[Federal Register Volume 85, Number 243 (Thursday, December 17, 2020)]
[Notices]
[Pages 81914-81916]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-27733]


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DEPARTMENT OF DEFENSE

Office of the Secretary

[Transmittal No. 20-82]


Arms Sales Notification

AGENCY: Defense Security Cooperation Agency, Department of Defense 
(DoD).

ACTION: Arms sales notice.

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SUMMARY: The Department of Defense is publishing the unclassified text 
of an arms sales notification.

FOR FURTHER INFORMATION CONTACT: Karma Job at <a href="/cdn-cgi/l/email-protection#167d77647b773872387c797438757f60567b777f7a387b7f7a"><span class="__cf_email__" data-cfemail="0d666c7f606c23692367626f236e647b4d606c646123606461">[email protected]</span></a> 
or (703) 697-8976.

SUPPLEMENTARY INFORMATION: This 36(b)(1) arms sales notification is 
published to fulfill the requirements of section 155 of Public Law 104-
164 dated July 21, 1996. The following is a copy of a letter to the 
Speaker of the House of Representatives, Transmittal 20-82 with 
attached Policy Justification and Sensitivity of Technology.

    Dated: December 11, 2020.
Aaron T. Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
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[GRAPHIC] [TIFF OMITTED] TN17DE20.064

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Transmittal No. 20-82
Notice of Proposed Issuance of Letter of Offer Pursuant to Section 
36(b)(1) of the Arms Export Control Act, as amended
    (i) Prospective Purchaser: Government of Canada
    (ii) Total Estimated Value:

Major Defense Equipment *................  $300 million
Other....................................  $200 million
                                          ------------------------------
  TOTAL..................................  $500 million
 

    (iii) Description and Quantity or Quantities of Articles or 
Services under Consideration for Purchase:
    Major Defense Equipment (MDE):

One hundred (100) Standard Missile 2 (SM-2) Block IIIC Missiles
One hundred (100) MK 13 Vertical Launch Systems (VLS) (canisters 
modified to employ the SM-2 Block IIIC missile)

    Non-MDE: Also included is obsolescence engineering; integration and 
test activity associated with production of subject missiles; canister 
handling and loading/unloading equipment and associated spares; 
training and training equipment/aids; technical publications and data; 
U.S.

[[Page 81916]]

Government and contractor engineering, technical, and logistics 
support; and other related elements of logistical and program support.
    (iv) Military Department: Navy (CN-P-APW)
    (v) Prior Related Cases, if any: None
    (vi) Sales Commission, Fee, etc., Paid, Offered, or Agreed to be 
Paid: None
    (vii) Sensitivity of Technology Contained in the Defense Article or 
Defense Services Proposed to be Sold: See Attached Annex
    (viii) Date Report Delivered to Congress: November 5, 2020
    * As defined in Section 47(6) of the Arms Export Control Act.

POLICY JUSTIFICATION

Canada--Standard Missile 2 (SM-2) Block IIIC Missiles

    The Government of Canada has requested to buy one hundred (100) 
Standard Missile 2 (SM-2) Block IIIC missiles; and one hundred (100) MK 
13 Vertical Launch Systems (VLS) (canisters modified to employ the SM-2 
Block IIIC missile). Also included is obsolescence engineering; 
integration and test activity associated with production of subject 
missiles; canister handling and loading/unloading equipment and 
associated spares; training and training equipment/aids; technical 
publications and data; U.S. Government and contractor engineering, 
technical, and logistics support; and other related elements of 
logistical and program support. The total estimated program cost is 
$500 million.
    This proposed sale will support the foreign policy and national 
security objectives of the United States by helping to improve the 
military capability of Canada, a NATO ally that is an important force 
for ensuring political stability and economic progress and a 
contributor to military, peacekeeping and humanitarian operations 
around the world.
    This proposed sale will provide Canada with SM-2 Block IIIC 
missiles for installation on its planned 15 Type 26 Canada Surface 
Combatant (CSC) ships, ensuring its ability to operate alongside U.S. 
and Allied naval forces against the full spectrum of naval threats. 
Canada will have no difficulty absorbing this equipment into its armed 
forces.
    The proposed sale of this equipment and support will not alter the 
basic military balance in the region.
    The principal U.S. contractor will be Raytheon Missiles and 
Defense, Tucson, AZ. The purchaser typically requests offsets. Any 
offset agreement will be defined in negotiations between the purchaser 
and the contractor(s).
    Implementation of the proposed sale will require U.S. Government 
and contractor personnel to visit Canada on a temporary basis in 
conjunction with program technical oversight and support requirements, 
including program and technical reviews, as well as to provide training 
and maintenance support in country.
    There will be no adverse impact on U.S. defense readiness as a 
result of this proposed sale.
Transmittal No. 20-82
Notice of Proposed Issuance of Letter of Offer Pursuant to Section 
36(b)(1) of the Arms Export Control Act
Annex
Item No. vii
    (vii) Sensitivity of Technology:
    1. The SM-2 Block IIIC Active Missile maximizes existing SM-6 Block 
I active and SM-2 semi-active missile technology to deliver a low cost, 
medium range dual mode active/semi-active missile. Guidance, Ordnance 
and Power, Control and Telemetry (PC&T) Sections are derived from SM-6 
Block I, Dual Thrust Rocket Motor (DTRM) and missile canisters are 
derived from SM-2. Planned changes include new dorsal sections and 
thrust vector control to accommodate the revised flight characteristics 
driven by the incorporation of the active missile capability. 
Improvements to the Guidance Section, communications plate and steering 
control section are planned to address obsolescence.
    2. The highest level of classification of defense articles, 
components, and services included in this potential sale is SECRET.
    3. If a technologically advanced adversary were to obtain knowledge 
of the specific hardware and software elements, the information could 
be used to develop countermeasures that might reduce weapon system 
effectiveness or be used in the development of a system with similar or 
advanced capabilities.
    4. A determination has been made that Canada can provide 
substantially the same degree of protection for the sensitive 
technology being released as the U.S. Government. This sale is 
necessary in furtherance of the U.S. foreign policy and national 
security objectives outlined in the Policy Justification.
    5. All defense articles and services listed in this transmittal 
have been authorized for release and export to the Government of 
Canada.

[FR Doc. 2020-27733 Filed 12-16-20; 8:45 am]
BILLING CODE 5001-06-P


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