U.S. DEFENSE DEPARTMENT CONTRACTS FOR MAY 2, 2014

FROM:  U.S. DEFENSE DEPARTMENT 

CONTRACTS

NAVY

United Technologies Corp., Pratt & Whitney Military Engines, East Hartford, Connecticut, is being awarded a $105,170,571 fixed-price-incentive-fee advance acquisition contract to procure long-lead components, parts and materials in support of 34 low rate initial production Lot IX F-135 propulsions systems for the F-35 Lightning II Joint Strike Fighter aircraft, including 26 F-135-PW-100 for the U.S. Air Force; six F-135-PW-600 for the U.S. Marine Corps; and two F-135-PW-100 for the U.S. Navy. In addition, this contract provides for the procurement of 13 F-135-PW-100 and 6 F135-PW-600 systems for international partners and foreign military sales customers. Work will be performed in East Hartford, Connecticut (67 percent); Indianapolis, Indiana (16.5 percent); and Bristol, United Kingdom (16.5 percent); and is expected to be completed in September 2017. Fiscal 2014 aircraft procurement, Air Force and Navy funds, as well as international partner and foreign military sales funds in the amount of $105,170,571 are being obligated on this award, none of which will expire at the end of the current fiscal year. This contract was not competitively procured pursuant to 10 U.S.C. 2304(c)(1). This contract combines purchases for the U.S. Air Force ($32,259,578; 31 percent); the U.S. Navy ($27,321,004; 26 percent); international partners ($36,484,998; 35 percent) and international participants ($9,104,991; 8 percent). The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity (N00019-14-C-0004).

CACI Inc., Chantilly, Virginia (N00189-14-D-Z023), ECS Federal Inc., Fairfax, Virginia (N00189-14-D-Z024), and Centurum Information Technology Inc., Marlton, New Jersey (N00189-14-D-Z025), are being awarded cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity contracts to provide comprehensive program management support for strategic planning, change management, business process re-engineering for personnel and pay processes, business architecture development and support services, functional data management and governance support, and functional data quality management for the Bureau of Naval Personnel-Navy Personnel and Pay Modernization effort. The total estimated value for the three contracts combined is $32,578,210. These three contractors shall compete for task orders under the terms and conditions of the awarded contracts. Work will be performed in Millington, Tennessee (77.7 percent); the Washington, District of Columbia area (17.8 percent); and New Orleans, Louisiana (4.5 percent) as task orders are determined. Work is expected to be completed by June 30, 2017. Fiscal 2014 operations and maintenance, Navy funds in the amount $500,001 will be obligated at the time of award and will not expire before the end of the current fiscal year. The requirement was competitively procured through full and open competition and solicited through the Federal Business Opportunities website, with five offers received in response to this solicitation. NAVSUP Fleet Logistics Center Norfolk, Contracting Department, Philadelphia Office, Philadelphia, Pennsylvania, is the contracting activity.

Lockheed Martin Corp., Marietta, Georgia, is being awarded a $12,169,823 cost-plus-fixed-fee contract for the procurement of aircraft mission system modifications to install Royal Norwegian Air Force (RNoAF) spiral upgrades on two RNoAF P-3C aircraft under the Foreign Military Sales Program. Work will be performed in Greenville, South Carolina (61 percent) and Marietta, Georgia (39 percent), and is expected to be completed in October 2015. Foreign military sales funds in the amount of $12,169,823 are being obligated at time of award, none of which will expire at the end of the current fiscal year. This contract was not competitively procured pursuant to FAR 6.302-4. The Naval Air Warfare Center Aircraft Division, Lakehurst, New Jersey, is the contracting activity (N68335-14-C-0001).

BAE Systems Norfolk Ship Repair, Norfolk, Virginia, is being awarded an $11,344,264 modification to previously awarded contract (N00024-10-C-4308) for the USS Bulkeley (DDG 84) fiscal 2014 selected restricted availability. A selected restricted availability includes the planning and execution of depot-level maintenance, alterations, and modifications that will update and improve the ship's military and technical capabilities. Work will be performed in Norfolk, Virginia, and is expected to be completed by September 2014. Fiscal 2014 operations and maintenance, Navy contract funds in the amount of $11,344,264 will be obligated at time of award and will expire at the end of the current fiscal year. Norfolk Ship Support Activity, Norfolk, Virginia, is the administrative contracting activity.
Rockwell Collins Inc., Cedar Rapids, Iowa, is being awarded a $6,587,938 modification to a previously awarded firm-fixed-priced contract (N00019-09-C-0069) to exercise an option for the procurement of AN/ARC-210(V) electronic radios and ancillary equipment for a variety of aircraft. Equipment being procured includes (14) C-12561A/ARCs; (46) MT-6567/ARCs; (15) MT-7006/ARCs; (14) AM-7526/ARCs; (14) MX-11745/ARCs; (2) communication security reprogramming kits; (2) C-12561A reprogramming kits, and (66) RT-1990(C)/ARCs. Work will be performed in Cedar Rapids, Iowa, and is expected to be completed in December 2014. Fiscal 2014 aircraft procurement, Navy funds in the amount of $6,587,938 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity.

AIR FORCE

Lockheed Martin Aeronautics Co., Marietta, Georgia, has been awarded a $91,857,024 firm-fixed-price contract modification (P00199) to FA8625-07-C-6471 for C-5 Reliability Enhancement and Re-engining Program (RERP). The contract modification is for incorporation of the C-5 RERP Lot 7 initial spares acquisition. Work will be performed at Marietta, Georgia, and is expected to be completed by July 29, 2016. Fiscal 2013 aircraft procurement funds in the amount of $91,857,024 are being obligated at time of award. Air Force Life Cycle Management Center/WLSK, Wright-Patterson Air Force Base, Ohio, is the contracting activity.

DEFENSE LOGISTICS AGENCY

The Boeing Co., Saint Louis, Missouri, has been awarded a maximum $13,500,000 firm-fixed-price, undefinitized order (0001) against contract SPRPA1-14-D-002U. This order provides gap or transition coverage for national stock numbers items that are currently handled transactionally and will be transitioning to performance based items under the contract. This action will allow for the supply chain to remain intact during the transition, ensuring uninterrupted support to the customer. Location of performance is Missouri with a June 2014 performance completion date. Using services are Army, Navy, and Air Force. Type of appropriation is fiscal year 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pennsylvania.

Rohrer Brothers,* Sacramento, California, has been awarded a maximum $7,759,504 modification (P00201) exercising the second option period on an eighteen-month base contract (SPM300-11-D-P089) with two eighteen-month option periods for fresh fruit and vegetable support. This is a fixed-price with economic-price-adjustment, indefinite-quantity contract. Location of performance is California with a Nov. 1, 2015 performance completion date. Using military services are Army, Navy, Air Force, Marine Corps, and Department of Agriculture school and reservation customers. Type of appropriation is fiscal year 2014 through fiscal year 2015 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.

UPDATE: Vantage Vehicle International Inc.,* Corona, California, has been added as an awardee to the multiple award contract #SPM8EC-11-R-0005 announced June 2012.

ARMY

Raytheon Co., Andover, Massechusetts, was awarded a $10,051,025 cost-plus-fixed-fee, multi-year, foreign military sales contract with options for services, hardware, facilities, equipment, planning, management, technical, and logistical support to all test, failure analysis, quality, reliability, and maintenance support activities for the pre-Patriot Advanced Capability (PAC)-3 missile rounds conducted at the maintenance facility. Countries participating are Israel, Japan, Saudi Arabia, Kuwait, Korea, Taiwan, and the United Arab Emirates. Fiscal 2014 other procurement funds in the amount of $7,958,587, and Fiscal 2014 operations and maintenance Army funds in the amount of $2,092,438 were obligated at the time of the award. Estimated completion date is Jan 31, 2017. One bid was solicited and one received. Work will be performed in Andover, Burlington, and Chambersburg, Massachusetts; Nashua New Hampshire; and Germany. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity (W31P4Q-14-C-0091).

Overhaul Support Services LLC., East Granby, Connecticut, was awarded a $7,469,306 firm-fixed-price contract for the Drag Brace Landing for the Blackhawk weapons system with a minimum quantity of 300 each and a maximum quantity of 1,224 each. Funding and work location will be determined with each order. Estimated completion date is April 23, 2019. Two bids were solicited with one received. Army Contracting Command, Redstone Arsenal, Alabama is the contracting activity (W58RGZ-14-D-0077).
*Small Business

SECRETARY KERRY'S PRESS AVAILABILITY REMARKS IN JUBA, SOUTH SUDAN

FROM:  U.S. STATE DEPARTMENT 

Press Availability in South Sudan

Remarks

John Kerry

Secretary of State

Embassy Juba

Juba, South Sudan

May 2, 2014

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SECRETARY KERRY: Well, good afternoon. I just completed an in-depth, very frank, and thorough discussion with President Kiir. And throughout the meeting, I think it’s fair to say that both of us spoke very candidly, very directly, and we got to the issues that I came here to discuss. Throughout the meeting, I made it clear to him that he needs to do everything in his power to end the violence, and also to begin a process of national dialogue, a process by which there is the beginning of discussions – real discussions – about a transition government that can bring peace to the country.

