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Federal News

Archives for February 2021

West Virginia newspaper publisher sues Google, Facebook

A West Virginia news publisher has filed an antitrust suit against Google and Facebook, who together receive roughly half of all digital ad dollars in the U.S. and are facing antitrust charges from federal and state authorities.

The company, HD Media, owns several papers in the state, including the Herald-Dispatch in Huntington and the Charleston Gazette-Mail.

HD Media claims Google has so monopolized the online ad market that “it threatens the extinction of local newspapers across the country.” The suit also alleges that Google and Facebook conspired to further their dominance with a secret agreement, referring to a suit filed by 10 Republican attorneys general in December.

The company does not specify the impact on its business of the behavior of Facebook and Google beyond saying that it has hurt its ability to “effectively monetize its content” because Google is enabled to take an uncompetitive share of the news publisher’s ad revenues. A lawyer for the company declined to speak on the record.

It’s the first antitrust lawsuit against a tech platform focused on news publishing, said David Chavern, head of the news trade group News Media Alliance. He said the group was not involved in the suit.

HD Media filed in federal court in West Virginia and asked for a jury trial. It asked for unspecified damages and that the court stop Google and Facebook from the uncompetitive conduct it is alleging.

The newspaper industry has been on a long decline, with steep job losses and publications getting thinner and even disappearing. Online ad revenues have been unable to offset print-ad losses.

Federal and state antitrust authorities have sued both Google and Facebook in recent months. The Justice Department alleges that Google abuses its dominance in online search and advertising.

Facebook didn’t immediately reply to a request for comment. Google referred a reporter to a blog post published in mid-January by its director of economic policy, Adam Cohen, that defends Google’s business against antitrust charges brought by the Texas attorney general in December.

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VIRUS TODAY: GOP offers alternative COVID-19 relief plan

Here’s what’s happening Sunday with the coronavirus pandemic in the U.S.:

THREE THINGS TO KNOW TODAY:

— A group of 10 Senate Republicans sent a letter to President Joe Biden calling for him to meet with them to negotiate over his proposed $1.9 trillion coronavirus relief package. Their smaller counterproposal calls for $160 billion for vaccines, testing, treatment and personal protective equipment and more targeted relief than the president’s plan to issue $1,400 stimulus checks for most Americans. Ohio Sen. Rob Portman suggested that the checks should be limited to individuals who make no more than $50,000 per year and families who make $100,000 per year.

— Biden wants most schools serving kindergarten through eighth grade students to reopen by late April, but even if that happens, millions of students, many of whom are minorities in urban areas, will be left out. Some argue powerful teachers unions are standing in the way of bringing back students with in-person learning, while the unions insist they are looking to protect the health and safety of teachers and students and their families. Dr. Anthony Fauci, the federal government’s top infectious disease expert, said reopening K-8 classrooms might not be possible across the country within Biden’s time frame.

— Frustration is growing at long-term care facilities over the pace of COVID-19 vaccination efforts. Some nursing homes are still waiting on first shots to fend off the virus that can devastate their vulnerable elderly residents. CVS and Walgreens, which have led the vaccination push in long-term care settings in nearly all states, say they are proceeding on schedule. But resident advocates and experts worry about delays in the delivery of vaccines that have been available for more than a month. Home operators and residents’ relatives across the country have grown more irritated as states have opened vaccine eligibility to other populations before work is complete at long-term care homes.

THE NUMBERS: According to data through Jan. 30 from Johns Hopkins University, the seven-day rolling average for daily new deaths in the U.S. did not increase over the past two weeks, going from 3,335.3 on Jan. 16 to 3,141 on Jan. 30.

The average number of daily deaths has risen in the nation’s three most populous states, according to the COVID Tracking Project. The seven-day rolling average of daily deaths in California has increased over the past two weeks from about 532 deaths per day on Jan. 16 to nearly 551 daily deaths on Jan. 30. Over the same period, Texas’s rolling average of deaths each day has gone up from about 306 to 315, while Florida’s has increased by nearly one additional daily death to 176. Cases have risen the highest over the past seven days in Arizona and South Carolina, where roughly 1 in 200 people in each state have been diagnosed with COVID-19.

