Monday, July 25, 2011

DTN News: U.S. Department of Defense Contracts Dated July 25, 2011

DTN News: U.S. Department of Defense Contracts Dated July 25, 2011
(NSI News Source Info) WASHINGTON - July 25, 2011: U.S. Department of Defense, Office of the Assistant Secretary of Defense (Public Affairs) Contracts issued July 25, 2011 are undermentioned;

CONTRACTS

DEFENSE LOGISTICS AGENCY

Graybar Electric Co., Inc., St. Louis, Mo., was issued a modification exercising the sixth option year on the current contract SPM500-04-D-BP11/P00029. Award is a firm-fixed-price indefinite-delivery/indefinite-quantity contract with a maximum $660,000,000 for the maintenance, repair, and operations prime vendor for zone one of the South Central region. There are no other locations of performance. Using services are Army, Navy, Air Force, Marine Corps and federal civilian agencies. The date of performance completion is July 28, 2012. The Defense Logistics Agency Troop Support, Philadelphia, Pa., is the contracting activity.

SupplyCore, Inc., Rockford, Ill., was issued a modification exercising the sixth option year on the current contract SPM500-04-D-BP10/P00023. Award is a firm-fixed-price indefinite-delivery/indefinite-quantity contract with a maximum $320,000,000 for the maintenance, repair, and operations supplies for the North Central region. There are no other locations of performance. Using services are Army, Navy, Air Force, Marine Corps and federal civilian agencies. The date of performance completion is July 28, 2012. The Defense Logistics Agency Troop Support, Philadelphia, Pa., is the contracting activity.

Science Applications International Corp., Fairfield, N.J., was issued a modification exercising the sixth option year on the current contract SPM500-04-D-BP12/P00025. Award is a firm-fixed-price contract with a maximum $40,000,000 for the maintenance, repair, and operation supplies and related services for zone two of the South Central region of the United States. There are no other locations of performance. Using services are Army, Navy, Air Force, Marine Corps and federal civilian agencies. The date of performance completion is July 28, 2012. The Defense Logistics Agency Troop Support, Philadelphia, Pa., is the contracting activity.

NAVY

Bell Helicopter Textron, Inc., Fort Worth, Texas, is being awarded a $549,999,711 firm-fixed-price modification to a previously awarded advance acquisition contract (N00019-10-C-0015) for long lead materials and components associated with the manufacture and delivery of 19 lot eight UH-1Y build new aircraft; eight AH-1Z remanufactured aircraft; and six lot eight AH-1Z build new aircraft. This modification is the production definitization of the AAC to include negotiated lot eight aircraft pricing. Work will be performed in Fort Worth, Texas (60 percent), and Amarillo, Texas (40 percent), and is expected to be completed in February 2014. Contract funds will not expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.

SES-Tech Atlantic*, Norfolk, Va. (N40085-11-D-0043); H&S Environmental*, Westborough, Mass. (N40085-11-D-0044); and Osage of Virginia*, Norfolk, Va. (N40085-11-D-0045), are each being awarded an indefinite-delivery/indefinite-quantity multiple award remedial action operation, long term management, environmental multiple award contract for environmental projects within the Naval Facilities Engineering Command Mid-Atlantic Hampton Roads area of responsibility. The maximum dollar value, including the base period and two option years, for all three contracts combined is $65,000,000. SES-Tech Atlantic is being awarded task order 0001 at $426,954 for the remediation of the entry road to Oceana Salvage Yard Virginia Beach, Va. Work for this task order is expected to be completed by February 2012. All work on this contract will be performed in the Hampton Roads area of Virginia. The term of the contract is not to exceed 36 months, with an expected completion date of July 2014. Contract funds in the amount of $436,954 will expire at the end of the current fiscal year. This contract was competitively procured via the Navy Electronic Commerce Online website, with seven proposals received. These three contractors may compete for task orders under the terms and conditions of the awarded contract. The Naval Facilities Engineering Command, Mid-Atlantic, Norfolk, Va., is the contracting activity.

