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katyshannon

N.S.A. Contractor Arrested in Possible New Theft of Secrets - The New York Times - 0 views

  • The F.B.I. secretly arrested a former National Security Agency contractor in August and, according to law enforcement officials, is investigating whether he stole and disclosed highly classified computer code developed by the agency to hack into the networks of foreign governments.
  • Mr. Martin, who at the time of his arrest was working as a contractor for the Defense Department after leaving the N.S.A., was charged with theft of government property and the unauthorized removal or retention of classified documents.
  • In 2013, Edward J. Snowden, who was also a Booz Allen contractor, took a vast trove of documents from the agency that were later passed to journalists
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  • The contractor was identified as Harold T. Martin III of Glen Burnie, Md., according to a criminal complaint filed in late August and unsealed Wednesday
  • The arrest raises the embarrassing prospect that for the second time in three years, a contractor for the consulting company Booz Allen Hamilton managed to steal highly damaging secret information while working for the N.S.A.
  • two dozen F.B.I. agents wearing military-style uniforms and armed with long guns stormed the house, and later escorted Mr. Martin out in handcuffs.
  • F.B.I. discovered thousands of pages of documents and dozens of computers or other electronic devices at his home and in his car, a large amount of it classified. The digital media contained “many terabytes of information,” according to the documents
  • also discovered classified documents that had been posted online, including computer code, officials said. Some of the documents were produced in 2014.
  • authorities cannot say with certainty whether Mr. Martin leaked the information, passed them on to a third party or whether he simply downloaded them.
Javier E

Opinion | Boeing's Political Ties and the Decision to Ground the 737 Max - The New York... - 0 views

  • how do campaign donations that appear to be connected with Boeing manage to avoid violating this law? The answer is a loophole, cemented in the law in the 1970s, that permits government contractors to set up “separate segregated funds,” or political action committees, to make political contributions using money typically pooled from the contractors’ executives and major shareholders. Such funds are legal even if the parent company pays for their operating and fund-raising costs. This exemption — whose ostensible justification is the free-speech rights of contractors’ employees — is why political action committees like Boeing’s can exist.
  • The corporate PAC workaround is “clearly bad, policy-wise,” said Brendan Fischer, the director of federal reform at the Campaign Legal Center, a nonpartisan ethics watchdog
  • Boeing’s PAC is a “major player” Mr. Fischer said. The sum of its contributions is three times larger than the sum of any independent individual contributions from its employees
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  • Boeing correctly reports that the company itself does not directly fund super PACs (which are allowed to raise unlimited amounts of money). Doing so would be a violation of the contributor ban. However, it has ways around this
  • The company’s PAC may give up to $5,000 to a candidate’s campaign committee or use its funds for any other “lawful purpose” — which includes unlimited contributions to super PACs or “dark money” nonprofit groups as well. Last cycle, the company’s PAC gave $250,000 to the Mitch McConnell-aligned Senate Leadership Fund; $250,000 to Karl Rove’s dark-money group, One Nation; and $250,000 to the dark-money group American Action Network.
  • There is also, in effect, another even larger loophole for contractors looking to influence national politicians: the inaugural committee for a president-elect. Because inaugural committees are technically not connected to the political campaign, “all bets are off,
  • Boeing gave a million dollars to Mr. Trump’s inaugural committee
anonymous

Trump pardon of Blackwater Iraq contractors violates international law - UN | Reuters - 0 views

  • U.S. President Donald Trump’s pardon of four American men convicted of killing Iraqi civilians while working as contractors in 2007 violated U.S. obligations under international law
  • U.S. contractors opened fire in busy traffic in a Baghdad square and killed 14 unarmed Iraqi civilians.
  • worked for the private security firm Blackwater owned by the brother of Trump’s education secretary
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  • By allowing private security contractors to “operate with impunity in armed conflicts”, states will be emboldened to circumvent their obligations under humanitarian law,
  • These pardons violate U.S. obligations under international law and more broadly undermine humanitarian law and human rights at a global level.
zachcutler

Feds: NSA contractor's secrets theft 'breathtaking' - CNNPolitics.com - 0 views

  • Feds: NSA contractor's secrets theft 'breathtaking'
  • A former government contractor who's charged with stealing thousands of classified and sensitive intelligence files committed "breathtaking" crimes, according to a new filing from federal prosecutors.
  • Before his arrest, Martin worked as a contractor to the National Security Agency through
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  • consulting firm Booz Allen Hamilton, which fired him after he was charged.
  • He has a long history working with sensitive government intelligence, and served in the US Navy and Naval Reserves for more than 10 years, reaching the rank of lieutenant
  • Prosecutors characterized the notes as seemingly intended for a non-intelligence community audience
  • Martin had classified information dating from 1996 to 2016, the government said, including a document "regarding specific operational plans against a known enemy of the United States and its allies."
  • FBI investigators haven't concluded what Martin's motivation was for stealing the documents. So far, they don't believe he did it for a foreign country.
  • In a subsequent filing, Martin's attorneys argued he presents no flight risk, noting as the government does that he does not have his passport. Given that his wife and home are in Maryland and noting his military service, they said there was no reason nor legal basis to deny him bail.
  • "There is no evidence he intended to betray his country," they wrote.
maddieireland334

Paul Ryan is in another fight he doesn't want - this time over LGBT rights - The Washin... - 0 views