QUOTABLE: “My hope is that the president will meet with us and we’ll be able to work out something that is bipartisan,” said Ohio Sen. Rob Portman, one of 10 GOP senators calling on President Joe Biden to negotiate with them over a new coronavirus aid package. Portman discussed the GOP proposal on CNN’s “State of the Union.”

ICYMI: Many states have had trouble distributing the coronavirus vaccine equitably. In North Carolina, Black people account for 22% of the population but 11% of first dose recipients, according to state data. White people, a category in which the state includes both Hispanic and non-Hispanic whites, are 68% of the population and 82% of those vaccinated. An Associated Press analysis shows Black people in several other parts of the U.S. are lagging behind whites in receiving COVID-19 vaccinations.

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TSP funds improve in October but not by much

Despite slight performance improvements for most funds, the Thrift Savings Plan still had largely negative returns for the month of October, according to numbers released Monday.

The international stock index I Fund and the fixed income investment F fund went down from the previous month, while all other stock and Lifecycle funds increased or, in the case of the securities-backed G fund, stayed flat from September.

The I fund dropped from -2.60% in September to -3.97% last month, while the F fund fell from -0.03% to -0.42%. The small capitalization stock index S Fund improved from -3.04% to 0.50% in that time, and the common stock index investment C Fund rose from -3.80% to -2.66%. The G fund remained at 0.06% for the second consecutive month.

However, as a whole the TSP is performing more poorly than last October, with all funds showing a drop in returns this year compared to the same time in 2019.

So far the G Fund’s year-to-date return is 0.82% — a far cry from the 8.8% annual return it had when it was introduced in 1988. As Federal News Network reported last month, the G fund’s reputation for stability overlooks the fact that the last few years of economic uncertainty have driven more people to buy “safe” Treasury bonds, which raises the value and pushes down the returns.

Among the Lifecycle funds, the highest performer was again the L Income, at -0.58% versus -0.66% last month. The lowest were the L 2055, L 2060 and L 2065 funds all with a -.260% return compared to -3.20% returns in September.

Thrift Savings Plan — October 2020 Returns
Fund Oct. Year-to-Date Last 12 Months
G fund 0.06% 0.82% 1.13%
F fund -0.42% 6.30% 6.16%
C fund -2.66% 2.69% 9.62%
S fund 0.50% 3.97% 11.02%
I fund -3.97% -10.53% -6.57%
L Income -0.58% 1.01% 2.48%
L 2025 -1.30% n/a n/a
L 2030 -1.61% 0.12% 3.76%
L 2035 -1.76% n/a n/a
L 2040 -1.91% -0.21% 4.07%
L 2045 -2.04% n/a n/a
L 2050 -2.17% -0.56% 4.27%
L 2055 -2.60% n/a n/a
L 2060 -2.60% n/a n/a
L 2065 -2.60% n/a n/a

Budget shortfalls obstruct needed improvements across OPM, IG says

The Office of Personnel Management faces a persistent budget shortfall, and the funding gap has limited its ability to provide key services to federal employees and agencies, its inspector general said in a recent report.

“OPM’s budgetary issues are affecting its ability to fund projects that are needed to improve and modernize OPM’s IT platform, the processing of retirement claims and the management and delivery of federal employee benefits, such as the Federal Employees Health Benefits Program,” Norbert Vint, the deputy inspector general performing the duties of the agency’s IG, said in his annual report identifying OPM’s top management challenges.

The agency itself declined to comment on the IG’s report and its recommendations.

The funding shortfall stems from the decision Congress and the administration made to move the governmentwide security clearance business — which brought in more than $2.2 billion in revenue to OPM in fiscal 2019 — from the agency to the Defense Department.

OPM managed to bridge a $70 million funding gap this year by securing additional appropriations from Congress and negotiating a buyback of its IT security clearance services with the Pentagon.

But the DoD buyback arrangement will conclude at the end of 2021, and OPM needs to secure additional funding from Congress for the next year and into the future, the IG said.

