Friday, March 28, 2014

STATE DEPARTMENT OFFICIALS REMARKS ON MARITIME SECURITY, STABILITY

FROM:  THE STATE DEPARTMENT, 

Building Maritime Collaboration for Security and Stability

Remarks
Samuel Perez
Deputy Assistant Secretary, Bureau of Political-Military Affairs
Jakarta International Defence Dialogue (JIDD)
Jakarta, Indonesia
March 19, 2014


(As Prepared)
Modernization, Partnerships and Maritime Domain Awareness
Thank you for inviting me to participate in the Jakarta Defense Dialog. I assure you I am not sailing under false colors, I am indeed a Naval Officer but I am currently on assignment to the State Department and the uniform of the day at our State Department is a Business Suit. My assignment to the State Department underscores our military’s commitment to develop increased partnerships across two departments that have very different roles but share the same goal of better partnerships. I’ll touch more on that later but for now, I relish the opportunity to discuss Maritime topics so thank you once again for providing me with this opportunity to participate.

I am going to start my remarks by first addressing Modernization. If we take a look at the newest naval systems you might be impressed by cruise missiles with terminal speeds far in excess of the speed of sound. You will also see a proliferation of unmanned vehicles, stealthy aircraft and ships that are more connected in a command and control sense than we have ever seen. Gone are the days when a Sailor determined a ship’s might by the tonnage she displaced. Instead, we look at these ships and first ask, how far can the ship see, how well connected is the ship with all the other sensors available to the commander?

Now, I would be remiss if I didn’t mention that, with the new systems I am going to describe to you, the United States Navy has taken a quantitative and qualitative leap forward. And Asia will be a great beneficiary of this new equipment. As we rebalance toward Asia, we will increase the percentage of our surface ships in the Pacific theater from about 50 to over 60. But it’s not just a quantitative shift, it’s also a qualitative one. The United States is also rebalancing its most technologically advanced platforms to the Pacific. For example, all the ships of the Zumwalt Guided Missile Destroyer Class will come to the Pacific. The first P8s—an incredible improvement in Maritime Patrol Aircraft capabilities—will come to the Pacific first. Our Navy’s newest surface combatant, the Littoral Combat Ship has already completed one deployment to the South China Sea and we will see another rotational deployment this summer. When we do field the Joint Strike Fighter, it will go first to the Pacific theater—I won’t dwell too much on the F35—it’s bad form for a surface officer to give too much credit to any airplane, no matter how amazing, and I think I’ve exhausted my effusive aviation quota on the P8!

Yes, these systems will make a difference but I want to take this opportunity to look at another aspect of modernization: Partnerships in the maritime domain. True, there is nothing new in partnerships, what I’m talking about is Partnership 5.0—or whatever the latest I-Phone iteration is.

The challenges in the maritime domain remain complex and complicated. Our Chief of Naval Operations has spoken at length about partnerships and their ability to contribute to the global challenge of maintaining freedom of navigation and overflight. These partnerships will enable all navies to take advantage of each other’s strengths and build a maritime community that enables all of us to sail the seas without intimidation or interference. Working together in partnerships, whether bilaterally or multilaterally, allows us to also respond more quickly to humanitarian and disaster assistance when needed. The U.S. Navy was able to respond to Typhoon Haiyan in the Philippines quickly, which saved lives and brought needed assistance on a large scale, and opened the way for other countries to donate critical assistance to the affected area. Again, I would like to take an extra second so we can remind ourselves that navies, aside from being able to destroy or defend, can also heal.

Of equal importance, partnerships provide us with a tool that in the end will prove to be more valuable than any Mach ++ cruise missile or the stealthiest aircraft: this tool is Maritime Domain Awareness. Yes, we have all been talking about MDA but why is it worth the effort to establish Partnerships to attain?

None of us can surveil our territorial seas and Exclusive Economic Zones to the extent where we know precisely what everyone is doing at all times. Is someone overfishing our valuable resources? Are criminal elements using our waters to conduct illicit traffic or other activity (smuggling drugs or people, piracy or other illegal actions)? Maritime Domain Awareness provides us with the first element we need to establish control of our own territorial seas and ensure we maintain control of the valuable resources in our EEZs.
I’d like to take you back to the iPhone phone example I shared earlier. There was nothing particularly innovative about making a mobile phone smaller or putting a screen into the phone. But adding the ability to take pictures and mark them with GPS coordinates, for example, expands its usefulness into a tool that helps someone find something. You can use your phone as a radio; you can use it as a search engine, or to catch up on the news. Today the power of the mobile phone is that it is so much more than a means to talk to someone. There are apps that turn your mobile into a very powerful tool, useful for so much more than talking to just one person.

By the same token we need to take our partnerships to the next level and connect our resources so that we can truly take our maritime partnerships into the next level. Again, let us look at the telephone. In the earliest days of the telephone, we had to call through an operator. Then we could use rotary dials and digit dials. It was a huge breakthrough to get cordless phones, and the next step was mobile phones. And remember those first mobile phones? They were the size of your forearms, with bulky antennae. Now, we can fit them in the palm of our hand. And with these phones, we are better connected to each other. These partnerships, this maritime APP if you will, will enable us to cultivate new and understanding and ensure that our U.S. presence, particularly as we send out more ships, continues to be reassuring to the region. It will enable us to use our individual strengths to build capability, capacity and competence across the Maritime Domain. In the end it will enable us to legitimately use the maritime space for legitimate purposes, better enable us to prevent those who would use the Maritime Domain to intimidate weaker nations and prevent the theft of valuable resources or unlawful development within our EEZs.

The United States is committed to the rebalance toward Asia. We have demonstrated that our focus goes beyond just words: we are dedicating diplomatic, public diplomacy, military, and foreign assistance resources to the region in a way that demonstrates the truly comprehensive nature of our engagement. As part of the rebalance, the United States is committed to creating new partnerships and strengthening existing relationships to provide us all with better Maritime Domain Awareness. We are committed to increasing the capabilities we need to prevent the illicit use of commons and the theft of our resources. Modernization, both in a technological form and in the form of new partnerships will enable better Maritime Domain Awareness.
Maritime Domain Awareness is important. We build it through partnerships. With it, countries protect prosperity and grow relationships. Part of that is through modernizing navies, not just with technology, but new thinking. Our “Rebalance Toward Asia” is part of our effort to build our diplomatic, economic, democratic, multilateral and security relationships with our partners in East Asia and the Pacific. We have always been a Pacific nation and we will continue to be one.

Ultimately, what we all want is freedom of navigation, freedom for our ships to operate pursuant to the rules of reflected in international law. Lawful commerce should flow without impediment or coercion.

FTC GIVE TESTIMONY ON DATA SECURITY TO SENATE COMMITTEE

FROM:  FEDERAL TRADE COMMISSION 
FTC Testifies on Data Security Before Senate Commerce, Science and Transportation Committee
Commission Renews Call for Data Security Legislation

In testimony before Congress, the Federal Trade Commission renewed its call for data security legislation and provided an update on its efforts to protect consumers’ privacy in the face of growing reports of data breaches.

Testifying on behalf of the Commission before the Senate Committee on Commerce, Science and Transportation, Chairwoman Edith Ramirez told lawmakers that the Commission believed Congress should act, particularly in light of the significant data breaches reported over the course of recent months.

“The Commission is here today to reiterate its longstanding, bipartisan call for enactment of a strong federal data security and beach notification law,” said Ramirez. “Never has the need for legislation been greater.”

The testimony highlights the Commission’s wide-ranging efforts in the data security arena, including its civil law enforcement authority under specific legislation such as the Fair Credit Reporting Act, Children’s Online Privacy Protection Act, and the Commission’s Safeguards Rule under the Gramm-Leach-Bliley Act. The testimony also notes the 50 data security cases the Commission has settled as a result of companies’ unfair or deceptive practices under the FTC Act.

In addition, the testimony outlines the Commission’s policy initiatives related to data security issues, including workshops, seminars and reports on a wide variety of topics that affect the security of consumers’ personal information. The testimony also notes the Commission’s ongoing efforts to educate consumers and provide guidance to businesses about issues related to data security.

In calling for legislation, the Commission’s testimony recommends that Congress strengthen its existing authority governing data security standards, and that it require companies in appropriate circumstances to provide notification to consumers affected by a data breach. Specifically, the testimony calls for the legislation to give the Commission the authority to seek civil penalties to help deter unlawful conduct, rulemaking authority under the Administrative Procedures Act, and jurisdiction over non-profit entities, which are not currently subject to FTC oversight.

The Commission vote approving the testimony and its inclusion in the formal record was 4-0.

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.

Thursday, March 27, 2014

PRESIDENT OBAMA'S STATEMENT ON UKRAINE

FROM:  THE WHITE HOUSE 

Statement by the Press Secretary on Ukraine

The United States welcomes the preliminary agreement between the Government of Ukraine and International Monetary Fund (IMF) staff on a loan program of $14-18 billion.  This represents a powerful sign of support from the international community for the Ukrainian government, as we help them stabilize and grow their economy, and move their democracy forward.  The agreement is expected to unlock roughly $27 billion in total support from the international community for Ukraine's people over the next two years, as the country implements historic reforms to address long-standing problems that have undermined Ukraine’s economic strength and prosperity.  It is important now for both the Government of Ukraine and the IMF to move expeditiously and complete the steps necessary to gain approval from the IMF Executive Board. 
Together with our allies and partners, President Obama will continue to build international support for the Ukrainian people at this critical time.  The IMF program will be a central component of a package of assistance to support Ukraine as it implements reforms and conducts free and fair elections that will allow all the Ukrainian people to determine the future of their country.  We are working alongside international partners, including the World Bank and the European Bank for Reconstruction and Development (EBRD), to disburse rapid additional assistance to complement the IMF program and ease Ukraine’s economic transition, particularly for the most vulnerable.  As part of this international effort, we are working with Congress to quickly provide a $1 billion loan guarantee and are offering technical and financial assistance to help Ukraine meet its most pressing needs.  We also remain committed to providing the IMF with the resources it needs – in partnership with Congress – to provide strong support to countries like Ukraine as well as reinforcing the Fund’s governance to reflect the global economy.