  • House Speaker Paul D. Ryan finds himself in the middle of yet another Republican civil war as the battle over LGBT rights has come to Congress, threatening to divide an already fractured GOP.
  • Democrats won an opening salvo late Wednesday night, when the House approved on a vote of 223 to 195, a measure by Rep. Sean Maloney (D-N.Y.) to deny payment to federal contractors who discriminate against LGBT employees.
  • Maloney’s victory does not mean that House conservatives — angry over what they view as overreaching by President Obama — will not continue to wage the fight.
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  • Conservatives are mainly taking aim at a pair of Obama directives to ensure protections for LGBT employees of federal contractors and to direct public schools to provide access to locker rooms and bathrooms that correspond with their gender identity. 
  • Also on Wednesday, a measure by Alabama GOP Rep. Bradley Byrne passed to exempt religious groups from complying with the directives.
  • Republican leaders have tried to steer lawmakers away from wading into the hot-button debate on the House floor.
  • The speaker this week cautioned GOP members at a closed-door session that Democrats were likely to keep trying to force them into uncomfortable votes on LGBT discrimination, according to aides and members who were present.
  • He floated the idea of modifying House rules in a move that would likely restrict the number of amendments that could be offered on the floor, which would allow leaders to get out ahead of controversial votes and avoid any potentially embarrassing floor fights.
  • The GOP leadership is trying to “thread the needle,” according to aides, between conservatives itching for another chance to challenge Obama and those who don’t want to tackle on an issue they think is best left for the states to resolve. 
  • For their part, Democrats are exploiting the rift, looking to draw attention to the GOP infighting after a measure that would have banned federal contractors from discriminating against LGBT employees failed in the House last week.
  • Democrats see LGBT rights as a prime opportunity to prove that House Republicans are intolerant of minorities. 
  • The vote on Maloney’s original measure turned heated last week when it appeared that seven Republicans switched their votes after the bill seemed to have passed.
  • Ryan told reporters on Wednesday that the breakdown — which involved Democrats shouting “shame, shame” across the aisle at their GOP colleagues —  was just a misunderstanding.
  • Then, Democrats successfully rallied support from moderate Republicans to ban the flag on federal property. Southern Republicans were enraged and threatened to vote against the overall bill, forcing former House Speaker John A. Boehner (R-Ohio) to give up on the entire appropriations process to avoid an embarrassing failure.
  • The stakes are much higher this year for Ryan who has vowed to return the House to working order, starting with passing spending bills and allowing any member to offer amendments.
sgardner35

3 American contractors missing in Iraq - CNN.com - 0 views

  • The contractors were taken away in a convoy consisting of several vehicles, said the source, who talked to CNN on condition of anonymity as he is not authorized to speak to the media.
  • "We are working with the full cooperation of the Iraqi authorities to locate and recover the individuals," spokesman John Kirby said in a statement.
Javier E

How Trump Consultants Exploited the Facebook Data of Millions - The New York Times - 0 views

  • Christopher Wylie, who helped found Cambridge and worked there until late 2014, said of its leaders: “Rules don’t matter for them. For them, this is a war, and it’s all fair.”
  • “They want to fight a culture war in America,” he added. “Cambridge Analytica was supposed to be the arsenal of weapons to fight that culture war.”
  • But the full scale of the data leak involving Americans has not been previously disclosed — and Facebook, until now, has not acknowledged it. Interviews with a half-dozen former employees and contractors, and a review of the firm’s emails and documents, have revealed that Cambridge not only relied on the private Facebook data but still possesses most or all of the trove.
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  • The documents also raise new questions about Facebook, which is already grappling with intense criticism over the spread of Russian propaganda and fake news. The data Cambridge collected from profiles, a portion of which was viewed by The Times, included details on users’ identities, friend networks and “likes.”
  • “Protecting people’s information is at the heart of everything we do,” Mr. Grewal said. “No systems were infiltrated, and no passwords or sensitive pieces of information were stolen or hacked.”Still, he added, “it’s a serious abuse of our rules.”
  • The group experimented abroad, including in the Caribbean and Africa, where privacy rules were lax or nonexistent and politicians employing SCL were happy to provide government-held data, former employees said.
  • Mr. Nix and his colleagues courted Mr. Mercer, who believed a sophisticated data company could make him a kingmaker in Republican politics, and his daughter Rebekah, who shared his conservative views. Mr. Bannon was intrigued by the possibility of using personality profiling to shift America’s culture and rewire its politics, recalled Mr. Wylie and other former employees, who spoke on the condition of anonymity because they had signed nondisclosure agreements.
  • Mr. Wylie’s team had a bigger problem. Building psychographic profiles on a national scale required data the company could not gather without huge expense. Traditional analytics firms used voting records and consumer purchase histories to try to predict political beliefs and voting behavior.
  • But those kinds of records were useless for figuring out whether a particular voter was, say, a neurotic introvert, a religious extrovert, a fair-minded liberal or a fan of the occult. Those were among the psychological traits the firm claimed would provide a uniquely powerful means of designing political messages.
  • Mr. Wylie found a solution at Cambridge University’s Psychometrics Centre. Researchers there had developed a technique to map personality traits based on what people had liked on Facebook. The researchers paid users small sums to take a personality quiz and download an app, which would scrape some private information from the their profiles and those of their friends, activity that Facebook permitted at the time. The approach, the scientists said, could reveal more about a person than their parents or romantic partners knew — a claim that has been disputed.
  • When the Psychometrics Centre declined to work with the firm, Mr. Wylie found someone who would: Dr. Kogan, who was then a psychology professor at the university and knew of the techniques. Dr. Kogan built his own app and in June 2014 began harvesting data for Cambridge Analytica. The business covered the costs — more than $800,000 — and allowed him to keep a copy for his own research, according to company emails and financial records.
  • He ultimately provided over 50 million raw profiles to the firm, Mr. Wylie said, a number confirmed by a company email and a former colleague. Of those, roughly 30 million contained enough information, including places of residence, that the company could match users to other records and build psychographic profiles. Only about 270,000 users — those who participated in the survey — had consented to having their data harvested.Image
  • Under the guidance of Brad Parscale, Mr. Trump’s digital director in 2016 and now the campaign manager for his 2020 re-election effort, Cambridge performed a variety of services, former campaign officials said. That included designing target audiences for digital ads and fund-raising appeals, modeling voter turnout, buying $5 million in television ads and determining where Mr. Trump should travel to best drum up support.
  • “We wanted as much as we could get,” he acknowledged. “Where it came from, who said we could have it — we weren’t really asking.”
  • The firm was effectively a shell. According to the documents and former employees, any contracts won by Cambridge, originally incorporated in Delaware, would be serviced by London-based SCL and overseen by Mr. Nix, a British citizen who held dual appointments at Cambridge Analytica and SCL. Most SCL employees and contractors were Canadian, like Mr. Wylie, or European.
  • In a memo to Mr. Bannon, Ms. Mercer and Mr. Nix, the lawyer, then at the firm Bracewell & Giuliani, warned that Mr. Nix would have to recuse himself “from substantive management” of any clients involved in United States elections. The data firm would also have to find American citizens or green card holders, Mr. Levy wrote, “to manage the work and decision making functions, relative to campaign messaging and expenditures.”
  • In summer and fall 2014, Cambridge Analytica dived into the American midterm elections, mobilizing SCL contractors and employees around the country. Few Americans were involved in the work, which included polling, focus groups and message development for the John Bolton Super PAC, conservative groups in Colorado and the campaign of Senator Thom Tillis, the North Carolina Republican.
  • While Cambridge hired more Americans to work on the races that year, most of its data scientists were citizens of the United Kingdom or other European countries, according to two former employees.
  • Mr. Wylie said the Facebook data was “the saving grace” that let his team deliver the models it had promised the Mercers.
  • Mr. Grewal, the Facebook deputy general counsel, said in a statement that both Dr. Kogan and “SCL Group and Cambridge Analytica certified to us that they destroyed the data in question.”
  • But copies of the data still remain beyond Facebook’s control. The Times viewed a set of raw data from the profiles Cambridge Analytica obtained.
  • While Mr. Nix has told lawmakers that the company does not have Facebook data, a former employee said that he had recently seen hundreds of gigabytes on Cambridge servers, and that the files were not encrypted.
  • Today, as Cambridge Analytica seeks to expand its business in the United States and overseas, Mr. Nix has mentioned some questionable practices. This January, in undercover footage filmed by Channel 4 News in Britain and viewed by The Times, he boasted of employing front companies and former spies on behalf of political clients around the world, and even suggested ways to entrap politicians in compromising situations.
  • Mr. Nix is seeking to take psychographics to the commercial advertising market. He has repositioned himself as a guru for the digital ad age — a “Math Man,” he puts it. In the United States last year, a former employee said, Cambridge pitched Mercedes-Benz, MetLife and the brewer AB InBev, but has not signed them on.
  • Mr. Wylie found a solution at Cambridge University’s Psychometrics Centre. Researchers there had developed a technique to map personality traits based on what people had liked on Facebook. The researchers paid users small sums to take a personality quiz and download an app, which would scrape some private information from their profiles and those of their friends, activity that Facebook permitted at the time. The approach, the scientists said, could reveal more about a person than their parents or romantic partners knew
carolinehayter