It’s fair to say that President Kiir was very open and very thoughtful and had thought even before this meeting about these issues, because we have talked about them on the phone in recent days, and because our special envoy and others have had conversations with him about it. So he committed very clearly his intention to do exactly that: take forceful steps in order to begin to move to end the violence and implement the cessation of hostilities agreement, and to begin to engage on a discussion with respect to a transition government.

I just spoke a few minutes ago to Prime Minister Hailemariam of Ethiopia to convey to him President Kiir’s willingness to travel to Addis Ababa in the near term, sometime early next week hopefully, in order to engage in a discussion with Prime Minister Hailemariam, and hopefully with Riek Machar, who had previously indicated to the prime minister a willingness to do so. And I hope to talk to him sometime later in the course of today to encourage him to do so.

This meeting of Riek Machar and President Kiir is critical to the ability to be able to really engage in a serious way as to how the cessation of hostilities agreement will now once and for all really be implemented, and how that can be augmented by the discussions regarding a transition government and meeting the needs of the people of Sudan. President Kiir and I have spoken about this many times over the course of the last months. We particularly spoke almost every day during the period from December 15^th through the Christmas period. In fact, I even talked to him on Christmas Day, and was particularly pleased today to be able to return to Juba in order to sit down and discuss these issues face to face.

I’ve told President Kiir that the choices that both he and the opposition face are stark and clear, and that the unspeakable human costs that we have seen over the course of the last months, and which could even grow if they fail to sit down, are unacceptable to the global community. Before the promise of South Sudan’s future is soaked in more blood, President Kiir and the opposition must work immediately for a cessation of hostilities, and to move towards an understanding about future governance of the country.

I might also say that we do not put any kind of equivalency into the relationship between the sitting president, constitutionally elected and duly elected by the people of the country, and a rebel force that is engaged in use of arms in order to seek political power or to provide a transition. Already, thousands of innocent people have been killed and more than a million people have been displaced. And it is possible – as we’ve seen the warnings, because people have not been able to plant their crops – that there could be major famine in the course of the months ahead if things don’t change.

Both sides are now reportedly recruiting child soldiers and there are appalling accounts of sexual violence in the conflict. The reports of Radio Bentiu broadcasting hate speech and encouraging ethnic killings are a deep concern to all of us. The United States could not be any clearer in its condemnation of the murder of the civilians in Bentiu or in Bor and all acts of violence, including those that use ethnicity or nationality as justification are simply abhorrent and unacceptable.

If both sides do not take steps in order to reduce or end the violence, they literally put their entire country in danger. And they will completely destroy what they are fighting to inherit.
The people of South Sudan – and I’m talking about all the people of South Sudan – all of them have suffered and sacrificed far too much to travel down this dangerous road that the country is on today. That is why both sides must take steps immediately to put an end to the violence and the cycle of brutal attacks against innocent people.

Both sides have to do more to facilitate the work of those people who are providing humanitarian assistance, whether from the UN or from the UN mission or any organization that is responding to increasingly dire needs of citizens. Both sides need to facilitate access for humanitarian workers, for goods, for cash in order to pay salaries, and they need to provide this access to South Sudan’s roads, to its waterways, including to opposition-held areas. And we talked about this very directly this morning with President Kiir and his cabinet members.
It is important that both sides also act to ensure the safety and the security of the humanitarian workers themselves, and both sides must stop dangerous verbal attacks on people who are bravely providing relief to the South Sudanese people. It’s unconscionable that people who have come here not with weapons but with assistance are being attacked by both sides, and nothing will do more to deter the international community and ultimately to wind up in an even worse confrontation in the country itself.

Both President Kiir and Riek Machar must honor the agreement that they made with one another to cease hostilities, and they need to remember as leaders their responsibilities to the people of the country. The fate of this nation, the future of its children must not be held the hostage of personal rivalry.

Yesterday in Addis I spoke with representatives from the African Union and South Sudan’s neighbors about how we can coordinate and restore peace and accountability. We support the AU’s Commission of Inquiry in South Sudan, and I met this morning with the leader of that commission and listened to their early reports of their work. And we support the IGAD’s monitoring and verification mechanisms. The United States is also prepared in short order to put sanctions in place against those who target innocent people, who wage a campaign of ethnic violence, or who disrupt the delivery of humanitarian assistance.

Even as we come here in this moment of conflict in an effort to try to find the road that has been obscured, I can’t help but remember – as I drove to meet with the president and as I came back here to our Embassy, having traveled here and been here a number of times – but particularly at the moment of self-determination for this country, it is important to remember what the people of South Sudan achieved for themselves recently. Through their efforts, through their commitment, through their patience, they helped to move this country to independence, to the creation of a nation, through peaceful, democratic, and prosperous future, and the opportunity to be able to try to achieve that. And they came together to create a new nation in that effort.
I remember walking in one community and watching people vote and talking to somebody who was standing out in the hot sun and who’d been there for hours. And I walked up to them and said, “Look, I hope you’re not going to get impatient. Don’t leave. You need to wait to vote.” And that person to me said, “Don’t worry” – I was then a senator – “Don’t worry, Senator, I’ve waited 50 years for this moment. I’m not going anywhere until I’ve voted.” The dedication that I saw, the commitment of people to try to create this nation deserves to be fully supported and the aspirations of those people deserve to be met by our efforts, all of us, to try to bring peace, and mostly by the leaders to fulfill the promise that made them leaders in the first place.

It is absolutely critical that to prevent that moment of historic promise from becoming a modern-day catastrophe, we all need to work harder to support the hopes of the people and to restore those hopes. We have to be steady in our commitment to the people of South Sudan. And I was encouraged yesterday in Addis Ababa by the unanimous commitment of the neighbors, of IGAD, of the foreign ministers I met with from Kenya, from Uganda, from Ethiopia, all of whom are committed and dedicated to helping to pull South Sudan back from this precipice and help to implement the cessation of hostilities agreement, and most importantly, help South Sudan to negotiate its way through this transition government that can restore the voice of the people in a way that can give confidence to the South Sudanese people, that their future is indeed being spoken for and that the best efforts are being made to meet it.

So with that, I’d be delighted to take any questions.

MS. PSAKI: The first question will be from Michael Gordon of The New York Times.

QUESTION: (Inaudible) you’ve described some of the political and military steps that you would like to see unfold – expect to see unfold in the next weeks. If neither side honors their commitments, how specifically do you plan to hold them accountable? And how long do you plan to wait before holding them accountable? There’s been some concern in the Congress and by groups like Oxfam that the United States has moved too slowly on this. And are you prepared to sanction the president and Riek Machar themselves?

And lastly, yesterday, you spoke publicly about your interest in deploying African troops to create a more robust peacekeeping force here. How many troops do you think should – will be deployed? When do you think this will happen? Will there be – will it be necessary to secure a new UN Security Council mandate to make this happen? Basically, how real is this? Thank you.

SECRETARY KERRY: Well, it’s real. Each of the countries I just listed are all committed. And I met yesterday with the foreign ministers who say they are absolutely prepared to move with troops from those countries almost immediately. But yes, we do need to secure an additional United Nations Security Council mandate. I believe that can be done quickly. I hope it can be done quickly. And it’s very, very important to begin to deploy those troops as rapidly as possible.

How rapidly? Hopefully within the next weeks, and we’re talking about an initial deployment of somewhere in the vicinity of 2,500 troops. Well, I think 5,500 have been talked about, and it may be that there are even – it may be that, depending on the situation, more may have to be contemplated. But for the moment, that’s the limit, that’s what’s being talked about.
With respect to the hopes on the – what was the first part? The --

QUESTION: How long do you plan to wait before (inaudible)?

SECRETARY KERRY: Oh, okay. Let me just say – you asked about the – sort of what might follow if people don’t implement these steps. And the answer, very, very directly, is the global community will then make moves in order to have accountability. There is a commission of inquiry already underway. I met this morning with the head of the commission of inquiry and listened to former Nigerian President Obasanjo’s observations about his initial start of that effort. We support that effort; the global community supports that effort. That will obviously be ongoing.

I think the single best way for leaders and people in positions of responsibility to avoid the worst consequences is to take steps now, the kind of steps that we heard promised this morning. We are not going to wait. However, there will be accountability in the days ahead where it is appropriate. And the United States is doing its due diligence with respect to the power the President already has with respect to the implementation of sanctions, and I think that could come very quickly in certain quarters where there is accountability and responsibility that is clear and delineated.

MS. PSAKI: The next question will be from Memoska Lesoba from Eye Radio.

QUESTION: You said that President --

SECRETARY KERRY: Can you hold it up real close?

QUESTION: You said President Salva Kiir has agreed to transitional government. What kind of a transitional government? Can you delve more into that? And I would want to know what kind of sanctions would be imposed if (inaudible) way of (inaudible) resolve the crisis, and what impact will it have.