BALLISTIC MISSILE LAUNCH OFFICER CHEATING SCHEDULE LEADS TO DISCIPLINE

Right:  Air Force Secretary Deborah Lee James and Air Force Lt. Gen. Stephen Wilson, commander of Air Force Global Strike Command, brief reporters on the results of the command's investigation into allegations of compromised test materials at the Pentagon, March 27, 2014. James and Wilson also provided an update on the service's force improvement program. U.S. Air Force photo by Scott M. Ash.  

FROM:  U.S. DEFENSE DEPARTMENT 
Air Force Relieves, Disciplines Officers in Cheating Scandal
By Jim Garamone
American Forces Press Service

WASHINGTON, March 27, 2014 – The Air Force has relieved nine officers, allowed a commander to retire and will discipline 91 others as a result of a cheating scandal among intercontinental ballistic missile launch officers at Malmstrom Air Force Base, Mont.

Air Force Secretary Deborah Lee James and Lt. Gen. Stephen Wilson, the commander of Air Force Global Strike Command, made the announcements today during a Pentagon news conference.

“Commanders are also responsible when our people fall short,” Wilson said.
Air Force Col. Robert Stanley, the commander of the 341st Missile Wing at Malmstrom accepted responsibility and submitted his resignation to Maj. Gen. Jack Weinstein, the commander of 20th Air Force, Wilson said.

Weinstein also relieved nine leaders from the group and squadron level, the general said. He removed Col. Mark Schuler, the 341st Operations Group commander, for loss of confidence in his leadership ability. He also removed the group deputy commander.

The commanders of the 10th, 12th, and 490th missile squadrons were also removed, as was the commander of the 341st operational support squadron. Weinstein further relieved the directors of operation from the 341st Operational Support Squadron and the 10th Missile Squadron. Finally, he relieved the 341st Operations Group’s standardization and evaluation officer.

“None of these people were directly involved in test compromise; however, they all failed adequate leadership, supervision and oversight of the crew force,” Wilson said.

“Disciplinary action is also being taken against the officers who have substantiated cheating from the investigation,” he added.

The investigation ultimately implicated 100 officers who were investigated as part of the compromise, he said. “Of the 100, nine actually were not substantiated and will be returned to duty as soon as practicable,” the general said. “Details of those actions were released after all the members have been served, and they’re being served today.”

Air Force leaders will determine whether the officers can return to alert duty after completion of these actions. “The officers who had unsubstantiated allegations will be retrained, recertified and returned to duty,” he said.

James and Wilson said they will work together to eliminate the systemic problems they found upon investigating the incident.

James said she will attack the unhealthy emphasis on perfection that permeated the base and will reallocate funds to improve the quality of facilities and quality of life for missileers.

“In fiscal year 2014, we have $19 million funded for some of the areas within the force improvement program, including launch control center refurbishment and infrastructure repairs,” she said. “Furthermore, the 20th Air Force has identified an additional $3 million for quality-of-life requirements.”
In its fiscal year 2015 budget request, the service asked for $455 million to sustain its Minuteman squadrons, ICBM helicopter support and some critical communications areas, James said.

“Finally, we’ve identified $154 million in other requirements associated with our force improvement program, including readiness, training and improvements to launch control facilities, to just name a few of the areas,” she said.
As the Air Force executes its funding in 2014, “we’re going to seek to rearrange as much as possible to fund these important programs,” James said. “In other words, we’re not going to wait. We’re going to move forward.”

UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT FOR WEEK ENDING MARCH 22, 2014

UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT
          SEASONALLY ADJUSTED DATA

In the week ending March 22, the advance figure for seasonally adjusted initial claims was 311,000, a decrease of 10,000 from the previous week's revised figure of 321,000. The 4-week moving average was 317,750, a decrease of 9,500 from the previous week's revised average of 327,250.
The advance seasonally adjusted insured unemployment rate was 2.2 percent for the week ending March 15, unchanged from the prior week's unrevised rate. The advance number for seasonally adjustedinsured unemployment during the week ending March 15 was 2,823,000, a decrease of 53,000 from the preceding week's revised level of 2,876,000. The 4-week moving average was 2,862,500, a decrease of 31,500 from the preceding week's revised average of 2,894,000.
UNADJUSTED DATA
The advance number of actual initial claims under state programs, unadjusted, totaled 273,411 in the week ending March 22, a decrease of 12,559 from the previous week. There were 315,620 initial claims in the comparable week in 2013.
The advance unadjusted insured unemployment rate was 2.4 percent during the week ending March 15, a decrease of 0.1 percentage point from the prior week. The advance unadjusted number for persons claiming UI benefits in state programs totaled 3,144,812, a decrease of 88,295 from the preceding week. A year earlier, the rate was 2.6 percent and the volume was 3,402,007.
The total number of people claiming benefits in all programs for the week ending March 8 was 3,306,871, a decrease of 43,157 from the previous week. There were 5,455,779 persons claiming benefits in all programs in the comparable week in 2013.
No state was triggered "on" the Extended Benefits program during the week ending March 8.
Initial claims for UI benefits filed by former Federal civilian employees totaled 1,010 in the week ending March 15, a decrease of 47 from the prior week. There were 1,827 initial claims filed by newly discharged veterans, a decrease of 147 from the preceding week.
There were 19,359 former Federal civilian employees claiming UI benefits for the week ending March 8, an increase of 244 from the previous week. Newly discharged veterans claiming benefits totaled 28,354, an increase of 476 from the prior week.
The highest insured unemployment rates in the week ending March 8 were in Alaska (5.5), New Jersey (4.1), Rhode Island (3.9), Connecticut (3.8), Pennsylvania (3.7), California (3.6), Illinois (3.6), Montana (3.4), Massachusetts (3.3), and Wisconsin (3.3).
The largest increases in initial claims for the week ending March 15 were in California (+3,189), Nebraska (+1,044), Virginia (+513), Missouri (+492), and Tennessee (+474), while the largest decreases were in Pennsylvania (-3,166), Illinois (-2,320), New York (-2,155), Texas (-1,373), and Wisconsin (-1,055).

SECRETARY KERRY'S REMARKS AT 2015 MILAN EXPO

FROM:  U.S. STATE DEPARTMENT 

Remarks at the 2015 Milan Expo Event

Remarks
John Kerry
Secretary of State
Deputy Chief of Mission Residence
Rome, Italy
March 27, 2014




SECRETARY KERRY: Thank you, Kathleen. Thank you very much and good evening. Buona sera. I’m happy to be here with everybody in this rather modest public housing that our -- (laughter) – I keep going around with the President, we keep going to Villa Taverna, Villa Pinciana, da-da-da-da, and I find – where’s my home like this? (Laughter.) I don’t know what the deal is. But actually, I’m not allowed to say that. That’s okay, I got a good home.
It is really a pleasure to be here with all of you. Thank you very much, Kathleen. Thank you to the Chamber of Commerce, which I know has worked to help bring everybody together, and Giuseppe Sala, thank you for your leadership now for a number of years to help pull this together. And a group of you, who – I guess the International Culinary Center and the James Beard Foundation, as well as 3M, McKinsey, Illy, and who’d I leave out? I left somebody out. DuPont. There we go. How could I dare do that? Are you with DuPont?

PARTICIPANT: No, I’m International Culinary.

SECRETARY KERRY: All right. So I took care of you. (Laughter.) You’re all right. All right.
So it’s a great, great pleasure for me to be here in the presence of my new regular companion on a business basis every day. Federica has distinguished herself by beginning immediately in her first week welcoming over 40 ministers here. And I was one of them, privileged to be a guest and now to be back, excuse me, in Rome – obviously, one of the greatest cities in the world. And it’s such a pleasure to be able to be here.

I had the privilege of representing in Massachusetts for almost 30 years in the Senate, the United States Senate, one of America’s largest, most ferocious, Italian-American communities. And I’m very proud, and my brother-in-law, David Thorne, was your most recent ambassador here for a period of time. He and I created great mischief here in Rome years ago when we were in college. And he fell in love with it, and he decided he wanted to come back and be an ambassador, and I think he did a great job.

We’re happy that Kathleen and John Phillips are now doing an extraordinary job of carrying on, particularly on something that is of enormous importance to President Obama and to me and to the Obama Administration. And that is the recognition that in today’s world, business is different, and foreign policy is different. People used to always draw a line. If you were an economic officer, you came into an embassy and you got shunted off and you weren’t necessarily in the mainstream of “foreign policy.” Well, that is so far from the reality today. Economic policy is foreign policy.

And when I came in as Secretary, I made it very, very clear this was going to be one of the highest priorities of the State Department and of the Obama Administration’s second term. And the President is deeply committed to helping businesses to locate, to expand, to be able to marry with other businesses in other parts of the world in order to create jobs and strengthen other countries at the same time – not all as fortunate as Italy to have the extraordinary innovation and technology and remarkable design and creative talent that you have in Italy. But other countries that are having great difficulties today with young populations desperate for opportunity, where you really need, if you’re going to provide stability and a future, you’ve got to provide jobs.