US will retaliate for Iraq missile strike when it chooses, defense secretary says | US ... - 0 views

  • The US will do what it sees as necessary to defend its interests after a rocket attack this week against the Ain al-Sada airbase in Iraq, which hosts American, coalition and Iraqi forces, the defense secretary, Lloyd Austin, said on Sunday.
  • US officials have said the incident fit the profile of a strike by Iran-backed militia.
  • “We’ll strike, if that’s what we think we need to do, at a time and place of our own choosing. We demand the right to protect our troops,”
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  • Asked if Iran had been given a message that US retaliation would not constitute an escalation, Austin said Iran was fully capable of assessing the strike and US activities.
  • There were no reports of injuries among US personnel after the attack but an American civilian contractor died after suffering a “cardiac episode” while sheltering from the rockets, the Pentagon said.
  • Iraqi officials said 10 rockets landed at the base but the Pentagon was more guarded, saying there were 10 “impacts”. It said the rockets appeared to have been fired from multiple sites east of the base, which was targeted last year by a ballistic missile attack directly from Iran.
Javier E

Edward Snowden and Booz: How Privatizing Leads to Crony Corruption - Norm Ornstein - Th... - 0 views

  • We have vastly over-privatized, and in the process lost control over swaths of important policy areas while allowing unaccountable and even outlaw behavior to expand.
  • And we have created areas where crony capitalism can meet crony government to create crony corruption that cheats all taxpayers.
  • we can hark back to the last set of outrageous and scandalous privatized behaviors -- the privatization of war, with the sharp proliferation of private contractors sent to Iraq and Afghanistan who operated outside the restraints of the U.S. military, the common conventions of behavior in war, and the laws of the countries in which they operated
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  • There were at times more than 100,000 contractors in Iraq, including nearly 50,000 "soldiers," many making $1,000 a day, far more than active-duty military, with the money coming from American taxpayers. Conveniently for politicians, if these "soldiers" died, they were not counted in the official death toll of Americans killed in the war.
  • If multiple public functions are privatized, or partially privatized, government employees have huge incentives to curry favor with potential private employers by granting them rich contracts or consulting fees, and then subsequently getting jobs paying multiples of their government salaries -- or just giving nice perks to one's former colleagues and friends who left for the private sector
  • Antigovernment ideologues demonize government and government employees, cutting their pay and their programs and finding other ways to undercut them. That makes recruiting top-flight people much more difficult, especially in areas such as computer science or engineering. Government responds not by providing incentives to recruit and keep the best and brightest, but by going through the back door of privatizing and letting private firms pay far more to do essentially the same work.
Javier E

President Obama Could Unmask Big Political Donors - NYTimes.com - 0 views

  • Each one of hundreds of corporate contractors and subcontractors has an incentive to contribute to political candidates and their parties because, quite simply, pay-to-play works. In a recent report, the Sunlight Foundation, a watchdog group, tallied the lobbying and campaign expenditures of 200 companies from 2007 to 2012. In all, the companies spent a total of $5.8 billion and were awarded $4.4 trillion in federal business and support, or $760 for every $1 spent.
  • This month, more than 50 public advocacy and good government groups publicly challenged him to back up his rhetoric with action. In a letter to Mr. Obama, they called on him to issue an executive order requiring full disclosure of political spending by corporations receiving federal contracts, as well as by their directors and officers.
knudsenlu

The James Webb, NASA's Next Space Telescope, Is Falling Behind - The Atlantic - 0 views