The Boeing Co., Seattle, Wash., is being awarded a $21,012,546 modification to a previously awarded fixed-price-incentive-fee contract (N00019-09-C-0022) to provide additional funding for long lead materials in support of low rate initial production of seven lot two P-8A multi-mission maritime aircraft. Work will be performed in Seattle, Wash. (63.80 percent); Greenlawn, N.Y. (11.69 percent); Baltimore, Md. (10.98 percent); North Amityville, N.Y. (8.24 percent); and McKinney, Texas (5.29 percent). Work is expected to be completed in December 2013. Contract funds will not expire at the end of the current fiscal year. The Naval Air System Command, Patuxent River, Md., is the contracting activity.

Lockheed Martin Corp., Maritime Systems and Sensors, Manassas, Va., is being awarded a not-to-exceed $15,439,238 cost-plus-incentive-fee letter modification to previously awarded contract (N00024-11-C-6294) to design and manufacture hardware for the Acoustic Rapid Commercial-Off-The-Shelf Insertion (A-RCI) system improvement and integration program. A-RCI is a sonar system that integrates and improves towed array, hull array, sphere array, and other ship sensor processing, through rapid insertion of commercial off the shelf based hardware and software. Work will be performed in Clearwater, Fla. (70 percent), and Manassas, Va. (30 percent), and is expected to be completed by January 2014. Contract funds will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington Navy Yard, D.C., is the contracting activity.

ARMY

Healthcare Services of North America, J.V., Petal, Miss. (W91YTZ-11-D0015); Magnum Opus Technologies, San Antonio, Texas (W91YTZ-11-D0016); and Nurse Etc Staffing, Universal City, Texas (W91YTZ-11-D0017), were awarded a $492,000,000 firm-fixed-price multiple-award-task-order contract between three contractors. The award will provide for the personal and non-personal service for medical specialties to include physician, nursing and ancillary services. Work location will be determined with each task order, with an estimated completion date of July 17, 2015. The bid was solicited through the Internet, with 40 bids received. The Healthcare Acquisition Activity, Frederick, Md., is the contracting activity.

AM General, L.L.C., South Bend, Ind., was awarded a $195,156,024 firm-fixed-price contract. The award will provide for the modification of an existing contract to provide 808 High Mobility Multi-Purpose Wheeled Vehicles of various models and 744 armored troop enclosures in support of foreign military sales to Afghanistan. Work will be performed in Mishawaka, Ind., with an estimated completion date of Feb. 29, 2012. One bid was solicited, with one bid received. The U.S. Army Contracting Command, Warren, Mich., is the contracting activity (W56HZ V-10-C-0405).

The Boeing Co., Mesa, Ariz., was awarded a $189,211,400 firm-fixed-price contract. The award will provide for the modification of an existing contract to provide 16 AH-64D Apache aircraft and related support. Work will be performed in Mesa, Ariz., with an estimated completion date of Feb. 28, 2014. One bid was solicited, with one bid received. The U.S. Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity (W58RGZ-09-C-0161).

Science Applications International Corp., McLean, Va., was awarded a $78,670,000 firm-fixed-price, labor-hours and time-and-materials hybrid contract. The indefinite-delivery/indefinite-quantity contract will provide for the coordinating, integrating, conducting and executing experiments in support of the Maneuver Battle Lab mission. Work will be performed in Fort Benning, Ga., with an estimated completion date of July 31, 2016. The bid was solicited through the Internet, with three bids received. The U.S. Army Mission and Installation Command, Fort Bragg, N.C., is the contracting activity (W91247-11-D-0010).

Raytheon Co., Fullerton, Calif., was awarded a $70,520,000 cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity contract. The award will provide for the engineering and integration, logistical and field support, and post deployment software service support for the Enhanced Position Location Reporting System. Work will be performed in Fullerton, Calif., and Forest, Miss., with an estimated completion date of July 31, 2014. One bid was solicited, with one bid received. The U.S. Army Contracting Command, Aberdeen Proving Ground, Md., is the contracting activity (W15P7T-11-DC604).