Believe it or not, Milan Expo 2015, in our judgment, fits into that strategy, and that’s why I’m very proud to say that today Ambassador Phillips has signed the contract, and we have signed on officially for the United States to partner with the Friends of the Pavilion Milan Expo 2015. We’re going to be there to help support this effort to showcase sustainability and food security. And you do not have to be a rocket scientist or an anthropologist or a genius or a professor to understand as you look at what’s happening in the world today, with about 6-plus billion or whatever it is today heading to 9 billion over the course of the next 35 years, there is going to be unbelievable demand on resources when you couple that with climate change and the already real impacts on farming and fishing and all the other things that are part of sustaining life on this planet, we have a challenge.

That’s what makes Milan Expo 2015 particularly timely, and we are therefore excited about it. Also, we have developed a new program called SelectUSA where we’re working to interest other companies to actually come and invest in the United States too. It works in both directions. But our purpose in taking part in this expo, ironic as it may seem for the United States to talk about bringing food to Italy of all places – I know that’s a little bit of a coal to Newcastle situation. This really can be fun and it can be interesting, and it is a great opportunity for businesses to trade ideas, to showcase to the world.

In Shanghai, the last expo, I believe had something like 70 million people came through. The expectations for Milan are something like 30-35 million people. That is enormous traffic. And when you think about it, this is not just Italy’s fair, world’s fair to so speak; it’s going to be Europe’s, and it’s going to have an enormous ability to be able to attract attention, excitement, generate business, as well as good for the economy for all of those visitors who are coming through, et cetera.

So we’re excited about it. I’m honored to be here tonight. I have one message to all of you: Those of you representing Italian companies who do business with American companies, we want you to get them excited about this. We’re going to help market it. We will help engage. But tell your peers they’ve got to be involved in this. This is going to be 100 percent supported by the private sector, and therefore we need to go to work to make sure that the pavilion is at the level that we want it to be, that it showcases the creativity and technology and capacities that we have with respect to both sustainability and long-term stability and growth and food security for a growing population on this planet.

Obviously, there’s an enormous amount of money to be made when you consider the marketplace we’re looking at. The market that provided the great wealth growth of the 1990s was a $1 trillion market for 1 billion users. We’re talking about 9 billion users growing in these next years, with multiples of trillions of dollars of commerce and trade. So I think we have opportunity staring us in the face. We are proud to join with this. I am very happy to be here tonight with my counterpart Federica and grateful that we’re able to take part in Milan 2015. Thank you. (Applause.)


TWO CHARGED WITH USING OFFSHORE ACCOUNTS TO LAUNDER MONEY

FROM:  U.S. JUSTICE DEPARTMENT 
Monday, March 24, 2014

U.S. and Canadian Citizens Charged with Using Offshore Accounts and Foreign Nominee Entities to Launder $200,000

Three Caribbean-Based Defendants Charged with Laundering $200,000 of Purported Bank Fraud Proceeds in Undercover Sting

Joshua Vandyk, a U.S. citizen, and Eric St-Cyr and Patrick Poulin, Canadian citizens, were indicted for conspiracy to launder monetary instruments, the Department of Justice and Internal Revenue Service (IRS) announced.  The indictment alleges that Vandyk, St-Cyr and Poulin conspired to conceal and disguise the nature, location, source, ownership and control of property believed to be the proceeds of bank fraud.  The Caribbean-based defendants allegedly assisted undercover law enforcement agents, posing as U.S. clients, in laundering purported criminal proceeds through an offshore structure designed to conceal the true identity of the proceeds’ owners.  Vandyk and St-Cyr invested the laundered funds on the clients’ behalf and represented the funds would not be reported to the U.S. government.

The indictment was returned in the Eastern District of Virginia on March 6, 2014, and unsealed on March 12, 2014, when all three defendants were arrested in Miami, Fla.  In addition to the conspiracy charge, Vandyk, St-Cyr and Poulin were each charged with two counts of money laundering.

“These charges result from an extensive investigation and are the latest demonstration of the Department’s resolve to find and prosecute those who aid money laundering and tax fraud globally," said Deputy Attorney General James M. Cole.

According to the indictment, Vandyk and St-Cyr lived in the Cayman Islands and worked for an investment firm based in the Cayman Islands.  St-Cyr was the founder and head of the investment firm, whose clientele included numerous U.S. citizens.  Poulin, an attorney at a law firm based in Turks and Caicos, worked and resided in Canada and in the Turks and Caicos.  His clientele also included numerous U.S. citizens.

According to the indictment, Vandyk, St-Cyr and Poulin solicited U.S. citizens to use their services to hide assets from the U.S. government.  Vandyk and St-Cyr directed the undercover agents posing as U.S. clients to create offshore foundations with the assistance of Poulin and others because they and the investment firm did not want to appear to deal with U.S. clients.  Vandyk and St-Cyr used the offshore entities to move money into the Cayman Islands and used foreign attorneys as intermediaries for such transactions.

According to the indictment, Poulin established an offshore foundation for the undercover agents posing as U.S. clients and served as a nominal board member in lieu of the clients.  Poulin transferred wire payments from the offshore foundations to the Cayman Islands, where Vandyk and St-Cyr invested those funds outside the United States in the name of the offshore foundation.  The investment firm represented that it would neither disclose the investments or any investment gains to the U.S. government, nor would it provide monthly statements or other investment statements to the clients.  Clients were able to monitor their investments online through the use of anonymous, numeric passcodes.  Upon request from the U.S. client, Vandyk and St-Cyr would liquidate investments and transfer money, through Poulin, back to the United States.  According to Vandyk and St-Cyr, the investment firm would charge clients higher fees to launder criminal proceeds than to assist them in tax evasion.

“I commend IRS Criminal Investigation and the Division’s prosecutors for the extraordinary work that they have done over many months in this investigation,” said Assistant Attorney General Kathryn Keneally for the Tax Division.  “In particular, it is important to note that the IRS’s voluntary disclosure policy excludes disclosures after the government has received information about taxpayers’ identities.  If the investigation team now has the names of account holders who have not yet come forward, time has run out for them.”

“As alleged in the indictment, these defendants were in the business of creating layers of transactions so their US clients could launder criminal proceeds,” said Chief of IRS-Criminal Investigation Richard Weber.  “IRS Criminal Investigation is committed to unraveling complex financial and money laundering schemes and holding those accountable for creating mechanisms to hide assets offshore and dodge the tax system.”

An indictment merely alleges that crimes have been committed, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, each defendant faces a maximum potential sentence of 20 years in prison for each count.

The case was investigated by special agents of the IRS-Criminal Investigation.  Trial Attorneys Todd Ellinwood and Caryn Finley of the Department’s Tax Division and Assistant U.S. Attorney Kosta Stojilkovic of the U.S. Attorney’s Office for the Eastern District of Virginia are prosecuting the case.

FTC PROPOSES FUEL RATING LABEL CHANGES AT FUEL PUMP

FROM:  FEDERAL TRADE COMMISSION 
FTC Proposes Changes to Fuel Rating Rule

The Federal Trade Commission is proposing changes to its Fuel Rating Rule, which determines the fuel rating that appears on fuel pump labels, how octane levels are calculated, and helps to inform consumers about proper fuel for their vehicles.

In 2009, the FTC began a review of the “Rule for Automobile Fuel Ratings, Certification, and Posting” as part of its systematic review of all current FTC rules and guides. The Commission sought comments on proposed revisions to the Rule regarding ethanol blends. In 2011, after reviewing the comments received, the agency issued final amendments governing other issues and deferred consideration of ethanol blend labeling to consider an Environmental Protection Agency decision regarding the use of certain ethanol blends in certain vehicles.

The FTC is now proposing to revise rating, certification and labeling requirements for blends of gasoline with more than 10 percent ethanol, and a new octane rating method that would lower compliance costs.

The Commission vote approving the Federal Register notice was 4-0.

U.S. DEFENSE DEPARTMENT CONTRACTS FOR MARCH 27, 2014

FROM:   U.S. DEFENSE DEPARTMENT
U.S. DEFENSE DEPARTMENT 
CONTRACTS

AIR FORCE

The Centech Group Inc.*, Falls Church, Va.,( FA8732-14-D-0010); Epsilon Systems Solutions Inc.*, San Diego, Calif., (FA8732-14-D-0011); Smartronix Inc.*, Hollywood, Md., (FA8732-14-D-0012); SMS Data Products Group Inc.*, McLean, Va., (FA8732-14-D-0013); Indus Corp.*, Vienna, Va., (FA8732-14-D-0014); Technica Corp.*, Sterling, Va., (FA8732-14-D-0015); Telos Corp.*, Ashburn, Va., (FA8732-14-D-0016); Sumaria Systems Inc.*, Danvers, Mass., (FA8732-14-D-0017); BTAS Inc.*, Beavercreek, Ohio, (FA8732-14-D-0018); American Systems Corp.*, Chantilly, Va., (FA8732-14-D-0019); STG, Inc.*, Reston, Va., (FA8732-14-D-0020) and MicroTechnologies LLC*, Vienna, Va., (FA8732-14-D-0021) have been awarded a maximum $5,790,000,000 multiple-award, indefinite-delivery/indefinite-quantity (ID/IQ) contract for Network-Centric Solutions-2 (NETCENTS-2) network operations and infrastructure solutions. This contract vehicle will provide solutions to support network operations, core enterprise services and infrastructure development and operations, includes network management/defense, services oriented architecture infrastructure, enterprise level security/management and implementation/operations, telephony infrastructure and services. This contract vehicle is the mandatory source for all Air Force units purchasing services that fall under the scope of the contract, and it is available for use by Army, Navy, other department of defense and federal agencies. Funding and the location of performance will be cited on individual task orders issued against this IDIQ. Each company will receive a minimum guarantee of $2,500 at award. The ordering period is a three year basic period with four 12-month options, if exercised, resulting in seven years of ordering. Task orders are limited to five years of performance, and performance may extend three years beyond the expiration of ordering. This award is the result of a small-business competition; offers were solicited electronically through the Hanscom Electronic Request for Proposal Bulletin Board and FedBizOpps, and twenty-nine offers were received. The contracting activity is Air Force Life Cycle Management Center/HICK, Maxwell Air Force Base-Gunter Annex, Ala.

