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it is the case that in an ideal circumstance, using eci, eci, we would have had more pricing information from the contractor. we did did try to obtain that additional pricing information. i believe that is quite right and that is the tool we are trying to improve. that is actually an improvement over our prior program where we did not have early contractor involvement. it is however the case that our estimates of the construction contract and the total project budget, are still on target and impact our budgets are coming in 30,000,000 dollars under our initial proposal. >> thank you very much. >> i recognize mr. michael florida. >> thank you mr. chairman. we are spending a lot of money on this facility. i guess it is in the billion-dollar range, if that is correct. we are designing it, well it was designed on safe or unsecure manner based on some requirements that we should be following. we have the state relies on on published 2003 draft memorandum between the bureaus of overseas building operations and diplomatic security rather than federal law. is that correct? >> in any discussion o

london was the department's first experience with eci. under federal rules, a contractor using the eci is required to submit twoposals to. it's submitted at a point where project design is partially completed. the second is at a later stage. under the rules, contractor is required to submit data so the government can negotiate a price. in the case of the london compound, the contracting officer negotiated the final price without requiring the contractor to explain adequately a $42 million difference between the initial proposal and the final proposal. in sum, our findings and recommendations if implemented will have a positive impact on future department projects and reduce risk to taxpayers. thank you again for the opportunity to discuss this work. i look forward to addressing your questions. >> thank you. i will now recognize myself for five minutes. ms. muniz, how is it that obo started construction on this facility prior to having the security parameters in place? and how is it that the under secretary of management certi certifies to

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so, eci brought in another investor, starbucks.ill travel to the congo to be getting partnership with us. starbucks has already purchased 40 tons. it may not be a lot for starbucks, but it is a lot in eastern congo. involvement by the world's largest coffee company is a clear testament. this is a charity or aid in the traditional sense, it is good business. from a relatively modest investment, farmers incomes have more than tripled and they can now afford to send their children to school, put food on the table, and access health care. as a result, the world has a new source of high-quality coffee. this partnership has transformed the lives of thousands of families in eastern drc. we think this is just the beginning. next month, dci will launch an economic development fund, to focus on expanding our work, not only coffee, but in cocoa and other expanding props. we will work with at least 10,000 additional farmers over the next 40 years to increase capacity and secure direct access to premium markets. this work is scalable, this work

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the green line is the employment index, pulled back a little bit, one survey nicely leads the eci.wages, do you buy it? >> i do buy the argument that conditions are being met for wages to pick up if you look at the low level of unemployment, nfib job openings, even the university of michigan consented -- consumer sentiment survey perceives that people think there income will be higher in the years time. i think it is a slow move higher. some of these charts can be misleading in that they show what may be a jump in wage growth and the current 2% or something up to 3% in a years time, and i don't think that's reasonable. it is a slow-moving process. alix: when you take a look at consumer import prices, core pce , overall it is pretty weak, and and we have another commodity rally. how to the last couple of weeks factor in? >> you have to account for these external factors. that is the drop in commodity prices. tocommodity prices continue fall, gasoline coming down, it will matter in terms of inflation expectations deteriorating and could pass through somewhat to the good side of consu

department put together policies and procedures to make sure people understand the contracting, the eciod and also that there are straining command both of those have been closed. we have seen documentation indicating to the department has completely follow those recommendations. the other two that are outstanding are the ones regarding making sure there are controls in place to ensure construction is not initiated before certification and that required testing is done before certification. >> it would be helpful if state can provide a definitiona definition of what construction is because this is where there is a disconnect between the three different entities,entities, state, the ig command certainly us in congress. >> you just hit on a very important point. it seems as if you have one understanding and you have another. some kind of way we have got to come together. >> five months later after the recommendations. >> i justi just think that is very important that we figure out how we get on the same page. >> i think that is fair, and there is a way that we can come to an understanding

london was the department's first experience with eci. under federal rules, a contractor using the eci is required to submit two pricing proposals to the government. the first one is an initial target price for construction, which is submitted at a point where project design is partially completed. the second one is a final price proposal submitted at a later stage of the design phase. under the rules, the contractor is required to submit sufficient data to support any difference in price so the government can effectively negotiate a firm fixed price. in the case of the lop done compound, the department's contracting officer negotiated the final price of the contract without requiring the contractor to explain adequate lay $42 million difference between the initial proposal and final proposal. in sum our findings and recommendations, if implemented, will have a positive impact on future department projects and reduce risk to taxpayers. thank you again for the opportunity to discuss this work and i look forward to addressing your questions

. >> reporter: the 13,000 feet, ecy summit is too steep and rocky to simply ski down. >> ready? >> reporter: so j.t. holmes is training in three extreme sports to rocket down more of the mountain than anyone ever has. right now he's practicing one of nearby mountaiai slope with his friend and cameraman. to speed ride, he's using skis, but he's also attached to a glider-like parachute. it allows him to soar over rocks and legends, impososble to ski you're both skiing and you're flying. and then you're skiing a little bit more. >> exactly. >> reporter: but speed riding will,only take j.t. so far down the eiger. he'll ski off a cliff and freefall the rest of the way, all in one long, n-stop, breath-taking ride. >> three sports, one run. and they're my three favorite sports. >> reporter: these are the three things you love? i love. >> reporter:j.t. needs perfect conditions for this descent, and weather is unpredictable. fierce winds whip the slopes and change directions dramatically. he checks every day to see if he can finly head to the summit. for the past two years, he had to can