Senator urges colleagues to stand firm on gun background checks for gun buyers

By John Whitesides and David Lawder

WASHINGTON (Reuters) - Democrat Joe Manchin and Republican Pat Toomey defended their plan to expand background checks for gun buyers on Monday, as Manchin opened the Senate's debate on the proposal by urging colleagues to "make a difference" and resist political pressure to reject the measure.

Manchin's call for bipartisanship on one of the nation's most divisive issues came as the background checks plan that he and Toomey devised was headed to a close vote in the Senate later this week.

After an intense, emotional week of lobbying that included family members of victims from the Newtown, Connecticut massacre visiting Capitol Hill to call for action, both sides of the gun-control debate scrambled for votes on a crucial piece of President Barack Obama's gun-control legislation.

Manchin, who is from West Virginia and has long been a strong supporter of gun rights, sought to assure others that the background checks plan would not limit law-abiding citizens' access to guns. He also urged senators to look beyond politics in voting on the plan.

"'No' is the safest vote as a congress person or senator, I understand that. I can vote 'no' on about everything and be fine," Manchin said of the plan, which has drawn opposition from the National Rifle Association and other gun-rights proponents, but is supported by two other gun owners' groups.

"I want to make a difference. I want to do something," Manchin said, saying that members of Congress should not be so worried about "all of the outside pressure, and maybe getting elected, maybe getting campaign funds."

The proposal to expand criminal background checks to include sales made online and at gun shows represents Obama's best hope for meaningful gun-control legislation in the aftermath of the killings of 20 children and six adults at an elementary school in Newtown, Connecticut, on December 14.

The deal between Manchin and Toomey, designed to keep guns out of the hands of criminals and the mentally ill, would be the centerpiece of gun-control legislation that also would tighten laws on gun trafficking and increase funding for school security.

Like Manchin, Toomey has been a staunch defender of Americans' constitutional right to bear arms. The Pennsylvania senator said he did not consider the background checks provision to be gun control, while acknowledging that there was no way to prevent all criminals or mentally unstable people from securing firearms.

"But can't we take a very modest step to make it more difficult if we can do it in a way that does not infringe on the Second Amendment rights of law-abiding citizens?" Toomey asked.

THE NUMBERS GAME

The Manchin-Toomey amendment needs 60 votes to overcome procedural hurdles erected by Republican opponents in the Senate, where Democrats control 55 seats.

Some Democrats up for re-election in conservative states next year also are expected to oppose the measure. Democrats Mark Pryor of Arkansas and Mark Begich of Alaska, both facing tough re-election battles, voted with conservative Republicans last week in an unsuccessful effort to block debate on the measure.

That means the Manchin-Toomey plan will probably need the backing of at least a half-dozen Republicans to clear the chamber. The Senate voted 68-31 last week to take up the broader legislation, with 16 Republicans joining 50 Democrats and two independents in supporting a debate on the bill.

But seven of those Republicans have said they will not support the background checks plan. Aside from Toomey, the only Republicans who support the deal so far are Mark Kirk of Illinois and Susan Collins of Maine. John McCain of Arizona said on Sunday he was "favorably disposed" to vote for it.

'TOUGH TO SAY'

"It's tough to say right now if we've got enough votes" to pass the Manchin-Toomey amendment, a Senate Democratic aide said.

More controversial aspects of Obama's gun-control plan - including a ban on rapid-firing "assault" weapons like the one used in Connecticut and limits on the capacity of ammunition magazines - appear to have a slim chance in the Senate.

Even if the background checks bill clears the Senate, it would face tough opposition in the Republican-controlled House of Representatives.

Obama, Vice President Joe Biden and other administration officials have pushed for the bill in a series of public events; Obama brought the Newtown family members to Washington aboard Air Force One after he visited Connecticut.

The Newtown families had several emotional visits with lawmakers. During their meeting with Manchin, the senator was moved to tears.

The NRA gun lobby group opposes the measure and has warned members of Congress it will include their votes on the Manchin-Toomey amendment in the ratings it compiles on each lawmaker and sends to members.

Manchin and Toomey have been contacting their colleagues in a hunt for support. Former U.S. Representative Gabrielle Giffords, who was badly wounded in a 2011 mass shooting in Arizona, will visit Washington this week to push for gun-control legislation.