Northrop Grumman Technical Services Inc., Hill Air Force Base, Utah, has been awarded a $13,719,542 modification to cost-plus-award fee F42610-98-C-0001 for sustaining engineering services for the ICBM weapon system. The location of performance is Utah with an expected completion date of Sept. 30, 2014. Fiscal 2014 operations and maintenance funds in the amount of $12,925,702 are being obligated at award. Air Force Nuclear Weapon Center/PZBE, Hill Air Force Base, Utah, is the contracting activity.

ARMY

Hensel Phelps Construction, Chantilly, Va., was awarded a $245,125,000 firm-fixed-price contract for construction of the Joint Operations Center, Fort George G. Meade, Md. Work will be performed at Fort George G. Meade, Md. Estimated completion date is March 26, 2017. Fiscal 2014 military construction funds in the amount of $57,000,000 were obligated at the time of the award. Bids were solicited via the Internet with five received. U.S. Army Corps of Engineers, Baltimore, Md., is the contracting activity (W912DR-14-C-0016).

Lockheed Martin Corp., Liverpool, N.Y., was awarded a $145,921,161 modification (P00022) to contract W15P7T-12-C-C015 for an additional thirteen AN/TPQ-53 radar systems, along with 13 corresponding sets of on-board spares. Work will be performed in Liverpool, N.Y. Estimated completion date is Nov. 30, 2016. Fiscal 2014 other procurement, Army funds in the amount of $145,921,161 were obligated at the time of the award. Army Contracting Command, Aberdeen, Md., is the contracting activity.

Northrop Grumman Technical Services, Sierra Vista, Ariz., was awarded a $20,236,014 modification (P00020) to contract W58RGZ-13-C-0010 for contractor logistic services for the Hunter unmanned aircraft system. Work will be performed in Sierra Vista, Ariz., and Afghanistan. Estimated completion date is March 30, 2015. Fiscal 2014 operations and maintenance, Army funds in the amount of $5,236,014 were obligated at the time of the award. Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity.

Manson Construction Co. Seattle, Wash. was awarded a $16,822,500 firm-fixed-price contract for dredging along the U.S. West Coast. Work will be performed in Astoria, Ore., and in San Francisco and Humboldt, Calif. Estimated completion date is Sept. 15, 2014. Fiscal 2014 operations and maintenance, Army funds in the amount of $16,822,500 were obligated at the time of the award. Bids were solicited via the Internet with two received. U.S. Army Corps of Engineers, Portland, Ore., is the contracting activity (W9127N-14-C-0018).

ICx Technologies Inc., doing business as Agentase Inc., Elkridge, Md., was awarded a $12,316,540 modification (P00090) to contract W911SR-08-C-0075 to procure 12 dismounted reconnaissance sets, kits, and outfits army configuration systems. Work will be performed in Elkridge, Md. Estimated completion date is March 25, 2015. Fiscal 2014 research, development, testing and evaluation funds in the amount of $12,316,540 were obligated at the time of the award. Army Contracting Command, Aberdeen, Md., is the contracting activity.

Chimes District of Columbia,Inc., Baltimore, Md., was awarded an $11,548,303 modification (P00002) to contract W91247-12-D-0029 for custodial services at Fort Bragg, N.C. Funding and work location will be determined with each order. Estimated completion date is March 31, 2015. Army Contracting Command, Fort Bragg, N.C., is the contracting activity.

NAVY

Rolls-Royce Corp., Indianapolis, Ind., is being awarded a $106,999,970 undefinitized contract action to provide intermediate, depot level maintenance and related logistics support for approximately 223 in-service T-45 F405-RR-401 Adour engines. Work will be performed at the Naval Air Station (NAS) Meridian, Miss (47 percent); NAS Kingsville, Texas (46 percent); NAS Pensacola, Fla. (6 percent); and NAS Patuxent River, Md. (1 percent), and is expected to be completed in March 2015. No funds will be obligated at time of award; funds will be obligated on individual delivery orders as they are issued. This contract was not competitively procured pursuant to FAR 6.302-1. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity (N00019-14-D-0016).
Bell Helicopter Textron Inc., Fort Worth, Texas, is being awarded a $59,703,818 modification to a previously awarded advanced acquisition contract (N00019-13-C-0023) for the procurement of long-lead items for the manufacture and delivery of 15 Lot 12 UH-1Y Build New Aircraft and 11 Lot 12 AH-1Z Build New Aircraft for the Marine Corps. Work will be performed in Fort Worth, Texas (60 percent) and Amarillo, Texas (40 percent), and is expected to be completed in September 2015. Fiscal 2014 aircraft procurement, Navy funds in the amount of $59,703,818 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, Md., is the contracting activity.

Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $52,141,562 modification to a previously awarded cost-plus-incentive-fee contract (N00019-02-C-3002) to execute phase 3 of the Joint Strike Fighter Autonomics Logistics Information System (ALIS) Standard Operating Unit Version 2 (SOUv2) capability development effort. Phase 3 includes integration of the SOUv2 with the ALIS sustainment system and the F-35 air system. Work will be performed in Orlando, Fla. (70 percent) and Fort Worth, Texas (30 percent), and is expected to be completed in August 2015. Fiscal 2013 research, development, test and evaluation, Air Force ($9,067,217) and fiscal 2014 research, development, test and evaluation Navy ($14,396,512) and Marine Corps ($14,309,644) funds in the amount of $37,773,373 will be obligated at time of award, $9,067,217 of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.
Guam MACC Builders A Joint Venture, Honolulu, Hawaii, is being awarded $45,450,600 for firm-fixed-price task order 0003 under a previously awarded multiple award construction contract (N62742-10-D-1309) for the design and construction of a high bay maintenance hangar to support forward operations and maintenance functions for the Unmanned Aircraft System MQ-4C Broad Area Maritime Surveillance platform at Andersen Air Force Base, Guam. The MQ-4C requires interior and enclosed maintenance space to accomplish scheduled inspections, airframe repairs, pre- and post-flight operations, as well as technical order compliance and aircraft modifications. The task order also contains two unexercised options, which if exercised would increase cumulative task order value to $46,719,102. Work will be performed in Yigo, Guam, and is expected to be completed by April 2016. Fiscal 2010 and fiscal 2014 military construction, Navy and fiscal 2014 other procurement, Navy contract funds in the amount of $45,450,600 are obligated on this award and will not expire at the end of the current fiscal year. Six proposals were received for this task order. The Naval Facilities Engineering Command, Pacific, Joint Base Pearl Harbor-Hickam, Hawaii, is the contracting activity.

BAE Systems Information and Electronics, Nashua, N.H., is being awarded a $37,443,252 firm-fixed-price contract to procure 1,372 Advanced Precision Kill Weapon Systems (APKWS) II WGU-59/B Guidance Section, the Navy shipping and storage container; and supporting programmatic documentation for the APKWS II WGU-59/B Guidance Sections. Work will be performed in Nashua, N.H. (70 percent); and Austin, Texas (30 percent), and is expected to be completed in September 2015. Fiscal 2014 procurement ammunition, Navy and Marine Corps, and overseas contingency operations funds in the amount of $37,443,252 will be obligated at time of award, none of which will expire at the end of the current fiscal year. This contract was not competitively procured pursuant to FAR 6.302-1. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity (N00019-14-C-0044).

Exelis Inc., Information Systems Division, Herndon, Va., is being awarded a $17,789,717 modification to previously awarded contract (N00174-11-D-0002) for the continued procurement of post-production maintenance support of Navy crew fixed site systems and procurement and support of the transmitting set, counter measure AN/PLT-4 systems. This action fills a requirement for equipment, maintenance and support for the Joint Service Explosive Ordnance Disposal Counter Radio Controlled Improvised Explosive Device Electronic Warfare (JSEOD CREW) program and for continued maintenance and support, including original equipment manufacturer field service representatives, for Legacy Navy CREW systems. The JSEOD CREW program provides all military explosive ordnance disposal (EOD) services with a new electronic warfare capability to counter the threat from improvised explosive devices. JSEOD protects EOD forces of all services, including those currently located in Operating Enduring Freedom, Afghanistan. Work will be performed in Boalsburg, Pa., and is expected to be completed by March 2015. No funds are being obligated at the time of award and contract funds will not expire at the end of the current fiscal year. The Naval Surface Warfare Center Indian Head Explosive Ordnance Disposal Technology Division, Indian Head, Md., is the contracting activity.

PAE Applied Technologies LLC, Fort Worth, Texas, is being awarded a $15,403,392 cost-plus-fixed-fee contract to meet the operations maintenance and logistics support of all range systems, equipment, government furnished databases and management systems and also determine, supply, and provide system support responsibilities, which include logistics support of isolated range equipment on, around, above and under the waters of San Clemente Island. The contract contains options, which if exercised, will bring the contract value to $167,597,135. Work will be performed in San Diego, Calif., and is expected to be completed by Sept. 30, 2014. If all options are exercised, work will continue through March 31, 2019. Fiscal 2014 operations and maintenance, Navy funds in the amount of $2,000,000 will be obligated at the time of award, and will expire at the end of the current fiscal year. This was competitively solicited through the Federal Business Opportunities website, with one offer received. The NAVSUP Fleet Logistics Center, San Diego, Calif., is the contracting activity (N00244-14-C-0007).

