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[Federal Register Volume 83, Number 147 (Tuesday, July 31, 2018)]
[Notices]
[Pages 36899-36904]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-16324]

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DEPARTMENT OF DEFENSE

Office of the Secretary

[Transmittal No. 18-19]

Arms Sales Notification

AGENCY: Defense Security Cooperation Agency, Department of Defense.

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: DSCA at dsca.ncr.lmo.mbx.info@mail.mil">dsca.ncr.lmo.mbx.info@mail.mil 
or (703) 697-9709.

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 18-19 with 
attached Policy Justification and Sensitivity of Technology.

[[Page 36900]]

    Dated: July 26, 2018.
Shelly E. Finke,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
BILLING CODE 5001-06-P

[[Page 36901]]

[GRAPHIC] [TIFF OMITTED] TN31JY18.024

BILLING CODE 5001-06-C

[[Page 36902]]

Transmittal No. 18-19
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 Spain
    (ii) Total Estimated Value:

Major Defense Equipment *.............................    $324.4 million
Other.................................................    $536.0 million
                                                       -----------------
  TOTAL...............................................    $860.4 million
 

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

Five (5) AEGIS Weapons Systems (AWS) MK7
Six (6) Shipsets Digital Signal Processing
Five (5) Shipsets AWS Computing Infrastructure MARK 1 MOD 0
Five (5) Shipsets Operational Readiness Test Systems (ORTS)
Five (5) Shipsets MK 99 MOD 14 Fire Control System
Five (5) Shipsets MK 41 Baseline VII Vertical Launching Systems (VLS)
Two (2) All-Up-Round MK 54 Mod 0 Lightweight Torpedoes
Twenty (20) SM-2 Block IIIB Missiles and MK 13 Canisters with AN/DKT-71 
Warhead Compatible Telemeter

    Non-MDE: Also included are one (1) S4 AWS computer program, five 
(5) shipsets Ultra High Frequency (UHF) Satellite Communications 
(SATCOM), five (5) shipsets AN/SRQ-4 radio terminal sets, five (5) 
shipsets ordnance handling equipment, five (5) shipsets Selective 
Availability Anti-Spoofing Modules (SAASM), five (5) shipsets aviation 
handling and support equipment, five (5) shipsets AN/SLQ-24E Torpedo 
countermeasures systems, five (5) shipsets LM04 Thru-Hull XBT Launcher 
and test canisters, one (1) shipset MK 36 MOD 6 Decoy Launching System, 
five (5) shipsets Link Level COMSEC (LLC) 7M for LINK 22, five (5) 
shipsets Maintenance Assist Module (MAM) cabinets, five (5) shipsets 
technical documentation, five (5) shipsets installation support 
material, special purpose test equipment, system engineering, technical 
services, on-site vendor assistance, spare parts, systems training, 
foreign liaison office and staging services necessary to support ship 
construction and delivery, spare and repair parts, tools and test 
equipment, support equipment, repair and return support, personnel 
training and training equipment, publications and technical 
documentation, U.S. Government and contractor engineering and logistics 
support services, and other related elements of logistic and program 
support.
    (iv) Military Department: Navy (SP-P-LHM)
    (v) Prior Related Cases, if any: SP-P-LHL, SP-P-GOL
    (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: June 26, 2018

    * As defined in Section 47(6) of the Arms Export Control Act.

