Wednesday, July 2, 2014

BNP PARIBAS PLEADS GUILTY TO ILLEGALLY PROCESSING TRANSACTIONS FOR SANCTIONED COUNTRIES

FROM:  U.S. JUSTICE DEPARTMENT 
Monday, June 30, 2014
BNP Paribas Agrees to Plead Guilty and to Pay $8.9 Billion for Illegally Processing Financial Transactions for Countries Subject to U.S. Economic Sanctions

According to court documents submitted today, BNP Paribas S.A. (BNPP), a global financial institution headquartered in Paris, agreed to enter a guilty plea to conspiring to violate the International Emergency Economic Powers Act (IEEPA) and the Trading with the Enemy Act (TWEA) by processing billions of dollars of transactions through the U.S. financial system on behalf of Sudanese, Iranian, and Cuban entities subject to U.S. economic sanctions.   The agreement by the French bank to plead guilty is the first time a global bank has agreed to plead guilty to large-scale, systematic violations of U.S. economic sanctions.

The announcement was made by Attorney General Eric H. Holder, Deputy Attorney General James M. Cole, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Preet Bharara for the Southern District of New York, FBI Director James B. Comey, Chief Richard Weber of the Internal Revenue Service Criminal Investigation (IRS-CI) and District Attorney Cyrus R. Vance Jr. of New York County.

“BNP Paribas went to elaborate lengths to conceal prohibited transactions, cover its tracks, and deceive U.S. authorities. These actions represent a serious breach of U.S. law,” Attorney General Holder said. “Sanctions are a key tool in protecting U.S. national security interests, but they only work if they are strictly enforced.   If sanctions are to have teeth, violations must be punished.   Banks thinking about conducting business in violation of U.S. sanctions should think twice because the Justice Department will not look the other way.”

“BNP ignored US sanctions laws and concealed its tracks. And when contacted by law enforcement it chose not to fully cooperate,” Deputy Attorney General Cole said.   “This failure to cooperate had a real effect -- it significantly impacted the government’s ability to bring charges against responsible individuals, sanctioned entities and satellite banks.  This failure together with BNP’s prolonged misconduct mandated the criminal plea and the nearly $9 billion penalty that we are announcing today.”

“By providing dollar clearing services to individuals and entities associated with Sudan, Iran, and Cuba – in clear violation of U.S. law – BNPP helped them gain illegal access to the U.S. financial system,” said Assistant Attorney General Caldwell.   “In doing so, BNPP deliberately disregarded U.S. law of which it was well aware, and placed its financial network at the services of rogue nations, all to improve its bottom line.   Remarkably, BNPP continued to engage in this criminal conduct even after being told by its own lawyers that what it was doing was illegal.”

“BNPP banked on never being held to account for its criminal support of countries and entities engaged in acts of terrorism and other atrocities,” said U.S. Attorney Bharara.   “But that is exactly what we do today.  BNPP, the world's fourth largest bank, has agreed to plead guilty and pay penalties of almost $9 billion for performing the hat trick of sanctions violations, unlawfully opening the doors of the U.S. financial markets to three sanctioned countries, Sudan, Iran, and Cuba.  For years, BNPP provided access to billions of dollars to these sanctioned countries, as well as to individuals and groups specifically identified and designated by the U.S. government as being subject to sanctions.  The bank did so deliberately and secretly, in ways designed to evade detection by the U.S. authorities.  For its years-long and wide-ranging criminal conduct, BNPP will soon plead guilty in a federal courthouse in Manhattan.”

According to documents released publicly today, over the course of eight years, BNPP knowingly and willfully moved more than $8.8 billion through the U.S. financial system on behalf of sanctioned entities, including more than $4.3 billion in transactions involving entities that were specifically designated by the U.S. Government as being cut off from the U.S. financial system.   BNPP engaged in this criminal conduct through various sophisticated schemes designed to conceal from U.S. regulators the true nature of the illicit transactions.   BNPP routed illegal payments through third party financial institutions to conceal not only the involvement of the sanctioned entities but also BNPP’s role in facilitating the transactions. BNPP instructed other financial institutions not to mention the names of sanctioned entities in payments sent through the United States and removed references to sanctioned entities from payment messages to enable the funds to pass through the U.S. financial system undetected.

“The significant financial penalties imposed on BNP Paribas sends a powerful deterrent message to any company that places its profits ahead of its adherence to the law,” said FBI Director James Comey.  “We will continue to work closely with our federal and state partners to ensure compliance with U.S. banking laws to promote integrity across financial institutions and to safeguard our national security.”

“Today’s outcome is a testament to U.S. efforts to stem the exploitation of the American financial system and ensure that if you chose to do business in our country you must abide by our laws,” said IRS-CI Chief Weber.  “BNP Paribas will forfeit the historic figure of almost $8.9 Billion representing the proceeds of criminal activity.  BNPP had many opportunities to take corrective action and abide by the law, and yet, despite warnings from American regulators and other banks, consciously chose to ignore those warnings and commit literally thousands of flagrant violations.  IRS-CI, and our domestic and international law enforcement partners, will continue to pursue these cases and follow the money trail – wherever it may lead.”

“The most important values in the international community – respect for human rights, peaceful coexistence, and a world free of terror – significantly depend upon the effectiveness of international sanctions,” said District Attorney Vance. “Today’s guilty plea marks the seventh major case involving sanctions violations by a large international bank that my Office has pursued and resolved since 2009. These cases are critically important for international public safety and the security of our banking system, which is put at risk when it is used to further criminal activity.  The seven investigations have revealed a series of widespread schemes to falsify the business records of financial institutions in Manhattan and have resulted in the forfeiture of approximately $12 billion in total. But, more importantly, they have resulted in a fundamental change in the way all banks conduct their business, have heightened vigilance worldwide with respect to dealing with sanctioned entities, and have increased the integrity of our Manhattan-based financial institutions.”

BNPP will waive indictment and be charged in a one-count felony criminal information, filed in federal court in the Southern District of New York, charging BNPP with knowingly and willfully conspiring to commit violations of IEEPA and TWEA, from 2004 through 2012.   BNPP has agreed to plead guilty to the information, has entered into a written plea agreement, and has accepted responsibility for its criminal conduct.   BNPP is scheduled to formally enter its guilty plea before United States District Judge Lorna Schofield on July 9, 2014 at 4:30 p.m.

The plea agreement, subject to approval by the court, provides that BNPP will pay total financial penalties of $8.9736 billion, including forfeiture of $8.8336 billion and a fine of $140 million.

In addition to the joint forfeiture judgment, the New York County District Attorney’s Office is also announcing today that BNPP has pleaded guilty in New York State Supreme Court to falsifying business records and conspiring to falsify business records.   In addition, the Board of Governors of the Federal Reserve System is announcing that BNPP has agreed to a cease and desist order, to take certain remedial steps to ensure its compliance with U.S. law in its ongoing operations, and to pay a civil monetary penalty of $508 million. The New York State Department of Financial Services (DFS) is announcing BNPP has agreed to, among other things, terminate or separate from the bank 13 employees, including the Group Chief Operating Officer and other senior executives; suspend U.S. dollar clearing operations through its New York Branch and other affiliates for one year for business lines on which the misconduct centered; extend for two years the term of a monitorship put in place in 2013, and pay a monetary penalty to DFS of $2.2434 billion.   In satisfying its criminal forfeiture penalty, BNPP will receive credit for payments it is making in connection with its resolution of these related state and regulatory matters.   The Treasury Department’s Office of Foreign Assets Control has also levied a fine of $963 million, which will be satisfied by payments made to the Department of Justice.

According to documents released publicly today, including a detailed statement of facts admitted to by BNPP, BNPP has acknowledged that, from at least 2004 through 2012, it knowingly and willfully moved over $8.8 billion through the U.S. financial system on behalf of Sudanese, Iranian and Cuban sanctioned entities, in violation of U.S. economic sanctions.     The majority of illegal payments were made on behalf of sanctioned entities in Sudan, which was subject to U.S. embargo based on the Sudanese government’s role in facilitating terrorism and committing human rights abuses.   BNPP processed approximately $6.4 billion through the United States on behalf of Sudanese sanctioned entities from July 2006 through June 2007, including approximately $4 billion on behalf of a financial institution owned by the government of Sudan, even as internal emails showed BNPP employees expressing concern about the bank’s assisting the Sudanese government in light of its role in supporting international terrorism and committing human rights abuses during the same time period.   Indeed, in March 2007, a senior compliance officer at BNPP wrote to other high-level BNPP compliance and legal employees reminding them that certain Sudanese banks with which BNPP dealt “play a pivotal part in the support of the Sudanese government which . . . has hosted Osama Bin Laden and refuses the United Nations intervention in Darfur.”