  • The world’s next great space telescope is falling behind.The James Webb Space Telescope, NASA’s successor to the famed Hubble, is at risk of experiencing significant delays in development, according to a new report from a government agency that audits federal programs.
  • Webb is an $8.8 billion project two decades in the making. Last September, NASA announced it was delaying the telescope’s launch by at least five months, from October 2018 to between March and June 2019. At the time, NASA officials said the change wasn’t due to any problems with the hardware, but because assembling the telescope’s many complex parts was “taking longer than expected.”
  • This is a disheartening forecast for many parties, including NASA; Northrop Grumman, the telescope’s main contractor; and the European and Canadian space agencies, contributors to the telescope’s design and construction. There’s no question that the Webb will launch. After 20 years of development and construction, most of the money has already been spent and the hardware rigorously tested. But the road to the launchpad may be bumpier than everyone expected.
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  • Once completed, the telescope will be an amalgamation of several complex pieces of hardware. Most of the assembly for Webb took place at NASA’s facility in Maryland, the Goddard Spaceflight Center, where it underwent a barrage of tests. In January 2016, scientists and engineers dunked the telescope’s sensitive instruments into a cylindrical chamber that simulates the extreme conditions of outer space. By November 2017, the delicate mirrors and instruments were joined together, and mission members put them through the ringer to make sure they could survive the vibrations and sounds of a powerful rocket launch. They bolted the telescope to metal plates and shook it violently, then wheeled it into an acoustic chamber and blasted it with noise through giant, vuvuzela-shaped speakers.
  • The GAO report starts out by praising the Webb mission for making “considerable progress” in the last few months in hardware integration, but things go downhill from there.The GAO places blame on Northrop Grumman for delays. “For several years, the prime contractor has overestimated workforce reductions, and technical challenges have prevented these planned reductions, necessitating the use of cost reserves,” the report said. Northrop Grumman did not respond to a request for comment about this assessment.
  • If the GAO report is any indication, there may be more troubling news for Webb to come. An independent review board for the Webb mission will conduct its own audit of the project early this year to determine whether it will make its new 2019 launch target.In the meantime, the Webb team has been reviewing and selecting research proposals for its first year of operations. The telescope, 100 more times powerful than Hubble, will be able to see deeper into the universe than ever before. Hundreds of astronomers, from many countries, want their time on it. In its first few months, Webb will focus on nearby targets—the planets in our solar system—and distant ones—glittering galaxies way out in the cosmos. It will return stunning images of it all in tremendous clarity and color. Perhaps then, when we lay eyes on these photographs, the long wait will have seemed worth
malonema1

Apple Customer Data in China Was Sold Illegally, Police Say - The New York Times - 0 views

  • Apple Customer Data in China Was Sold Illegally, Police Say
  • he Chinese police said this week that they had arrested 22 people suspected of selling the personal data of an unspecified number of Apple customers. The police, in Cangnan County in the eastern province of Zhejiang, said the thieves had reaped 50 million renminbi, or about $7.3 million, over an unspecified period.
  • 20 of the 22 people worked for companies that sell Apple products or are Apple contractors
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  • In China, Apple’s products are sold broadly, in electronics chain stores and small booths in shopping malls in addition to the company’s official Apple Stores.
  • he arrests are part of a set of broader difficulties in China for Apple, which is based in Cupertino, Calif. Sales of iPhones, still a sign of middle-class aspiration in China, have slowed, according to analysts, as the public waits for new models and as Chinese manufacturers of cheaper phones step up their quality and marketing.
  • Between widespread malware campaigns and a large number of new internet users, China has become a playground for internet fraudsters. Last year, China tried 361 criminal cases involving violation of personal data, up from 176 in 2015, said Xie Yongjiang, associate director for the Institute of Internet Governance and Law at the Beijing University of Posts and Telecommunications.
  • An apparent trove of login information leaked onto the Chinese internet was used to hack more than 20 million accounts on Alibaba’s e-commerce site Taobao, according to news reports.
  • The problem is not even new to Apple. Last year, 10 employees of an Apple contractor in China were also found with data from more than 80,000 users.
carolinehayter

14-hour days and no bathroom breaks: Amazon's overworked delivery drivers | Amazon | Th... - 0 views

  • Fourteen-hour shifts were common because delivery service providers wouldn’t allow drivers to return any packages from their routes and the pressure to meet delivery rates meant Meyers used a plastic bottle to go to the bathroom on a daily basis.
  • “Any time a van is off route or stops for longer than three minutes, it notifies the delivery service provider. Amazon encourages the delivery service owners to cut down on said stops
  • Amazon uses contractors for delivery services, a move Meyers said makes it exceedingly difficult for workers to organize, and he said, contributes to drivers being overworked and underpaid by the delivery service providers who are paid bonuses on metrics such as route completion percentages.
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  • “If Amazon decides to take millions of jobs and essentially cut their labor costs in half, that only comes out of workers’ pockets,” added Korgan. “That creates a major economic problem in an industry that for the last 50 years has done a good job of supporting millions of middle-class jobs.”
  • “This sort of model is problematic for the entire industry,” said Randy Korgan, the director of the Teamster’s Amazon Project. “They’re willing to loan these small subcontractors money, get them access to their vans and help them advertise for employees to offload all the responsibility that would normally fall on Amazon.”
  • Amazon has been publicly opposed to unionization and organizing among their employees, most recently through an anti-union campaign launched ahead of a union election vote at a warehouse in Bessemer, Alabama, which has included anti-union captive audience meetings and sending mass texts and ads to workers encouraging them to vote against the union.
  • Drivers for Amazon contractors have complained of the surveillance and pressure they receive through cameras and a tracking app, Mentor.
  • remain
  • Drivers for Amazon delivery service providers also face fear of retaliation for trying to organize in their workplaces.
  • Jeff Bezos and Elon Musk have gone back and forth every week about who is the wealthiest person in the world and I can’t even pay my rentDerrick Flournoy
  • “Sixteen dollars an hour isn’t enough for the amount of work that we have to do. We’re a representation of the wealthiest company in the world and we’re barely making enough money to live,”
  • An Amazon spokesperson claimed drivers have built-in time through their routes for breaks and provide a list of nearby restrooms in the delivery app. They did not comment on the unfair labor practice charge or on organizing efforts by drivers.
Javier E

How Emergent BioSolutions Put an 'Extraordinary Burden' on the U.S.'s Troubled Stockpil... - 0 views