The International Association of Chiefs of Police endorsed the background checks deal on Monday.

"Background checks work. Keeping firearms out of the hands of prohibited purchasers is a key factor in reducing gun violence in our communities and protecting our officers," said Craig Steckler, president of the police chiefs' group.

The background checks provision picked up an unexpected boost over the weekend with the backing of the Citizens Committee for the Right to Keep and Bear Arms, which bills itself as the second-largest gun-rights group behind the NRA with 650,000 members and supporters.

The group cited some of the sweeteners in the deal for gun-rights supporters, including a provision that would make licensed interstate sales easier and ban the creation of a gun registry, one of the frequent fears cited by groups such as the NRA.

Those provisions, along with the possibility that some Republican amendments to strengthen gun rights could clear the Senate, add to the unpredictability of the outcome of the Senate debate.

"It isn't perfect, but it's certainly a long, big, heavy step forward. Expanding background checks to cover gun shows and Internet sales is common sense," Senate Democratic Leader Harry Reid said.

(Editing by David Lindsey and Cynthia Osterman)

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Wal-Mart may get customers to deliver packages to online buyers

By Alistair Barr and Jessica Wohl

SAN FRANCISCO (Reuters) - Wal-Mart Stores Inc is considering a radical plan to have store customers deliver packages to online buyers, a new twist on speedier delivery services that the company hopes will enable it to better compete with Amazon.com Inc.

Tapping customers to deliver goods would put the world's largest retailer squarely in middle of a new phenomenon sometimes known as "crowd-sourcing," or the "sharing economy."

A plethora of start-ups now help people make money by renting out a spare room, a car, or even a cocktail dress, and Wal-Mart would in effect be inviting people to rent out space in their vehicle and their willingness to deliver packages to others.

Such an effort would, however, face numerous legal, regulatory and privacy obstacles, and Wal-Mart executives said it was at an early planning stage.

Wal-Mart is making a big push to ship online orders directly from stores, hoping to cut transportation costs and gain an edge over Amazon and other online retailers, which have no physical store locations. Wal-Mart does this at 25 stores currently, but plans to double that to 50 this year and could expand the program to hundreds of stores in the future.

Wal-Mart currently uses carriers like FedEx Corp for delivery from stores - or, in the case of a same-day delivery service called Walmart To Go that is being tested in five metro areas, its own delivery trucks.

"I see a path to where this is crowd-sourced," Joel Anderson, chief executive of Walmart.com in the United States, said in a recent interview with Reuters.

Wal-Mart has millions of customers visiting its stores each week. Some of these shoppers could tell the retailer where they live and sign up to drop off packages for online customers who live on their route back home, Anderson explained.

Wal-Mart would offer a discount on the customers' shopping bill, effectively covering the cost of their gas in return for the delivery of packages, he added.

"This is at the brain-storming stage, but it's possible in a year or two," said Jeff McAllister, senior vice president of Walmart U.S. innovations.

Indeed, the likelihood of this being broadly adopted across the company's network of more than 4,000 stores in the United States is low, according to Matt Nemer, a retail analyst at Wells Fargo Securities.

"I'm sure it will be a test in some stores," he added. "But they may only keep it for metro markets and for higher-priced items."

LEGAL BOUNDARIES

Start-ups such as TaskRabbit and Fiverr already let individuals rent out their time and expertise to companies and people looking for small jobs to be completed.

Zipments was founded in 2010 as a crowd-sourced delivery network that allowed anyone over 18 years old with a vehicle, a text-enabled phone, and a PayPal account to bid on courier services for local businesses.

Such online match-making businesses often push legal boundaries - and a Wal-Mart crowd-sourced delivery program would be no different, according to Nemer.

Online packages delivered by customers may never reach their destination, either through theft or fraud, the analyst said.

Such a crowd-sourced delivery service may not be as reliable as FedEx or United Parcel Service, which have insured drivers, he added.

"You are comfortable with a FedEx or UPS truck in your driveway, but what about a stranger knocking on your door?" Nemer said.