POLICY JUSTIFICATION

Spain--AEGIS Combat System

    The Government of Spain has requested to buy five (5) AEGIS Weapons 
Systems (AWS) MK7, six (6) shipsets Digital Signal Processing, five (5) 
shipsets AWS Computing Infrastructure MARK 1 MOD 0, five (5) shipsets 
Operational Readiness Test Systems (ORTS), five (5) shipsets MK 99 MOD 
14 Fire Control System, five (5) shipsets MK 41 Baseline VII Vertical 
Launching Systems (VLS), two (2) All-Up-Round MK 54 Mod 0 lightweight 
torpedoes, twenty (20) SM-2 Block IIIB missiles and MK 13 canisters 
with AN/DKT-71 warhead compatible telemeter. Also included are one (1) 
S4 AWS computer program, five (5) shipsets Ultra High Frequency (UHF) 
Satellite Communications (SATCOM), five (5) shipsets AN/SRQ-4 radio 
terminal sets, five (5) shipsets ordnance handling equipment, five (5) 
shipsets Selective Availability Anti-Spoofing Modules (SAASM), five (5) 
shipsets aviation handling and support equipment, five (5) shipsets AN/
SLQ-24E Torpedo countermeasures systems, five (5) shipsets LM04 Thru-
Hull XBT Launcher and test canisters, one (1) shipset MK 36 MOD 6 Decoy 
Launching System, five (5) shipsets Link Level COMSEC (LLC) 7M for LINK 
22, five (5) shipsets Maintenance Assist Module (MAM) cabinets, five 
(5) shipsets technical documentation, five (5) shipsets installation 
support material, special purpose test equipment, system engineering, 
technical services, on-site vendor assistance, spare parts, systems 
training, foreign liaison office and staging services necessary to 
support ship construction and delivery, spare and repair parts, tools 
and test equipment, support equipment, repair and return support, 
personnel training and training equipment, publications and technical 
documentation, U.S. Government and contractor engineering and logistics 
support services, and other related elements of logistic and program 
support. The total estimated program cost is $860.4 million.
    The proposed sale will support the foreign policy and national 
security objectives of the United States by improving the security of a 
NATO ally that is an important force for political stability and 
economic progress in Europe. It is vital to the U.S. national interest 
to assist Spain in developing and maintaining a strong and ready self-
defense capability.
    The addition of five (5) new AEGIS equipped frigates to Spain's 
fleet will afford more flexibility and capability to counter regional 
threats and continue to enhance stability in the region. Spain 
currently operates 5 AEGIS frigates and is proficient at using the 
AEGIS system to its fullest capability. Spain has demonstrated the 
capability, flexibility, and responsibility necessary to acquire this 
AEGIS system into its fleet and will continue to operate it as required 
to ensure interoperability as a highly valued NATO partner. Spain will 
have no difficulty absorbing this equipment and support into its armed 
forces.
    The proposed sale of this equipment and support will not alter the 
basic military balance in the region.
    The prime contractors will be Lockheed Martin, Moorestown, NJ, and 
Manassas, VA; Raytheon Company, Waltham, MA; and General Dynamics, 
Williston, VT. There are also a significant number of companies under 
contract with the U.S. Navy that will provide components and systems as 
well as engineering services during the execution of this effort. There 
are no known offset agreements proposed in connection with this 
potential sale.
    Implementation of this proposed sale will require multiple trips by 
U.S. Government and contractor representatives to participate in 
program and technical reviews plus training and maintenance support in 
country, on a temporary basis, for a period of twenty-four (24) months. 
It will also require two (2) contractor representatives to reside in 
country for a period of two (2) years to support this program.
    There will be no adverse impact on U.S. defense readiness as a 
result of this proposed sale.
Transmittal No. 18-19
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 AEGIS Weapon System (AWS) is a multi-mission combat system

[[Page 36903]]