SECRETARY KERRY: Well, with respect to the transition government, ultimately it is up to the people of South Sudan. And it is up to an inclusive process which brings the civil society to the table and reaches out to political opposition and to all of the different stakeholders in South Sudan to shape that. What is important is that President Kiir is prepared to engage in that process in a formal way, to reach out, to work with IGAD, to work with the community, in order to make certain that that process is real, it’s transparent, it’s accountable.

Now, how that unfolds will be part of the discussions that we hope will take place between Prime Minister Hailemariam as the mediator and two of the principle antagonists in this conflict, President Kiir representing government and Riek Machar. But there are other players, lots of them. As you know, 11 detainees have now been released. And each of those detainees has – have had voices and roles to play in the politics of South Sudan.

With respect to sanctions, we are – there are different kinds of sanctions, obviously – sanctions on assets, sanctions on visas, sanctions on wealth and travel and so forth. All of those options are available, among others. But in addition to that, with the commission of inquiry and other standards that are applied. There have been atrocities committed and people need to be held accountable for those kinds of atrocities. And there are methods by which the international committee undertakes to do that. So I think the real test is what happens in these next days, what kind of bona fide legitimate steps are taken by people to prove they want to move in a different direction. And that will be a significant guide as to what may or may not be pursued by members of the international community in the days ahead.
MS. PSAKI: The next question will be from Lara Jakes of AP.

QUESTION: Thank you. Just to clarify, in this transitional government, do you see a place for either President Kiir or Riek Machar to be holding office in the future for this country? And then also, as you head to Congo tomorrow, what are you looking to hear regarding the prosecution of troops who were given amnesty and then returned to M23? And is the United States satisfied with the deep mobilization plan for all armed troops in eastern Congo, including Hutu troops – I’m sorry, groups? And then one last one. Could you comment on the new charges against Gerry Adams? Thank you.

SECRETARY KERRY: I don’t have any comment on the charges issue. I’ve heard about it, I’m not familiar with all of the details of it. And he’s presented himself. He maintains his innocence. And we need to let the process in Northern Ireland work its way.

With respect to the Central African Republic – excuse me, the D.R.C. – we are hopeful that the terms that have been put in place, the Kampala Accords, are going to be implemented properly. But I’m going to wait to comment more fully on that until I meet up with Special Envoy Feingold, who will meet us there when we arrive there. And I think I would rather get the latest briefing up to date before I summarize it, because I may be outdated and I just would rather do that.

On the first part of your question --

QUESTION: (Inaudible.)

SECRETARY KERRY: Whether or not they can be part of in the future – that’s not a decision for the United States of America to make or to comment on. That’s for South Sudanese to decide. It’s for the process to decide. I think that certainly people will judge carefully, I think, what happens in these next days, which could have a great deal to do with respect to future legitimacy of any player engaged in this, not just President Kiir or Riek Machar, but anybody who is engaged. If there is a legitimate, open, transparent, accountable, and real process by which people are listened to and people come together, then the people of South Sudan will have an opportunity to make that kind of decision and it won’t be necessary for us to comment on it.

If it doesn’t go in that direction, it may be that the United States and other interested parties who have helped so significantly to assist South Sudan in this journey to independence and nationhood, it may be that they will be then more inclined to speak out about what’s happened with leadership here or not, but at the moment I don’t think it’s appropriate to do that.

MS. PSAKI: The final question will be from Gabriel Shada from Radio Miraya.

QUESTION: Thank you. The background to the conflict in South Sudan refers to a disagreements, disgruntlements inside the SPLM ruling party on the modalities of election and selection of leaders. So reaching an agreement that does not resolve the SPLM leadership issues is like suspending the real issues, which means they will rise again in the nearest future. So how can the U.S. Administration help the SPLM sort out its problems.
Second question is about the U.S.A. promising a lot to help South Sudan in the past, and even now. But one of the promises was building the – an institutional capacity for South Sudan, and observers can see that institutional capacity in South Sudan is still very, very weak. What are the reasons for this failure, especially when building the capacity of the army and other institutions? Thank you.

SECRETARY KERRY: Very good questions. Very, very good questions. With respect to the first question, you’re absolutely correct: There are internal issues within the SPLM that need to be resolved. But it’s not up to the United States to resolve them. It’s up to the leaders and the members of the SPLM to do so, recognizing that their validity and credibility as a leading party to be the governing party of the country is at stake in how they do that.

And so it is – there’s already a process in place where they’re doing some meetings and evaluations, and will do that. What is important is that they recognize that the negotiations over a transitional government ultimately, in terms of what role they play or how that plays out, will depend to some measure on how they resolve those kinds of internal issues. And the credibility of the civil society, the credibility of the people of South Sudan, with respect to their leadership will depend, obviously, on their ability to do that.

So that’s part of the road ahead. And they know that work is in front of them. They understand that. They discussed it with us here today, and I’m confident that that’s very much in their minds as they think about the future structure of any kind of transition and future.

But it’s also related, I may say, to the second part of your question. Yes, the United States committed to do certain kinds of things, as did the international community. And for a certain period of time, many of those things were attempted to be done, but the truth is that there’s been a difficulty, as I think most people understand, in the governing process that gave people pause and made people stand back a little bit. And that’s been part of the problem. And that’s why this transitional government’s effort is so important, because it is the key to being able to open up the kind of direct help and input that would be then meaningful and not wasted and not lost. And it’s very important that there be a process in place where people have confidence that the way forward is clear and that assistance can be put to the use that it’s meant to be put to.
So I would say to you that that’s part of the reason why this transitioning effort is so critical, because it really is what can restore the legitimacy so that going forward all those people who care, and there are many who do – in Africa, in Europe, in America, elsewhere – would be able to hopefully help in the capacity building for the country. That’s really where all of South Sudan’s energy ought to be going, not into killing each other but into building a government that can serve the needs of the people. And our hope is that that is what can get restored out of this terrible conflict that has interrupted that path.

MS. PSAKI: Thank you, everyone.

SECRETARY KERRY: Thank you all. Appreciate it.

VA SECRETARY SHINSEKI'S REMARKS ON PHOENIX VA HEALTH CARE SYSTEM

FROM:  U.S. DEPARTMENT OF VETERANS AFFAIRS 
Statement by VA Secretary Shinseki on Allegations Regarding the Phoenix VA Health Care System

May 1, 2014

WASHINGTON – Secretary of Veterans Affairs Eric K. Shinseki made the following statement on the allegations regarding the Phoenix VA Health Care System:

“We take these allegations very seriously. Based on the request of the independent VA Office of Inspector General, in view of the gravity of the allegations and in the interest of the Inspector General’s ability to conduct a thorough and timely review of the Phoenix VA Health Care System (PVAHCS), I have directed that PVAHCS Director Sharon Helman, PVAHCS Associate Director Lance Robinson, and a third PVAHCS employee be placed on administrative leave until further notice.
“Providing Veterans the quality care and benefits they have earned through their service is our only mission at the Department of Veterans Affairs. We care deeply for every Veteran we are privileged to serve.

“We believe it is important to allow an independent, objective review to proceed. These allegations, if true, are absolutely unacceptable and if the Inspector General’s investigation substantiates these claims, swift and appropriate action will be taken.

“Veterans deserve to have full faith in their VA health care. I appreciate the continued hard work and dedication of our employees and of the community stakeholders we work with every day in our service to Veterans.”

VA STATEMENT REGARDING PHOENIX VA HEALTH CARE SYSTEM

The Department of Veterans Affairs (VA) cares deeply for every Veteran we are privileged to serve, and we are committed to delivering the highest quality care.  We take any allegations about patient care or employee misconduct very seriously, which is why the Department invited the independent VA Office of the Inspector General (OIG) to complete a comprehensive review at the Phoenix VA Health Care System as quickly as possible. VA also sent a team of clinical experts to Phoenix to review appointment scheduling procedures at that facility and the existence of any delays in care.

VA believes it is important to allow the Inspector General’s independent, objective review to proceed.  We trust that the Inspector General will complete that comprehensive review as quickly as possible.  These allegations, if true, are absolutely unacceptable and if the Inspector General’s investigation substantiates these claims, VA will take swift and appropriate action.

Veterans deserve to have full faith in their VA health care.  VA facilities are committed to transparency and undergo multiple external, independent reviews every year to ensure its safety and quality.  We appreciate the continued hard work and dedication of our employees and of the community stakeholders we work with every day in our service to Veterans.

DEFENSE SECRETARY HAGEL CALLS NATO "AN ANCHOR OF SECURITY FOR THE WORLD"

 

FROM:  U.S. DEFENSE DEPARTMENT 

Defense Secretary Chuck Hagel receives the Atlantic Council's 2014 Distinguished International Leadership Award from Brent Scowcroft, chairman of the Atlantic Council International Advisory Board, during an awards ceremony and dinner at the Ritz Carlton Hotel in Washington, April 30, 2014. DOD photo by Glenn Fawcett. 