ZIPMENTS EVOLVES

While Zipments started out with a pure crowd-sourcing approach, the company now does more screening of drivers before allowing them to be part of its delivery network, Chief Executive and co-Founder Garrick Pohl said in an interview. It now serves big cities including New York and Chicago.

Theft, fraud and late deliveries have never been a problem, but insurance and licenses were an obstacle, Pohl explained.

Drivers often need personal liability insurance to cover package delivery activities. Cargo insurance is also needed. Zipments self-insures this risk up to $250, but the firm encourages its couriers to buy additional coverage for higher-value packages, Pohl said.

In some areas, like downtown Chicago, people also need a courier license to deliver things, he added.

"Zipments now helps people get all these things set up before allowing them to deliver goods," Pohl said.

Still, he said the issues are not insurmountable, citing pizza restaurants, which have used part-time drivers to deliver pies for years.

"It's a great solution for large retailers like Wal-Mart," Pohl said. "We'd like to see them move quicker, but it's great that they are considering it."

Zipments is trying to provide such services to retailers, although Pohl declined to say which companies the start-up is talking to about this.

(Reporting by Alistair Barr and Jessica Wohl; Editing by Jonathan Weber, Martin Howell and Leslie Gevirtz)

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Pentagon buyers authorized to discuss budget cuts with industry

WASHINGTON (Reuters) - The Pentagon's top weapons buyer on Thursday authorized Defense Department purchasers and program managers to begin talking to industry partners about plans for implementing $46 billion in budget cuts on March 1 and what impact it may have on business.

The directions from Frank Kendall, the undersecretary of defense for acquisition, were the first time Pentagon contracting and acquisitions personnel have been authorized to consult with their industry counterparts about the upcoming spending cuts, known as sequestration.

Kendall said in a February 21 memorandum obtained by Reuters that Pentagon purchasers and program managers were "encouraged" to begin making contact with industry counterparts at the discretion of their managers and chains of command.

"It is important we keep industry informed about our plans and involved in our decision-making process to the maximum extent possible, particularly when ongoing or upcoming contract awards may be affected," Kendall said in the memo.

Company officials said they had been warning of the damage sequestration could cause and had been pressing for a solution.

"For over a year, Northrop Grumman has been vocal about the negative impacts sequestration will have on national security, the industrial base, the supplier chain, the workforce, and the national economy," Northrop Vice President Randy Belote said.

An official at another company, speaking on condition of anonymity, said, "we're encouraged by any efforts, and we're working closely with our customers to understand how sequestration could impact our programs."

"Significant delays in funding for any production program could threaten the stability of our supply chains, increase costs, prolong delivery schedules and ultimately weaken our national security posture," the official said.

The authorization for Pentagon purchasing officials to begin talking to their industry counterparts comes a week before $46 billion in across-the-board spending cuts are scheduled to go into force on March 1.

Pentagon officials have issued dire warnings in recent days about the potential impact of the cuts. The cuts will be compounded by the fact that the department did not receive an appropriation for this year and is being funded by a "continuing resolution" that keeps spending at 2012 levels.

Officials say 2012 funding levels are about the same as 2013, but the budget priorities are different and much of the money is in the wrong accounts. The Pentagon, they say, has little flexibility to shift funds between accounts and is facing a significant shortfall in some areas.

Kendall said talks with industry would help both sides prepare more effectively.

"Engaging in this dialogue will allow industry to more productively make their own internal business plans to deal with potential sequestration impacts," Kendall said in the memo.

"Feedback from industry will provide valuable insights as government managers decide how best to move forward in attempting to meet the war-fighter requirements and DoD (Department of Defense) needs under severely constrained budgetary conditions."

Kendall's memorandum also encouraged program managers and grant officers to quickly notify companies and universities carrying out Pentagon research about any plans to reduce their grants or awards funding.

"Program and awarding officials ... should work together to notify recipients as soon as practicable after decisions about reductions are made so that recipients have as much time as possible to adjust their program execution plans," Kendall's memo said.

The acquisitions chief said communication would need to be more limited if proprietary information were involved or if the contract was in the process of being awarded.

"However, as a general rule, transparency with industry and academia while we plan for potential sequestration and CR (continuing resolution) is in the department's long-term best interests," Kendall said.

(Reporting By David Alexander; Editing by David Brunnstrom and Stacey Joyce)

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