providing integrated Air and Missile Defense for surface ships. This 
sale involves a subset of the AWS Baseline 9 Anti-Air Warfare (AAW) 
capability called the International AEGIS Fire Control Loop (IAFCL); no 
integrated Ballistic Missile Defense will be provided. AWS Software, 
documentation, combat system training and technical services will be 
provided at the classification levels up to and including SECRET. The 
manuals and technical documents are limited to those necessary for 
operational use and organization maintenance.
    2. IAFCL hardware include AWS Computing Infrastructure Equipment, 
including Blade Processors, Fire Control System (FCS) MK 99, Vertical 
Launching System (VLS) MK 41, combat system support equipment, 
logistics support equipment, and the Digital Signal Processing Group 
equipment consisting of the Signal Processor Assembly Cabinet and Radar 
Data Processor Cabinet. The Digital Signal Processing group will be 
derived from the Multi-Mission Signal Processor and will be integrated 
with the Solid-State S-Band Multifunction Radar which is being procured 
by Spain via Direct Commercial Sale contract. The Digital Signal 
Processing Group will be capable of Anti-Air Warfare mission only. The 
hardware is unclassified. The IAFCL meets Anti-Tamper Requirements.
    3. The Torpedo Countermeasure Transmitting Set AN/SLQ-25 (Nixie) is 
a passive, electro-acoustic decoy system used to provide deceptive 
countermeasures against acoustic homing torpedoes. The AN/SLQ-25 
employs an underwater acoustic projector housed in a streamlines body 
which is towed astern on a combination tow/signal-transfer coaxial 
cable. An onboard generated signal is used by the towed body to produce 
an acoustic signal to decoy the hostile torpedo away from the ship. The 
AN/SLW-25E included improved deceptive countermeasure capabilities, a 
fiber optic display LAN, a torpedo alertment capability and a towed 
array sensor, as well as addressing obsolescence issues in previous 
variants. The highest classification of the hardware to be exported is 
SECRET. The purchaser currently has the AN/SLQ-25A variant of this 
weapon system in its inventory.
    4. The Common Data Link Hawklink AN/SRQ-4 radio terminal sets 
provide the shipboard element of a situation awareness system that 
links airborne terminals with surface warships. The system provides 
real-time use of aircraft sensors to extend situational awareness over 
the horizon by enabling surveillance helicopters to data-link radar, 
video, networking, and acoustic data to various surface ships. It 
provided the command and control, sensor data transfer, data link 
operations and built-in test functionality. It supports anti-submarine 
warfare and anti-ship surveillance and targeting missions. This 
hardware is unclassified. The purchase currently has the AN/SRQ-4 on 5 
of their surface ships.
    5. The version of the MK 54 Lightweight Torpedo involved in this is 
the MK 54 Mod 0. Although the MK 54 Mod 0 is considered state-of-the 
art technology, there is no Critical Program Information associated 
with the MK 54 Mod 0 Light Weight Torpedo hardware, technical 
documentation, or software. The highest classification of the hardware 
to be exported is SECRET. The highest classification of the technical 
manual that will be exported is confidential; which is required for the 
operation and maintenance of the MK 54 Mod 0 Lightweight Torpedo. The 
highest classification of the software to be exported is SECRET. The MK 
54 Mod 0 Lightweight Torpedo meets Anti-Tamper Requirements. The 
purchaser currently does not have this weapon system in its inventory; 
however they have the previous version, the MK 46 Lightweight Torpedo.
    6. The following MK 54 components and support equipment being 
conveyed by the proposed sale that is considered sensitive and are 
classified SECRET include: MK 54 LWT hardware, MK 695 Torpedo System 
Test Set Software, Torpedo Firing Evaluation equipment Software, and 
Data Analysis Tool Set software. The Classified MK 54 Publication with 
the proposed sale include: Torpedo MK 54 Mod 0 General Information 
Book, MK 54 Employment Manual, MK 20 Mod 1 Exploder Description, 
Operation, Maintenance, and Illustrated Parts Breakdown, and MK 440 Mod 
1 Exploder Test Set Description, Operation and Illustrated Parts 
Breakdown.
    7. The MK-36 Mod 6 Super Rapid Blooming Off-board Chaff (SRBOC) and 
Decoy Launching System is an unclassified shipboard, deck-mounted, 6 
barrel mortar-type array that launched chaff countermeasures against a 
variety of threats. Following launch and dispersion, MK 36 SRBOC chaff 
and infrared countermeasure are designed to lure hostile missiles away 
from ships under attack by creating false target sets.
    8. The Standard Missile-2 Block IIIB proposed in this purchase will 
be used for Anti-Air Warfare test firings during Combat System Ship 
Qualification Trials. The following Standard Missile-2 BLK IIIB 
components and support equipment being conveyed by the proposed sale 
that is considered sensitive and are classified CONFIDENTIAL include 
completely assembled Standard Missile-2 BLK IIIB with or without a 
conventional warhead, whether a tactical, telemetry, or inert 
(training) configuration: Missile component hardware Guidance Section, 
Target Detection Device, Autopilot Battery Unit; SM-2 operator and 
maintenance documentation, shipboard operation/firing guidance. The 
purchaser currently has this missile in its inventory.
    9. UHF SATCOM, the RT-1829 UHF SATCOM terminal is a commercially 
available SATCOM terminal that can provide ship-to-ship or ship-to-
shore communications via voice or data connectivity. The device itself 
is CCI but is not classified until it is keyed with the proper keying 
material to enable secure communications. A single RT-1829 control 
interface can operate multiple voice and data communications nets 
simultaneously. The RT-1829 terminal is KITC and HAS certified to 
ensure compliance with legacy DAMA Mil-STDs. The purchaser currently 
has this UHF SATCOM on 5 of their surface ships.
    10. The Link Level COMSEC (LLC) 7M device is a GOTS product which 
was developed by PEO C41/PMQ 150 in coordination with Raytheon and 
certified by the NSA. The device itself is CCI but is not classified 
until it is keyed with the proper keying material to enable secure 
communications via the LINK 22 system. It is a Type 1 COMSEC device 
which is intended to enable secure interoperable communications between 
the US, and NATO nations and Allied Forces via the LINK 22 System. Each 
device is handled by only the USG and the partner Nations COMSEC 
Custodians/Managers per the FMS agreement and no nation has the ability 
to tamper with or manipulate/maintain the system. The purchaser has 
previously purchased the LLC 7M for future integration with LINK 22 on 
many of their warships.
    11. If a technologically advanced adversary were to obtain 
knowledge of specific hardware, the information could be used to 
develop countermeasures which might reduce weapons system effectiveness 
or be used in the development of a system with similar or advanced 
capabilities.
    12. A determination has been made that Spain can provide 
substantially the same degree of protection for sensitive technology 
being released as the U.S. Government. This proposed sustainment 
program is necessary to the furtherance of the U.S. foreign policy

[[Page 36904]]

and national security objectives outlined in the Policy Justification.
    13. All defense articles and services listed on this transmittal 
are authorized for release and export to the Government of Spain.

[FR Doc. 2018-16324 Filed 7-30-18; 8:45 am]
 BILLING CODE 5001-06-P
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