Oshkosh Corp., Oshkosh, Wis., was awarded a $30,463,852 firm-fixed-price contract. The award will provide for the production of 185 Family of Medium Tactical Vehicles and one armor B-kit. Work will be performed in Oshkosh, Wis., with an estimated completion date of April 31, 2013. The bid was solicited through the Internet, with three bids received. The U.S. Army Contracting Command, Warren, Mich., is the contracting activity (W56HZV-09-D-0159).

Science Applications International Corp., McLean, Va., was awarded a $29,348,146 firm-fixed-price level-of-effort contract. The award will provide for the procurement services to install underbody installation kits on Mine Resistant Ambush Protected All-Terrain Vehicles in Afghanistan. Work will be performed in Alexandria, Va., and Afghanistan, with an estimated completion date of July 19, 2012. One bid was solicited, with one bid received. The U.S. Army Contracting Command, Warren, Mich., is the contracting activity (W56HZV-09-A-0003).

JLG Industries, Inc., McConnellsburg, Pa., was awarded a $24,500,473 firm-fixed-price contract. The award will provide for the procurement of 144 All-Terrain Lifter Army Systems. Work will be performed in McConnellsburg, Pa., with an estimated completion date of Jan. 29, 2012. The bid was solicited through the Internet, with four bids received. The U.S. Army Contracting Command, Warren, Mich., is the contracting activity (W56HZV-07-D-A001).

Rolls-Royce Corp., Indianapolis, Ind., was awarded a $19,176,464 firm-fixed-price contract. The award will provide for the procurement of design, development and qualification testing and analyses to upgrade the current single channel 250-C30R/3 engine full authority digital electronic control systems to a dual channel configuration. Work will be performed in Indianapolis, Ind., with an estimated completion date of Oct. 9, 2012. One bid was solicited, with one bid received. The U.S. Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity (W58RGZ-06-D-0072).

Science Applications International Corp., McLean, Va., was awarded a $17,805,402 firm-fixed-price level-of-effort contract. The award will provide for the task order services that will augment and sustain Mine Resistant Ambush Protected vehicles, and provides the joint logistics integrator capability for integrated logistics, engineering and fielding services. Work will be performed in McLean, Va., and Kuwait, with an estimated completion date of Sept. 18, 2011. Ten bids were solicited, with one bid received. The U.S. Army Contracting Command, Warren, Mich., is the contracting activity (W56HZV-09-A-0003).

Sauer, Inc., Jacksonville, Fla., was awarded a $13,388,000 firm-fixed-price contract. The award will provide for design and construction of two single-story and one new two-story rigid steel frame, block and brick facility additions on Fort Bragg, N.C. Work will be performed in Fort Bragg, N.C., with an estimated completion date of March 19, 2015. The bid was solicited through the Internet, with 16 bids received. The U.S. Army Corps of Engineers, Savannah, Ga., is the contracting activity (W912HN-11-C-0010).

EADS North American Defense, Arlington, Va., was awarded a $10,166,300 firm-fixed-price contract. The award will provide for the modification of an existing contract to provide logistic support coverage for the UH-72A aircraft. Work will be performed in Columbus, Miss., with an estimated completion date of Dec. 31, 2011. One bid was solicited, with one bid received. The U.S. Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity (W58RGZ-06-C-0194).

JCB, Inc., Pooler, Ga., was awarded a $9,924,733 firm-fixed-price contract. The award will provide for the procurement of 40 High Mobility Engineering Excavator-I with A-kits. Work will be performed in Pooler, Ga., with an estimated completion date of April 15, 2012. The bid was solicited through the Internet, with two bids received. The U.S. Army TACOM-LCMC, Warren, Mich., is the contracting activity (W56HZV-05-D-0414).

AAI Corp., Hunt Valley, Md., was awarded a $9,566,728 cost-plus-fixed-fee contract. The award will provide for the modification of an existing contract to provide engineering services in support of the Shadow 200 unmanned aircraft systems. Work will be performed in Hunt Valley, Md., with an estimated completion date of May 31, 2013. The U.S. Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity (W58RGZ-11-C-0103).