  • Government purchases for the Strategic National Stockpile, the country’s emergency medical reserve where such equipment is kept, have largely been driven by the demands and financial interests of a handful of biotech firms that have specialized in products that address terrorist threats rather than infectious disease.
  • “Today, I think, we would not allow anthrax to take up half the budget for a guaranteed supply of vaccines,” he said, adding, “Surely after such a calamity as the last year, we should take a fresh look at stockpiles and manufacturing and preparing for the next pandemic.”
  • Under normal circumstances, Emergent’s relationship with the federal stockpile would be of little public interest — an obscure contractor in an obscure corner of the federal bureaucracy applying the standard tools of Washington, like well-connected lobbyists and campaign contributions, to create a business heavily dependent on taxpayer dollars.
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  • Security concerns, moreover, keep most information about stockpile purchases under wraps. Details about the contracts and inventory are rarely made public, and even the storage locations are secret.
  • Former Emergent employees, government contractors, members of Congress, biodefense experts and current and former officials from agencies that oversee the stockpile described a deeply dysfunctional system that contributed to the shocking shortages last year.
  • Purchases are supposed to be based on careful assessments by government officials of how best to save lives, but many have also been influenced by Emergent’s bottom line
  • The stockpile has long been the company’s biggest and most reliable customer for its anthrax vaccines, which expire and need to be replaced every few years.
  • In the two decades since the repository was created, Emergent’s aggressive tactics, broad political connections and penchant for undercutting competitors have given it remarkable sway over the government’s purchasing decisions related to the vaccines
  • While national security officials still consider anthrax a threat, it has not received specific mention since 2012 in the intelligence community’s annual public assessment of dangers facing the country, a report that has repeatedly warned of pandemics.
  • Emergent bought the license for the country’s only approved anthrax vaccine in 1998 from the State of Michigan. Over time, the price per dose the government agreed to pay Emergent increased nearly sixfold, accounting for inflation, contributing to record revenues last year that topped $1.5 billion
  • The company, whose board is stocked with former federal officials, has deployed a lobbying budget more typical of some big pharmaceutical companies
  • Competing efforts to develop a better and cheaper anthrax vaccine, for example, collapsed after Emergent outmaneuvered its rivals, the documents and interviews show.
  • preparations for an outbreak like Covid-19 almost always took a back seat to Emergent’s anthrax vaccines
  • the government approved a plan in 2015 to buy tens of millions of N95 respirators — lifesaving equipment for medical workers that has been in short supply because of Covid-19 — but the masks repeatedly lost out in the competition for funding over the years leading up to the pandemic
  • After Dr. Frieden and others in the Obama administration tried but failed to lessen Emergent’s dominance over stockpile purchases, the company’s fortunes rose under Mr. Trump, who appointed a former Emergent consultant with a background in bioterrorism to run the office that now oversees the stockpile
  • “If I could spend less on anthrax replenishment, I could buy more N95s,” Dr. Kadlec said in an interview shortly after leaving office. “I could buy more ventilators. I could buy more of other things that quite frankly I didn’t have the money to buy.”
  • And now, as some members of Congress push for larger reserves of ventilators, masks and other equipment needed in a pandemic, a trade group led in part by a top Emergent lobbyist has warned that the purchases could endanger companies focused on threats like anthrax and smallpox by drawing down limited funds.
  • Last year, as the pandemic raced across the country, the government paid Emergent $626 million for products that included vaccines to fight an entirely different threat: a terrorist attack using anthrax.
  • “I think it’s pretty clear that the benefit of the vaccine is marginal,” he said in an interview
  • “They’re very vicious in their behavior toward anybody they perceive as having a different point of view,” said Dr. Tara O’Toole, a former Homeland Security official who says she ran afoul of Emergent in 2010 after telling Congress that the nation needed a newer and better anthrax vaccine.
  • That year, the company that would become Emergent — then known as BioPort — paid Michigan $25 million to buy the license for a government-developed anthrax vaccine and an aging manufacturing plant.
  • The company opened its doors with one product, called BioThrax, and one customer, the Defense Department, which required the vaccine for service members.
  • Emergent’s anthrax vaccine was not the government’s first choice. It was more than 30 years old and plagued by manufacturing challenges and complaints about side effects. Officials instead backed a company named VaxGen, which was developing a vaccine using newer technology licensed from the military.
  • Emergent’s successful campaign against VaxGen — deploying a battalion of lobbyists, publicly attacking its rival and warning that it might cease production of its own vaccine if the government didn’t buy it — established its formidable reputation. By 2006, VaxGen had lost its contract and the government had turned to Emergent to supply BioThrax.
  • “They were totally feared by everybody,” Dr. Philip Russell, a top health official in the administration of President George W. Bush, said in an interview. He said that he clashed with Emergent when he backed VaxGen, and that his reputation came under attack, which was documented by The Times in 2006. (Dr. Russell died this January.)
  • the group of federal officials who make decisions about the stockpile and other emergency preparations — known as the Phemce, for the Public Health Emergency Medical Countermeasures Enterprise — ordered up a study. It found in 2010 that the government could not afford to devote so much of its budget to a single threat.
  • Instead, the review concluded, the government should invest more in products with multiple applications, like diagnostic tests, ventilators, reusable respirator masks and “plug and play” platforms that can rapidly develop vaccines for a range of outbreaks.
  • from 2010 through 2018, the anthrax vaccine consumed more than 40 percent of the stockpile’s budget, which averaged $560 million during those years.
  • Emergent and the government have withheld details of the stockpile contracts, including how much the company has charged for each dose of BioThrax, but executives have shared some of the missing information with investors.
  • The company in 1998 agreed to charge the government an average of about $3.35 per dose, documents show. By 2010, the price had risen to about $28, according to financial disclosures and statements by Emergent executives, and now it is about $30
  • Over the past 15 years, the company recorded a gross profit margin of about 75 percent for the vaccine, in an arrangement that one Emergent vice president called a “monopoly.”
  • Emergent’s rise is the stuff of lore in biodefense circles — a tale of savvy dealings, fortuitous timing and tough, competitive tactics.
  • One afternoon in October 2010, Wall Street investors gathered at the Millennium Broadway Hotel in Manhattan for a presentation by Mr. Burrows. He shared with them a secret number: 75 million.That was how many BioThrax doses the government had committed to stockpiling, and it was the backbone of Emergent’s thriving business. In pursuit of that goal, the government had already spent more than $900 million, and it continued to buy virtually every dose Emergent could produce. It had even awarded the company more than $100 million to expand its Michigan factory.
  • “The best approach toward anthrax is antimicrobial therapy,” Dr. Anthony S. Fauci, the government’s top infectious-disease expert, told Congress as early as 2007.
  • In an analysis published in 2007, the firm determined that giving antibiotics immediately after a large outdoor anthrax attack was likely to reduce serious illnesses by more than 80 percent. Administering the vaccine would then cut serious illnesses only by an additional 4 percent.
  • Dr. Ali S. Khan, who ran the C.D.C. office managing the stockpile until 2014, said bluntly: “We overpaid.”
  • “A bunch of people, including myself, were sitting in a room and asking what kind of attack might happen,” said Dr. Kenneth Bernard, a top biodefense adviser to Mr. Bush, recalling a meeting in the months after the 2001 attacks.
  • “And somebody said, ‘Well, I can’t imagine anyone attacking more than three cities at once,’” he said. “So we took the population of a major U.S. city and multiplied by three.”