Sikorsky Aircraft Corp., Stratford, Conn., is being awarded a $14,947,975 cost-plus-fixed-fee delivery order against a previously awarded Basic Ordering Agreement (N00019-14-G-0004) under the Cabin Interior Phase IIA Program, to include a cabin redesign to reduce the total gross weight allowing for greater lift capability of the VH-3D In-Service Presidential Helicopter. Work will be performed in Stratford, Conn. (98 percent) and Quantico, Va. (2 percent), and is expected to be completed in July 2016. Fiscal 2014 aircraft procurement, Navy contract funds in the amount of $14,947,975 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, Md. is the contracting activity.
Bell Helicopter Textron Inc., Hurst, Texas, is being awarded an $11,413,510 modification to a previously awarded firm-fixed-price contract (N00019-12-C-0009) to exercise an option to provide systems engineering and program management support for the production and delivery of AH-1Z and UH-1Y aircraft for the Marine Corps. Work will be performed in Hurst, Texas, and is expected to be completed in December 2014. Fiscal 2014 aircraft procurement, Navy funds in the amount of $11,413,510 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, Md., is the contracting activity.

DEFENSE LOGISTICS AGENCY

Cardinal Health Inc., Waukegan, Ill, has been awarded a maximum $16,760,817 modification (P00007) exercising the second option period on a one-year base contract (SPM2DE-12-D-7346) with four one-year option periods for various laboratory supplies. This is a fixed-price with economic-price adjustment, indefinite-delivery/indefinite-quantity contract. Location of performance is Illinois with an April 12, 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.
Veyance Technologies Inc., Fairlawn, Ohio, has been awarded a maximum $10,638,028 firm-fixed-price contract for track shoe assemblies for the M88 vehicle. This is a competitive acquisition, and two offers were received. Location of performance is Ohio with a Jan. 21, 2015 performance completion date. Using military service is Army. Type of appropriation is fiscal 2014 through fiscal 2015 Army working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Warren, Mich., (SPRDL1-14-C-0071).
*Small Business

PRESIDENT OBAMA'S CALL REGARDING 6 MILLION AMERICANS SIGNED UP FOR HEALTH INSURANCE

FROM:  THE WHITE HOUSE 
Readout of the President’s Call with Health Care Navigators Announcing that 6 Million Americans Have Signed Up for Health Insurance

This afternoon, while traveling in Italy, President Obama convened a conference call with health care navigators and volunteers helping with enrollment efforts and announced that more than 6 million Americans have signed up for private health insurance plans through the federal and state Marketplaces since October 1. The President was joined on the call by several thousand grassroots volunteers, navigators and in-person assistors who are leading the effort to enroll millions of Americans in quality, affordable health insurance plans.

During the call, the President thanked the group for all their hard work to date and discussed the importance of building on this progress over the last four days of open enrollment. With consumers’ interest in signing up for health insurance surging – yesterday there were over 1.5 million visits to HealthCare.gov and over 430,000 calls to the call centers – the President encouraged the navigators and volunteers to redouble their efforts over the next four days and leave no stone unturned in trying to bring affordable health coverage to as many Americans as possible by the March 31 deadline. Nationwide, there more than 27,000 trained assistors in all fifty states who are helping consumers sign up in their communities. Consumers can find out how to get local in person help at this link on HealthCare.gov or through their state marketplaces.

PRESIDENT OBAMA MAKES STATEMENT ON ENDING SECTION 215 BULK METADATA PROGRAM

FROM:  THE WHITE HOUSE 
MARCH 27, 2014
Statement by the President on the Section 215 Bulk Metadata Program

Earlier this year in a speech at the Department of Justice, I announced a transition that would end the Section 215 bulk telephony metadata program as it previously existed and that we would establish a mechanism to preserve the capabilities we need without the government holding this bulk metadata.  I did so to give the public greater confidence that their privacy is appropriately protected, while maintaining the tools our intelligence and law enforcement agencies need to keep us safe.

In that January 17 speech, I ordered that a transition away from the prior program would proceed in two steps.  In addition to directing immediate changes to the program, I also directed the Intelligence Community and the Attorney General to use this transition period to develop options for a new approach to match the capabilities and fill gaps that the Section 215 program was designed to address without the government holding this metadata.  I instructed them to report back to me with options for alternative approaches before the program comes up for reauthorization on March 28th.  As part of this process, we consulted with the Congress, the private sector, and privacy and civil liberties groups, and developed a number of alternative approaches.

Having carefully considered the available options, I have decided that the best path forward is that the government should not collect or hold this data in bulk.  Instead, the data should remain at the telephone companies for the length of time it currently does today.  The government would obtain the data pursuant to individual orders from the Foreign Intelligence Surveillance Court (FISC) approving the use of specific numbers for such queries, if a judge agrees based on national security concerns.  Legislation will be needed to permit the government to obtain this information with the speed and in the manner that will be required to make this approach workable.

I believe this approach will best ensure that we have the information we need to meet our intelligence needs while enhancing public confidence in the manner in which the information is collected and held.  My team has been in touch with key Congressional leadership -- including from the Judiciary and Intelligence Committees -- and we are committed to working with them to see legislation passed as soon as possible. Given that this legislation will not be in place by March 28 and given the importance of maintaining this capability, I have directed the Department of Justice to seek a 90-day reauthorization of the existing program including the modifications I directed in January.  I am confident that this approach can provide our intelligence and law enforcement professionals the information they need to keep us safe while addressing the legitimate privacy concerns that have been raised.

SECRETARY KERRY'S STATEMENT ON UN VOTE ON SRI LANKA RECONCILIATION

FROM:  U.S. STATE DEPARTMENT 

UN Human Rights Council Vote on Sri Lanka Reconciliation

Press Statement
John Kerry
Secretary of State
Washington, DC
March 27, 2014


Today’s vote in the UN Human Rights Council sends a clear message: The time to pursue lasting peace and prosperity is now; justice and accountability cannot wait.

This resolution reaffirms the commitment of the international community to support the Government of Sri Lanka as it pursues reconciliation and respect for human rights and democratic governance. That’s why the resolution requests that the Office of the High Commissioner for Human Rights continues monitoring the human rights situation in Sri Lanka. That’s why it calls on the Office to conduct an investigation into allegations of serious human rights abuses and related crimes during Sri Lanka’s civil war. And that’s why the United States will continue speak out in defense of the fundamental freedoms that all Sri Lankans should enjoy.

We are deeply concerned by recent actions against some of Sri Lanka’s citizens, including detentions and harassment of civil society activists. Further reprisals against these brave defenders of human rights and the dignity of all Sri Lankan citizens would elicit grave concern from the international community.

The Sri Lankan people are resilient. They have demonstrated grit and determination through years of war. Now, they are demanding democracy and prosperity in years of peace. They deserve that chance.

The United States stands with all the people of Sri Lanka. We are committed to helping them realize a future in which all Sri Lankans can share in their country’s success.

RUSSIA REINFORCES UNITS ALONG BORDER WITH UKRAINE

FROM:  U.S. STATE DEPARTMENT 
Russia Reinforcing Units on Border with Ukraine
By Jim Garamone
American Forces Press Service

WASHINGTON, March 27, 2014 – Russia continues to reinforce units along the eastern and southern Ukraine border, Pentagon Press Secretary Navy Rear Adm. John Kirby said during a news conference today.

Russian Defense Minister Sergei Shoigu told Defense Secretary Chuck Hagel last week that the Russian troops were massing for regularly scheduled exercises.
“The minister said it was exercises, no intent to cross the border,” Kirby said. “They need to live up to that word.”

The build-up on the Russian side of the border does nothing to de-escalate the tensions between Russia and Ukraine, Kirby said. “It’s doing nothing to assist in the stability of that part of Europe,” the admiral said.

The United States is concerned about the build-up and is monitoring it closely, he said.

The United States has added aircraft and personnel to the aviation detachment in Poland. The United States and other NATO nations have added to the force comprising the Baltic air police mission.

“I would tell you that the staff here in the Pentagon, both the civilian and uniformed, are constantly looking at other ways that … we can further reassure our allies and partners in Europe to potentially look at either adding to or reinforcing existing operations or exercises or even adding on additional opportunities,” Kirby said. “We’re looking at that very closely right now.”

There has been no indication of any Russian exercises in the region, the admiral said. “The way it was explained was that these were springtime exercises,” he said.

He urged reporters to call the Russian Ministry of Defense for more information.
“Our concern is for the territorial integrity and sovereignty of Ukraine and for the Ukrainian people and their nation,” Kirby said.

Moscow has violated Ukraine’s sovereignty. “The forces they have in Crimea and the forces they have along the border with Ukraine are doing nothing to deescalate the tension,” he said. “And that's the concern.”

EXPEDITION 39 CREW LAUNCHES ABOARD SOYUZ ROCKET




FROM:  NASA 
The gantry arms begin to close around the Soyuz TMA-12M spacecraft to secure the rocket at the launch pad on Sunday, March 23, 2014, at the Baikonur Cosmodrome in Kazakhstan. Launch of the Soyuz rocket is scheduled for 5:17 p.m. EDT, March 25 and will send Expedition 39 Soyuz Commander Alexander Skvortsov of the Russian Federal Space Agency, Roscosmos, Flight Engineer Steven Swanson of NASA, and Flight Engineer Oleg Artemyev of Roscosmos on a six-month mission aboard the International Space Station. Image Credit: NASA/Joel Kowsky.




Expedition 39 Crew Launches Aboard the Soyuz TMA-12M Rocket
The Soyuz TMA-12M rocket launches from Baikonur Cosmodrome in Kazakhstan on  Wednesday, March 26, 2014 carrying Expedition 39 Soyuz Commander Alexander Skvortsov of the Russian Federal Space Agency, Roscosmos, Flight Engineer Steven Swanson of NASA, and Flight Engineer Oleg Artemyev of Roscosmos to the International Space Station.  Image Credit: NASA/Joel Kowsky.

