implementation. The test is whether the words of the Security Council are matched with the life-saving actions the Syrian people so desperately and urgently need.

PRESIDENT OBAMA'S WEEKLY ADDRESS FOR FEBRUARY 22, 2014

FROM:  THE WHITE HOUSE 

Weekly Address: Time to Lift the Minimum Wage and Give America a Raise

WASHINGTON, DC—In this week’s address, President Obama said this is a year of action, and he will do everything he can to restore opportunity for all.  The President already lifted the wages for federal contract workers, and he calls on the American people to tell Congress to finish the job by boosting the federal minimum wage for all workers to $10.10 and give America a raise.

The audio of the address and video of the address will be available online atwww.whitehouse.gov at 6:00 a.m. ET, Saturday, February 22, 2014.

Remarks of President Barack Obama
Weekly Address
The White House
February 22, 2014

Hi, everybody. 

Restoring the idea of opportunity for all requires a year of action from all of us.  Wherever I can act on my own, I will – and whenever I can ask more Americans to help, I’ll do that too.

In my State of the Union Address, for example, I asked more business leaders to take action to raise their employees’ wages.  Because even though our economy is growing, and our businesses have created about eight and a half million new jobs over the past four years, average wages have barely budged.

So it’s good news that, earlier this week, one of America’s largest retailers, The Gap, decided to raise wages for its employees beginning this year.  Their decision will benefit about 65,000 workers in the U.S.  That means more families will be able to raise their kids, finish their studies, or keep up on their bills with a little less financial stress and strain. 

Gap’s CEO explained their decision simply – he said, “[It’s] right for our brands, good for our people, and beneficial to our customers.”  And he’s right – raising Americans’ wages isn’t just a good deed; it’s good business and good for our economy.  It helps reduce turnover, it boosts productivity, and it gives folks some more money to spend at local businesses.

And as a chief executive myself, that’s why I took action last week to lift more workers’ wages by requiring federal contractors to pay their employees a fair wage of at least $10.10 an hour.

In the year since I first asked Congress to raise the minimum wage, six states have passed laws to raise theirs, and more states are working on it as we speak.  But only Congress can finish the job and lift Americans’ wages across the country. 

Right now, there’s a bill before Congress that would boost America’s minimum wage to $10.10 an hour.  That’s easy to remember – “ten-ten.”  That bill would lift wages for more than 16 million Americans without requiring a single dollar in new taxes or spending.  But even though a majority of Democrats, Independents, and Republicans across the country support raising the minimum wage, Republicans in Congress don’t want to give it a vote. 

Hardworking Americans deserve better than “no.”  Let’s tell Congress to say “yes.”  Pass that bill.  Give America a raise.  Because here in America, no one who works hard should have to live in poverty – and everyone who works hard should have a chance to get ahead. 

Thanks, and have a great weekend.

SECRETARY OF STATE KERRY'S STATEMENT ON SITUATION IN VENEZUELA

FROM:  U.S. STATE DEPARTMENT 

Situation in Venezuela

Press Statement

John Kerry
Secretary of State

Washington, DC

February 21, 2014

---

I am watching with increasing concern the situation in Venezuela. Despite calls from that country’s democratic opposition and the international community, the Venezuelan government has confronted peaceful protesters with force and in some cases with armed vigilantes claiming to support the government. It has imprisoned students and a key opposition figure. It has limited the freedoms of expression and assembly necessary for legitimate political debate, and just today tightened restrictions on the media, revoking the credentials of CNN en Español reporters. This is not how democracies behave.

Every government has a duty to maintain public order, and all sides, including the opposition protestors, must refrain from violence. The government’s use of force and judicial intimidation against citizens and political figures, who are exercising a legitimate right to protest, is unacceptable and will only increase the likelihood of violence.

I call on the Venezuelan government to step back from its efforts to stifle dissent through force and respect basic human rights. The government should release incarcerated members of the opposition and initiate a process of genuine dialogue with the democratic opposition. The solution to Venezuela’s problems can only be found through dialogue with all Venezuelans, engaging in a free exchange of opinions in a climate of mutual respect.

COURT ORDERS BAN ON MISLEADING LED LIGHT BULB CLAIMS

FROM:  FEDERAL TRADE COMMISSION 
FTC Action Leads to Court Order Barring Misleading Light Bulb Claims
Order Also Imposes $21 Million Judgment Against Marketers of LED Bulbs

At the request of the Federal Trade Commission, a federal court has ordered a light bulb manufacturer and its owners to pay more than $21 million for misleading consumers by exaggerating the performance of their Light Emitting Diode (LED) light bulbs.