G2 Construction, Inc., Fairbanks, Alaska, was awarded a $9,486,739 firm-fixed-price contract. The award will provide for the construction of a railhead operations facility at Joint Base Elmendorf-Richardson, Alaska. Work will be performed in Anchorage, Alaska, with an estimated completion date of Sept. 1, 2012. The bid was solicited through the Internet, with six bids received. The U.S. Army Corps of Engineers, Elmendorf Air Force Base, Alaska, is the contracting activity (W911KB-11-C-0024).

Mobile Concepts by Scotty, Inc., Mount Pleasant, Pa., was awarded a $9,450,000 firm-fixed-price contract. The award will provide for the procurement of 55 Tactical Operations Center trailer for the National Guard Weapons of Mass Destruction Civil Support Teams. Work will be performed in Mount Pleasant, Pa., with an estimated completion date of Aug. 14, 2012. Eight bids were solicited, with 10 bids received. The National Guard Bureau, Operational Contracting, Arlington, Va., is the contracting activity (W9133L-11-F-0104).

SRC, Inc., North Syracuse, N.Y., was awarded a $9,000,970 firm-fixed-price cost-plus-fixed-fee contract. The award will provide for the procurement of the omni-directional weapon location radar prototype that is a 360-degree counter-fire prototype that offers full hemispherical coverage. Work will be performed in North Syracuse, N.Y., with an estimated completion date of Sept. 30, 2013. The bid was solicited through the Internet, with one bid received. The U.S. Army Communications-Electronics Command, Aberdeen Proving Ground, Md., is the contracting activity (W15P7T-11-C-H263).

North Wind Services, L.L.C., Idaho Falls, Idaho, was awarded an $8,365,931 firm-fixed-price contract. The award will provide for the remediation and removal of contaminated soil and miscellaneous surface debris in support of the Big Mountain RRS support. Work will be performed in Bristol Bay Borough, Alaska, with an estimated completion date of June 20, 2016. The bid was solicited through the Internet, with one bid received. The U.S. Army Corps of Engineers, Joint Base Elmendorf and Richardson, Alaska, is the contracting activity (W911KB-11-C-0014).

Action Manufacturing Co., Inc., Philadelphia, Pa., was awarded an $8,263,688 firm-fixed-price contract. The award will provide for the facilities, personnel and equipment for the manufacture of M739A1 point detonating/delay fuzes. Work will be performed in Philadelphia, Pa., and Atglen, Pa., with an estimated completion date of Dec. 3, 2013. Seven bids were solicited, with three bids received. The U.S. Army Contracting Command, Picatinny Arsenal, N.J., is the contracting activity (W15QKN-09-C-2003).

Science Applications International Corp., San Antonio, Texas, was awarded an $8,000,000 firm-fixed-price contract. The award will provide for the environmental support to military, civil and federal agencies. Work will be performed in Mobile, Ala., with an estimated completion date of July 27, 2016. The bid was solicited through the Internet, with seven bids received. The U.S. Army Corps of Engineers, Mobile, Ala., is the contracting activity (W91278-11-D-0040)

*Small business

*Link for This article compiled by Roger Smith from reliable sources
U.S. DoD issued No. 650-11 July 25, 2011
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DTN News - NORWAY BOMB BLASTS NEWS: Norway Mass Killer Wants Time In Court To Tell Why