Hagel Emphasizes NATO’s Importance to World Security
By Claudette Roulo
American Forces Press Service

WASHINGTON, May 1, 2014 – On a night in which the Atlantic Council honored Defense Secretary Chuck Hagel, the secretary called NATO an anchor of security for the world.

After receiving the council’s Distinguished International Leadership Award here last night, Hagel said he's been privileged and fortunate to have lived at such a spectacular time in world history. While this time is not without its problems and new threats emerge daily, he said, the transatlantic alliance embodied by NATO has served as a bulwark for peace and security.

"I know of no anchor of security more important to keeping peace in the world since World War II than NATO," Hagel said.

NATO has been instrumental to averting problems like those that occurred in the first 50 years of the 20th century, the defense secretary said. "Problems? Yes. Still humanitarian disasters? Yes. Conflicts? Yes. But overall, it's been a pretty successful last 60 years because of this alliance."

And though all of the world's problems haven't yet been solved, he said, the nations of the world have built platforms, abilities and alliances to work together in common purpose to address these challenges together.

"And that, fundamentally, was the point of NATO: knitting together a strong transatlantic alliance after World War II," Hagel said.

Today's accelerated rate of change and shift is unprecedented in the history of man, the defense secretary noted. But, he said, the rapid pace of change demonstrates that the groundwork laid more than 60 years ago is paying dividends.

"Wasn't that the point behind all of this effort that our great leaders came to and agreed upon after World War II -- to, in fact, give people of the world opportunities, freedom? That is directly connected to security and continuity and stability," Hagel said.

And while that hard work is paying off, he said, it also brings new complications.
"Therein,” he said, “lies the essence of alliances -- alliances of common purpose. … We probably won't always agree on issues, but on the end result and the purpose of an alliance, the purpose of [governance], the purpose of organized society remains the same."

After World War II, the great leaders of the era came together to form a lasting alliance because the world had had enough war, Hagel noted. But after extended periods of conflict, nations tend to look inward, he cautioned, and now the world runs the risk of again becoming captive to that kind of inward thinking, the defense secretary said.

"I don't think we're there," he said, "but it's going to require continued focused strong, steady, wise [and] engaged leadership with the world, with each other. … This is not a time to retreat. This is not a time to pull back."
NATO and organizations like it allow nations to engage peacefully with each other, even when the world remains dangerous, Hagel said.

"If there was ever a time in history where we have the tools, where we have the capacity, where we have the institutions to engage and fix the problems, it is now," the defense secretary said.

TO ONLY FALL ASLEEP, NSF EXAMINES RESEARCH

FROM:  NATIONAL SCIENCE FOUNDATION 

Finding a formula for zzzzzzzs

Math and a good night's sleep

We boast when our infant finally sleeps through the night. We bemoan the teenager who requires a cannon shot to arise from his bed before noon. And in our "golden" years, we wonder why sleep is so fleeting, yet napping seems to come as easily as breathing. Such are the mysteries of sleep.

And when we think of a way to understand sleep and wakefulness better, it's natural to think of biologists, behavioral scientists, neuroscientists and even mattress makers who for years have studied all kinds of animals and approaches to help us get a better night's sleep. The Centers for Disease Control (CDC) reports that 70 million Americans suffer from chronic sleep problems that range from insomnia and sleep apnea to narcolepsy, restless legs syndrome, and circadian rhythm disorders.

CDC's Sleep and Sleep Disorders Team, which evaluates the prevalence and impacts of sleep insufficiency and sleep disorders has said, "sleep deprivation is associated with injuries, chronic diseases, mental illnesses, poor quality of life..., increased health care costs and lost work productivity."

These days, researchers have found that in taking a collaborative approach to addressing sleep-related issues, mathematics needs to be part of the equation.

Janet Best, a National Science Foundation (NSF)-funded mathematician at The Ohio State University who is affiliated with the NSF-funded Mathematical Biosciences Institute there, has spent the past 10 years studying sleep-wake cycles using mathematical models.

"To understand sleep, we try to reformulate biological questions in terms of mathematics, typically systems of differential equations," she explained. "Sleep is both regular and random. It's regular in that we go to sleep generally at the same time of day. The randomness occurs in infants who seem to have no pattern to their sleep cycles and in the variability of when we might wake up during the night. I've been investigating how neural structures in the brain affect the random and regular transitions between sleep and wake."

By describing through equations the properties of neurons involved in sleep-wake brain circuitry, Best develops mathematical models for the way in which the neurons interact and influence each other. She checks model predictions against data that biologists have accumulated in studies involving both humans and rats. Surprisingly, baby rats' sleep patterns go through similar changes as those of human infants, but it is not clear how similar adult rat sleep is to human sleep.

"The idea is to see how people sleep normally, so we can understand when things go wrong," Best said. "Throughout the night we experience bouts of sleep and wakefulness. There's variability that we're aware of, but actually even more variability is occurring--we only recall longer wake episodes. However, both short and long episodes occur, and that's something I'm trying to understand. Experimentalists collect data on these wake-sleep bouts. Since the length of sleep and wake bouts and the transitions between them show some regular and some random behavior, the differential equations must have both of these facets."

Best became interested in sleep research as a doctoral student in mathematics after she had a bike accident. She suffered a serious head injury and began to experience simultaneous sleep and wakeful moments. In other words--not to be confused with daydreaming--she would experience dreams while being awake, and memories and dreams were being stored in a way that differentiating between the two was difficult. The medical literature of the time, however, said her experience was impossible.

"In 10 years, there have been a lot of changes in this field," she said. "Ten years ago, the emphasis was on regular patterns. Now the random aspects of sleep are getting more attention. Models are now based on the real underlying physiology."

That means that Best now spends a lot of time working with non-mathematicians. Beyond reading research papers by biologists and neuroscientists and using data from their experiments in her model, Best also works directly with sleep researchers who do experiments on rodents or who see patients clinically.

"You need a lot of interaction with biologists and medical scientists, and you have to have conversations with the people who generate the data," Best said. "If I relied just on reading the papers, I would not be able to understand all of the underlying hypotheses and the ways in which the data was collected, and that could significantly affect how I formulate the mathematical models."

Best's research benefits from the Mathematical Biosciences Institute at Ohio State, which hosts 12 workshops a year, drawing world-renowned bioscience experts and providing an important crossroads for biology and mathematics. Best, herself, collaborates with researchers both at Ohio State and at other institutions. In fact, she's currently on sabbatical at Duke University so she can work more closely with some of her collaborators there.

"The understanding of sleep-wake cycles can have enormous impact on developing a better knowledge of the dynamics of the brain and, in turn, how systems within an entire physiological organism interact and function," said Mary Ann Horn, an NSF Division of Mathematical Sciences program director. "Research that involves collaboration between mathematical and biological scientists gives rise to results for which not only does the biology inform the modeling and analysis, but also spurs new mathematical developments as novel techniques are developed to address these challenging questions."

"NSF support has been extremely important to my career," Best said. "It has allowed me to maintain a research group, support graduate students and devote myself 100 percent to my research during the times of year when my academic salary stops."

She believes the BRAIN Initiative, announced by the Obama Administration a little over a year ago, will also help advance this field of study, too.

"It's enormously difficult to figure out how the brain works," she said. "We're talking about 100 billion neurons, all this chemistry, hormones--so many variables. We have to infer how brains accomplish their tasks. And there are always multiple ways that a particular task can happen, so the challenge comes in teasing apart information, and in my case, building a good model that helps fill in the missing pieces."

Best and her collaborators are gradually doing just that when it comes to understanding sleep-wake cycles. Their findings indicate that the longer a "wake bout" during the night, the less likely it is that sleep will come along to interrupt it. And while one might think the same would be true for a "sleep bout," it doesn't appear to be. Sleep bouts seem to be equally prone to interruption at any moment. The mathematical models show how the structure of the neuronal network affects the timing of the sleep-wake bouts.

These findings may not sound particularly groundbreaking, but understanding interesting and unusual phenomena can give clues to the underlying sleep-wake mechanisms. Researchers investigate the mechanisms by transforming them into mathematical models and testing the models against data. If the models work well and provide a good understanding, then the researchers could potentially develop insomnia treatments, effective remedies for medical condition-induced sleep disorders, or strategies to reduce jet lag more quickly.

"There are a lot of data from sleep studies," Best said, "but data by itself does not give understanding. One must understand the underlying neural mechanisms. The sleep-wake field is growing very rapidly now, and this is providing new data for us to interpret and understand. The mathematical analysis and the comparison with new data should enable us to formulate a new understanding of how sleep-wake functions."

-- Ivy F. Kupec,
Investigators
Janet Best
Related Institutions/Organizations
Ohio State University
Mathematical Biosciences Institute

SEC CHARGES RETIREMENT PLAN ADMINISTRATOR WITH DEFRAUDING INVESTORS WITH IRA ACCOUNTS

FROM:  SECURITIES AND EXCHANGE COMMISSION 

The Securities and Exchange Commission today announced fraud charges and an asset freeze against a Utah-based retirement plan administrator who defrauded investors in self-directed individual retirement accounts (IRAs), causing them to lose millions of dollars of savings.