In September 2010, the FTC charged Lights of America Inc., Usman Vakil and Farooq Vakil with violating federal law by overstating the light output and life expectancy of their LED bulbs on packages and in brochures, and falsely comparing the brightness of their LED bulbs with that of other light bulbs.

Following a four-day bench trial in October-November 2012, the court entered detailed findings of the defendants’ false and deceptive claims. Prior to trial, the court had already found that the defendants made unsupported claims that their LED bulbs provided the same or comparable light output as incandescent bulbs.

According to the FTC, the defendants initially claimed their LED lamps had a 30,000-hour life and lasted “15 times longer than 2,000 hour incandescent bulbs.” The defendants revised those claims downward several times, including a statement that their LED lamps had a 12,000-hour life and lasted “6 times longer than 2,000 hour incandescent bulbs.” But in fact, the documents and data the defendants relied upon showed that none of their LED bulbs that were tested lasted beyond a few thousand hours.

In September 2013, the court found that the FTC had proved its case and that the defendants were liable for deceptive marketing. The court order announced today requires them to pay $21 million to the FTC, which represents the total amount consumers paid to the company for light bulbs based on the deceptive claims. Most of the money will be available for refunds to consumers. The court order permanently prohibits the defendants from misrepresenting material facts about lighting products, and misrepresenting light output or brightness in lumens, light output equivalency to another product, lifetime of the product, energy costs, energy savings, or energy consumption, or the ability to produce a desired energy-related effect. The order also requires the defendants to meet certain compliance and record-keeping requirements for 20 years.

The judgment was entered by the U.S. District Court for the Central District of California, Southern Division, on January 15, 2014.

For information about light bulb performance, read the FTC’s Shopping for Light Bulbs, which notes that well-designed and manufactured LED bulbs save on energy costs and last much longer than other types of light bulbs.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.

PRESIDENT OBAMA'S REMARKS BEFORE DEMOCRATIC GOVERNORS MEETING

FROM:  THE WHITE HOUSE 
Remarks by the President before Meeting with Democratic Governors
State Dining Room

11:20 A.M. EST

THE PRESIDENT:  Well, it's wonderful to have America’s governors in town.  Michelle and I look forward to hosting with their spouses our annual Governors’ Reception here and dinner.  And it's always a great opportunity to exchange ideas and hear what’s happening at the local level.

Today we did bring Democratic governors to the White House to spend some time talking about a couple of issues that are of critical importance to our constituencies and, I think, to the country.  And one of those is the issue of minimum wage and what we can do to give America a raise.

Many of the governors in this room are pushing to raise their state’s minimum wages to benefit more working families and help to grow their economies.  Governor Abercrombie, Governor Inslee, Governor Malloy, Governor O’Malley, Governor Patrick, Governor Quinn all focused on this in their State of the State addresses.

In my State of the Union address, obviously I promised that I would do what I could as the head of the executive federal government, and have already signed an executive order saying that if you want to do business with the federal government as a federal contractor then you need to be paying your employees $10.10 an hour.  We don't want somebody who is washing dishes for our troops or helping in some ways to care for them to be living in poverty when they’re working full-time.

And what we discovered in looking at this issue is that, increasingly, businesses recognize that raising wages for their employees is a smart business issue because they end up having lower turnover rates, higher productivity, higher morale, folks stay longer and are more focused on the job rather than having to worry about whether or not they can pay their bills at the end of the month.

And this is not just good policy; it also happens to be good politics, because the truth of the matter is the overwhelming majority of Americans think that raising the minimum wage is a good idea.  That is true for independents; that is true for Democrats; and it's true for Republicans.  So, in fact, where we've seen some of these issues going to referendum -- for example, in New Jersey, even though the Republican governor opposed it, it passed by 60 percent.

And the reason that this is important is not because  everybody is going to be benefiting from a hike in the minimum wage -- the truth is, is that most working Americans make more than the minimum wage already.  But people, I think, instinctually understand that part of what this country should be about is if you're working hard and taking responsibility that you can get ahead and that you can look after your family.  And raising the minimum wage will help up to 16 million Americans, and that's a big deal.  And that could give a boost to our economy as a whole.