  • A team of Homeland Security and health officials began doing just that in 2013. The group determined, in a previously undisclosed analysis, that the government could stockpile less BioThrax and still be prepared for a range of plausible attacks, according to two people involved in the assessment. Separately, government researchers concluded that two doses of BioThrax provided virtually the same protection as three.
  • the National Intelligence Council, which helped draft the assessments during Mr. Obama’s second term, said in an interview that the idea of a three-city attack affecting 25 million people was “straining credulity.”
  • “If you talk to the head of the House Intelligence Committee,” Don Elsey, Emergent’s chief financial officer, told investors in 2011, “and you say, ‘What are you most worried about?’ he’ll say, ‘Let me see: Number one, anthrax; number two, anthrax; number three, anthrax.’”
  • Emergent’s sales strategy was to address that fear by promising the federal government peace of mind with its vaccine.
  • “There’s a political element involved,” Mr. Burrows, the company’s vice president of investor relations, said at an industry conference in 2016. “I don’t have a marketing expense. I have lobbying expense.”
  • Since 2010, the company has spent an average of $3 million a year on lobbying — far outspending similarly sized biotech firms, and roughly matching the outlays of two pharmaceutical companies with annual revenues at least 17 times greater, AstraZeneca and Bristol Myers Squibb
  • In 2015, as stockpile managers questioned the large purchases of BioThrax, the spending topped $4 million
  • “They were pouring it on — how poor they were and how this was going to ruin the company, and they’d have to close down factories, and America was going to be left without anthrax vaccine,”
  • “Their revolving door is moving at 60 miles per hour,” said former Senator Claire McCaskill, a Democrat from Missouri who had questioned spending on the vaccine while in the Senate. “There is really a lot of incestuousness because it’s such a specialized field.”
  • Ms. DeLorenzo, the Emergent spokeswoman, said the lobbying was necessary because government investment “in biodefense and other public health threats has not been as strongly prioritized as it should be.”
  • Over the past 10 years, Emergent’s political action committee has spread almost $1.4 million in campaign contributions among members of both partie
  • The move followed a yearslong pattern of retaining a bipartisan lobbying corps of former agency officials, staff members and congressmen, including Pete Hoekstra of Michigan, Tom Latham of Iowa and Jim Saxton of New Jersey.
  • “You have people coming and saying, ‘There’s no market for this — nobody’s going to produce this unless you buy enough of it to keep the production line open,’” he said. “It’s an absolutely appropriate argument to make.”
  • Emergent’s campaign proved effective. Despite the 2015 recommendation by the stockpile managers, Senate overseers made clear they opposed the reduction, and the government went ahead and bought $300 million worth of BioThrax.
  • Emergent executives, meanwhile, warned that there could be job losses at the factory in Lansing, Mich. — the capital of a swing state at the center of a contentious presidential campaign between Mr. Trump and Hillary Clinton.
  • Because Emergent was the sole manufacturer of a product deemed critical to national security, the company has played what one former executive described to The Times as “the we’re-going-to-go-bankrupt card.”
  • Dr. Hatchett said the idea gave him pause. But, he explained in an interview, “if there’s only one partner that can provide a product and only one customer for that product, the customer needs the partner to survive.”
  • Just a year later, Emergent spent about $200 million in cash, and made other financial commitments, to acquire Sanofi’s smallpox vaccine and GlaxoSmithKline’s anthrax treatment, two products with established pipelines to the stockpile. The purchases expanded Emergent’s hold over the reserve.
  • Ms. DeLorenzo said the acquisitions did not suggest the company was better off than it had claimed, but Dr. Bright said he and others involved in the bailout felt used.
  • a plan five years earlier to create an emergency supply of N95 respirators was simply not funded. A team of experts had proposed buying tens of millions of the masks to fill the gap during an outbreak until domestic manufacturing could ramp up, according to five officials involved in the assessment, which has not been previously disclosed.
  • By the time the novel coronavirus emerged, the stockpile had only 12 million of the respirators. The stockpile has since set a goal of amassing 300 million.
  • Dr. Kadlec, the Trump administration official overseeing the stockpile, said he used the previous administration’s mask recommendation to raise alarms as early as 2018.
  • Dr. Annie De Groot, chief executive of the small vaccine company EpiVax, spoke about the need to break Emergent’s lock on research dollars at a biodefense forum in 2015.
  • “Politicians want to look like they’ve addressed the problem,” she said. “But we need to actually listen to the scientists.”
  • Over the last five years, Emergent has received nearly a half-billion dollars in federal research and development funding, the company said in its financial disclosures.
  • “We know ahead of time when funding opportunities are going to come out,” Barbara Solow, a senior vice president, told investors in 2017. “When we talk to the government, we know how to speak the government’s language around contracting.”
  • The company used federal money to make improvements to BioThrax, and also found a way to earn government money from a competing anthrax vaccine it had excoriated. After the demise of VaxGen in 2006, Emergent bought the company’s unfinished vaccine and in 2010 persuaded the federal government to continue paying for research on it
  • By the time the research contract was canceled in 2016, Emergent had collected about $85 million, records show. The company then shelved the vaccine. “If the U.S. government withdraws funding, we re-evaluate whether there is any business case for continuing,” Ms. DeLorenzo said.
  • For more than 30 years, the government had been encouraging the development of a BioThrax replacement. In 2002, the Institute of Medicine had concluded that an alternative based on more modern technology was “urgently needed.” By 2019, there were three leading candidates, including one made by Emergent, known as AV7909.
  • Emergent’s candidate was hardly the breakthrough the government was seeking, former health officials said. AV7909 was essentially an enhanced version of BioThrax. The competitors were using more modern technology that could produce doses more rapidly and consistently, and were promising significant cost savings for the stockpile.
  • To qualify for emergency authorization, a vaccine must be at an advanced stage of development with no approved alternatives. Emergent acknowledged in its financial disclosures that there was “considerable uncertainty” whether the new vaccine met those requirements.
  • The election of Mr. Trump as president was good news for Emergent.
  • Dr. Lurie, the senior health official in the Obama administration who had tried to scale back BioThrax purchases, was out. Mr. Trump’s pick to replace her was Dr. Kadlec, a career Air Force physician and top biodefense official in the Bush administration who was fixated on bioterrorism threats, especially anthrax, current and former officials said
  • Soon after entering the Trump administration in 2017, Dr. Kadlec took a series of actions that he characterized as streamlining a cumbersome bureaucracy but that had the effect of benefiting Emergent.
  • He assumed greater control of purchasing decisions, diminishing the authority of the Phemce, the oversight group that had proposed buying less BioThrax. And in 2018, he backed a decision to move control of the stockpile to his office in the Department of Health and Human Services and away from the C.D.C., which is based in Atlanta and prides itself on being insulated from the influence of lobbyists.
  • Dr. Frieden, the former C.D.C. director, was strongly opposed. The move, he said, “had almost as an explicit goal to give the lobbyists more say in what got purchased.”
  • That July, the government made the announcement Emergent had been banking on, committing to buying millions of doses. Separately, it said it would stop funding Emergent’s competitors.
  • The decision to side with Emergent did not surprise Dr. Khan, the former C.D.C. official overseeing the stockpile.“Again and again, we seem unable to move past an old technology that’s bankrupting the stockpile,” he said.
  • Last month, as the death toll from Covid-19 neared a half-million, Mr. Kramer, the company’s chief executive, told analysts there had been no “evidence of a slowdown or a delay or a deprioritization,” and echoed a statement he had made in April when asked whether the pandemic might interrupt Emergent’s sales to the stockpile.“It’s pretty much business as usual,” he said then.
hannahcarter11