One way in which BNPP processed illegal transactions on behalf of Sudanese sanctioned entities was through a sophisticated system of “satellite banks” set up to disguise both BNPP’s and the sanctioned entities’ roles in the payments to and from financial institutions in the United States.   As early as August 2005, a senior compliance officer at BNPP warned several legal, business and compliance personnel at BNPP’s subsidiary in Geneva that the satellite bank system was being used to evade U.S. sanctions: “As I understand it, we have a number of Arab Banks (nine identified) on our books that only carry out clearing transactions for Sudanese banks in dollars. . . . This practice effectively means that we are circumventing the US embargo on transactions in USD by Sudan.”

Similarly, BNPP provided Cuban sanctioned entities with access to the U.S. financial system by hiding the Cuban sanctioned entities’ involvement in payment messages.   From October 2004 through early 2010, BNPP knowingly and willfully processed approximately $1.747 billion on behalf of Cuban sanctioned entities.   In the statement of facts, BNPP admitted that it continued to do U.S. dollar business with Cuba long after it was clear that such business was illegal in order to preserve BNPP’s business relationships with Cuban entities.   BNPP further admitted that its conduct with regard to the Cuban embargo was both “cavalier” and “criminal,” as evidenced by the bank’s 2006 decision, after certain Cuban payments were blocked when they reached the United States, to strip the wire messages for those payments of references to Cuban entities and resubmit them as a lump sum in order to conceal from U.S. regulators the bank’s longstanding, and illicit, Cuban business.

Further according to court documents, BNPP engaged in more than $650 million of transactions involving entities tied to Iran, and this conduct continued into 2012 – nearly two years after the bank had commenced an internal investigation into its sanctions compliance and had pledged to cooperate with the Government.  The illicit Iranian transactions were done on behalf of BNPP clients, including a petroleum company based in Dubai that was effectively a front for an Iranian petroleum company, and an Iranian oil company.

This case was investigated by the IRS-Criminal Investigation’s Washington Field Division and FBI’s New York Field Office.   This case is being prosecuted by the Money Laundering and Bank Integrity Unit of the Criminal Division’s Asset Forfeiture and Money Laundering Section (AFMLS), and the Money Laundering and Asset Forfeiture Unit of the U.S. Attorney’s Office for the Southern District of New York.  Trial Attorneys Craig Timm and Jennifer E. Ambuehl of AFMLS and Assistant United States Attorneys Andrew D. Goldstein, Martin S. Bell, Christine I. Magdo and Micah W.J. Smith of the Southern District of New York are in charge of the prosecution.

The New York County District Attorney’s Office also conducted its own investigation alongside with the Department of Justice on this investigation.   The Department of Justice expressed its gratitude to the Board of Governors of the Federal Reserve, the Federal Reserve Bank of New York, the New York State Department of Financial Services and the Treasury Department’s Office of Foreign Assets Control for their assistance with this matter.

Tuesday, July 1, 2014

ScienceCasts: El NiƱo - Is 2014 the New 1997?

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

FROM:  U.S. DEFENSE DEPARTMENT 

CONTRACTS

NAVY

L-3 Communications Vertex Aerospace LLC, Madison, Mississippi, is being awarded a $151,365,660 indefinite-delivery requirements contract to provide organizational, intermediate, and depot level maintenance and logistics services in support of approximately 200 T-45 aircraft based at Naval Air Station Meridian, Mississippi; NAS Kingsville, Texas; NAS Pensacola, Florida; and NAS Patuxent River, Maryland. Logistics services to be provided include sustaining engineering, supply and government property management, and procurement of associated parts and materials. Work will be performed in Kingsville, Texas (48 percent); Meridian, Mississippi (44 percent); Pensacola, Florida (7 percent); and Patuxent River, Maryland (1 percent), and is expected to be completed in September 2015. 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 competitively procured via an electronic request for proposals; four offers were received. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity (N00019-14-D-0011).

Lockheed Martin Space Systems Co., Sunnyvale, California, is being awarded a $19,990,000 unpriced-letter contract for long-lead material and the labor, planning and scheduling necessary to support the fiscal 2015 Trident II D-5 missile production schedule. Work will be performed at Sunnyvale, California, with an expected completion date of Sept. 30, 2019. Fiscal 2014 weapons procurement (Navy) contract funds in the amount of $19,990,000 are being obligated at time of award. The contract funds will not expire at the end of the current fiscal year. This contract was a sole source acquisition pursuant to 10 U.S.C. 2304(c)(1). Strategic Systems Program, Washington, District of Columbia, is the contracting activity (N00030-14-C-0100).

Booz Allen Hamilton Inc., McLean, Virginia, is being awarded a $12,481,100 cost-plus-fixed-fee contract to provide support services to the Royal Saudi Naval Forces (RSNF) in the areas of training and education; engineering; program and financial management; plans and programs; communications, command, control, computers and intelligence (C4I); naval operations; manpower and personnel management; technical support; logistics and supply; English language training; special studies and management. This contract contains options, which if exercised will bring the contract value to $37,264,370. Work will be performed in Saudi Arabia (90 percent), Washington, District of Columbia (5 percent), and Pensacola, Florida area (5 percent), and work is expected to be completed by July 31, 2015. If all options are exercised, work will continue through July 31, 2017. Foreign Military Sales funds in the amount of $4,800,000 will be obligated at the time of award and these funds will not expire before the end of the current fiscal year. The contract was competitively procured via the Federal Business Opportunities website, with three offers received in response to the solicitation. NAVSUP Fleet Logistics Center Norfolk, Contracting Department, Philadelphia Office, Philadelphia, Pennsylvania, is the contracting activity (N00189-14-C-Z039).
Pacific Ship Repair and Fabrication, Inc., San Diego, California, is being awarded a $9,093,866 modification to previously awarded contract N00024-12-C-4400 for repair and modernization of USS Shoup (DDG 86). For modernization, typical work performed may include ship alterations, blasting, painting, and surface preparation for complete or touch preservation of the underwater hull, freeboard, struts, rudders, running gear, ground tackle and sea chest, as well as various interior tanks. Work will be performed in Everett, Washington, and is expected to be completed by December 2014. Fiscal 2014 operations and maintenance (Navy) contract funds in the amount of $9,093,866 will be obligated at time of award and will expire at the end of the current fiscal year. Puget Sound Naval Shipyard and Intermediate Maintenance Center Facility, Northwest Regional Maintenance Center, Bremerton, Washington, is the contracting activity.

