Tuesday Morning Federal Newscast – May 17th

Defense cuts result in contractor layoffs, Endeavour launches with VA payload, USAF Thunderbirds fly on biofuels

The Morning Federal Newscast is a daily compilation of the stories you hear Federal Drive hosts Tom Temin and Amy Morris discuss throughout the show each day. The Newscast is designed to give FederalNewsRadio.com users more information about the stories you hear on the air.

  • The Treasury Department has suspended investments into federal employees’ pensions. That’s because the government hit the debt ceiling of $14.3 trillion. Secretary Timothy Geithner says the suspension will save cash and prevent the U.S. from defaulting on its debts. But only until August 2nd. Or unless Congress agrees to raise the debt ceiling. Under U.S. law, the government can take extraordinary measures to avoid a default. That includes tapping into or suspending investments into the Civil Service Retirement and Disability Fund. Plus, Treasury can suspend investments in the TSP G Fund. But both funds have an IOU that obligates Treasury to repay them once the debt ceiling is lifted.
  • The Federal Salary Council recommended an expansion in locality pay cities, and an increase in pay adjustments. And the President’s Pay Agent has rejected those recommendations. The Pay Agent cited lingering unemployment and a weak economy. It said a new methodology is coming in how wage differentials are calculated. Pay Agent members are Secretary of Labor Hilda Solis, Office of Personnel Management Director John Berry and Office of Management and Budget Director Jacob Lew.
  • Close to 1,000 Washington area defense contractors have already lost their jobs this year because of Defense budget cuts. The Washington Examiner reports 112 General Dynamics employees in Woodbridge, Virginia are the latest victims. Congress passed a five year, $150-billion defense budget cut in January. Northrop Grumman is the region’s biggest defense job-cutter. Six hundred of its employees took buyouts earlier this year. But the company says it will lay off two hundred more.
  • The White House budget office may soon be unionized. A spokesman for the American Federation of Government Workers says about half of the career work force at OMB has signed a petition to join the union. The spokesman says the workers want more appreciation, and more voice in how the office is organized.
  • The 2011 spending bill passed into law last month will avoid $122 billion in deficits over the next decade. House Speaker John Boehner had promised the legislation would save $300 billion in future spending. The lower figure comes from a scoring by the Congressional Budget Office. The CBO also said the compromise negotiated between Boehner and President Barack Obama increases the deficit this year by $3.2 billion, because of military spending.
  • The Homeland Security Department wants to take its public websites to the cloud. DHS is soliciting bids on its first task order under the infrastructure-as-a-service blanket purchase agreement. It expects quotes by May 26th. DHS CIO Richard Spires said at this week’s Management of Change conference that the agency is embarking on a public cloud strategy and is putting its toe in the water. He said DHS wants to move web site development, testing and production to a public cloud. The task order would be for one year base with two one-year options.
  • Two new vaccines being researched by Veteran’s Affairs are making the journey to space on board the Shuttle Endeavor. The vaccines would treat common but dangerous bacteria that cause salmonella and staph infections. Scientists say testing while in microgravity during space flights can help speed vaccine development. The VA calls the joint effort with NASA an invaluable collaboration. VA is expected to fly another payload up on the final journey of the Space Shuttle Atlantis this summer.
  • The Air Force’s Thunderbirds will perform their first air show using alternative fuels on Friday at Andrews. It makes them the first Defense Department aerial performance team to fly on green biofuels. The Air Force has been testing biomass fuels derived from three different feedstocks: camelina (plant seed oil), beef tallow (animal fat) and various waste oils and greases. To date, the Air Force has certified biofuel as a 50-percent blend with regular jet fuel to be used in a variety of jets including the F-15, and F-22. Air Force says fleet-wide certification is on track for completion in 2013. The Thunderbirds will be performing this weekend at the Joint Service Open House and Air Show at Andrews Air Force Base.

More news links

INSIDE WASHINGTON: DHS most overseen department

US contractor pleads guilty to offering bribes

Navy considers naming ship after Cesar Chavez

US: No rush to destroying last smallpox viruses

LED bulbs hit 100 watts as federal ban looms

Paraplegic walks at UC Berkeley graduation with help of ‘exoskeleton’ (CNN)

THIS AFTERNOON ON FEDERAL NEWS RADIO

Coming up today on In Depth with Francis Rose:

–NIST should call it the complete guide to Federal cloud computing. Now they want your comments. They’ll tell you how to participate.

–The Management of Change conference in full swing. Hear about the lessons you can learn, even if you’re not there.

Join Francis from 3 to 7 pm on 1500 AM or on your computer.

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