President Biden has released his $6 trillion budget. Here's what's in it. - CNNPolitics - 0 views

  • President Joe Biden on Friday proposed a $6 trillion budget for fiscal year 2022, laying out details of a proposed dramatic increase in federal spending that serves as the underpinning of an economic agenda that seeks to transform the American economy as the country emerges from dual public health and economic crises.
  • The budget proposal, which is an opening bid in negotiations with Congress and is expected to change before being signed into law, calls for the most sustained period of spending in more than half a century. The White House budget serves more as a marker of administration priorities than a policy blueprint destined to be signed into law. It would invest heavily in Biden's top priority areas including infrastructure, education, research, public health, paid family leave and childcare.
  • The proposal includes the American Jobs Plan and the American Families Plan, the $4 trillion infrastructure, jobs and economic proposal that the President had previously laid out and is negotiating with lawmakers. It also outlines additional funds to launch a new health research agency to focus on diseases like cancer, and funds to address gun violence, tackle the climate crisis, help end homelessness and curb the opioid epidemic.
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  • The scale of the spending, which Biden has made the center of his economic plans, is an intentional effort to transform an economy the President has repeatedly said leaves too many behind and, just as importantly, has made the US less competitive in the face of an ascendant China.
  • At its core, the budget underscores the fundamental divide in viewpoints between the two parties in the wake of the pandemic -- as well as the clear shift in the Democratic Party towards an embrace of ramping up spending and tax increases on corporations in the wealthy in order to expand the federal government's role in assisting those on the lower-end of the income scale.
  • Biden is asking Congress for $932 billion for discretionary, non-defense programs for fiscal year 2022 -- a significant increase from last year. The President has proposed $756 billion in defense funding, which is also an uptick from last year
  • Young argued the investments are "front-loaded" and would be "more than paid for" by the reforms to the tax code that would require the wealthiest of Americans and corporations to pay higher taxes. The President has repeatedly pledged that Americans making less than $400,000 would not have to pay increased taxes.
  • Biden has made racial equity a top focus of his administration, but there is no specific line item in the budget focused on addressing racial inequality. Young argued it wasn't necessary because Biden has directed the entire federal government to address racial inequality as it implements all of its programs.
  • In addition to the American Jobs Plan and the American Families plan, the budget proposal calls for:
  • The presidential budget did not include the Hyde amendment -- a four-decade-old ban on federal dollars being used for abortions except in cases of rape, incest or when the woman's life is in danger -- which Biden previously supported before reversing course and denouncing during the Democratic primary. Abortion rights supporters had long called for Biden to drop the measure.
  • In his budget overview, the President calls on Congress to enact several of his major health care initiatives, including lowering prescription drug costs by allowing Medicare to negotiate prices, creating a public health insurance option, giving those age 60 and older the option to enroll in Medicare and closing the Medicaid coverage gap.
  • Instead, the White House budget focuses on the health care measures contained in the American Families Plan, which would make permanent enhanced Affordable Care Act subsidies that were contained in the Democrats' $1.9 trillion rescue plan that Biden signed into law in March. That boost to the federal subsidies currently lasts only two years.
  • The budget also doesn't include increasing the national minimum wage to $15 an hour, which Biden had included in his $1.9 trillion relief proposal. But the measure was dropped from the Senate version after the parliamentarian ruled it did not meet a strict set of guidelines needed to move forward in the Senate's reconciliation process.
  • What is in the budget is setting the hourly minimum wage at $15 for federal contractors. This process is already underway, thanks to an executive order Biden signed in late April.
ethanshilling

U.S. Aid to Central America Hasn't Slowed Migration. Can Kamala Harris? - The New York ... - 0 views