AIR FORCE

Universal Technology Corp., Dayton, Ohio, has been awarded a $100,000,000 indefinite-delivery/indefinite-quantity contract for research and development. The goal of this contract is to provide the Aerospace Systems Directorate, Air Force Research Laboratory/RQ, with research in three core technology areas of propulsion research which are aircraft gas turbine engines; energy, aerospace power and thermal management; and advanced propulsion. The effort will include research in internal combustion engines, propulsion safety and affordable readiness, advanced instrumentation, improved materials, power management and distribution, fuels research, innovative high speed propulsion concepts and integration of high speed aerospace engines with air vehicles, weapons, and launch vehicles. Work will be performed in Dayton, Ohio, and Wright-Patterson Air Force Base, Ohio, and is expected to be completed by June 26, 2021. This award is the result of a competitive Broad Agency Announcement, BAA-12-06-PKP, in which two offers were received. Fiscal 2014 research and development funds in the amount of $25,000 are being obligated at time of award to the first task order (0001). Fiscal 2014 research and development funds in the amount of $277,750 are being obligated at time of award to the second task order (0002). Fiscal 2014 research and development funds in the amount of $10,000 are being obligated at time of award to the third task order (0003). AFRL/RQKPA, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8650-14-D-2411).
University of Dayton Research Institute, Dayton, Ohio, has been awarded a $100,000,000 indefinite-delivery/indefinite-quantity contract for research and development. The goal of this contract is to provide the Aerospace Systems Directorate, Air Force Research Laboratory/RQ, with research in three core technology areas of propulsion research which are aircraft gas turbine engines; energy, aerospace power and thermal management; and advanced propulsion. The effort will include research in internal combustion engines, propulsion safety and affordable readiness, advanced instrumentation, improved materials, power management and distribution, fuels research, innovative high speed propulsion concepts and integration of high speed aerospace engines with air vehicles, weapons, and launch vehicles. Work will be performed in Dayton, Ohio and Wright-Patterson Air Force Base, Ohio, and is expected to be completed by June 26, 2021. This award is the result of a competitive Broad Agency Announcement, BAA-12-06-PKP, in which two offers were received. Fiscal 2014 research and development funds in the amount of $10,000 are being obligated at time of award to the first task order (0001).The contracting activity is AFRL/RQKPA, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8650-14-D-2412).
Honeywell Technology Solutions Inc., Colorado Springs, Colorado, has been awarded a $12,932,500 firm-fixed-price modification (P00004) to contract FA8806-13-C-0001 for the Hybrid site upgrade at Vandenberg Tracking Station B-Side. The Core Hybrid contract is an approach the government is taking in order to upgrade the remaining sides of the eight Air Force Satellite Control Network sites. The Core Hybrid will modernize the electronics with each of the sites and integrate those electronics with the existing Antenna. The work will be performed at Vandenberg Air Force Base, California, and is expected to be completed by June 30, 2017. Fiscal 2013 other procurement funds in the amount of $12,932,500 are being obligated at time of award. The cumulative face value of this contract is $38,932,500. Space and Missile Systems Center/Range and Network Systems Directorate, Los Angeles AFB, El Segundo, California, is the contracting activity.
Northrop Grumman Information Technology Inc. Defense Group, McLean, Virginia, has been awarded a $9,240,820 modification (Q615-04) for FA8771-04-D-0004 for services in support of the Product Data Systems Data Management and Migration Support Program. The contractor will continue data system support for the Joint Engineering Data Management Information and Control System, Parts Configuration Management System, and Technical Data-Product Data Management System systems. The total cumulative face value of the contract is $37,866,840.00. The contract modification provides for the exercise of an option for the continuation of services for six months. Work will be performed at Robins Air Force Base, Georgia, and is expected to be completed by Dec. 31, 2014. Fiscal 2014 operations and maintenance and materiel support division funds in the amount of $9,240,820 are being obligated at time of award. This option is multiyear. Air Force Sustainment Center/PZIOA-R, Robins Air Force Base, Georgia, is the contracting activity.

ARMY

Ageiss, Inc,* Evergreen, Colorado (W9126G-14-D-0007); Labat Environmental, Inc.,* Bellevue, Nebraska (W9126G-14-D-0008); Potomac-Hudson Engineering,* Gaithersburg, Maryland (W9126G-14-D-0009); and Stell Environmental Enterprise, Inc.,* Elverson, Pennsylvania (W9126G-14-D-0010), were awarded a $22,000,000 firm- fixed- price indefinite- delivery/indefinite- quantity contract for environmental consulting services for the U.S. Army Corps of Engineers Southwest, Fort Worth District, with an estimated completion date of June 30, 2017. Bids were solicited via the Internet with 12 received. Funding and exact work location will be determined with each order. U.S. Army Corps of Engineers, Fort Worth, Texas, is the contracting activity.

Deutschmark Express,* Charlestown, Indiana (W912L9-14-D-0002); Sherrick Construction,* Tennessee (W912L9-14-D-0003); Synergid Commercial,* Fort Wayne, Indiana (W912L9-14-D-0004); Graves Plumbing,* Switz City, Indiana (W912L9-14-D-0005); Roederer Construction,* La Grange, Kentucky (W912L9-14-D-0006); Charpie Construction,* Chicago, Illinois (W912L9-14-D-0007); Dunlap and Co.,* Columbus, Indiana (W912L9-14-D-0008); Sycamore Engineering,* Terre Haute, Indiana (W912L9-14-D-0009); Strebig Construction,* Fort Wayne, Indiana (W912L9-14-D-0010); Patterson Horth,* Indianapolis, Indiana (W912L9-14-D-0011); Industrial Maintenance & Construction Services,* Munster, Indiana (W912L9-14-D-0012); LD Docsa,* Kalamazoo, Michigan (W912L9-14-D-0013); AML, Inc.,* Floyds Knobs, Indiana (W912L9-14-D-0014); Nuvo Construction,* Milwaukee, Wisconsin (W912L9-14-D-0015); Wycliffe Enterprises,* Louisville, Kentucky (W912L9-14-D-0016); Driftwood Builders,* Columbus, Indiana (W912L9-14-D-0017); Fetters Construction,* Auburn, Indiana (W912L9-14-D-0018); Veterans Construction Services,* Livonia, Michigan (W912L9-14-D-0019); Valiant Construction,* Louisville, Kentucky (W912L9-14-D-0020); Avantti Builders Group,* Milwaukee, Wisconsin (W912L9-14-D-0021); Krempp Construction,* Jasper, Indiana (W912L9-14-D-0022); Building Associates,* Bloomington, Indiana (W912L9-14-D-0023); R.E. Crosby,* Fort Wayne, Indiana (W912L9-14-D-0024); JDH Contracting,* Plainfield, Indiana (W912L9-14-D-0025); Davis & Associates,* Indianapolis, Indiana (W912L9-14-D-0026); CMS Corp.,* Bargersville, Indiana (W912L9-14-D-0027); Hannig Construction,* Terre Haute, Indiana (W912L9-14-D-0028); Koetter Construction,* Floyds Knobs, Indiana (W912L9-14-D-0029); Maven Construction,* Odon, Indiana (W912L9-14-D-0030); Bruns-Gutzwiller,* Batesville, Indiana (W912L9-14-D-0031); Sunco Construction,* Mooresville, Indiana (W912L9-14-D-0032); Kings Trucking,* Seymour, Indiana (W912L9-14-D-0033); CDI Inc.,* Terre Haute, Indiana (W912L9-14-D-0034); Hal-PE,* Covington, Kentucky (W912L9-14-D-0035); K&T Construction,* Franklin, Ohio (W912L9-14-D-0036); JDM LLC,* Rolling Meadows, Illinois (W912L9-14-D-0037); DC Design Construction,* St. Louis, Missouri (W912L9-14-D-0038); Integrated Environmental Solutions, Crestwood, Illinois (W912L9-14-D-0039); IMR Development Corp.,* Hollywood, Florida (W912L9-14-D-0040); TJB Air Conditioning,* Sebring, Florida (W912L9-14-D-0041); Ohio Paving & Construction Co.;* Willoughby, Ohio (W912L9-14-D-0042); Puente Construction Enterprises,* Woodbury, New Jersey (W912L9-14-D-0043); Timus Nasco,* Jacksonville, Florida (W912L9-14-D-0044); Northwind Engineering,* Shelocta, Pennsylvania (W912L9-14-D-0045); TMG Services,* Cleveland, Ohio (W912L9-14-D-0046); MKS Inc.,* Fort Wayne, Indiana (W912L9-14-D-0047); Hamilton Hunter Builders,* Fort Wayne, Indiana (W912L9-14-D-0048); J&B Builders,* St. Charles, Illinois (W912L9-14-D-0049); Coburn Contractors,* Montgomery, Alabama (W912L9-14-D-0050), were awarded a $30,000,000 firm- fixed- price multiple award indefinite- delivery/indefinite- quantity contract for sustainment/repair and maintenance, and military construction projects for the National Guard. Work will be performed in Indiana at Camp Atterbury, Mascatatuck Urban Training Center, Jefferson Proving Ground, Terre Haute and Fort Wayne, with an estimated completion date of June 30, 2019. Bids were solicited via the Internet with 59 received. Funding and work location will be determined with each order. National Guard Bureau, Indianapolis, Indiana, is the contracting activity.

Howard W. Pence*, Elizabethtown, Kentucky, was awarded a $16,301,000 firm-fixed-price contract for construction of one, two-story classroom facility and two, three-story dormitories on a reinforced concrete foundation and concrete floor slab consisting of approximately 46,871 square feet. Work will be performed in Louisville, Tennessee, with an estimated completion date of June 30, 2016. Bids were solicited via the internet with seven received. Fiscal-year 2010 ‘Military Construction’ funds in the amount of $815,357; and fiscal-year 2014 ‘Military Construction funds in the amount of $15,485,642 are being obligated at the time of the award. National Guard Bureau – Tennessee, Nashville, Tennessee, is the contracting activity (W912L7-14-C-0004).