The SEC alleges that American Pension Services Inc. (APS) and its founder, president and CEO Curtis L. DeYoung squandered more than $22 million of investor funds on high-risk investments.  DeYoung hid the losses by issuing inflated account statements, allowing him to continue collecting fees and further victimizing his customers.

“This misconduct jeopardized retirement security for thousands of APS customers,” said Karen L. Martinez, director of the SEC’s Salt Lake Regional Office.

According to the SEC’s complaint unsealed yesterday in federal court in Salt Lake City,  DeYoung’s scheme dates back to at least 2005 and targeted customers with retirement accounts holding non-traditional assets typically not available through traditional 401(k) retirement plans or other IRA custodians.  Although APS has no authority to direct customer trades, DeYoung allegedly used forged letters and signatures to invest on behalf of customers, including in promissory notes issued by a friend whose businesses never turned a profit.  DeYoung continued to recommend that APS customers invest in the notes, and he sent customer funds to the friend until at least April 2013 without disclosing to investors that the friend had defaulted on the notes in 2010 and DeYoung had forgiven the debt.

The SEC further alleges that investments in other bankrupt ventures, including an office building in Wichita, Kan., caused APS customers to lose more money.  APS concealed those losses and issued account statements that inflated the value of customer holdings, allowing APS to levy fees based on the full value of the holdings even when they were worthless.

According to the SEC’s complaint, when DeYoung was questioned by the SEC about a $22 million gap between actual holdings and those showing on account statements, he invoked his Fifth Amendment privilege against self-incrimination and refused to answer.

The Honorable Robert J. Shelby granted the SEC’s request for a temporary restraining order to freeze the assets of APS and DeYoung.  The court appointed Diane Thompson of Ballard Spahr LLP as the receiver in this case to recover investor assets.

HABTOM NERHAY EXTRADITED FROM ERITREA TO U.S. TO FACE CHARGES OF HUMAN SMUGGLING

FROM:  U.S. JUSTICE DEPARTMENT 

Monday, April 28, 2014

Alleged Human Smuggler Extradited to Face Charges in Washington, D.C.

Habtom Merhay, a national of Eritrea and a citizen of the United Kingdom, made his initial appearance Monday in Washington, D.C., federal court to face human smuggling charges for his role in smuggling primarily Eritrean and Ethiopian undocumented migrants from Dubai, United Arab Emirates, through South and Central America and Mexico into the United States.

Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney Ronald C. Machen Jr. of the District of Columbia and Acting Special Agent in Charge Katrina W. Berger of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) made the announcement.

Merhay, 47, arrived in the United States on April 25, 2014, and made his initial appearance today before U.S. Magistrate Judge Deborah A. Robinson in the District of Columbia.   He was indicted under seal in the District of Columbia in 2012, and the charges were unsealed today.   Merhay has been in the custody of Moroccan authorities pending extradition since his arrest in Marrakech, Morocco, in August 2013.

The indictment charges Merhay with one count of conspiracy to bring undocumented migrants to the United States for profit and 15 counts of unlawfully bringing an undocumented migrant to the United States for profit.   Court documents allege that Merhay operated with a network of smugglers in Africa, the United Arab Emirates, South and Central America, Mexico and elsewhere to coordinate and implement arrangements, including providing fraudulent identity and travel documents, for undocumented migrants to travel through Latin America and ultimately into the United States without authorization.   For up to $15,000, Merhay arranged for individual undocumented migrants to travel from points in Africa to a house or apartment in Dubai, where he provided travel documents, tickets and instructions for meeting other smugglers while on the way to the United States.   Merhay coordinated the migrants’ air travel to South America, where they would meet with Merhay’s associates, who would direct or guide them across the various country borders.   The undocumented migrants then met with other smugglers associated with Merhay and were further guided north to Mexico and then into the United States, sometimes by crossing the Rio Grande River by raft.

The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and ICE-HSI.  The ECT program focuses on human smuggling networks that may present particular national security or public safety risks or present grave humanitarian concerns.  ECT has dedicated investigative, intelligence and prosecutorial resources.  ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.

The investigation was conducted by HSI Washington.  This case is being prosecuted by Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Frederick Yette of the District of Columbia.  The extradition was handled by Dan E. Stigall of the Criminal Division’s Office of International Affairs.

The Department of Justice and HSI expressed their appreciation for the significant assistance provided by the Moroccan Ministry of Justice.

The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

SECRETARY KERRY'S REMARKS AT EMBASSY ADDIS ABABA AND U.S. MISSION TO THE AFRICAN UNION

FROM:  U.S. STATE DEPARTMENT 

Remarks at Embassy Addis Ababa and the U.S. Mission to the African Union

Remarks

John Kerry

   Secretary of State

Patricia M. Haslach

   Ambassador to Ethiopia

Embassy Addis Ababa

Addis Ababa, Ethiopia

May 1, 2014

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AMBASSADOR HASLACH: Salam’no. I’d like to welcome you all today. Thanks for coming in.

We’d like to welcome Secretary Kerry back to our Embassy here. Secretary, about a week ago we had an awards ceremony here for all of our employees and that we were all honored by all the great work that everyone here does and now we’re doubly honored to have you here with us today.

SECRETARY KERRY: Wow. Thank you. (Applause.) Thank you, Ambassador. Thank you very much Ambassador Haslach. Thank you for all that you do.

I remember very well presenting the award to the marathon winner, Desisa, when I was here last time and he, rather remarkably, gave his marathon medal to me to take back to Boston, and it was really an enormous gesture of friendship and very, very well received. Everybody back in Boston was very excited.

This year, nothing negative to anybody in Ethiopia, but an American won the Boston Marathon. (Applause.) So, anyway. Pretty remarkable, though I might add of Kenyan descent. So I don’t know what it is. We’ve got to, I think, somehow get people running more or something like that.
Anyway, it’s great to be here with everybody. I just had the privilege of meeting two people – Ms. Mezegebua Tadesse – where is she? Here somewhere. She’s FSN – Foreign Service National award winner of the year. And with her also, Ephrem Girma, who has been the transportation division and helps to arrange the movement of all the vehicles. So why doesn’t everybody say “thank you” to our two Foreign Service nationals again? Well, probably – (Applause.)

You already did that, right, when they were awarded? But anyway. But I’m the Secretary of State and I get to come here and do that at least once anyway. And pleasure to do so.
I’m delighted to be here with your terrific ambassador. Patricia is a pro and she’s been in many, many spots and earned her spurs, and I think you have great leadership here. And the all-star DCM Molly Phee to support the efforts. And I’m honored to be here with all of you again. This is like old home week for me here now. Start doing this regularly, in Addis Ababa.
But I just came from a good meeting at the AU. I want to pay tribute to Reuben Brigety and the AU team here. This is sort of one team/two missions, and I appreciate that slogan and I appreciate all that it imparts in terms of what goes on here.

This is a critical time and I mentioned that just now in my comments as we open the dialogue – the High-Level Dialogue between us and the AU. Africa is on the move, but there’s also a lot of challenge. Eight of the ten fastest growing countries in the world are in Africa, and at the same time, some very persistent, dangerous conflicts – one right next door – are threatening to pull at least some countries back into an era that we really had hoped we had left behind.

So we have some serious challenges right now to try to mobilize a sufficient international sanctioned force of African Union, principally, countries that are able to go in and try to make peace and keep people from engaging in this unbelievably dangerous downward ethnic, sectarian spiral that winds up with literally hundreds of thousands, if not millions, of people paying a price. Here is Addis Ababa, you all are on the cutting edge of that because this is the home of the AU, and also because Ethiopia plays such an essential role – a key role, a leadership role – and we’re very, very grateful for that.

I knew former Prime Minister Meles when I first became involved with the issue of Sudan a number of years ago, met with him here and talked with him frequently. And now I talk to Prime Minister Hailemariam likewise, and the – Foreign Minister Tedros as we try to navigate our way to try to help resolve that issue. But in every respect, this post where you have some two hundred-plus direct hire members of the Embassy team and the various teams that come with it – Defense Department, Justice Department, Agriculture Department, USAID, and so forth – also with our thousand or so foreign nationals who help us here, and I want to particularly say thank you to you. We’ll all – the foreign nationals who are here – I know this is a holiday even. So I’m – I don’t know if you’re crazy or I’m particularly grateful – (laughter) – but I want to thank you for being here today. (Applause.) Thank you.

It means a lot to me that you came in here today, I really mean that, so that I have an opportunity to say thank you to you. But I’ve also got something special for you. Since it’s a holiday, I’m going to make you feel really good. All of the Foreign Service nationals are about to get a 45[1] percent pay increase. (Cheers and applause.) And I want you to know – (applause) – it’s long overdue. You deserve it, and I want to note that the biggest applause of the day was for you getting your money, I don’t know. (Laughter.) Go figure. (Laughter.)

