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[Federal Register Volume 83, Number 147 (Tuesday, July 31, 2018)]
[Notices]
[Pages 36888-36891]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-16374]

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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.

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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 18-26 with 
attached Policy Justification and Sensitivity of Technology.

    Dated: July 26, 2018.
Shelly E. Finke,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
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[[Page 36889]]

[GRAPHIC] [TIFF OMITTED] TN31JY18.031

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[[Page 36890]]

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); 
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. 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 self-defense 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.

[[Page 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]
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