36888 Federal Register / Vol. 83, No. 147 / Tuesday, July 31, 2018 / Notices 

Transmittal No. 18–0A 

REPORT OF ENHANCEMENT OR 

UPGRADE OF SENSITIVITY OF 

TECHNOLOGY OR CAPABILITY (SEC. 

36(B)(5)(C), AECA) 

(i) Purchaser: Australia 

(ii) Sec. 36(b)(1), AECA Transmittal 

No.: 11–05 

Date: February 1, 2011 

Military Department: Navy 

(iii) Description: On February 1, 2011, 

Congress was notified by Congressional 

certification transmittal number 11–05 

of the Government of Australia’s request 

for ten year Through-Life-Support (TLS) 

for Australia’s fleet of twenty-four (24) 

MH–60R helicopters. The sustainment 

effort includes spare and repair parts 

provisioning, support and test 

equipment, publications and technical 

documentation, U.S. Government and 

contractor engineering, technical and 

logistics support services, and other 

related elements of logistics support. 

The estimated cost was $1.6 billion, 

with no Major Defense Equipment 

(MDE). 

This transmittal includes the 

extension of the sustainment support 

through June 2028 as requested by 

Australia and includes additional spare 

parts. There is no increase in MDE cost. 

The case value will increase from $1.6 

billion to $2.8 billion. 

(iv) Significance: The proposed sale 

will allow Australia to effectively 

maintain its current force projection 

capability that enhances interoperability 

with U.S. forces well into the future. 

(v) Justification: This sale will 

contribute to the foreign policy and 

national security of the United States by 

helping to improve the security of an 

important major non-NATO ally and 

partner who contributes significantly to 

peacekeeping, humanitarian, and 

combat operations around the world. 

(vi) Date Report Delivered to 

Congress: July 10, 2018. 

[FR Doc. 2018–16307 Filed 7–30–18; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Office of the Secretary 

[Transmittal No. 18–26] 

Arms Sales Notification 

AGENCY: Defense Security Cooperation 

Agency, Department of Defense. 

ACTION: Arms sales notice. 

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 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 

18–26 with attached Policy Justification 

and Sensitivity of Technology. 

Dated: July 26, 2018. 

Shelly E. Finke, 

Alternate OSD Federal Register Liaison 

Officer, Department of Defense. 

BILLING CODE 5001–06–P 


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Federal Register / Vol. 83, No. 147 / Tuesday, July 31, 2018 / Notices 36889 

BILLING CODE 5001–06–C 


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36890 Federal Register / Vol. 83, No. 147 / Tuesday, July 31, 2018 / Notices 

Transmittal No. 18–26 

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: 

Commonwealth of Australia 

(ii) Total Estimated Value: 

Major Defense Equipment * $ 0.0 million 

Other .................................... $185.0 

million 

TOTAL .............................. $185.0 

million 

(iii) Description and Quantity or 

Quantities of Articles or Services under 

Consideration for Purchase: Australia 

has requested the possible sale of long 

lead items, engineering and 

development activities, establishment of 

engineering development sites, and 

commencement of development 

activities associated with the integration 

of the CEAFAR 2 Phased Array Radar 

System with the AEGIS Combat System. 

Major Defense Equipment (MDE): 

None 

Non-MDE: AEGIS Weapon System 

Technical Equivalent Components 

including Command Display System 

(CDS) Consoles (including 2 consoles in 

Gun Weapon System configuration); 

Multi-Mission Display (MMD) systems, 

including projectors, sensors and 

cameras; Tactical Equivalent Core 

Computing System (CCS) Cabinets; 

Tactical Equivalent AEGIS LAN 

Interconnect System (ALIS) Cabinets; 

Tactical Equivalent AEGIS Conversion 

Equipment Group Input/Output (ACEG 

I/0) Cabinets; Tactical Equivalent 

Advanced Storage Area Network 

(ASAN) Cabinets; Global Command and 

Control System—Maritime (GCCS–M); 

Cooperative Engagement Capability 

(CEC) sites systems, to include 

processing rack, simulation equipment 

and workstation; AN/SPQ–15 

Converter/Receiver and/signal data 

converter equipment; Defense Visual 

Information Distribution Service 

(DIVDS) cabinet; AN/SQQ–89 Sonobouy 

Processing Core Computing System 

racks, with console and laptop; AEGIS 

simulator racks and workstations; 

AEGIS Training System; and various 

ancillary equipment and support 

products, including desktop computers, 

displays, test units and compilations 

servers, printers, workstations, spares, 

cabling and software licenses. Also 

included are spare and repair parts, 

support and test equipment, engineering 

and technical services to support sites 

equipment, U.S. Government and 

contractor engineering, technical and 

support services, engineering technical 

assistance, other technical assistance, 

and other related elements of program 

and logistics support. 