  • An American contractor went to a small town in the Guatemalan mountains with an ambitious goal: to ignite the local economy, and hopefully even persuade people not to migrate north to the United States.
  • Pedro Aguilar, a coffee farmer who hadn’t asked for the training and didn’t see how it would keep anyone from heading for the border, looked confused. Eyeing the U.S. government logo on the pamphlet, he began waving it around, asking if anyone had a phone number to call the Americans “and tell them what our needs really are.”
  • As vice president, Joseph R. Biden Jr. led an enormous push to deter people from crossing into the United States by devoting hundreds of millions of dollars to Central America, hoping to make the region more tolerable for the poor — so that fewer would abandon it.
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  • Now, as President Biden, he is doubling down on that strategy once again and assigning his own vice president, Kamala Harris, the prickly challenge of carrying out his plan to commit $4 billion in a remarkably similar approach as she travels to the region Sunday.
  • But the numbers tell a different story. After years of the United States flooding Central America with aid, migration from the region soared in 2019 and is on the upswing once more.
  • Ms. Harris, who has little foreign policy experience and no history in the region, has already been criticized for not visiting the border.
  • The political risks are evident, including the obvious pitfalls of investing billions in a region where the president of Honduras has been linked to drug traffickers and accused of embezzling American aid money, the leader of El Salvador has been denounced for trampling democratic norms and the government of Guatemala has been criticized for persecuting officials fighting corruption.
  • “We’ve looked extensively at different programs that have been approached,” said Nancy McEldowney, a longtime diplomat who serves as Ms. Harris’s national security adviser.
  • Foreign aid is often a difficult, and at times flawed, tool for achieving American interests abroad, but it’s unclear whether there are any simple alternatives for the Biden administration.
  • From 2016 to 2020, 80 percent of the American-financed development projects in Central America were entrusted to American contractors, according to data provided by the U.S. Agency for International Development.
  • “It’s an incredibly not-transparent situation,” said Eric Olson, an expert on foreign aid to Central America at the Seattle International Foundation. “It’s like this is a national secret.”
  • Even when aid money reached Guatemala in recent years, it often brought little change, according to interviews with dozens who worked with or received assistance from U.S.-financed projects in the country’s western highlands.
  • For decades, migration to the United States followed a pattern: Aside from some spikes in migration from Central America after civil wars or natural disasters, it was mostly single Mexicans who headed north in search of better jobs and pay.
  • Aid workers kept coming to deliver lots of seminars on topics in which the farmers were already well versed, they said, such as planting new varieties of coffee beans, and then left.
liamhudgings

$11 Billion And Counting: Trump's Border Wall Would Be The World's Most Costly : NPR - 0 views

  • The pricetag for President Trump's border wall has topped $11 billion — or nearly $20 million a mile — to become the most expensive wall of its kind anywhere in the world.
  • And the Trump administration is on the hunt for funding to build even more
  • The Department of Homeland Security has asked the Defense Department to come up with money for 270 additional miles of border wall that DHS says is needed to block drug smuggling routes on federal land.
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  • To get an idea why the government is spending so much on Trump's border wall, look no further than the construction sites down in the Rio Grande Valley of Texas.
  • On one side of a caliche road, you can see the pedestrian fence that was erected more than a decade ago. At 18 feet, it looks downright puny. On the other side of the road are massive steel bollards topped with an "anti-climbing plate" that rise 30 feet above the cotton fields, surrounded by men in hardhats and heavy equipment.
  • "The cost of almost $20 million per mile cost is four times as much as the most expensive other walls being built,"
  • Border walls are much in vogue in the post-Cold War era, he said, and there are now at least 60 around the world.
  • The federal contractors are mostly giant construction companies with experience handling complex federal projects.
  • Taking private land through eminent domain involves multiple agencies, including the Department of Justice, and can lead to lawsuits.
  • "Where you have private property and the government has to go through the courts to get that property, it takes a lot longer and it drives the cost up because you have to pay for that land,"
  • Contrary to President Trump's claims, the wall is not "going up at a record speed." In fact, construction has fallen months behind schedule because of the complexities of acquiring private land in the South Texas.
  • Democrats say they do want border security, but the way to do it is with manpower and technology, not steel and concrete.
  • "I live on the border. I don't want to see chaos. I want to see law and order at the border," Cuellar continued. "But I don't want to just be spending billions of dollars to those federal contractors."
  • Some of the extra money will be used to build the wall higher and 10 miles longer. There have also been "increased project costs due to unforeseen site conditions" — to wit, serious seepage problems where the levee wall crosses a canal that empties into the Rio Grande.
  • Now, the Pentagon inspector general is reviewing the contract. Auditors want to know if the White House steered it to Fisher, who maintains his bid was the best.
cartergramiak

Opinion | Horrified by the Blackwater Pardons - The New York Times - 0 views

  • After only one week, we determined that this incident was not as presented by Blackwater personnel and their State Department lackeys, but it was a massacre along the lines of My Lai in Vietnam. Three of the guards were convicted of manslaughter and one of murder.
  • I only recently became aware of the concerted effort for the pardons, which I understand started with a political push by members of Congress. President Trump should have had staff members review the trial evidence that led to the convictions and read the judges’ opinions and sentencing statements. God forbid they might have actually picked up the phone and called the investigators who built the case. I’m so disgusted with the president’s actions!
  • n 2007, when private security contractors working for Blackwater in Iraq killed 17 Iraqi civilians, and injured others, the killings provoked outrage in Iraq, and around the world. It took seven years for the U.S. government to successfully prosecute the perpetrators, a case that highlighted the need to hold private contractors accountable.
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  • President Trump has shamefully pardoned four of the perpetrators, upending this valuable example of accountability.
zarinastone

Edward Snowden Says He's Applying For Russian Citizenship | NPR - 0 views

  • Former National Security Agency contractor and whistleblower Edward Snowden announced Monday he plans to seek Russian citizenship, while also maintaining his U.S. nationality.
  • Snowden said they are seeking Russian citizenship to ensure they will be able to live with their future son
  • Snowden fled the U.S. in 2013 after leaking classified information on domestic and international surveillance programs carried out by the NSA where he worked as a contractor. He previously worked for the CIA from 2006 to 2009.
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  • Snowden has lived in Russia since 2013, having initially been granted asylum
  • He faces criminal charges in the U.S. including espionage and theft of government property related to the leak.
  • Snowden also faces other legal repercussions.
  • The U.S. District Court for the Eastern District of Virginia sided with U.S. officials who said that by not submitting the book for a pre-publication review, Snowden violated nondisclosure agreements he signed while working for the NSA and CIA.
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