So I'm going to continue to press Congress to pass a federal minimum wage bill that goes up to $10.10 an hour, being sponsored currently by Senator Harkin and Representative Miller.  I'm going to be seeking Republicans who are game to work with us and prepared to work with us on this issue.  As I said at the State of the Union, it's not something that requires a big bureaucracy and it doesn’t require a lot of federal spending.  All it requires is for us to stake out a claim on behalf of American workers that's consistent with our values as a nation.

And I'm going to be interested in hearing of the efforts of governors in this room to see what they can do to make sure that America gets a raise.

So I appreciate their presence.  We've got a lot of other issues on the plate, but I wanted to highlight that one because I think it's something that’s on a lot of people’s minds -- how can we boost people’s incomes and wages if they’re working hard so they can get ahead.

Thank you so much, everybody.

END

REMARKS: EXECUTIVE COUNCIL OF ORGANIZATION FOR THE PROHIBITION OF CHEMICAL WEAPONS

FROM:  U.S. STATE DEPARTMENT 
Remarks at the 39th Meeting of the Executive Council
Remarks
Robert P. Mikulak
U.S. Permanent Representative to the Organization for the Prohibition of Chemical Weapons 
The Hague, Netherlands
February 21, 2014

Mr. Chairman,

At the last meeting of this Council, the United States expressed deep concern that the effort to remove chemical agent, key precursor chemicals, and other chemicals from Syria had seriously languished and stalled. Many members of this Council expressed the same concerns. Along with the United States, they called upon the Syrian Government to accelerate and expeditiously complete the relocation of these chemicals to the port of Latakia for removal and destruction.

In the three weeks since this Council last met, there has been progress in eliminating the isopropanol in Syria and in transporting limited quantities of the stabilizer hexamine to Latakia. The fact remains, however, that 95.5 percent of Priority One chemicals – CW agent and key binary precursors – remain in Syria as well as 81.1 percent of Priority Two chemicals, well beyond the dates set for removal by the Executive Council. And the Syrian Government continues to put its energy into excuses, instead of actions.

Regrettably, this Council at its January 30th meeting failed to address Syria’s unacceptable delay in completing removal of all designated chemicals. Why? Because a single member of this Council put its own political agenda above the welfare of the people of Syria and the international community. This lapse in leadership was unworthy of this Council and an affront to the dedicated efforts of the OPCW Technical Secretariat and the OPCW-UN Joint Mission to remove chemical weapons from the military arsenal of the Assad regime.


Mr. Chairman,

While this Council was silent, the growing concern of the international community thankfully found its voice at the UN Security Council. On February 6th, the Security Council publicly addressed the Syria CW situation. In particular,

-- The Security Council noted growing concern, with respect to the decision of OPCW Executive Council EC-M-34/DEC.1, dated 15 November 2013, about the slow pace of the removal of the chemical weapons from the territory of Syria, which has placed efforts behind schedule;

-- The Security Council called upon the Syrian Arab Republic to expedite actions to meet its obligation to transport, in a systematic and sufficiently accelerated manner, all relevant chemicals to Latakia for removal from Syrian territory, and in this regard noted the Secretary-General and Joint Mission’s call for the Syrian Arab Republic to intensify its efforts to expedite in-country movements of chemical weapons material;

--The Security Council noted the Secretary-General and Joint Mission's assessment that the Syrian Arab Republic has sufficient material and equipment necessary to carry out multiple ground movements to ensure the expeditious removal of chemical weapons material, and noted the substantial international support already provided for the removal of chemical weapons materials from the territory of the Syrian Arab Republic;

--Finally, the Security Council expressed its commitment to continue to closely monitor compliance with resolution 2118 (2013) with less than five months until the date for completing destruction of 30 June 2014 established in the OPCW Executive Council decision of 15 November 2013, which is a deadline that Security Council members remain committed to seeing met.


Mr. Chairman,

The United States fully supported the press elements by the UN Security Council chairman on February 6th and reaffirms that position today. In that regard, I would like to underscore the final element and make clear the position of the United States. It was the decision of this Council on November 15th that destruction -- not just removal -- of Syrian chemical weapons must be completed by June 30, 2014. Despite Syria’s inaction, the experts in the OPCW’s Operational Planning Group agreed last week that completion of removal and destruction by June 30, 2014 is indeed achievable if action is taken by Syria now.