WASHINGTON HEADQUARTERS SERVICES

Analytic Services Inc., Falls Church, Virginia, is being awarded a $6,490,089 modification to a previously awarded firm-fixed-price contract (HQ0034-12-A-0003) to provide the following support to the Office of the Under Secretary of Defense for Acquisition, Technology, and Logistics: medical program support; physical program support; planning, programming, budgeting, and executing ,and financial support; international and interagency strategic relations support; science and technology support; and operations and administrative support. Work will be performed in Arlington, Virginia, with an expected completion date of Dec. 31, 2016. Fiscal 2014 research, development, test and evaluation funds in the amount of $6,490,089 are being obligated on this award and will expire at the end of the current fiscal year. This contract was competitively procured, with three proposals received. Washington Headquarters Services, Arlington, Virginia, is the contracting activity.
*Small business

PRESIDENT OBAMA SAYS BUILDING ROADS AND BRIDGES IS NOT AN IMPERIAL PRESIDENCY

FROM:  THE WHITE HOUSE 

Remarks by the President on the Economy

Georgetown Waterfront
Washington, D.C.
2:22 P.M. EDT
THE PRESIDENT:  Well, hello, everybody.  Have a seat, have a seat.  It’s hot.  (Laughter.)  It’s hot out -- Anthony, take off your coat, man.  (Laughter.)  It is hot and Team USA takes the pitch in a couple hours, so we’ve got to get down to business.  (Applause.)  We don’t have time for a lot of small talk -- am I right, Mr. Mayor?  We’ve got to get going.
Behind me is one of the busiest bridges in Washington.  And, with the 4th of July on Friday -- also Malia’s birthday, for those of you who are interested, she will be 16, a little worrisome -- I would note that this bridge is named for the man who wrote the “Star-Spangled Banner” –- Francis Scott Key.
Three years ago, I came here to this very spot, to the Key Bridge, to talk about how two of the five major bridges connecting D.C. and Virginia –- including this one -– were rated “structurally deficient.”  And with almost 120,000 vehicles crossing them every day, I said it was important to fix them.
And today, that’s exactly what we’re doing.  So, soon, construction workers will be on the job making the Key Bridge safer for commuters and for families, and even for members of Congress to cross.  (Laughter.)  This is made possible by something called the Highway Trust Fund, which Congress established back in the 1950s, and which helps states repair and rebuild our infrastructure all across the country.  It’s an example of what can happen when Washington just functions the way it was supposed to. 
Back then, you had Eisenhower, a Republican President; over time you would have Democratic Presidents, Democratic and Republican members of Congress all recognizing building bridges and roads and levees and ports and airports -- that none of that is a partisan issue.  That’s making sure that America continues to progress.

Now, here is the problem.  Here is the reason we’re here in the heat.  If this Congress does not act by the end of the summer, the Highway Trust Fund will run out.  There won’t be any money there.  All told, nearly 700,000 jobs could be at risk next year.  That would be like Congress threatening to lay off the entire population of Denver, or Seattle, or Boston.  That’s a lot of people.  It would be a bad idea.  Right now, there are more than 100,000 active projects across the country where workers are paving roads, and rebuilding bridges, and modernizing our transit systems.  And soon, states may have to choose which projects to continue and which ones to put the brakes on because they’re running out of money.  Some have already done just that, just because they’re worried that Congress will not get its act together in time.
Now, earlier this year, I put forward a plan not just to replenish the Highway Trust Fund, I put forward a plan to rebuild our transportation infrastructure across the country in a responsible way.  And I want to thank Secretary Anthony Foxx, who is here today, for his hard work in putting this plan together.  (Applause.)  Because we are not spending enough on the things that help our economy grow, the things that help businesses move products, the thing that help workers get to the job, the things that help families get home to see their loved ones at night.  We spend significantly less as a portion of our economy than China does, than Germany does, than just about every other advanced country.  They know something that I guess we don’t, which is that’s the path to growth, that’s the path to competitiveness.
So the plan we put together would support millions of jobs.  It would give cities, and states, and private investors the certainty they need to plan ahead.  It would help small businesses ship their goods faster, help parents get home to their kids faster.  And it wouldn’t add to the deficits –- because we’d pay for it in part by closing tax loopholes for companies that are shipping their profits overseas to avoid paying their fair share of taxes.  Seems like a sensible thing to do.  (Applause.)
It’s not crazy, it’s not socialism.  (Laughter.)  It’s not the imperial presidency -- no laws are broken.  We’re just building roads and bridges like we’ve been doing for the last, I don’t know, 50, 100 years.  But so far, House Republicans have refused to act on this idea.  I haven’t heard a good reason why they haven’t acted -- it’s not like they’ve been busy with other stuff.  (Laughter.)  No, seriously.  (Laughter.)  I mean, they’re not doing anything.  Why don’t they do this?
Now, Republican obstruction is not just some abstract political stunt; it has real and direct consequences for middle-class families all across the country. 
We went through the worst economic crisis since the Great Depression, we’ve climbed back.  Since then, we’ve created 9.4 million new jobs over the past 51 months.  Corporate profits are up, stock market is up, housing is improving.  (Applause.)  Unemployment is down.  The deficits have been cut in half.  We’re making progress, but we still have a situation where those at the top are doing as well as ever but middle-class families all across the country are still struggling to get by.  There are people who are working hard, they believe in the American Dream -- it feels sometimes like the system is rigged against them. 
And they have good reason to think that way.  So far this year, Republicans in Congress have blocked or voted down every serious idea to strengthen the middle class.  Not ideas that are unique to me, they’re not -- this isn’t Obama bridge.  (Laughter.)  It’s Key Bridge.  But the Republicans have said no to raising the minimum wage, they’ve said no to fair pay, they’ve said no to extending unemployment insurance for over 3 million Americans looking for a new job. 
And this obstruction keeps the system rigged for those who are doing fine at the top.  It prevents us from helping more middle-class families.  And as long as they insist on taking no action whatsoever that will help anybody, I’m going to keep on taking actions on my own that can help the middle class -- like the actions I’ve already taken to speed up construction projects, and attract new manufacturing jobs, and lift workers’ wages, and help students pay off their loans.  (Applause.)
And they criticize me for this.  Boehner sued me for this.  And I told him, I’d rather do things with you, pass some laws, make sure the Highway Trust Fund is funded so we don’t lay off hundreds of thousands of workers.  It’s not that hard.  Middle-class families can’t wait for Republicans in Congress to do stuff.  So sue me.  (Laughter.)  As long as they’re doing nothing, I’m not going to apologize for trying to do something.  (Applause.)
And look, I just want to be clear -- Republicans in Congress, they’re patriots, they love their country, they love their families.  They just have a flawed theory of the economy that they can’t seem to get past.  They believe that all we should be doing is giving more tax breaks to those at the top, eliminating regulations that stop big banks or polluters from doing what they want, cut the safety net for people trying to work their way into the middle class, and then somehow the economy is going to get stronger and jobs and prosperity trickle down to everybody.  That’s their worldview.  I’m sure they sincerely believe it.  It’s just not accurate.  It does not work. 