DTN News - NORWAY BOMB BLASTS NEWS: Norway Mass Killer Wants Time In Court To Tell Why
(NSI News Source Info) TORONTO, Canada / OSLO, Norway - July 25, 2011: Anders Behring Breivik wants to tell Norway and the world why he killed at least 93 people in a bomb attack and shooting rampage, but prosecutors have asked for Monday's custody hearing to be closed to the public.
The judge will decide whether to keep the session closed, prosecutors said in an email in English. "This issue will be negotiated after the opening of the meeting (hearing)," they said. "The judge will then read his decision to the press."
Prosecutors want Breivik detained for an initial eight weeks -- normally this is in solitary confinement with no access to news, letters or visitors, except a lawyer. His custody can be extended before his trial on terrorism charges.
Police have said a trial could be a year away. The maximum jail term in Norway is 21 years, although that can be extended if there is a risk of repeat offences.
"In theory he can be in jail for the rest of his life," said professor of criminal law at the University of Oslo, Staale Eskeland.
Breivik, a self-confessed mass killer, has said through his lawyer that he wants to explain his motives at the hearing.
The 32-year-old, who portrays himself as crusader against a tide of Islam in a rambling 1,500-page online manifesto, says he wants to explain acts he deemed 'atrocious' but 'necessary'.
The hearing, expected to start after 1 p.m. (1100 GMT), has generated a debate about freedom of expression, with many Norwegians opposed to allowing a man who has shaken the nation's psyche to expound his radical views.
More than 60,000 people have signed up to a Facebook page called "Shut the doors on Monday," calling on the court to deny Breivik the publicity he craves.
Another Facebook group called "Boycott Anders Behring Breivik" carried the message: "He has planned this stage, to get propaganda. Do NOT let him get that freedom...Boycott all media describing the Norwegian terrorist and his beliefs."
Breivik has asked to wear a uniform in court, but his lawyer, Geir Lippestad, said he did not know what type. The killer was dressed as a policeman during his shooting spree.
Breivik has not served in the armed forces but in some of the pictures he posted on the Internet before his killing spree he was dressed in a military-style outfit.
Lippestad said his client had admitted to Friday's shootings at a Labour youth camp and an earlier bombing that killed seven people in Oslo's government district, but that he denies any criminal guilt.
"He has been politically active and found out himself that he did not succeed with usual political tools and so resorted to violence," Lippestad told TV2 news.
"I await a medical assessment of him," he said.
SAVING EUROPE
The worst peacetime massacre in the normally placid country's modern history appears to have been driven by Breivik's mission to save Europe from what he sees as the threats of Islam, immigration and multi-culturalism.
That he surrendered to police when finally confronted on the tiny island of Utoeya after shooting dead 86 youngsters underlines his desire to secure a public platform.
Breivik wrote in his manifesto, posted hours before his attacks, that if he survived his assault and was arrested, this would "mark the initiation of the propaganda phase."
Norwegian newspapers focused on the victims as shock turns to mourning, giving chilling new accounts of the island massacre and focusing on acts of bravery which saved lives.
The main broadsheet Aftenposten led with "Sorrow unites Norway" and printed a picture of a central Oslo square filled with flowers and lit candles in remembrance of the dead.
Daily Dagsavisen asked "Why didn't you come earlier?" citing screams by youth as police arrived on Utoeya island on Friday -- an hour after they were notified of the shooting.
Norway will observe a minute of silence at midday.
"He explains himself fairly calmly, but every now and then expresses emotion," Lippestad said of Breivik. "He buries his head in his hands."
"He has said that he believed the actions were atrocious, but that in his head they were necessary," adding his client did not feel he deserved punishment.
Police believe Breivik acted alone after losing faith in mainstream parties, even those that have gained popularity and parliamentary seats on anti-immigration policies in otherwise liberal, tolerant European nations, including affluent Norway.
IMMIGRATION
The attack was likely to tone down the immigration debate ahead of September local elections, analysts said, as parties try to distance themselves from Breivik's beliefs and reinforce Norwegians' self-image as an open, peaceful people.
Norway's immigrant numbers nearly tripled between 1995 and 2010 to almost half a million in a population of 4.8 million.
The sense that many were drawn by Norway's generous welfare handouts helped spur the growth of the Progress Party which became Norway's second biggest in parliament after the 2009 election on a largely anti-immigration platform.
Breivik was once a member of the party, but left complaining it was too politically correct. It was then he began scheming to "resist," burying ammunition more than a year ago, weight-lifting, storing up credit cards and researching bomb-making while playing online war games.
After three months of laboriously pounding and mixing fertilizer, aspirin and other chemicals on a remote farm, Breivik drove a hire car packed with the results to the center of Oslo on Friday, triggering the device outside government offices, killing seven and shattering thousands of windows.
He then drove to the small island of Utoeya, 45 km (28 miles) away. Dressed as a policeman, he calmly shot down youngsters at a youth summer camp of the ruling Labour Party. His terrified victims tried to hide under beds or in the woods. Some leapt into the lake and tried to swim to the mainland.
"This is going to be an all-or-nothing scenario," Breivik wrote in his English-language online journal on the morning of the attack. "First coming costume party this autumn, dress up as a police officer. Arrive with insignias:-) Will be awesome as people will be very astonished:-)."
"DUM-DUM"
A surgeon at a hospital that treated 35 of the wounded said Breivik may have used "dum-dum" bullets for maximum damage.
"These bullets don't explode inside the body but fragment into pieces more quickly than other bullets," Colin Poole, chief surgeon of the Ringerike district hospital, told Reuters.
While Breivik was stalking his prey on Utoeya, it took police a full hour to get a team of elite forces to the island after one boat, overloaded with officers and equipment, was forced to stop when it began to take on water.
Norwegian television managed to charter a helicopter and filmed the killer before the police showed up. When the armed team did arrive, Br eivik gave himself up without a fight.
"He had at that point used two weapons and had been, and was still, in possession of a substantial amount of ammunition," Johan Fredriksen, chief of staff at Oslo police. "Thus, the police's response has hindered further killing on the island."
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Sunday, July 24, 2011