LANL SUGGESTS NEW HUMAN SURROGATE MIGHT REDUCE NEED FOR ANIMAL TESTING

Right: ATHENAmodel.jpg: The ATHENA organ project combines heart, liver, kidney and lung features in a desktop toxicity testing platform. Artists conception courtesy Los Alamos National Laboratory.

FROM:  LOS ALAMOS NATIONAL LABORATORY 
ATHENA Desktop Human “Body” Could Reduce Need for Animal Drug Tests
Surrogate Organ System Developed for Toxicity Testing

LOS ALAMOS, N.M., March 26, 2014—Creating surrogate human organs, coupled with insights from highly sensitive mass spectrometry technologies, a new project is on the brink of revolutionizing the way we screen new drugs and toxic agents.

ATHENA, the Advanced Tissue-engineered Human Ectypal Network Analyzer project team, is developing four human organ constructs – liver, heart, lung and kidney – that are based on a significantly miniaturized platform. Each organ component will be about the size of a smartphone screen, and the whole ATHENA “body” of interconnected organs would fit neatly on a desk.

“By developing this ‘homo minutus,’ we are stepping beyond the need for animal or Petri dish testing: There are huge benefits in developing drug and toxicity analysis systems that can mimic the response of actual human organs,” said Rashi Iyer, a senior scientist at Los Alamos National Laboratory, the lead laboratory on the five-year, $19 million multi-institutional effort. The project is supported by the Defense Threat Reduction Agency (DTRA).

“By creating a holistic dynamic system that more realistically mimics the human physiological environment than static human cells in a dish, we can understand chemical effects on human organs as never before,” she said. “The ultimate goal is to build a lung that breathes, a heart that pumps, a liver that metabolizes and a kidney that excretes -– all connected by a tubing infrastructure much akin to the way blood vessels connect our organs. While some skeptics might believe that this is a utopian dream,” she said, “the team is confident that this is indeed achievable.”

Some 40 percent of pharmaceuticals fail their clinical trials, Iyer noted, and there are thousands of chemicals whose effects on humans are simply unknown. Providing a realistic, cost-effective and rapid screening system such as ATHENA with high-throughput capabilities could provide major benefits to the medical field, screening more accurately and offering a greater chance of clinical trial success.

Results from the project’s Vanderbilt University effort on the ATHENA perfusion system will be presented at the Society of Toxicology meeting this week in Phoenix by co-principal investigator John Wikswo. Successful development and analysis of a human liver organ construct -- that responds to exposure to a toxic chemical much like a real liver – is described in a presentation reported by the Gordon A. Cain University Professor and Director of the Vanderbilt Institute for Integrative Biosystems Research and Education (VIIBRE) at Vanderbilt University.

“We spent a bit of time analyzing the challenges in building miniature human organ constructs, and we believe we’ve figured out how to capture the key features we need,” said Wikswo. “There are a lot of trade-offs, and we’re not trying to build an exact replica of a human liver, but an in vitro model that allows us to measure human liver responses to drugs and toxins that cannot be replicated by a layer of cells growing on plastic.”

The ATHENA project brings together top capabilities and researchers in this pioneering field of research. The project components are divided as follows:

 In addition to leading and coordinating the project, Iyer is directing work on the lung and kidney organ as well as step-wise integration and validation of all of the organs in the ATHENA perfusion platform – all of which will be executed at LANL.
 Wikswo and his VIIBRE group are building the hardware platform that ‘runs’ and monitors the health of the entire system, while the first organ, the liver construct, which was recently tested in the ATHENA platform at VIIBRE, is being developed by Katrin Zeilinger, head of the Bioreactor Group, Experimental Surgery, and colleagues at Charité Universitätsmedizin, Berlin, Germany.
 Kevin Kit Parker, Tarr Family Professor of Bioengineering and Applied Physics at Harvard University, is leading the heart effort.

 Shuvo Roy, Director of the Biomedical Microdevices Laboratory at the University of California San Francisco (UCSF), and Associate Professor of Medicine William Fissell of Vanderbilt are developing the kidney constructs.
 Andrzej Przekwas, CTO and Senior Vice President for Research of CFD Research Corporation (CFDRC), a technology company in Huntsville, AL, is building a mathematical model of ATHENA to facilitate system design and physiologically-based pharmacokinetic/pharmacodynamic (PB-PK/PD) models to guide drug exposure studies and data extrapolation. “This component is unique and critical when building an integrated ex vivo system mimicking the human body,” said the DTRA program manager.

 LANL and Vanderbilt in collaboration with CFDRC will develop a blood mimic to sustain the four devices.

And as Iyer puts it “a system is only as good as its analytical strength. . . the ion mobility mass spectrometry capability being developed by VU’s John McLean with a parallel capability at Los Alamos, lead by Srinivas Iyer, ensures an unprecedented ability to interrogate the system and obtain valuable data.”

Successful integration of the Charité-developed liver organ construct into the VIIBRE built ATHENA perfusion system was demonstrated to DTRA recently. The team expects to connect the liver and the heart constructs this winter followed by the lung and finally the kidney.

The research is funded by Defense Threat Reduction Agency agreement # CBMXCEL-XL1-2-0001.

U.S.-CANADA ANTITRUST AGENCIES ISSUE BEST PRACTICES FOR COORDINATING REVIEWS OF MERGERS

FROM:   U.S. JUSTICE DEPARTMENT 

U.S. AND CANADA ANTITRUST AGENCIES ISSUE BEST PRACTICES FOR COORDINATING MERGER REVIEWS

Builds Upon 1995 Cooperation Agreement Between the Two Countries

WASHINGTON — The Department of Justice, the Federal Trade Commission (FTC), and the Competition Bureau Canada today issued a set of “best practices” to make more transparent how they coordinate merger reviews that affect the United States and Canada.

Assistant Attorney General for the Department of Justice’s Antitrust Division Bill Baer, FTC Chairwoman Edith Ramirez and Canadian Commissioner of Competition John Pecman praised the long record of successful cooperation between the two jurisdictions, and noted that cross-border coordination and cooperation in merger matters have steadily increased over the last decades.

The best practices set forth how effective day-to-day cooperation works between the two U.S. agencies and the Competition Bureau, including how the agencies communicate with each other, benefit from the similarity of their respective merger review timetables, cooperate in the analysis of evidence, use waivers of confidentiality provided by the parties and address remedies and settlements.  The best practices also seek to promote cooperation and coordination between the U.S. and Canadian agencies in order to enhance the likelihood of consistent outcomes when the same merger is reviewed in both countries.  In addition, the best practices acknowledge the contribution that merging parties can make in facilitating cooperation, and provide guidance to firms about how to work with the agencies to coordinate and facilitate the reviews of their proposed transactions.

“The strong relationship between the U.S. and Canadian competition agencies has allowed us to cooperate closely and effectively on many merger investigations,” said Assistant Attorney General Baer. “The best practices we are issuing today are a testimony to our agencies’ long-standing and productive working relationship and the importance all of our agencies place on transparency.”

“We have developed a very close working relationship with our Canadian colleagues based on our shared approach to the implementation of our competition laws and policies,” said FTC Chairwoman Ramirez.  “These best practices exemplify our commitment to cooperation and convergence, benefiting our agencies, merging parties, and ultimately consumers.”

The best practices, which do not modify existing law, build upon the framework of the 1995 antitrust cooperation agreement between the United States and Canada and the experience gained under that framework.

RESEARCHER BELIEVES YELLOWSTONE SUPERVOLCANO WILL NOT ERUPT FOR A LONG TIME

FROM:  NATIONAL SCIENCE FOUNDATION 

Will the Yellowstone supervolcano erupt in our lifetime?
Researcher studies the past to predict the future

As with many things in nature, it helps to understand the past when trying to predict the future.

Ilya Bindeman, an associate professor of geological sciences at the University of Oregon, believes this is true of the Yellowstone supervolcano and the likelihood that it will produce an apocalyptic eruption as it has three times over the last the last 2 million years.

"Yellowstone is one of the biggest supervolcanos in the world," he says. "Sometimes it erupts quietly with lava flow, but once or twice every million years, it erupts very violently, forming large calderas," which are very large craters measuring tens of kilometers in diameter.

If it happens again, and he says most scientists think that it will, he predicts such an eruption will obliterate the surroundings within a radius of hundreds of kilometers, and cover the rest of the United States and Canada with multiple inches of ash. This, effectively, would shut down agriculture and cause global climate cooling for as long as a decade, or more, he says. A volcanic event of such magnitude "hasn't happened in modern civilization," he says.

However, the National Science Foundation (NSF)-funded scientist doesn't think it's going to happen anytime soon--at least not for another 1 million to 2 million years.

"Our research of the pattern of such volcanism in two older, 'complete' caldera clusters in the wake of Yellowstone allows a prognosis that Yellowstone is on a dying cycle, rather than on a ramping up cycle," he says.

By this, he is referring to an ongoing cycle that occurs within the so-called Yellowstone "hot spot," an upwelling plume of hot mantle beneath the Earth's surface, when magma chambers, which are large underground pools of liquid rock, reuse rocks, eject lava, melt again and prompt large eruptions many thousands of years later.

It is a complicated process that also involves the position of the North American plate, which is moving at the rate of two to four centimeters a year, and its relationship to the hot spot, as well as the continuing interaction of the Earth's crust with basalt, a common volcanic rock derived from the mantle.

"Yellowstone is like a conveyer belt of caldera clusters," he says. "By investigating the patterns of behavior in two previously completed caldera cycles, we can suggest that the current activity of Yellowstone is on the dying cycle."