(iv) Military Department: Navy 

(v) Prior Related Cases, if any: AT–P– 

LCQ, Implemented 31 Oct 05; AT–P– 

GTG, Implemented 31 Mar 14; AT–P– 

GSU, Implemented 26 Nov 15; AT–P– 

GSB, Implemented 2 Feb 16 

(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 

Australia—AEGIS Combat System 

Equipment for Australia Surface 

Combatants 

The Government of Australia has 

requested to buy long lead items, 

engineering and development activities, 

establishment of engineering 

development sites, and commencement 

of development activities associated 

with the integration of the CEAFAR 2 

Phased Array Radar System with the 

AEGIS Combat System. Included are 

AEGIS Weapon System Technical 

Equivalent Components including 

Command Display System (CDS) 

Consoles (including 2 consoles in Gun 

Weapon System configuration); MultiMission Display (MMD) systems, 

including projectors, sensors and 

cameras; Tactical Equivalent Core 

Computing System (CCS) Cabinets; 

Tactical Equivalent AEGIS LAN 

Interconnect System (ALIS) Cabinets; 

Tactical Equivalent AEGIS Conversion 

Equipment Group Input/Output (ACEG 

I/0) Cabinets; Tactical Equivalent 

Advanced Storage Area Network 

(ASAN) Cabinets; Global Command and 

Control System—Maritime (GCCS–M); 

Cooperative Engagement Capability 

(CEC) sites systems, to include 

processing rack, simulation equipment 

and workstation; AN/SPQ–15 

Converter/Receiver and/signal data 

converter equipment; Defense Visual 

Information Distribution Service 

(DIVDS) cabinet; AN/SQQ–89 Sonobouy 

Processing Core Computing System 

racks, with console and laptop; AEGIS 

simulator racks and workstations; 

AEGIS Training System; and various 

ancillary equipment and support 

products, including desktop computers, 

displays, test units and compilations 

servers, printers, workstations, spares, 

cabling and software licenses. Also 

included are spare and repair parts, 

support and test equipment, engineering 

and technical services to support sites 

equipment, U.S. Government and 

contractor engineering, technical and 

support services, engineering technical 

assistance, other technical assistance, 

and other related elements of program 

and logistics support. The total 

estimated program cost is $185 million. 

This sale will support the foreign 

policy and national security of the 

United States by helping to improve the 

security of a major ally that is an 

important force for political stability 

and economic progress in the Western 

Pacific. It is vital to the U.S. national 

interest to assist our ally in developing 

and maintaining a strong and ready selfdefense capability. 

The proposed sale will enhance 

Australia’s Surface Combatant 

capability by adding nine AEGIS 

capable Future Frigates over the next 20 

years and by upgrading their existing 

three AEGIS capable Hobart Class 

destroyers with the latest technology 

and capability. This sale enhances 

Australia’s self-defense capability, while 

significantly improving interoperability 

with U.S. Navy AEGIS combatants in 

the region. By deploying a surface 

combatant fleet that will incorporate 

Cooperative Engagement Capability 

(CEC), Australia will significantly 

improve network-centric warfare 

capability for U.S. forces operating in 

the region. Australia 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 prime contractor will be 

Lockheed Martin, Rotary and Mission 

Systems, Moorestown, NJ. There are 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 travel of U.S. Government 

and/or contractor representatives to 

Australia on a temporary basis for 

program support and management 

oversight, consistent with the current 

level of effort. 

There will be no adverse impact on 

U.S. defense readiness as a result of this 

proposed sale. 


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Federal Register / Vol. 83, No. 147 / Tuesday, July 31, 2018 / Notices 36891 

Transmittal No. 18–26 

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 is a 

multi-mission combat system providing 

Integrated Air and Missile Defense 

(IAMD) capability for surface ship 

combatants. This sale involves the 

procurement of development site 

equipment to support the Australian 

Surface Combatant Program. The 

equipment will be installed in U.S.- 

based development and testing site 

locations to support the continued 

development of the AEGIS Combat 

System for the Australia Surface 

Combatant Programs. A subsequent LOR 

is anticipated for procurement of 

combat system equipment to be 

exported to Australia for installation on 

their future surface combatants. 

2. AEGIS Weapon System simulation 

software, documentation, training and 

study material will be provided a 

classification levels up to and including 

SECRET. 

3. No delivery of restricted 

information will be provided under this 

LOR. Delivery of sensitive technological 

information, up to and including 

SECRET, will be limited to the 

minimum level of information required 

to progress activities associated with the 

integration of indigenous combat system 

systems into the AEGIS Combat System. 

This consists primarily of AEGIS 

Combat System requirements and 

integration information to support early 

combat system development activities, 

in the form of documentation, 

simulation software, and technical 

specifications. This information is 

sensitive as it provides limited insight 

into AEGIS Combat System capabilities 

and requirements—as tailored to the 

Australian AEGIS Combat System 

configurations. 

4. 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. 

5. A determination has been made 

that Australia 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 

and national security objectives 

outlined in the Policy Justification. 

6. All defense articles and services 

listed on this transmittal are authorized 

for release and export to Australia. 

[FR Doc. 2018–16374 Filed 7–30–18; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Office of the Secretary 

[Transmittal No. 18–13] 

Arms Sales Notification 

AGENCY: Defense Security Cooperation 

Agency, Department of Defense. 

ACTION: Arms sales notice. 

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 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 

18–13 with attached Policy Justification 

and Sensitivity of Technology. 

Dated: July 26, 2018. 

Shelly E. Finke, 

Alternate OSD Federal Register Liaison 

Officer, Department of Defense. 

BILLING CODE 5001–06–P 


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