Everybody else, you will get a much smaller pay increase. (Laughter.) I’m sorry, but that’s the way it is. But at least it’s moving in a better direction than it has been in the last years, and I’m happy for all of you for that, that – it’s very important.

So look, very, very short message to everybody here. We are unbelievably grateful to you for what you’re doing. I personally as Secretary can’t thank you enough for the time you put in to carry the message of our country, but I’m happy to say I think it’s a universal message about the rights of people to be free, about democracy, about the ability for people to be able to choose their government and not be oppressed when they speak out or say something.

We still have some work to do here with respect to political inclusivity and liberty and freedom, and we’ll work at it steadily. We will never stop working at that. But all of you who are Americans are the face of America, and those of you who are foreign nationals – not just of here, but maybe of somewhere else – you have freely chosen to help us carry this message about health care, about education, about job opportunities, about the ability to be free from oppression, and to speak out and speak your mind. This is not an easy task, and so I just want to say a profound thank you to all of you for being willing to undertake that. It is always – got its challenges, as we all know.

This is a time here in Africa where there are a number of different cross-currents of modernity that are coming together to make things even more challenging. Some people believe that people ought to be able to only do what they say they ought to do, or to believe what they say they ought to believe, or live by their interpretation of something that was written down a thousand plus, two thousand years ago. That’s not the way I think most people want to live.
And so we’re engaged in a long-term challenge, a long-term investment. There is a saying in Africa that if you want to go somewhere quickly, go alone, but if you want to go somewhere far, go together. That’s what we’re trying to do here. That’s what we will work to do with AU, with partner countries, with our friends around the planet, all of whom have a vision for a world that can be more stable, and for a place that can welcome everybody with a sense of tolerance and understanding, that we have learned too many ways through horrible circumstances, when we don’t honor that, bad things happen.

So thank you to every single one of you for being part of this incredible embassy effort. Thank you, ambassador, for your leadership. And I look forward – I’m sure I’ll see you again when I come through here sometime in the future. Can’t guarantee you there’ll be a 45[2] percent pay increase that time, but please be nice to me anyway. Thank you. (Applause.)

PRESIDENT OBAMA CONGRATULATES PEOPLE OF IRAQ ON THEIR PARLIAMENTARY ELECTIONS

May 01, 2014

FROM:  THE WHITE HOUSE 

Statement by the President on Elections in Iraq

On behalf of the American people, I congratulate the Iraqi people on the completion of yesterday’s parliamentary elections.  Millions of Iraqis embraced their democratic right to vote.  The people of Iraq know better than anyone else the enormous challenges that they face, and yesterday’s turnout demonstrated to the world that they seek to pursue a more stable and peaceful future through the political process.  Once results are finalized, a new parliament will convene and debate the makeup of a new government to serve the Iraqi people.  Whatever the outcome of this process, it should serve to unite the country through the formation of a new government that is supported by all Iraqi communities and that is prepared to advance tangible and implementable programs.  There will be more difficult days ahead, but the United States will continue to stand with the Iraqi people as partners in their pursuit of a peaceful, unified and prosperous future.

U.S. EXTENDS WARM WISHES TO PEOPLE OF POLAND ON THEIR CONSTITUTION DAY

FROM:  U.S. STATE DEPARTMENT 
On the Occasion of Poland's Constitution Day
Press Statement
John Kerry
Secretary of State
Washington, DC
May 1, 2014

On behalf of President Obama and the American people, I extend warm wishes to the people of Poland on the 223rd anniversary of your constitution on May 3.

I had the privilege of traveling to Poland as Secretary of State in November. I’ll never forget standing at the gravesite of former Prime Minister Mazowiecki. It was deeply moving to lay a wreath on behalf of the people of the United States in recognition of his extraordinary contributions to the cause of freedom and human rights.

The United States and Poland share a remarkable history. It’s been well over two centuries since George Washington and Casimir Pulaski stood side by side as America was struggling for freedom. And it’s safe to say that our two countries have stood side by side ever since.

Today, Poland is a model of successful democratic transition for many nations and a powerful reminder that investment in democratic institutions creates the conditions for prosperity. We especially appreciate Poland’s support for the people of Ukraine as they move forward on constitutional reform and elections.

As NATO Allies, the U.S.-Poland security partnership is stronger than ever. U.S. and Polish forces train together in Poland and our troops fight together in Afghanistan. As I said during my visit to Poland last year, our strategic partnership remains strong and the U.S. supports Poland’s defense modernization.

As you celebrate Constitution Day, we offer the people of Poland our warmest wishes and look forward to strengthening the Polish-American relationship in the years to come.

U.S. DEFENSE DEPARTMENT CONTRACTS FOR MAY 1, 2014

FROM:  U.S. DEFENSE DEPARTMENT 

CONTRACTS

NAVY

Northrop Grumman Technical Services, Herndon, Virginia (N00189-14-D-Z012); Booz Allen Hamilton, McLean, Virginia (N00189-14-D-Z014); Capstone Corp., Alexandria, Virginia (N00189-14-D-Z015); Science Applications International Corp., McLean, Virginia (N00189-14-D-Z016); Lockheed Martin Integrated Systems Inc., Bethesda, Maryland (N00189-14-D-Z017); General Dynamics Information Technology, Needham, Massachusetts (N00189-14-D-Z018); MacAulay-Brown Inc., Dayton, Ohio (N00189-14-D-Z019) are being awarded cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity contracts to the Joint Force Development program continuously adaptive support for training and real-world operations by offering varying combinations of education (academics), training assessment, experimentation (warfighting solutions), and infrastructure as the foundation of learning. The total estimated value for the seven contracts combined is $876,934,815. These seven contractors shall compete for task orders under the terms and conditions of the awarded contracts. Work will be performed at various contractor facilities (86 percent) and at government facilities (14 percent) as task orders are determined. Work is expected to be completed by April 30, 2019. Fiscal 2014 operations and maintenance, defense appropriations funds in the amount of $210,000 will be obligated at the time of award, and funds will not expire before the end of the current fiscal year. The requirement was competitively procured through full and open competition and solicited through the Federal Business Opportunities website, with eight offers received in response to this solicitation. NAVSUP Fleet Logistics Center Norfolk, Contracting Department, Philadelphia Office, Philadelphia, Pennsylvania is the contracting activity.

Armtec Countermeasures Co., Coachella, California, is being awarded $29,900,000 indefinite-delivery/indefinite-quantity delivery order contract for the manufacture of the simulator, flare, and SM-875/ALE. The SM-875B/ALE is a training flare which can be used to familiarize pilots and ordnance technicians with operational use and handling of decoy flares. Work will be performed at East Camden, Arkansas, and work is expected to be completed by April 2017. Fiscal 2014 procurement of ammunition Navy and Marine Corps funds in the amount of $10,676,945 will be obligated at the time of award and will not expire before the end of the current fiscal year. This contract was competitively procured via the Navy Electronic Commerce Online website, with two offers received in response to the solicitation. The NAVSUP Weapon Systems Support, Mechanicsburg, Pennsylvania, is the contracting activity (N00104-14-D-K064).

Shell Marine Products US, Houston, Texas, is being awarded a $14,953,192 modification under a previously awarded indefinite-delivery/indefinite-quantity contract (N00033-13-D-8020) with firm-fixed-price delivery orders to exercise a one-year option for the supply and related services of lubricant oil products for the Engineering Directorate of the Military Sealift Command and other government agencies in need of lubricant oil supplies and related services. Work will be performed worldwide and is expected to be completed May 4, 2015. If all options are exercised, work will continue through May 2018. No funds will be obligated at the time of award. Working capital funds in the amount of $14,953,192 will be obligated in fiscal 2014 on the individual delivery orders are they are issued, and will expire at the end of this current fiscal year. The U.S. Navy’s Military Sealift Command, Washington, District of Columbia, is the contracting activity.
Northrop Grumman Aerospace Systems, San Diego, California, is being awarded a $10,833,670 cost-plus-fixed-fee contract for the development and integration of a Multi Capability Pod (MCAP) onto the MQ-8C, including the purchase of two MCAPS and one MCAP Mass Model. The MCAP provides multiple electronic warfare sensors for employment in the littorals. Work will be performed in Rancho Bernardo, California (59 percent); Chantilly, Virginia (40 percent); and Fort Worth, Texas (1 percent), and is expected to be completed in June 2015. Fiscal 2013 research, development, test and evaluation, Defense-wide and fiscal 2013 procurement, Defense-wide funds in the amount of $10,833,670 are being obligated at time of award, $4,219,667 of which will expire at the end of the current fiscal year. This contract was not competitively procured pursuant to FAR 6.302-1. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity (N00019-14-C-0011).