DTN News - CHINA NEWS: Workers Search For Survivors After China Train Crash Kills 35

DTN News - CHINA NEWS: Workers Search For Survivors After China Train Crash Kills 35
(NSI News Source Info) TORONTO, Canada / WENZHOU, China - July 24, 2011: Rescue workers on Sunday dug through the tangled wreckage of two trains that crashed in eastern China, killing at least 35 and injuring 210 in China's deadliest train disaster since 2008.
A high-speed train on Saturday smashed into a stalled train near the city of Wenzhou, some 860 miles south of Beijing, raising new questions about the safety of the fast-growing rail network.
The accident occurred on a bridge near Wenzhou in Zhejiang province after the first train lost power due to a lightning strike and a bullet train following behind crashed into it, state television said.
Two foreigners also died in the accident, state news agency Xinhua said on Sunday, citing the provincial emergency office. China News Service, a semi-official news agency, said one of them was a female in her 20s. The government of Hangzhou, the provincial capital of Zhejiang, was not available for comment.
Rescuers said they were still looking for survivors, trying to reach the broken carriages lying under the bridge.
"The task for us now is to clear the debris and also to check for survivors in those areas that we have not gone to," said 35-year-old rescue worker Wang Jun.
"Right now, we still don't know whether there are any more survivors. That's is our main task now. Also, we are trying to get the railway line to be operational again."
Dozens of rescue workers and firefighters used excavators to move the wreckage of the two trains as they believe more bodies were in one of the carriages that was dangling beside the bridge. It was unclear how many were on the trains at the time of the accident.
Rail remains the most popular method of long-distance transport in China and trains are usually extremely crowded, with long-distance trains carrying as many as 1,000 passengers.
The reliability of China's railways has been called into question recently after the series of power outages on the flagship Beijing-Shanghai high-speed rail line, which has left passengers stranded on stuffy trains for hours at least three times since opening a month ago.
Chinese authorities suspended 21 trains after the collision, state news agency Xinhua said.
Chinese Vice Premier Zhang Dejiang is rushing to the scene to help out in the relief work and investigation, Xinhua added. Chinese President Hu Jintao and Premier Wen Jiabao also called for all-out efforts to rescue passengers and ordered to make rescue work a priority, according to a government statement.
"FLYING INTO THE AIR"
One train was heading from Beijing to the coastal city of Fuzhou, the other was running from Hangzhou, also to Fuzhou.
The total power failure on Saturday rendered useless an electronic safety system designed to warn following trains of stalled trains on the tracks up ahead, and automatically halt them before a collision can occur.
The force of the collision sent "the head of the train flying into the air," said Cai Qi, a 30-year-old villager who witnessed the accident and rescued five children, four women and one man. "Some of them had their hands or legs broken. Some were crushed inside debris and we pushed and carried them out."
Survivors took refuge at a middle school on Saturday night, which served as an emergency and information center for relatives looking for their missing kin. Some cried as they went through the list of injured. Many survivors looked shaken.
"Suddenly, there was a loud bang," said 32-year-old survivor Yin Caohui. "After that, the train broke. It was all dark and we could not see anything. Then there were a few loud sounds again."
A 31-year-old survivor, who gave his last name as Yu, said the train stopped suddenly and the lights immediately went off, adding that the passengers "didn't think it was so serious."
"Only when we got down, did we see that there were so many train carriages that had fallen down," Yu said.
China's last major train disaster was in 2008, when an express train traveling from Beijing to the eastern coastal city of Qingdao derailed and collided with another train, killing 72 and injuring 416 people.
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DTN News - U.S. FINANCIAL CRISIS: Congress Scrambles For Debt Deal