Calderas first form due to the hot spot's interaction with the North American plate, forming new magma after about a two-million-year delay.

"It takes a long time to build magma bodies in the crust," he says. "We discovered a consistent pattern: subsequent volcanism is a combination of new magma production and the recycling of already erupted material, which includes lava and tuff," a rock composed of consolidated volcanic ash.

By comparing Yellowstone to previous completed caldera cycles, "we can detect that the Yellowstone hot spot is re-using the already erupted and buried material, rather than producing just new magma, " he says. "Either the crust under Yellowstone is turning into hard-to-melt basalt, or because the movement of North American plate has changed the magma pluming system away from Yellowstone, or both of these reasons."

The Yellowstone hot spot has produced multiple clusters of nested volcanic craters, known as calderas, during the last 16 million years. "Caldera cycles go on for maybe several million years, and then it is done," he adds. "The current magmatic activity in Yellowstone is in the middle of the cycle, or at the end, as three caldera forming eruptions have already happened."

The three most recent eruptions, which occurred 2 million, 1.3 million, and 640,000 years ago, resulted in a series of nested calderas forming what we know as Yellowstone National Park and its immediate vicinity.

Eventually, the cycle comes to an end for unknown reasons.

"By performing micro-analytical isotopic investigation of tiny minerals in rocks, we are trying to understand when it's done," he says. "We know the behavior of the past and we know at what comparative stage Yellowstone is right now. We think Yellowstone is currently on a third cycle, and it's a dying cycle. We've observed a lot of material that represent recycled volcanic rocks, which were once buried inside of calderas and are now getting recycled. Yellowstone has erupted enough of this material already to suggest that the future melting potential of the crust is getting exhausted."

To be sure, however, he also points out that "everything is possible in geology, and not very precise."

Bindeman is conducting his research under an NSF Faculty Early Career Development (CAREER) award, which he received in 2009. The award supports junior faculty who exemplify the role of teacher-scholars through outstanding research, excellent education, and the integration of education and research within the context of the mission of their organization. NSF is funding his work with $533,606 over five years.

As part of the grant's education component, Bindeman is training graduate and undergraduate students using lab-based learning, summer research programs for undergraduates and community college students, and through new courses.

He also has developed exchanges and collaboration among graduate and undergraduate students and scientists in the United States, Switzerland, Russia, France and Iceland.

"International exchange will involve collaborative lab visits, joint fieldwork, excursions for foreign students, and international student and postdoc hiring," he says. He recently led a two-week Yellowstone field school for graduate students and professors visiting from Switzerland.

Bindeman's research involves using radioactive dating to determine the age of volcanic materials, such as tuff and lava, "with the goal of understanding its history," he says. "Knowing the age is important as a context for understanding everything else."

They analyze oxygen isotope ratios in quartz and zircon, and water- and heat-resistant minerals, from volcanic rocks. Despite re-melting, the zircon crystals have retained their isotope signatures, enabling the scientists to date their cores and rims, and look into the history of the magma assembly.

"We found patterns indicating that material was recycled as older volcanic rocks forming the roofs of magma chambers collapsed and re-melted during eruptions, only to be re-ejected in the next volcanic outburst," he says.

Specifically he and his team studied the two most recently completed cycles, that is, the cycle that produced the eruption of 2 million years ago, known as Heise, and the one that followed, producing the eruption of 1.3 million years ago, known as Picabo.

The results of those studies enabled them to determine the current state of the supervolcano, and predict that a new catastrophic caldera-forming eruption likely will happen only in 1 million to 2 million years, probably in Montana.

An eruption of power has not occurred in the world for at least 74,000 years. "The last one was in Toba, Indonesia," he says.

Bindeman also is investigating the potential effects of the next massive eruption on the atmosphere. "Sulfur dioxide gas will be released in large quantities, resulting in global cooling and ozone destruction, but nobody knows yet how cold it's going to get and what will be the effects of temporary ozone layer destruction," he says.

To convey the power of the last Yellowstone eruption, and quite possibly the next one, Bindeman cites two recent examples for comparison purposes: The 1980 eruption of Mt. St. Helens in Washington State, which killed 57 people and caused widespread destruction, spewed one cubic kilometer of material into the air, he says. The 1991 eruption of Mt. Pinatubo in the Philippines, which killed hundreds of people and for several years decreased global temperatures, released ten cubic kilometers, he says.

"The last Yellowstone eruption 640,000 years ago was 1,000 kilometers of material," he says.

-- Marlene Cimons, National Science Foundation
Investigators
Ilya Bindeman
Related Institutions/Organizations
University of Oregon Eugene

Wednesday, March 26, 2014

BRITISH, U.S. DEFENSE LEADERS MEET OVER CRIMEA-UKRAINE SITUATION

FROM:  U.S. DEFENSE DEPARTMENT 
U.S., British Defense Leaders Discuss Ukraine, NATO
By Jim Garamone
American Forces Press Service

WASHINGTON, March 26, 2014 – U.S. and United Kingdom defense leaders today reiterated that there must be consequences for Russia following President Vladimir Putin’s forced annexation of Crimea from Ukraine.

Defense Secretary Chuck Hagel hosted British Defense Secretary Philip Hammond at the Pentagon. The two discussed a range of subjects, but the main focus was Ukraine, Hagel said at a news conference with Hammond after their meeting.
“I thanked Secretary Hammond for the U.K.'s steadfast support of Ukraine's sovereignty and territorial integrity and for the U.K.’s important contributions to NATO,” Hagel said. “We reaffirmed the strong commitment of both our countries to NATO's collective defenses, as President Obama has emphasized throughout his trip to Europe.”

Economic and diplomatic sanctions that have been imposed against Russia by the European Union and the United States will further isolate Russia, Hagel noted. “As the leaders of both our countries and the other G-7 nations affirmed this week in the Netherlands, we will continue to coordinate closely on future actions and sanctions we may take against Russia,” he added.

Hammond said Russia’s action was completely unacceptable, and he called the Russian occupation of Crimea “illegal annexation of a sovereign territory.”
The United Kingdom stands with the United States and the rest of NATO in opposing the Russian action and supports “wide-ranging economic and diplomatic sanctions to force President Putin to stop his bullying behavior,” Hammond said.
“The Russian government should be in no doubt that should there be further acts of aggression, there will be further consequences for Russia,” he added.
Hammond confirmed that in addition to the offer of Royal Air Force Typhoon combat jets to bolster the Baltic air policing mission, the United Kingdom is working with its allies and partners to scope options for additional measures of reassurance to Eastern European and Baltic allies.

Hammond stated that evidence suggests that the Russian agenda is being run by Putin personally. “Other Russian players, including [Defense] Minister [Sergei] Shoigu, may express views, but it's a moot point, and we cannot know, we do not know, to what extent all of those people are really inside the inner circle in which President Putin is planning this exercise,” the British leader said.

The situation in Ukraine demonstrates the continued need for NATO, Hagel said. “The essential character and commitment of this alliance, of its 28 members to one another, remains unchanged, but we will look for new ways to collaborate and improve the alliance’s capabilities and readiness,” the secretary said. “That means we will make continued necessary investments in defense.”

The two men and their staffs also discussed the progress of the campaign in Afghanistan.

Both countries are grappling with budget constraints, and both leaders look on this as an opportunity to explore new areas of cooperation. Hammond said the United States and United Kingdom could work together in nuclear deterrence, special operations forces, intelligence, unmanned aerial vehicles, surveillance aircraft and carrier strike regeneration.

U.S. DEFENSE DEPARTMENT CONTRACTS FOR MARCH 26, 2014

FROM:  U.S. DEFENSE DEPARTMENT DEFENSE 
CONTRACTS
 DEFENSE LOGISTICS AGENCY

Siemens Medical Solutions Inc., Malvern, Pa., has been awarded a maximum $1,789,537,539 modification (P00101) exercising the fifth option period on a one-year base contract (SPM2D1-09-D-8314) with seven one-year option periods for radiology systems, subsystems, accessories, service, and repair and  parts.  This is a fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract.  Location of performance is Pennsylvania with a March 30, 2015 performance completion date.  Using military services are Army, Navy, Air Force, Marine Corps and federal civilian agencies.  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.

Hitachi Medical Systems America Inc., Twinsburg, Ohio, has been awarded a maximum $90,254,284 modification (P00017) exercising the fifth option period on a one-year base contract (SPM2D1-09-D-8331) with seven one-year option periods for radiology systems, components, upgrades, accessories, and installation.  This is a fixed-price with economic-price adjustment contract.  Location of performance is Ohio with a March 29, 2015 performance completion date.  Using military services are Army, Navy, Air Force, Marine Corps and federal civilian agencies.  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.

AIR FORCE

Gulfstream Aerospace Corp., Savannah, Ga., has been awarded a maximum $102,062,349 modification (P00002) exercising option period one on firm-fixed-price, indefinite-delivery/indefinite-quantity contract (FA8106-13-D-0002) for contractor logistics support services to the C-20 and C-37 fleet for Air Force, Army, Navy, Marines, and Coast Guard.  Work will be performed worldwide, and is expected to be completed by Jan. 31, 2015.  Fiscal 2014 operations and maintenance, Air Force, Army, Navy, Marines, and Coast Guard funds in the amount of $60,841,191 are being obligated at time of award.  Air Force Life Cycle Management Center/WLKLB, Tinker Air Force Base, Okla., is the contracting activity.

