Happy new year. I am referring to the RAND’s new fiscal year, 2015, which begins this week. Here are a few updates.1. Thank you for approving the resolution honoring David Richards’ service. It is now with the calligrapher. I decided not to wait until our November meeting in order to get it into his hands as soon as possible. I appreciate everyone’s quick action on that.2. Naturally, we’ll cover the FY14 financial results at the meeting next month. But, I can say that it was a very succcessful year. We beat our revenue, income, cash flow, fundraising, international diversification, and bottom-line goals; we are well clear of our bond covenant thresholds; we had a record year of new DoD funding; and the value of new projects won topped that of a year ago. Given that a year ago we were facing a 20 percent core-funding cut by the Air Force and the unfortunate mistake in the President’s Budget request for the Arroyo Center, both of which we remedied, I am very happy with the final results. I attribute our success to four factors, but let me hold that part of the story until we meet. (Let me know if you want a preview.)3. We are off to a fast start in Australia, with several quick and major wins on sensitive Department of Defence matters. While that is good news, it is not great news because the initial projects have come with publications restrictions related to the sensitivity of subject matter. They have required exceptions to our usual stance, which I think are justifiable on a case-by-case basis, but I have told our leadership team that this cannot be the principal kind of project we seek and accept. I will give a fuller report next month.3. Shortly after his election, President Poroshenko reached out to RAND through two Americans many of you know, former Assistant Secretary of State Rick Burt, now with McLarty and Associates, and Ed Rogers of Barbour, Griffith & Rogers. He sent a delegation to Santa Monica for a discussion of possible analytical assistance and we have had subsequent meetings in Washington, Santa Monica, and Kiev. We have reached an agreement on a slate of projects to help President Poroshenko on a range of strategic planning, program analyses, and technical assistance efforts, initially related to Ukraine’s national security. He initially proposed that the projects be underwritten by a Ukrainian businessman but we have demurred, saying that we prefer to work through the U.S. Government or an American 501(c)(3) organization. We have learned from the State Department that President Poroshenko asked Vice President Biden to facilitate the RAND projects and we know that there are efforts to establish a 501(c)(3) channel. So, at the moment we have an agreement on a statement of work, a pledge of funding, but no contract. Ordinarily, I would not mention something at this stage of development, but given the country, President Poroshenko’s involvement, and the involvement of the Vice President and the State Department, I thought I’d err on the side of letting you now at this early stage.4. Closer to home, the U.S. Department of Veterans Affairs has asked RAND to perform three very large assessments of the VA health care delivery system called for by the Veterans Access Choice and Accountability Act. The projects will come through the CMS FFRDC operated by MITRE. They are huge and will be on a fast and rigid timeline. The projects will help establish credible estimates of demand for health care within the VA; credible estimates of current and future supply of VA capabilities, inculding facilities and staff; and the legal and regulatory authorities and mechanisms for the provision of care at non-VA facilities. We are finalizing details in the next few weeks.5. Politics Aside 2014. Program is coming together nicely, thanks to lots of help from trustees and others. We now need help selling passes. More details to follow soon.6. My whereabouts in October October 1-5, Santa MonicaOctober 6-10, Pittsburgh and Washington, DCOctober 11-31, Santa Monica, for now. Please contact me if you have any questions.Michael



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