DTN News - U.S. FINANCIAL CRISIS: Congress Scrambles For Debt Deal
(NSI News Source Info) TORONTO, Canada / WASHINGTON, USA - July 24, 2011: Congress will struggle Sunday to hammer out a deficit deal and assure investors before Asian markets open that America can avert a catastrophic default and hold onto its prized credit rating.
Congressional staff planned to work through the night after President Barack Obama told lawmakers in an emergency White House meeting to find a way to lift the $14.3 trillion limit on U.S. borrowing that would allow the world's largest economy to pay its bills past next year's November election.
But new acrimony flared late Saturday on Capitol Hill over that timetable, adding to the difficulties facing negotiators who have been at impasse for weeks over the role of taxes in any deficit reduction plan.
An aide to Republican leaders said lawmakers were working on a plan for $3 trillion to $4 trillion in savings over 10 years, but another high-ranking Republican official said no numbers had been set.
It was not clear if this package contained additional tax revenue alongside cuts in government spending, as Obama has demanded.
Republican leaders want "to show progress" by 4 p.m. EDT (2000 GMT) Sunday, before financial market trading gets under way in Asia, and have legislation to unveil Monday.
"Congressional leaders are working in good faith with the goal of having something to present to their members on Monday," a second Republican aide said.
The United States will run out of funds to service its debt on August 2 if Congress does not approve additional borrowing. Republicans have insisted the White House agree to deep spending cuts for long-term deficit reduction before they approve any increase in America's debt burden.
Negotiations toward that agreement have whipsawed for weeks, finally hitting a brick wall over taxes, one of the most ideologically divisive issues in U.S. politics.
A Democratic aide said Republicans were pushing a package that raised the debt limit and cut spending in two steps, while Democrats want a single deal to cover borrowing through 2012.
Michael Steel, a spokesman for House of Representatives Speaker John Boehner, the top Republican in Congress, said that "a two-step process is inevitable."
Disagreement on that issue prompted Senate Democratic leader Harry Reid to express new disappointment with the process, saying Republican "intransigence" was "pushing us to the brink of a default."
Treasury Secretary Timothy Geithner and White House chief of staff Bill Daley were scheduled to speak on several Sunday television news shows to hammer home Obama's argument that a deal must include more revenue from taxes.
TAX DISPUTE
The frantic drive toward a deal over the weekend began after closed-door talks between Obama and Boehner collapsed on Friday.
Those talks broke down as Republican leaders balked at a White House plan to raise revenues by $3.5 trillion to $4 trillion over 10 years, complaining it contained $400 billion more in additional tax revenue than they could stomach.
Obama, angry at the collapse of negotiations, chided Republicans and warned time had run out to lift the debt limit. The White House kept up the pressure Saturday, urging Congress not to play "reckless political games" and warning against stop-gap measures that fail to tackle the deficit.
Boehner must overcome stout resistance from Tea Party movement conservatives in his own party, who adamantly oppose any steps to raise tax revenue.
Rating agencies say they will cut America's Triple-A credit rating if the United States fails to meet debt payments, likely triggering global market turmoil. Even if the United States does not default, its rating will be under pressure if Congress fails to tackle long-term deficit reduction.
Financial markets are growing more edgy and U.S. banks and businesses are making contingency plans for the possibility of a debt default that would drive up interest rates, sink the dollar and ripple through economies around the world.
(Additional reporting by Richard Cowan, Laura MacInnis, Matt Spetalnick, Andy Sullivan and Donna Smith; Editing by Kristin Roberts and John Crawley)
*Link for This article compiled by Roger Smith from reliable sources By Alister Bull - Reuter
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