The Raytheon Co., El Segundo, Calif., has been awarded a maximum $33,680,614 cost-plus-fixed-fee contract for the hypertemporal imaging space experiment payload.  The primary objective of the hypertemporal imaging space experiment payload effort is to design, fabricate, test, and deliver a space-flight ready instrument capable of conducting hypertemporal imaging from a geosynchronous earth orbit.  Work will be performed in El Segundo, Calif., and is expected to be completed in January 2017.  Fiscal 2013 and 2014 research, development, test and evaluation funds in the amount of $6,387,630 are being obligated at award.  This award is the result of a broad agency announcement, and two proposals were received.  Detachment 8, Air Force Research Laboratory, Kirtland Air Force Base, N.M., is the contracting activity (FA9453-14-C-0211).  

Beechcraft Corp., Wichita, Kan., has been awarded a $24,500,000 firm-fixed-price and cost- reimbursable, indefinite-delivery/indefinite-quantity contract for King Air 350 aircraft maintenance training.  Contractor provided training shall be based on standard commercial-off-the shelf configured King Air 350 proline 21 avionics.  Work will be performed at New Al-Muthana Airbase, Iraq and Wichita, Kan., and is expected to be completed by Dec. 31, 2015.  This award is the result of a sole-source acquisition.  This is 100 percent foreign military sales for Iraq.  338 Specialized Contracting Squadron, Joint Base San Antonio, Randolph Air Force Base, Texas, is the contracting activity (FA3002-14-D-0003).

Newbegin Enterprise Inc.*, Johnson City, Tenn., has been awarded a $15,000,000 modification (P00005) on indefinite-quantity/indefinite-delivery contract (FA4803-11-D-0001) to exercise option year three for U.S. Air Forces Central (USAFCENT) Internet-Based Contractor Operated Part Store.  The contract modification provides for the contractor to provide automotive and related vehicle parts, automotive chemicals, corrosion control materials, upholstery material, and accessories for USAFCENT vehicles/equipment located in USAFCENT area of responsibility.  Fiscal 2014 operations and maintenance funding for this modification will be issued against individual delivery orders.  Work will be performed at Johnson City, Tenn., and is expected to be completed March 31, 2015.  20th Contracting Squadron, Shaw Air Force Base, S.C., is the contracting activity.

NAVY

L-3 Communications Vertex Aerospace LLC, Madison, Miss., is being awarded a $58,488,748 indefinite-delivery, requirements contract to provide logistics services and materials for organizational, intermediate, and depot level maintenance required to support T45TS aircraft based at Naval Air Station (NAS) Meridian, Miss.; NAS Kingsville, Texas; and NAS Pensacola, Fla.  This requirement also includes the support and maintenance of the T-45 aircraft at all operational sites, numerous outlying fields, and various detachment sites.  Work will be performed in Kingsville, Texas (58 percent); Meridian, Miss. (36 percent); and Pensacola, Fla. (6 percent), and is expected to be completed in July 2014.  Contract funds will not be obligated at time of award.  Funds will be obligated on individual delivery orders as they are issued.  This contract was not competitively procured pursuant to FAR 6.302-1.  The Naval Air Systems Command, Patuxent River, Md., is the contracting activity (N00019-14-D-0019).

Rolls-Royce Corp., Indianapolis, Ind., is being awarded a $39,599,668 modification to a previously awarded firm-fixed-price contract (N00019-10-C-0020) for the procurement of 26,495 V-22 flight hours and 26 low power MV-22 repairs under the Mission Care™ contract.  Work will be performed in Oakland, Calif. (70 percent) and Indianapolis, Ind. (30 percent), and is expected to be completed in February 2015.  Fiscal 2014 operations and maintenance, Navy and U.S. Special Operations funds in the amount of $39,599,668 are being obligated on this award, all of which will expire at the end of the current fiscal year.  The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.

CasePro Inc., San Antonio, Texas (N62645-14-D-5003); Catalyst Professional Services Inc.*, Colorado Springs, Colo. (N62645-14-D-5004); Cherokee Medical Services LLC*, Stillwell, Okla. (N62645-14-D-5005); Chesapeake Educational Services LLC*, Vienna, Va. (N62645-14-D-5006); OMV Medical Inc., Takoma Park, Md. (N62645-14-D-5007); Professional Performance Development Group Inc., San Antonio, Texas (N62645-14-D-5008); Saratoga Medical Center Inc.*, Fairfax, Va. (N62645-14-D-5009); TCMP Staffing Services LLC, Springfield, Va. (N62645-14-D-5010) are each being awarded a nine-month, firm-fixed-priced, indefinite-delivery/indefinite-quantity, multiple-award task order bridge contract to continue extending physician, allied health, nursing, technologist, technician and assistant services currently being provided in support of the Naval Hospital Jacksonville, Fla.; Naval Health Clinic Pensacola, Fla.; Naval Health Clinic Corpus Christi, Texas, and their affiliated clinics within Florida, Georgia, Indiana, Kansas, Louisiana, Mississippi, Tennessee and Texas.  The aggregate not-to-exceed amount for these multiple award contracts combined is $28,000,000.  Work will be performed in Jacksonville, Fla. (46 percent); Pensacola, Fla. (44 percent); Corpus Christi, Texas (10 percent) and affiliated clinics within Florida, Georgia, Indiana, Kansas, Louisiana, Mississippi, Tennessee and Texas, and work is expected to be completed January 31, 2015.  Fiscal 2014 Defense Health Program contract funding in the amount of $21,391,455 will be obligated at the time of award.  Contract funds in the amount of $5,000,000 will expire at the end of the current fiscal year.  Other funding initiatives such as psychological health/traumatic brain injury, overseas contingency operations and wounded, ill, and injured may be used.  These contracts were issued as sole source requirements in accordance with 10 U.S.C. 2304(c)(1)-only one responsible source or only a limited number of responsible sources.  The Naval Medical Logistics Command, Fort Detrick, Md., is the contracting activity.

General Dynamics-Advanced Information Systems, Pittsfield, Mass., is being awarded a $10,485,397 cost-plus-incentive-fee modification to previously awarded contract (N00024-09-C-6206) for fiscal 2014 and 2015 multi-purpose processor (MPP) cabinet and the Total Ship Monitoring System (TSMS).  The contract provides funding for the development and production of the MPPs and TSMS (TI-14) for the U.S. submarine fleet.  Work will be performed in Pittsfield, Mass. (70 percent), and Fairfax, Va. (30 percent), and is expected to be completed by December 2015.  Fiscal 2014 shipbuilding and conversion, Navy; fiscal 2014 other procurement, Navy; fiscal 2014 research, development, test and evaluation; and fiscal 2014 operations and maintenance, Navy contract funds in the amount $5,736,478 will be obligated at the time of award and will not expire at the end of the current fiscal year.  The Naval Sea Systems Command, Washington, D.C., is the contracting activity.

United Technologies Corp., Pratt & Whitney Military Engines, East Hartford, Conn., is being awarded a $10,242,104 modification to a previously awarded advance acquisition contract (N00019-13-C-0016) for long-lead components, parts and materials associated with the low rate initial production Lot VIII of eight F135 conventional take off and landing propulsion systems for the governments of Japan (6) and Israel (2).  Work will be performed in East Hartford, Conn. (67 percent); Bristol, United Kingdom (16.5 percent); and Indianapolis, Ind. (16.5 percent), and is expected to be completed in September 2016.  Foreign military sales funds in the amount of $10,242,104 are being obligated on this award, none of which will expire at the end of the current fiscal year.  This contract combines purchases for the governments of Japan; ($7,681,578; 75 percent); and Israel ($2,560,526; 25 percent) under the Foreign Military Sales Program.  The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.

Detyens Shipyards Inc.*, North Charleston, S.C., is being awarded an $8,529,497 firm-fixed-price contract for a 55-calendar day regular overhaul and dry-docking of USNS Laramie (T-AO 203).  Work will include clean and gas free tanks, voids, and cofferdams; deck non-skid resurfacing; ballast tank preservation, cylinder head and liner overhaul, main engine turbo overhaul, cargo system wire replacement; cargo console mechanical support; auxiliary boiler maintenance and inspection; annual lifeboat certification; house ventilation system cleaning; docking and undocking; propeller system maintenance and hub replacement; overhauling sea valves; and underwater hull cleaning and painting.  Laramie’s primary mission is to provide fuel to U.S. Navy ships at sea and jet fuel to aircraft assigned to aircraft carriers.  The contract includes options, which, if exercised, would bring the cumulative value of this contract to $9,520,492.  Work will be performed in Charleston, S.C., and is expected to be completed by June 2014.  Fiscal 2014 Navy working capital funds in the amount of $8,529,497 are obligated and will expire at the end of the current fiscal year.  This contract was competitively procured as a small business set-aside, with proposals solicited via the Federal Business Opportunities website, with two proposals received.  The U.S. Navy’s Military Sealift Command, Washington, D.C., is the contracting activity (N32205-14-C-1001).

ARMY

Olin Corp.-Winchester Division, East Alton, Ill., was awarded a $28,748,479 modification (P00036) to contract W52P1J-11-C-0038 to exercise option period three to procure .50 caliber and 5.56mm ammunition.  Fiscal 2013 other procurement funds in the amount of $2,132,226 and fiscal 2014 other procurement funds in the amount of $21,124,202 were obligated at the time of the award.  Estimated completion date is Sept 30, 2016.  Work will be performed at East Alton, Ill.  Army Contracting Command, Rock Island Arsenal, Ill., is the contracting activity.

Holland and Holland, Hinesville, Ga., was awarded a $9,035,374 modification (P00004) to indefinite-delivery/indefinite-quantity contract W9124M-12-D-0005 for paving at Fort Stewart, Ga.  Funding and performance locations will be determined with each order.  Estimated completion date is March 31, 2015.  Army Contracting Command, Fort Stewart, Ga., is the contracting activity.

*Small Business

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