The administration’s desired OPM merger with the General Services Administration continues to evolve — even as the moves are technically on hold pending a congressionally-mandated review. That uncertainty still looms over the agency and raises questions for OPM’s future, including the management of its own buildings, the IG said.

Five-week sprint improved retirement customer services, to an extent

Vint offered a candid assessment of OPM’s long-standing efforts to modernize the legacy systems that power the agency’s retirement services.

The agency has recently implemented short-term fixes to address retirement customer service challenges. OPM contracted with McKinsey and Company, which helped the agency with a five-week sprint to address some of the problems.

OPM, for example, upgraded telecommunications circuits, call center infrastructure and automated call distribution software, which should cut back on downtime and help customer service agents deal with call volume.

It also added a new interactive voice feature, allowing the agency to more effectively route calls. Callers can also request a callback without losing their place in line, according to the IG. These activities helped, Vint said, but they’re not enough.

“While OPM has enhanced Retirement Services call center operations, fundamental change will require an investment of time and resources and improved business processes,” Vint wrote. “The technology and infrastructure is not optimized for true call center operations. OPM is considering a cloud-based call center solution as a potential future support platform.”

OPM has a ‘compelling’ IT vision but needs millions to execute it

Beyond some recent successes with OPM’s call center, the agency needs a long-term plan to modernize key systems.

According to the IG, OPM’s chief information officer detailed a “compelling vision” for IT modernization at the agency over time — if the plan has funding, staff and support.

OPM again commissioned a consulting firm to develop a path forward for the CIO’s IT modernization vision and estimate what resources it would take to achieve it.

“This study resulted in recommendations for a phased approach that starts with modernizing and stabilizing core IT systems and processes, and building an effective organizational structure within the agency’s OCIO to implement the modernization initiatives,” Vint wrote. “OPM’s chief information officer has often described an IT deficit at OPM that has resulted from years of deferred IT maintenance and inadequate technology funding. The focus of phase one will be to build the foundation for a mature, stable and consistently implemented IT program that is on par with industry standards.”

But OPM and its CIO face several challenges in achieving that phased vision. The CIO shop is “severely understaffed,” according to the IG. And because the CIO hasn’t always been able to deliver the IT services OPM’s program offices have wanted, the OCIO still lacks influence throughout the agency.

Still, achieving a successful “phase one” modernization hinges on OPM’s ability to secure enough financial resources, the IG said.

McKinsey and Company estimated OPM will need an additional $205-to-234 million more in funding over the next three years to achieve its IT modernization goals, plus $55 million each year after to properly maintain the enhanced environment.

In addition, OPM needs more IT funding to cover the shortfall left by the transfer of its security clearance business. OPM’s National Background Investigations Bureau contributed $18 million more in IT services than it consumed in 2019, meaning the security clearance business “essentially subsidized IT services” for other agency program offices, according to the IG.

Even with those challenges, OPM and its CIO have potential, the IG said.

“The agency’s challenge is to take advantage of this opportunity, seek appropriate funding and start on its modernization journey,” Vint said. “It will also have to minimize the voices of the self-interested naysayers, and start to change the agency culture to an enterprise-wide mindset that values the role of the federal chief information officer as a strategic business partner who is critical in reaching organizational goals.”

Funding woes inhibit potential FEHBP improvements

OPM’s financial uncertainty has also hindered its ability to effectively administer the FEHBP, improve the program and weed out waste, fraud and abuse, according to the IG.

For example, OPM currently relies on FEHBP enrollees to self-certify their family members or other dependents are eligible for coverage, and there are no requirements for them to submit proof verifying their identity.

About 1 to 3% of spouses and 4 to 12% of children are actually ineligible for the FEHBP, according to OPM estimates, and the agency may lose up to $3 billion a year by allowing these dependents improper health coverage, the IG said.

“Again, this is an issue that OPM recognizes and is trying to address through the development of a central enrollment portal,” Vint wrote. “However, OPM has not been able to sufficiently fund this project and therefore the timeline to fully develop and implement this needed system is still unknown.”