InSynergy Engineering Inc.*, Honolulu, Hawaii, is being awarded a maximum amount $7,500,000 indefinite-delivery/indefinite-quantity contract for architect-engineer services for various utility systems and energy studies at various locations under the Naval Facilities Engineering Command (NAVFAC) Pacific area of responsibility (AOR). The work to be performed provides for, but is not limited to, electrical utility system studies, mechanical utility system studies, civil utility system studies and engineering and mapping services for various projects with associated multi-discipline architect-engineer support services. No task orders are being issued at this time. Work will be performed at various installations within the NAVFAC Pacific AOR. The term of the contract is not to exceed 60 months, with an expected completion date of May 2019. Navy working capital funds in the amount of $10,000 are obligated on this award and will expire at the end of the current fiscal year. This contract was competitively procured via the Federal Business Opportunities website with 11 proposals received. The Naval Facilities Engineering Command, Pacific, Pearl Harbor, Hawaii, is the contracting activity (N62742-14-D-0101).

ARMY

Onopa/Dorado Joint Venture II*, Sanford, Florida (W912P8-14-D-0014); Conquistador Dorado, Joint Venture*, Sanford, Florida (W912P8-14-D-0015); Xpert’s Inc.*, San Juan, Puerto Rico (W912P8-14-D-0016); Coastal/QRI Joint Venture*, New Orleans, Louisiana (W912P8-14-D-0017); TFR Enterprise Inc.*, Leander, Texas (W912P8-14-D-0018); TFR Enterprise Inc.*, Leander, Texas (W912P8-14-D-0019); will share a $580,000,000 firm-fixed-price contract for advanced contracting initiative debris management services for the United States and its territories (small business set-aside). Funding and performance locations will be determined with each order. Bids were solicited via the Internet with 21 received. Estimated completion date is May 1, 2019. U.S. Army Corps of Engineers, New Orleans, Louisiana, is the contracting activity.

Northrop Grumman Systems Corp., Herndon, Virginia, was awarded a $27,345,564 firm-fixed-price, multi-year contract for point-of-presence A-Kits (maximum quantity 111) and soldier network extension A-Kits (maximum quantity 525). A-Kits are a critical component of the network vehicle integration upgrade for the MRAP A-ATV. Funding and work performance location will be determined with each order. Estimated completion date is April 29, 2017. Bids were solicited via the Internet with 13 received. Army Contracting Command, Warren Michigan, is the contracting activity (W56HZV-14-D-0065).
IBIS TEK LLC*, Butler, Pennsylvania, was awarded a $17,990,222 modification (P00007) to contract W56HZV-13-C-0036 to exercise option one to purchase armored 58-gallon and 78-gallon B-Kits for the family of medium tactical vehicles. Fiscal 2014 other procurement funds in the amount of $8,289,182; fiscal 2013 in the amount of $8,269,709; and fiscal 2012 in the amount of $1,431,331 were obligated at the time of the award. Estimated completion dated is Feb. 27, 2015. Work will be performed in Butler, Pennsylvania. Army Contracting Command, Warren, Michigan, is the contracting activity.

Blinderman Construction Co., Inc.*, Chicago, Illinois, was awarded an $11,356,438 firm-fixed-price contract with options for the renovation of Historical Building 211, Fort Riley, Kansas. Fiscal 2014 operations and maintenance, Army funds in the amount of $11,356,438 were obligated at the time of the award. Estimated completion date is Dec. 2, 2015. Bids were solicited via the Internet with 14 received. Work will be performed at Fort Riley, Kansas. U.S. Army Corps of Engineers, Kansas City, Missouri is the contracting activity (W912DQ-14-C-4004).

National Technologies Associates Inc., Alexandria, Virginia, was awarded a $6,567,668 cost-plus-fixed-fee contract for engineering/logistics and acquisition logistics support services to the V-22 Joint Program Office. Fiscal 2014 other procurement funds in the amount of $3,751,515 were obligated at the time of the award. Estimated completion date is April 30, 2017. Bids were solicited via the Internet with one received. Work will be performed in Patuxent, Maryland. Army Contracting Command, Picatinny Arsenal, New Jersey, is the contracting activity (W15QKN-14-C-0049).

DEFENSE LOGISTICS AGENCY

Tullahoma Industries LLC.,** Tullahoma, Tennessee, has been awarded a maximum $59,389,738 modification (P00105) exercising the first option period on a one-year base contract (SPM1C1-13-D-1050) with four one-year option periods for three types of permethrin Army combat uniform trousers. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Location of performance is Tennessee, Alabama, and North Carolina with a May 6, 2015 performance completion date. Using military service is Army. Type of appropriation is fiscal 2014 through fiscal 2015 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.
*Small Business

**Small Business in HUBZone

SECRETARY KERRY'S REMARKS AT AFRICAN UNION HIGH-LEVEL DIALOGUE

FROM:  U.S. STATE DEPARTMENT 

Remarks at the U.S.-African Union High-Level Dialogue

Remarks

John Kerry

Secretary of State

African Union Commission

Addis Ababa, Ethiopia

May 1, 2014

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Well, Mr. Deputy Chairperson, thank you very, very much. Thank you. First of all, we do feel at home. We’re very grateful to you for another generous welcome. We’re happy to be here. I’m personally happy to be back. And I appreciate the detail and breadth of your opening comments, and they’re very important, particularly your discussion about trade and the possibilities with respect to the meeting in Washington and beyond.

Please extend my best wishes to Chairperson Dlamini-Zuma. I know she’s off on another visit. And we both understood that we were not able to coordinate our schedules sufficiently this time, but I’m very appreciative to her for being willing to allow the meeting to go on, and we’re appreciative for your chairmanship and participation in the meeting. And after I have a chance to share a few comments here and we’ve opened up the meeting, as you know, our Assistant Secretary of State Linda Thomas-Greenfield will continue the dialogue with Ambassador Brigety, and we’ve very appreciative for both of their leadership on these issues.

My privilege is to join you in opening the fourth U.S.-AU High-Level Dialogue. And very simply, President Obama is excited that I am here on his behalf, together with our delegation, in order to build on what we have achieved together since the United States first launched our mission to the AU in 2006. I would note that the United States is the only AU partner with a permanent presence. And we hope that that underscores the importance that we place on the relationship.
It’s fair to say – and I think your comments sort of summarized it when you talked about the reduction in trade to some degree. When you combine that with other challenges throughout Africa, particularly the challenge of governance; some failed states, some failing; the challenge of violence, which we see in obviously the neighbor in South Sudan and in other places, is a challenge for all of us. Because those who challenge stability and peace and the structure of government are doing so by promoting a brand of lawlessness and extremism that is destructive to the democratic hopes and aspirations of the vast majority of people in Africa. So we need to work together.

We also know, in addition to the challenges of that side of the ledger, on the other side of the ledger you have an enormous growth in the population of young people, who need to be educated, who will need jobs in the future. And at the same time, Africa is home to eight of the ten fastest-growing economies in the world. The United States is the largest market in the world, and we think there is a lot more that we can do together to promote prosperity, shared prosperity, in keeping with our shared interests. Doing so is going to be critical to making the most of the economic opportunities. It’s also going to be critical to dealing with this challenge of violence and of young people. I think you know, Mr. Deputy Chair, that there are too many nations that risk falling into broad-based violence, or remain embroiled in too much bloodshed. And so we are very, very supportive.

This morning I had a discussion with our foreign minister friends from Kenya, and from Uganda, and here, our host. And we talked about this, about the challenge of South Sudan now. The United States, I want everybody to understand, fully supports African-led efforts to confront the most deadly conflicts of the continent. And it is clear that the unspeakable violence in Central African Republic, the deliberate killing of civilians on both sides in South Sudan – both of those underscore the urgency of the work that we have to do together. So I came here committed today to make clear to you, and to our colleagues who are working on this issue, that the United States will do everything we can, with the United Nations to support the effort, to bring and help in assisting with a peacekeeping force – peacemaking force, in some cases – and we think that this is absolutely critical.

We are also enormously encouraged by the remarkable economic activity, the rise of the economies that we see in parts of Africa. And we want to support your efforts to spread that prosperity, to make sure that everybody has a sense that they can share in the future. So a lot of this is going to depend on the decisions that we take. It’ll depend on the kinds of things that we’re going to dig into today in this dialogue. It will depend on real, concrete choices that we can make about how we could work together and proceed together. So I think this forum is really a vital opportunity to deepen our partnership and make the most of this particular moment of opportunity on the continent.

Now each of our key areas of success – of focus – peace and security; democracy and governance; economic growth, trade, and investment; and development and opportunity – each of these are critical parts of President Obama’s strategy for the sub-Saharan Africa. That is exactly the way he is looking at and trying to break up the choices that we’re making. They happen to also represent an area where the African Union has already taken a leading role. And so on each of these fronts, you are really already engaged in the business of developing solutions to the real concerns of the continent.

With the dialogue that we’re having here – and you mentioned it – we also have this important meeting. The President is inviting all African nations to come and join us in Washington. It’s not a – I want to emphasize it’s not a summons. It’s not some kind of a sort of summary invitation. It’s really representative of the President’s desire to make clear to the world, as well as to Africa, that we want Washington to focus more on this. And we believe that by inviting people to come to Washington, it will help the Congress of the United States. It will help the American people. It will help everybody to be able to share in the importance of this agenda.