The international community has put into place everything that is necessary for transport and destruction of these chemicals. Sufficient equipment and material has been provided to Syria. The ships to carry the chemicals away from Syria are waiting. The U.S. ship to destroy CW agent and precursors is now in the region and waiting. Commercial facilities to destroy other chemicals have been selected and contracts awarded; they are waiting. And yet Syria continues to drag its feet.


Mr. Chairman,

The Council should endorse all of the statements made by the President of the UN Security Council on February 6th, and reaffirm the June 30, 2014, date for removal and destruction of all Syrian chemical weapons. Further, this Council should reject Syria’s delaying tactics and insist that an expedited removal schedule be adhered to by the Syrian Government that will provide the international community sufficient time to destroy Syria’s chemical weapons by June 30, 2014.


Mr. Chairman,

At our meeting on January 30th, the United States called this Council’s attention to another serious issue – the destruction of Syrian chemical weapons production facilities (CWPF). Syria has proposed that seven hardened aircraft shelters and five underground structures previously used in connection with the production of chemical weapons be “inactivated,” by rendering them inaccessible. As detailed in a U.S. national paper and underscored by other members of this Council, Syria’s proposed measures would be readily and easily reversible within days. Thus, they clearly do not meet the requirement that such facilities be “physically destroyed” under the Convention and as implemented by the other States Parties that have declared chemical weapons production facilities. In an effort to resolve this impasse, the United States has engaged Syrian officials at the OPCW on several occasions, most recently a week ago. No progress has been made. Syria has flatly rejected U.S. efforts to find compromises for achieving the “physical destruction” requirement.


Mr. Chairman,

The deadline set by this Council for the destruction of Syria’s twelve chemical weapons production facilities is March 15 – just three weeks from today. Apparently, the Syrian Government intends to ignore yet another requirement set by the Council. This Council, however, cannot ignore the completion dates it established in its consensus decisions.

The United States believes the Council needs to address this issue, and we are considering a draft decision for the Seventy-Fifth Session of the Executive Council to address this impending situation. The United States believes this decision needs to have two principal components:

-- First, with respect to the seven hardened aircraft shelters, this Council should require that Syria by March 15 collapse the roofs using precision explosives. The United States has carefully analyzed this approach and concluded that it would meet the Convention standard for physical destruction in an expedited and cost-effective manner.

-- Second, with respect to the five underground structures, this Council, noting the additional technical challenges they entail, should extend the deadline for destruction but only on the condition that specified measures be undertaken by Syria first to inactivate them and then to physically destroy the entire underground structure.


Mr. Chairman,

In about ten days, this Council will convene in regular session and the Syrian CW situation will dominate our deliberations. This intervening period provides an opportunity for the Syrian Government to chart a new course – one that would allow Syria to meet its obligations in accordance with the decisions of this Council and UN Security Council resolution 2118. Over the next ten days, Syria should take the following actions to demonstrate its commitment to complying with its obligations. Syria should begin making substantial and systematic deliveries of liquid Priority One agent and precursors to Latakia. Syria should revise its 100-day transport schedule to embrace the recommendations developed by the OPCW, the UN, and others in the Operational Planning Group to expedite removal. And finally, Syria should withdraw its proposal to merely inactivate its CWPF aircraft shelters and underground structures, and agree to a true destruction plan.


Mr. Chairman,

If Syria does not soon undertake decisive action to fully comply with its obligations, this Council at its March regular session should require Syria to meet the expedited schedule for removal developed by the Operational Planning Group, with the goal of ensuring that the June 30th deadline for removal and destruction will be met. Further, the Council should adopt a decision to reinforce the Convention's requirement that Syrian CWPF aircraft shelters and underground structures be physically destroyed. We must take seriously the decisions of this Council and the requirements of the Convention, even if the Syrian Government does not.


Mr. Chairman,

The weeks ahead will be critical for the success of this historic endeavor. The United States urges Syria to finally make a course correction and fully comply with its obligations. If not, this Council, and indeed the broader international community, will need to consider the steps that will need to be taken to ensure that the promise of our September 27, 2013, decision and UN Security Council resolution 2118 are realized, and chemical weapons are forever removed from the hands of the Assad regime.


Mr. Chairman,

I request that this statement be made an official document of the meeting and posted on the OPCW website and external server.

Thank you, Mister Chairman.