We know from our history our economy doesn’t grow from the top down; it grows from the middle out.  We do better when you’ve got some construction workers on the job.  They then go to a restaurant and they buy a new car.  That means the workers there start doing better.  Everybody does better.  And we could be doing so much more if Republicans in Congress were less interested in stacking the deck in favor of those at the top or trying to score political points, or purposely trying to gridlock Washington, and just tried to get some things done to grow the economy for everybody.  We could do so much more if we just rallied around an economic patriotism, a sense that our job is to get things done as one nation and as one people.
Economic patriotism would say that instead of protecting corporations that are shipping jobs overseas, let’s make sure they’re paying their fair share of taxes, let’s reward American workers and businesses that hire them.  Let’s put people to work rebuilding America.  Let’s invest in manufacturing, so the next generation of good manufacturing jobs are right here, made in the USA.  (Applause.)  That would be something to celebrate on the 4th of July.  (Applause.)
Economic patriotism says that instead of stacking the deck in the favor of folks just at the top, let’s harness the talents and ingenuity of every American and give every child access to quality education, and make sure that if your job was stamped obsolete or shipped overseas, you’re going to get retrained for an even better job.  (Applause.) 
Economic patriotism says that instead of making it tougher for middle-class families to get ahead, let’s reward hard work for every American.  Let’s make sure women earn pay that’s equal to their efforts.  (Applause.)  Let’s make sure families can make ends meet if their child gets sick and they need to take a day off.  Let’s make sure no American who works full-time ever has to live in poverty.  (Applause.)
Let’s tell everybody they’re worth something.  No matter who you are, no matter what you look like, where you come from, who you love, if you work hard, if you’re responsible, you can make it here in America.  That’s what this country was founded on, that idea.  That’s why I ran for this office.  I think sometimes about what we could be accomplishing, what we could have accomplished this past year, what we could have accomplished the year before that.  And typically what gets reported on is just the politics -- well, you know, they’re not doing this because they don’t want to give Obama a victory or oh, well, we don’t want to do this right now because maybe the midterm election is coming up and, oh, well, what’s happening with the polls.  People don’t care about that.  People just want to see some results.  And objectively, if you look at the agenda I’m putting forward, the things that we’re trying to get done like just fixing bridges and roads, it really shouldn’t be controversial.  It hasn’t been controversial in the past. 
And so part of the reason that I’m going to be spending a lot of time over the next several weeks and months getting out there with ordinary folks is just to report to you it’s not as if I don’t know that you could use some help.  I know.  It’s not as if we don’t have good plans to put more people back to work and raise their incomes and improve the quality of education.  We know how to do it.  That’s not the reason it’s not happening.  It’s not happening because of politics.
And the only folks that can fix that are going to be you -- the American people and voters.  Sometimes in our culture right now we just get cynical about stuff and we just assume things can’t change because nothing seems to change in this town.  But that’s not true.  It can change as long as everybody gets activated, as long as people still feel hopeful and we don’t fall prey to cynicism. 
And so I just want everybody here to understand that as frustrating as it may be sometimes, as stuck as Congress may be sometimes, if the American people put pressure on this town to actually get something done and everybody is looking at some commonsense agenda items that we should be able to do because Democrats and Republicans were able to do them in the past, we can grow our economy, we can lift people’s incomes, we can make sure that people who are fighting hard can get into the middle class and stay there.  But it’s going to take you.  It’s going to take you.  This is not going to happen on its own.  And I’m confident if that’s what we do, if all of you are fighting alongside me every single day instead of just giving up on this place, then we’re going to make America better than ever.  That’s a promise.
Thank you, everybody.  God bless you.  God bless America.  Go Team USA!  Let’s build some bridges!
END
2:37 P.M. EDT

CHAIRMAN HOUSE WAYS AND MEANS COMMITTEE DAVE CAMP ON LOST IRS EMAILS

FROM:  CONGRESSMAN DAVE CAMP'S ONLINE NEWSLETTER 

Earlier in June, the Internal Revenue Service (IRS) informed Congressman Dave Camp (R-MI), Chairman of the Ways and Means Committee, that it lost Lois Lerner emails from a period of January 2009 – April 2011.  Lerner is a key figure in the Ways and Means Committee’s year-long investigation of the IRS targeting groups based on their personal beliefs.

Due to a supposed computer crash, the agency only has Lerner emails to and from other IRS employees during this time frame.  The IRS claims it cannot produce emails written only to or from Lerner and outside agencies or groups, such as the White House, Treasury, Department of Justice, FEC, or Democrat offices.  In addition to the missing Lerner e-mails, Camp learned the IRS lost emails from six additional IRS employees and has known about the computer crashes since early 2014.

After learning about the lost emails Camp stated, “Just a short time ago, Commissioner Koskinen promised to produce all Lerner documents.  It appears now that was an empty promise.  Frankly, these are the critical years of the targeting of conservative groups that could explain who knew what when, and what, if any, coordination there was between agencies.  Instead, because of this loss of documents, we are conveniently left to believe that Lois Lerner acted alone.  This failure of the IRS requires the White House, which promised to get to the bottom of this, to do an Administration-wide search and production of any emails to or from Lois Lerner.  The Administration has repeatedly referred us back to the IRS for production of materials.  It is clear that is wholly insufficient when it comes to determining the full scope of the violation of taxpayer rights.”

Camp and Ways and Means Committee investigators are continuing to question how these emails were lost.  Last week, the Ways and Means Committee held a hearing with IRS Commissioner John Koskinen to demand answers.

OCO-2 and Delta II Prepared for Launch

SECRETARY KERRY, CHILEAN FOREIGN MINISTER MUNOZ MAKE REMARKS AT SIGNING CEREMONY

FROM:  THE STATE DEPARTMENT 

Remarks With Chilean Foreign Minister Munoz at a Signing Ceremony

Remarks
John Kerry

Secretary of State
Benjamin Franklin Room
Washington, DC
June 30, 2014


SECRETARY KERRY: Well, thank you very much for joining us. We’ve just come from a wonderful lunch with President Bachelet and her delegation, and we discussed the very strong relationship between the United States and Chile. And to that end, Foreign Minister Munoz and I are going to be signing memoranda of understanding on small business cooperation, on international development cooperation, and a declaration on the intent on trilateral cooperation in the Caribbean. Afterwards, my colleagues from the Department of Homeland Security will sign a joint statement to combat trafficking in persons, and with Finance Minister Arenas, an agreement on customs mutual assistance that will facilitate trade while at the same time keeping our countries secure.

The MOU on small business, on business cooperation, cements an already strong partnership with Chile, and it does so in a way that will advance economic opportunities for small businesses, and it will also promote access for women through the Women’s Entrepreneurship of the Americas initiative. We really look forward, as we talked about at lunch and we also talked about with President Obama today, to the opportunity to expand an already strong economic relationship and long-term both security and friendship relationship with Chile in order to develop other economies in the Pacific region as well as throughout Latin America.
Our declaration of intent on the cooperation on the trilateral effort is really a pledge to continue and upgrade our development in Haiti, Jamaica, and the Dominican Republic. So the United States and Chile come to this memorandum of understanding signing today with a clear intent to continue to grow our own relationship and to try to strengthen the relationships with other countries in Latin America, particularly with a view to trying to achieve our shared goals on a global basis. Chile is a great partner globally, and we appreciate enormously the cooperation that we have received and that we give each other.

Heraldo.

FOREIGN MINISTER MUNOZ: Thank you. Thank you, Mr. Secretary. Let me first say that we’re very pleased with the president, President Bachelet, to come to Washington for this bilateral meeting with President Obama with you to sign these agreements that I think underline the fact that we have a key bilateral relationship and that this is a mature and high-quality relationship that we highly value. And I think that the agreements that we’re signing today point towards sort of a new association. We already have a free trade agreement, we already have a high-quality relationship, but we’re signaling here that we want to go into new grounds.
And that new association has to do with cooperation, not only among ourselves but in third countries like in the Caribbean, like we’re signing today, with small and medium enterprises that are absolutely fundamental to create jobs. In our country, most of the jobs are created by small and medium enterprises, and we appreciate cooperation in that area. The fact that we are also singing agreements with regard to education, science and technology, innovation, energy, which are all the areas that I think point towards this new association between our two countries.

I want to also say that the customs agreement point towards the common interests in security, in securing our borders, but at the same time facilitating trade, because this is one of our interests. We value also your mentioning our projecting ourselves towards the Pacific and the Asia region. This is a horizon of the future. We are part of the Pacific. We’re both members of APEC. And Chile, within the Pacific Alliance, is making a further commitment to deepen our ties with our countries, our colleagues of the region to project ourselves together with the rest of the Latin American region so that Chile can aspire to be a bridge to the Pacific. It can be a port to the Pacific not only to the countries that face the Pacific but also those on the Atlantic side.
So this has been a very positive visit. President Bachelet is satisfied with the conversations that we had. And I think we have a road ahead of us to comply with the commitments, including those, Mr. Secretary, that both of us made at the Our Ocean Conference that you led that will be held in Chile next year, where I hope the countries that came with commitments will comply with what they promised. I think this will be not only for the benefit of our oceans, of our biodiversity, but the economic future of our countries. If we ecologically value what we have, I think we are making a commitment towards future generations.

So thank you very much for hosting us, and thank you to President Obama because President Bachelet has been very satisfied with this visit. Thank you.