So with our work over the next few days here, with our work together in the weeks and months ahead, we are absolutely committed to forging stronger ties on the continent. And the President, as you know, will be visiting. And he looks forward to that, as we look forward in the two and three-quarter years of his Administration, to strengthen these bonds and open up these opportunities to the greatest degree possible. Most importantly, the President and I and all of us in this delegation want to help forge a shared future, a sense of shared engagement, of shared commitment to making the choices we have to make. And in the end, we’re absolutely confident that the relationship between Africa and the United States will be stronger and better for that. So thank you for inviting me here today to share in this, and we look forward to the dialogue.

DOJ, eBAY INC., SETTLE "NO POACH" HIRING AGREEMENTS CASE

FROM:  U.S. JUSTICE DEPARTMENT 

Thursday, May 1, 2014

Justice Department Requires eBay to End Anti-competitive “No Poach” Hiring Agreements

Settlement Preserves Competition for High Tech Employees

The Department of Justice announced today that it has reached a settlement with eBay Inc. that prevents the company from entering into or maintaining agreements with other companies restraining employee recruitment and hiring.
         
The department’s Antitrust Division filed the proposed settlement in the U.S. District Court for the Northern District of California in San Jose.   If approved by the court, the settlement would resolve the department’s competitive concerns and the original lawsuit filed on Nov. 16, 2012.

In its lawsuit, the department alleged that senior executives and directors of eBay and Intuit entered into an agreement, beginning no later than 2006, that prevented each firm from recruiting employees from the other and that prohibited eBay from hiring Intuit employees that approached eBay.

In the high technology sector, employees with advanced or specialized skills are highly valued and sought after.   Companies often heavily recruit and hire experienced and capable employees of other technology firms, offering significantly better job opportunities or pay.   The agreement between eBay and Intuit diminished important competition between the firms to attract highly skilled technical and other employees to the detriment of affected employees who had less access to better job opportunities and higher pay.

“eBay’s agreement with Intuit served no purpose but to limit competition between the two firms for employees, distorting the labor market and causing employees to lose opportunities for better jobs and higher pay,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division.   “The proposed settlement resolves the department’s antitrust concerns and ensures that eBay will not engage in similar conduct in the future.”

Previously, in denying eBay’s motion to dismiss the case, the district court found that the agreement alleged by the department, if proven, would constitute a naked horizontal market allocation agreement that was manifestly anticompetitive and lacking in any redeeming virtue, and thus could be found per se unlawful.  

The proposed settlement would prohibit eBay from entering or maintaining anticompetitive agreements relating to employee hiring and retention for five years.   It would broadly prohibit eBay from entering, maintaining or enforcing any agreement that in any way prevents any person from soliciting, cold calling, recruiting, hiring or otherwise competing for employees.   eBay will also implement compliance measures tailored to these practices. Intuit is already subject to a similar consent decree, and for that reason was not a defendant in this case.

Today, the California Attorney General’s Office also filed a settlement in its related case, The People of the State of California v. eBay Inc., based on the same facts alleged in the department’s complaint.
 
This case and the proposed settlement arose out of a series of Antitrust Division investigations into employee recruitment practices at a number of high tech companies.   In September 2010, the Antitrust Division filed a civil antitrust lawsuit against six high tech firms– Adobe Systems Inc., Apple Inc., Google Inc., Intel Corporation, Intuit Inc. and Pixar–for antitrust violations arising from “no cold call” agreements.   In December 2010, the Antitrust Division filed a civil antitrust lawsuit against Lucasfilm Ltd. alleging antitrust violations involving similar activities restraining competition for employees.   In both cases, settlements were filed at the same time the lawsuits were filed resolving the department’s competitive concerns.   Today’s proposed settlement with eBay is substantially the same as the court-approved settlements in the two prior cases.

eBay Inc. is a California corporation with its principal place of business in San Jose.

The proposed settlement, along with the department’s competitive impact statement, will be published in The Federal Register, as required by the Antitrust Procedures and Penalties Act.   Any person may submit written comments concerning the proposed settlement within 60 days of its publication to James J. Tierney, Chief, Networks & Technology Enforcement Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street N.W., Suite 7100, Washington D.C. 20530.   At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.

SEC ANNOUNCES ENFORCEMENT ACTION AGAINST NYSE, AFFILIATES FOR COMPLIANCE FAILURE

FROM:  SECURITIES AND EXCHANGE COMMISSION 

The Securities and Exchange Commission today announced an enforcement action against the New York Stock Exchange and two affiliated exchanges for their failure to comply with the responsibilities of self-regulatory organizations (SROs) to conduct their business operations in accordance with Commission-approved exchange rules and the federal securities laws.  Also charged was the NYSE exchanges’ affiliated routing broker Archipelago Securities.

The NYSE exchanges agreed to settle the SEC’s charges by retaining an independent consultant and together with Archipelago Securities paying a $4.5 million penalty.

“The SEC regulates exchanges, in part, by reviewing rules proposed by the exchanges that govern exchange activities and allow market participants to decide how and where to place orders,” said Andrew J. Ceresney, director of the SEC’s Division of Enforcement.  “We will hold exchanges accountable if they fail to have rules governing their operations or fail to follow them.”

As SROs, the NYSE exchanges are required to conduct their operations in accordance and compliance with their own rules as well as the federal securities laws.  They are required to file all proposed rules and rule changes with the Commission, which publishes them for public comment, before they take effect.  This transparency enables all participants trading on the exchanges to understand how their orders are processed and executed.

According to the SEC’s order instituting settled administrative proceedings, the NYSE exchanges repeatedly engaged in business practices that either violated exchange rules or required a rule when the exchanges had none in effect.  For example, all of the NYSE exchanges used an error account maintained at Archipelago Securities to trade out of securities positions taken on as a result of their operations despite not having rules in effect that permitted them to maintain and use such an account.  In another example, NYSE Arca failed to execute a certain type of limit order under specified market conditions despite having a rule in effect that stated that NYSE Arca would execute such orders.

“The order highlights instances where the exchanges conducted business without a rule in place due to weak or inadequate policies and procedures,” said Antonia Chion, an associate director in the SEC’s Division of Enforcement.  “In other instances, the exchanges did not operate in compliance with their effective rules.  Both failures reflect a troubling lack of compliance with the requirements and obligations imposed on securities exchanges.”

The violations detailed in the SEC’s order occurred during periods of time from 2008 to 2012.  The SEC’s order finds that the NYSE exchanges violated Section 19(b) and 19(g) of the Securities Exchange Act of 1934 through misconduct that included the following:

NYSE, NYSE Arca, and NYSE MKT (formerly NYSE Amex) used an error account maintained at Archipelago Securities to assume and trade out of securities positions without a rule in effect that permitted such trading and in a manner inconsistent with their rules for the routing broker, which limited Archipelago Securities’ activity primarily to outbound and inbound routing of orders on behalf of those exchanges.

NYSE provided co-location services to customers on disparate contractual terms without an exchange rule in effect that permitted and governed the provision of such services on a fair and equitable basis.

NYSE operated a block trading facility (New York Block Exchange) that for a period of time did not function in accordance with the rules submitted by NYSE and approved by the SEC.

NYSE distributed an automated feed of closing order imbalance information to its floor brokers at an earlier time than was specified in NYSE’s rules.
NYSE Arca failed to execute Mid-Point Passive Liquidity Orders (MPLOs) in locked markets (where the bid and ask prices are the same) contrary to its exchange rule in effect at the time.

In addition, the SEC’s order finds that NYSE Arca accepted MPLOs in sub-penny amounts for National Market System stocks trading at over $1.00 per share, in violation of Rule 612(a) of Regulation NMS.

The SEC’s order further finds that Archipelago Securities failed to establish and maintain policies reasonably designed to prevent the misuse of material, nonpublic information in connection with error account trading.  Archipelago Securities also violated and failed to give the SEC timely notice of its violation of the net capital rule – a critical federal securities law provision intended to ensure that brokers and dealers remain solvent and can meet their financial obligations.  

Now wholly-owned subsidiaries of IntercontinentalExchange Inc., NYSE, NYSE Arca, NYSE MKT, and Archipelago Securities have consented to the SEC’s order without admitting or denying the findings.  They agreed to collectively pay the penalty of $4.5 million, and the NYSE exchanges agreed to complete significant undertakings including retaining an independent consultant to complete a comprehensive review of their policies and procedures for determining whether (1) a new business practice or a change to an existing business practice requires the filing with the SEC of a proposed rule or rule change, and (2) business practices requiring an exchange rule are conducted pursuant to and in accordance with an effective exchange rule.

The SEC’s investigation was conducted by Jason Litow, Vinyard Cooke, and Kevin Gershfeld.  The case was supervised by Yuri Zelinsky and Antonia Chion.