In addition, competing budget demands mean OPM hasn’t been able to conduct an extensive and independent review of the FEHBP’s prescription drug benefits, a study that the agency agreed it needed to pursue, the IG said. OPM last conducted a similar study back in 2010.

NBCUniversal vows auditions for actors with disabilities

LOS ANGELES (AP) — Actors with disabilities will be included in auditions for each new film and television production at NBCUniversal, which becomes the second major media company to make such a commitment.

NBCUniversal said Friday that the pledge covers projects by the Universal Filmed Entertainment Group, Universal Studio Group, NBC network and Peacock streaming service.

The pledge was made in response to calls for change by the Ruderman Family Foundation, following a similar commitment the disability rights advocate received from CBS Entertainment in 2019.

“My hope is that other major studios in the industry will now see NBCUniversal and say, ‘This is something that makes sense and we’re also going to commit to this,’” said Jay Ruderman, head of the Boston-based foundation. Disney, Sony and major streaming services including Netflix and Amazon are among others the foundation would like to enlist, he said.

As more people with disabilities are seen in roles, “it will have ramifications throughout society,” Ruderman told The Associated Press. Comcast-owned NBCUniversal signed on after a series of conversations with the foundation, he said.

The company is committed “to creating content that authentically reflects the world we live in, and increasing opportunities for those with disabilities is an integral part of that,” said NBCUniversal executive vice president Janine Jones-Clark, whose portfolio includes film, TV and streaming inclusion.

Outside calls for action are important and “hold the industry accountable of the work we still need to do in order to see systemic change,” Jones-Clark said in a statement.

According to the most recent foundation report, only about 22% of characters with disabilities on network and streaming shows in 2018 were “authentically portrayed by actors with disabilities.” That’s an improvement over 2016’s finding that 5% of such TV roles went to actors with disabilities.

Actor Kurt Yaeger a member of the SAG-AFTRA Performers with Disability Committee, lauded the new agreement. “It’s what I’ve been pushing for 10 years,” he said, given how infrequently studios and producers open the door to people with disabilities.

Yaeger, who uses a prosthetic leg because of a motorcycle accident, has appeared as a guest actor in more than 50 TV episodes, including ABC’s “The Good Doctor” and Netflix’s upcoming “Another Life.” That’s more than most people who are auditioning regularly for continuing series roles, he said, adding, “I’d like more of those opportunities for me and my fellow performers with disabilities.”

While NBCUniversal’s commitment is a “great start,” Yaeger said he wants to see every other network and studio do the same thing and allow their progress to be monitored.

Eileen Grubba, an actor and disability activist, said NBCUniversal’s action, coupled with that of CBS Entertainment, could lead to wider change. Grubba, whose credits include HBO’s “Watchmen” and NBC’s “New Amsterdam,” already considered both companies to be leaders in disability diversity.

“The two of them together, standing up and saying, ‘This will happen, this will be done,’ puts pressure on the rest of the industry,” said Grubba, who uses a leg brace because of childhood spinal cord damage. “This is a massive win for this community and for inclusion, and hopefully for all the people who have been in this industry many, many years without ever getting opportunities.”

The growing pressure on movie and TV makers to give women, people of color and the LGBTQ community greater representation may have increased awareness of one of the country’s largest and overlooked minority groups, Ruderman said.

According to the Centers for Disease Control, 26% of the U.S. population has some form of disability. Their near-invisibility on screen, both as characters and actors, influences how the community is perceived, Ruderman said.

“Not seeing people who have disabilities in film and on TV does impact society, it does shape attitudes,” he said. Three decades since passage of the Americans with Disabilities Act, unemployment remains high among people with disabilities and ”a lot of that has to do with stigma.”

”I don’t think you can mandate through legislation how people feel. But I think that entertainment can change the way people feel,” Ruderman said.

Although the agreement with NBCUniversal doesn’t establish hiring goals, Grubba said the value of getting a chance to audition shouldn’t be undersold.

“It requires repeated attempts to get good at it,” she said. “And when you’re competing against people who audition 10 times a week and you’re only getting in one to three times a year, if you’re lucky, you don’t have the same skills in dealing with the pressures and the best way to get through them.”

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