SECRETARY KERRY: Thank you. Thank you, Heraldo.

STAFF: Secretary Kerry and Minister Munoz will now sign the Memorandum of Understanding for International Development Cooperation.

(The memorandum was signed.)

STAFF: The second signing will be the Memorandum of Understanding on Promoting Entrepreneurship and the Growth of Small- and Medium-Sized Enterprises. Witnessing the signing of the MOU are U.S. Small Business Administration Maria Contrares-Sweet and Chilean Minister of Economy, Development, and Tourism Luis Felipe Cespedes.
(The memorandum was signed.)

STAFF: The third signing will be the Joint Declaration of Intent for the Development of Trilateral Cooperation in Countries in the Caribbean. This declaration of intent on trilateral cooperation evidences our pledge to contribute to development in Haiti, the Dominican Republic, and Jamaica.

(The memorandum was signed.)

SECRETARY KERRY: Whatever we signed is legally binding now. (Laughter.)
FOREIGN MINISTER MUNOZ: We cannot repent.

SECRETARY KERRY: Thank you, sir. Well done.
(Applause.)

STAFF: Now Department of Homeland Security Deputy Secretary Alejandro Mayorkas and Foreign Minister Munoz will sign the Joint Statement between the United States Department of Homeland Security and the Chilean Ministry of Interior and Public Security on Combating Trafficking in Persons. The joint statement will increase cooperation among enforcement agencies with an aim to target, disrupt, dismantle and deter human trafficking criminal enterprises, enhance bilateral exchanges of information related to human trafficking and share experiences regarding the protection of vulnerable populations.
(Applause.)

STAFF: Finally, Customs and Border Protection Commissioner Gil Kerlikowske and Minister of Finance Alberto Arenas will sign the Agreement between the Government of the United States of America and the Government of the Republic of Chile regarding Mutual Assistance between their Customs Administrations. This agreement provides the legal framework to assist countries in the prevention, detection and investigation of custom offenses. Chile is the seventieth country to sign a customs mutual assistance agreement with the United States. The signing of the agreement will build on bilateral efforts to cooperate on law enforcement and facilitate trade and travel.
(Applause.)

STAFF: Thank you. This concludes our signing ceremony. We look forward to working together closely on issues ranging from economic development to security.

THE TEAR GAS CHAMBER AT 2014 BEST WARRIOR COMPETITION

FROM:  U.S. DEFENSE DEPARTMENT 

Below:  Tear gas burns as service members enter the gas chamber event during the 2014 Best Warrior Competition on Joint Base McGuire-Dix-Lakehurst, N.J., June 25, 2014. U.S. Army photos by Sgt. 1st Class Mark Burrell.



BANK TO PAY $200 MILLION TO RESOLVE ALLEGATIONS OF MORTGAGE LENDING VIOLATIONS

FROM:  U.S. JUSTICE DEPARTMENT   
Monday, June 30, 2014
U.S. Bank to Pay $200 Million to Resolve Alleged FHA Mortgage Lending Violations

U.S. Bank has agreed to pay the United States $200 million to resolve allegations that it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the Federal Housing Administration (FHA) that did not meet applicable requirements, the Justice Department announced today.

“By misusing government programs designed to maintain and expand homeownership, U.S. Bank not only wasted taxpayer funds, but inflicted harm on homeowners and the housing market that lasts to this day,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery.   “As this settlement shows, we will continue to hold accountable financial institutions that violate the law by pursuing their own financial interests at the expense of hardworking Americans.”

“U.S. Bank ignored certain lending requirements causing substantial losses to taxpayers,” said United States Attorney for the Northern District of Ohio Steven M. Dettelbach.  “This settlement demonstrates that the Department of Justice will not permit lenders to play fast and loose with the rules and stick the American people with their significant tab.”

“U.S. Bank’s lax mortgage underwriting practices contributed to home foreclosures across the country,” said United States Attorney for the Eastern District of Michigan Barbara L. McQuade.  “This settlement recovers funds for taxpayers and demonstrates that lenders will be held accountable for engaging in irresponsible lending practices.”

During the time period covered by the settlement, U.S. Bank participated as a direct endorsement lender (DEL) in the FHA insurance program.   A DEL has the authority to originate, underwrite, and certify mortgages for FHA insurance.  If a loan certified for FHA insurance later defaults, the holder of the loan may submit an insurance claim to the U.S. Department of Housing and Urban Development (HUD), FHA’s parent agency, for the losses resulting from the defaulted loan.  Because FHA does not review a loan before it is endorsed for FHA insurance, FHA requires a DEL to follow program rules designed to ensure that the DEL is properly underwriting and submitting mortgages for FHA insurance.

As part of the settlement, U.S. Bank admitted that, from 2006 through 2011, it repeatedly certified for FHA insurance mortgage loans that did not meet HUD underwriting requirements.   U.S. Bank also admitted that its quality control program did not meet FHA requirements, and as a result, it failed to identify deficiencies in many of the loans it had certified for FHA insurance, failed to self-report many deficient loans to HUD, and failed to take the corrective action required under the program.   U.S. Bank further acknowledged that its conduct caused FHA to insure thousands of loans that were not eligible for insurance and that the FHA suffered substantial losses when it later paid insurance claims on those loans.

“This substantial recovery on behalf of the Federal Housing Administration should serve as a vivid reminder of the potential consequences of not following HUD program rules, and the diligence with which we will pursue those that violate them, particularly where lenders such as U.S. Bank take actions to compromise the insurance fund,” said David A. Montoya, Inspector General of the Department of Housing and Urban Development.

“We are gratified that U.S. Bank has agreed to put this matter behind it, and we want to thank the Department of Justice and HUD’s Office of Inspector General for all of their efforts in helping us make this settlement a reality,” said Damon Smith, Acting General Counsel for the U.S. Department of Housing and Urban Development.   “This settlement underscores our consistent message that following Federal Housing Administration rules for underwriting FHA-insured loans is a requirement, not an option.”

The agreement resolves potential violations of federal law based on U.S. Bank’s deficient origination of FHA insured mortgages.   The agreement does not prevent state and federal authorities from pursuing enforcement actions for other origination conduct by U.S. Bank, or for any servicing or foreclosure conduct, including civil enforcement actions against U.S. Bank for violations of the CFPB’s new mortgage servicing rules that took effect on Jan. 10, 2014.   U.S. Bank is a banking services company headquartered in Cincinnati, Ohio, and a wholly owned subsidiary of U.S. Bancorp, a bank holding company headquartered in Minneapolis, Minnesota.

The settlement was the result of a joint investigation conducted by HUD, its Office of Inspector General, the Civil Division of the Department of Justice, and the United States Attorney’s Offices for the Northern District of Ohio and the Eastern District of Michigan.

The settlement is part of enforcement efforts by President Barack Obama’s Financial Fraud Enforcement Task Force.  President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources.  The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes.

PRESIDENT OBAMA'S REMARKS REGARDING BORDER SECURITY AND IMMIGRATION REFORM

FROM:  THE WHITE HOUSE 

Remarks by the President on Border Security and Immigration Reform

Rose Garden
3:04 P.M. EDT
THE PRESIDENT:  Good afternoon, everybody.  One year ago this month, senators of both parties –- with support from the business, labor, law enforcement, faith communities –- came together to pass a commonsense immigration bill. 
Independent experts said that bill would strengthen our borders, grow our economy, shrink our deficits.  As we speak, there are enough Republicans and Democrats in the House to pass an immigration bill today.  I would sign it into law today, and Washington would solve a problem in a bipartisan way.
But for more than a year, Republicans in the House of Representatives have refused to allow an up-or-down vote on that Senate bill or any legislation to fix our broken immigration system.  And I held off on pressuring them for a long time to give Speaker Boehner the space he needed to get his fellow Republicans on board. 
Meanwhile, here’s what a year of obstruction has meant.  It has meant fewer resources to strengthen our borders.  It’s meant more businesses free to game the system by hiring undocumented workers, which punishes businesses that play by the rules, and drives down wages for hardworking Americans.  It’s meant lost talent when the best and brightest from around the world come to study here but are forced to leave and then compete against our businesses and our workers.  It’s meant no chance for 11 million immigrants to come out of the shadows and earn their citizenship if they pay a penalty and pass a background check, pay their fair share of taxes, learn English, and go to the back of the line.  It’s meant the heartbreak of separated families. 
That’s what this obstruction has meant over the past year.  That’s what the Senate bill would fix if the House allowed it to go to a vote.
Our country and our economy would be stronger today if House Republicans had allowed a simple yes-or-no vote on this bill or, for that matter, any bill.  They’d be following the will of the majority of the American people who support reform.  Instead, they’ve proven again and again that they’re unwilling to stand up to the tea party in order to do what’s best for the country.  And the worst part about it is a bunch of them know better.
We now have an actual humanitarian crisis on the border that only underscores the need to drop the politics and fix our immigration system once and for all.  In recent weeks, we’ve seen a surge of unaccompanied children arrive at the border, brought here and to other countries by smugglers and traffickers. 
The journey is unbelievably dangerous for these kids.  The children who are fortunate enough to survive it will be taken care of while they go through the legal process, but in most cases that process will lead to them being sent back home.  I’ve sent a clear message to parents in these countries not to put their kids through this.  I recently sent Vice President Biden to meet with Central American leaders and find ways to address the root causes of this crisis.  Secretary Kerry will also be meeting with those leaders again tomorrow.  With our international partners, we’re taking new steps to go after the dangerous smugglers who are putting thousands of children’s lives at risk.
Today, I sent a letter to congressional leaders asking that they work with me to address the urgent humanitarian challenge on the border, and support the immigration and Border Patrol agents who already apprehend and deport hundreds of thousands of undocumented immigrants every year.  And understand, by the way, for the most part, this is not a situation where these children are slipping through.  They’re being apprehended.  But the problem is, is that our system is so broken, so unclear that folks don’t know what the rules are.
Now, understand –- there are a number of Republicans who have been willing to work with us to pass real, commonsense immigration reform, and I want to thank them for their efforts.  There are a number of Republican leaders in the Senate who did excellent work and deserve our thanks.  And less visibly, there have been folks in the House who have been trying to work to get this done.  And quietly, because it doesn’t always help me to praise them, I’ve expressed to them how much I appreciate the efforts that they’ve made.
I believe Speaker Boehner when he says he wants to pass an immigration bill.  I think he genuinely wants to get something done.  But last week, he informed me that Republicans will continue to block a vote on immigration reform at least for the remainder of this year.  Some in the House Republican Caucus are using the situation with unaccompanied children as their newest excuse to do nothing.  Now, I want everybody to think about that.  Their argument seems to be that because the system is broken, we shouldn’t make an effort to fix it.  It makes no sense.  It’s not on the level.  It’s just politics, plain and simple. 
Now, there are others in the Republican Caucus in the House who are arguing that they can’t act because they’re mad at me about using my executive authority too broadly.  This also makes no sense.  I don’t prefer taking administrative action.  I’d rather see permanent fixes to the issue we face.  Certainly that’s true on immigration.  I’ve made that clear multiple times.  I would love nothing more than bipartisan legislation to pass the House, the Senate, land on my desk so I can sign it.  That’s true about immigration, that’s true about the minimum wage, it’s true about equal pay.  There are a whole bunch of things where I would greatly prefer Congress actually do something.  I take executive action only when we have a serious problem, a serious issue, and Congress chooses to do nothing.  And in this situation, the failure of House Republicans to pass a darn bill is bad for our security, it’s bad for our economy, and it’s bad for our future. 
So while I will continue to push House Republicans to drop the excuses and act –- and I hope their constituents will too -– America cannot wait forever for them to act.  And that’s why, today, I’m beginning a new effort to fix as much of our immigration system as I can on my own, without Congress.  As a first step, I’m directing the Secretary of Homeland Security and the Attorney General to move available and appropriate resources from our interior to the border.  Protecting public safety and deporting dangerous criminals has been and will remain the top priority, but we are going to refocus our efforts where we can to make sure we do what it takes to keep our border secure. 
I have also directed Secretary Johnson and Attorney General Holder to identify additional actions my administration can take on our own, within my existing legal authorities, to do what Congress refuses to do and fix as much of our immigration system as we can.  If Congress will not do their job, at least we can do ours.  I expect their recommendations before the end of summer and I intend to adopt those recommendations without further delay. 
Of course, even with aggressive steps on my part, administrative action alone will not adequately address the problem.  The reforms that will do the most to strengthen our businesses, our workers, and our entire economy will still require an act of Congress.  And I repeat:  These are reforms that already enjoy the wide support of the American people.  It’s very rare where you get labor, business, evangelicals, law enforcement all agreeing on what needs to be done.  And at some point, that should be enough.  Normally, that is enough.  The point of public service is to solve public problems.  And those of us who have the privilege to serve have a responsibility to do everything in our power to keep Americans safe and to keep the doors of opportunity open. 
And if we do, then one year from now, not only would our economy and our security be stronger, but maybe the best and the brightest from around the world who come study here would stay and create jobs here.  Maybe companies that play by the rules will no longer be undercut by companies that don’t.  Maybe more families who’ve been living here for years, whose children are often U.S. citizens, who are our neighbors and our friends, whose children are our kids’ friends and go to school with them, and play on ball teams with them, maybe those families would get to stay together.  But much of this only happens if Americans continue to push Congress to get this done.
So I’ve told Speaker Boehner that even as I take those steps that I can within my existing legal authorities to make the immigration system work better, I’m going to continue to reach out to House Republicans in the hope that they deliver a more permanent solution with a comprehensive bill.  Maybe it will be after the midterms, when they’re less worried about politics.  Maybe it will be next year.  Whenever it is, they will find me a willing partner.  I have been consistent in saying that I am prepared to work with them even on a bill that I don't consider perfect.  And the Senate bill was a good example of the capacity to compromise and get this done.  The only thing I can’t do is stand by and do nothing while waiting for them to get their act together. 
And I want to repeat what I said earlier.  If House Republicans are really concerned about me taking too many executive actions, the best solution to that is passing bills.  Pass a bill; solve a problem.  Don't just say no on something that everybody agrees needs to be done.  Because if we pass a bill, that will supplant whatever I’ve done administratively.  We’ll have a structure there that works, and it will be permanent.  And people can make plans and businesses can make plans based on the law.  And there will be clarity both here inside this country and outside it.
Let me just close by saying Friday is the Fourth of July.  It’s the day we celebrate our independence and all the things that make this country so great.  And each year, Michelle and I host a few hundred servicemembers and wounded warriors and their families right here on the lawn for a barbecue and fireworks on the Mall.
And some of the servicemembers coming this year are unique because they signed up to serve, to sacrifice, potentially to give their lives for the security of this country even though they weren’t yet Americans.  That's how much they love this country.  They were prepared to fight and die for an America they did not yet fully belong to.  I think they’ve earned their stripes in more ways than one.  And that’s why on Friday morning we’re going to naturalize them in a ceremony right here at the White House.  This Independence Day will be their first day as American citizens. 
One of the things we celebrate on Friday –- one of the things that make this country great –- is that we are a nation of immigrants.  Our people come from every corner of the globe.  That's what makes us special.  That's what makes us unique.  And throughout our history, we’ve come here in wave after wave from everywhere understanding that there was something about this place where the whole was greater than the sum of its parts; that all the different cultures and ideas and energy would come together and create something new.
We won this country’s freedom together.  We built this country together.  We defended this country together.  It makes us special.  It makes us strong.  It makes us Americans.  That’s worth celebrating.  And that's what I want not just House Republicans but all of us as Americans to remember.
Thanks very much.
END                                              
3:21 P.M. EDT

PRESIDENT OBAMA, PRESIDENT BACHELET OF CHILE MAKE REMARKS BEFORE MEETING

FROM:  THE WHITE HOUSE 

Remarks by President Obama and President Michelle Bachelet of Chile Before Bilateral Meeting

Oval Office
11:05 A.M. EDT
PRESIDENT OBAMA:  Well, I want to welcome back to the Oval Office President Bachelet.  She is my second favorite Michelle.  (Laughter.)  And I’m very much pleased to see her again.  We had the opportunity to work together when I first came into office.  Since that time, President Bachelet has been extraordinarily busy doing excellent work at the United Nations, particularly around women -- an issue that the United States has been very supportive of.  And we’re very proud of the work that she did there.
She’s now back in office, and it gives us an opportunity to just strengthen further the outstanding relationship between the United States and Chile.
Let me say, first of all, congratulations to the Chilean National Football Team for an outstanding showing at the World Cup.  I know it was a tough loss, but it also showed the incredible skill and talent of the Chilean team.  This is as well, I think, as it’s ever done against a very tough Brazilian team on their home turf.  And so congratulations to them.  We play -- coming up, we’ve got a tough match as well.  So I want to wish the U.S. team a lot of luck in the game to come.
The basis for Chile’s and the United States’ strong bilateral relationship includes the fact that we have a free trade agreement that has greatly expanded commerce in both countries and has created jobs in both countries. 
We have excellent cooperation when it comes to a wide range of issues -- energy, education, people-to-people relations.  Chile has been a model of democracy in Latin America.  It’s been able to consistently transition from center-left governments to center-right governments, but always respectful of democratic traditions.  Obviously, those traditions were hard-won, and President Bachelet knows as well as anybody how difficult it was to bring about democracy.  And now, the fact that Chile across the political spectrum respects and fights for the democratic process makes it a great model for the entire hemisphere.
Today, we’re going to have an opportunity to discuss how we can deepen those relationships even further.  I know that education, for example, is an issue that is at the top of President Bachelet’s agenda.  It’s something that’s at the top of my agenda here in the United States.  For us to be able to strengthen student exchanges and compare mechanisms and ideas for how we can build skills of young people in both countries is something that we’ll spend some time on.
We’re both very interested in energy and how we can transition to a clean energy economy.  And we’ll be announcing some collaborations, including the facilitation of a construction of a major solar plant inside of Chile that can help meet their energy needs.
We’ll talk about regional issues.  Obviously, we’ve seen great progress in democratization throughout the region, in part because of Chile’s leadership, but there are obviously still some hotspots that we have to try to address, as well as issues of security in areas like Central America and the Caribbean.  And I’ll be very interested in hearing President Bachelet’s views.
And we’ll discuss international issues.  Chile, with its seat on the United Nations Security Council, can serve as a leader on a wide range of issues, from peacekeeping to conflict resolution, to important issues like climate change.  And we have great confidence that in that role Chile will continue to be a positive force for good around the world.
So I just want to say thank you for not only the friendship with President Bachelet, but more broadly, our friendship with the Chilean people.  And President Bachelet’s predecessor, he and I had an excellent relationship; she and I have had an excellent relationship.  I think that indicates that it really goes beyond any particular party.  I’m confident that my replacement after I’m gone will have an excellent relationship, because it’s based on common values and a strong respect in both countries for the value of the U.S.-Chilean relationship.
So, welcome, and I look forward to an excellent conversation.
PRESIDENT BACHELET:  Thank you, President Obama.  I want to, first of all, thank you for the invitation to visit you and your country.  And, of course, we are looking forward to enhance our cooperation in many different areas. 
As you just mentioned, Chile and the U.S. have had a very strong and mature relation for so many years, and we want to make it deeper and to enhance them in different areas.  Of course, this will be a great opportunity, as you said, to discuss some of the regional and international issues, given the fact that we’re also sitting at the Security Council.  But also, we will be able to in the bilateral dimension be able to increase our cooperation in areas that are very sensible, and for the U.S. and for Chile, such as you mentioned, education, energy, science and technology, people-to-people relation. 
We already have, as you know, a very good -- I mean, not only the bilateral way, we also have a very good Chile-California and Chile-Massachusetts programs.  We have been working very strongly and we will continue on that path. 
And we are really interested -- this year, I think we are commemorating 10 years of the free trade agreement from the U.S. and Chile.  And the U.S. is our, I would say, our most important foreign investor.  We want to continue that path, and of course, we will have also the possibility of having activities with the Chamber of Commerce and others because we really want to make our relations in all dimensions -- political, economical, social, et cetera -- stronger and stronger every day.
So I’m very happy to be here with you again, and I’m sure this will be a great meeting.
PRESIDENT OBAMA:  Thank you.
END
11:12 A.M. EDT

DRIVERLESS VEHICLES

FROM:  NATIONAL SCIENCE FOUNDATION 
Demonstrating a driverless future
Carnegie Mellon researchers bring NSF-funded autonomous vehicle to D.C. to show promise of driverless cars

In the coming decades, we will likely commute to work and explore the countryside in autonomous, or driverless, cars capable of communicating with the roads they are traveling on. A convergence of technological innovations in embedded sensors, computer vision, artificial intelligence, control and automation, and computer processing power is making this feat a reality.

This week, researchers from Carnegie Mellon University (CMU) will mark a significant milestone, demonstrating one of the most advanced autonomous vehicles ever designed, capable of navigating on urban roads and highways without human intervention. The car was brought to Washington, D.C., at the request of Congressman Bill Shuster of Pennsylvania, who participated in a 33-mile drive in the autonomous vehicle between a Pittsburgh suburb and the city's airport last September.

Developed with support from the National Science Foundation (NSF), the U.S. Department of Transportation, DARPA and General Motors, the car is the result of more than a decade of research and development by scientists and engineers at CMU and elsewhere. Their work has advanced the underlying technologies--sensors, software, wireless communications and network integration--required to make sure a vehicle on the road is as safe--and ultimately safer--without a driver than with one. (In the case of the Washington, D.C., demonstration, an engineer will be on hand to take the wheel if required.)

"This technology has been enabled by remarkable advances in the seamless blend of computation, networking and control into physical objects--a field known as cyber-physical systems," said Cora Marrett, NSF deputy director. "The National Science Foundation has long supported fundamental research that has built a strong foundation to enable cyber-physical systems to become a reality--like Dr. Raj Rajkumar's autonomous car."

Raj Rajkumar, a professor of electrical and computer engineering and robotics at CMU, is a leader not just in autonomous vehicles, but in the broader field of cyber-physical systems, or CPS. Such systems are already in use in sectors such as agriculture, energy, healthcare and advanced manufacturing, and they are poised to make an impact in transportation as well.

"Federal funding has been critical to our work in dealing with the uncertainties of real-world operating conditions, making efficient real-time usage of on-board computers, enabling vehicular communications and ensuring safe driving behaviors," Rajkumar said.

In 2007, Carnegie Mellon's then state-of-the-art driverless car, BOSS, took home the $2 million grand prize in the DARPA Urban Challenge, which pitted the leading autonomous vehicles in the world against one another in a challenging, urban environment. The new vehicle that Rajkumar is demonstrating in Washington, D.C., is the successor to that vehicle.

Unlike BOSS, which was rigged with visible antennas and large sensors, CMU's new car--a Cadillac SRX--doesn't appear particularly "smart." In fact, it looks much like any other car on the road. However, top-of-the-line radar, cameras, sensors and other technologies are built into the body of the vehicle. The car's computers are tucked away under the floor.

The goal of CMU's researchers is simple but important: To develop a driverless car that can decrease injuries and fatalities on roads. Automotive accidents result in 1.2 million fatalities annually around the world and cost citizens and governments $518 billion. It is estimated that 90 percent of those accidents are caused by human error.

"Because computers don't get distracted, sleepy or angry, they can actually keep us much safer--that is the promise of this technology," Rajkumar said. "Over time, the technology will augment automotive safety significantly."

In addition to controlling the steering, speed and braking, the autonomous systems in the vehicle also detect and avoid obstacles in the road, including pedestrians and bicyclists.

In their demonstration in D.C., cameras in the vehicle will visually detect the status of traffic lights and respond appropriately. In collaboration with the D.C. Department of Transportation, the researchers have even added a technology that allows some of the traffic lights in the Capitol Hill neighborhood of Washington to wirelessly communicate with the car, telling it the status of the lights ahead.

NSF has supported Rajkumar's work on autonomous vehicles since 2005, but it is not the only project of this kind that NSF supports. In addition to CMU's driverless car, NSF supports Sentry, an autonomous underwater vehicle deployed at Woods Hole Oceanographic Institute, and several projects investigating unmanned aerial vehicles (UAVs) including those in use in search and rescue and disaster recovery operations. Moreover, NSF supports numerous projects that advance the fundamental theories and applications that underlie all autonomous vehicles and other cyber-physical systems.

In the last five years, NSF has invested over $200 million in CPS research and education, building a foundation for the smart systems of the future.

-NSF-

Media Contacts
Aaron Dubrow, NSF
Byron Spice, Carnegie Mellon University
Principal Investigators
Raj Rajkumar, Carnegie Mellon University

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