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[Federal Register Volume 79, Number 196 (Thursday, October 9, 2014)]
[Notices]
[Pages 61059-61061]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-24136]

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DEPARTMENT OF DEFENSE

Office of the Secretary

[Transmittal Nos. 14-43]

36(b)(1) Arms Sales Notification

AGENCY: Department of Defense, Defense Security Cooperation Agency.

ACTION: Notice.

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SUMMARY: The Department of Defense is publishing the unclassified text 
of a section 36(b)(1) arms sales notification. This is published to 
fulfill the requirements of section 155 of Public Law 104-164 dated 
July 21, 1996.

FOR FURTHER INFORMATION CONTACT: Ms. B. English, DSCA/DBO/CFM, (703) 
601-3740.
    The following is a copy of a letter to the Speaker of the House of 
Representatives, Transmittals 14-43 with attached transmittal, policy 
justification, and Sensitivity of Technology.

    Dated: October 6, 2014.
Aaron Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
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[[Page 61060]]

[GRAPHIC] [TIFF OMITTED] TN09OC14.000

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Transmittal No. 14-43
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: Kingdom of Saudi Arabia
    (ii) Total Estimated Value:

Major Defense Equipment *...............................  $1.250 billion
Other...................................................  $ .500 billion
                                                         ---------------
  Total.................................................  $1.750 billion
 
* as defined in Section 47(6) of the Arms Export Control Act.

    (iii) Description and Quantity or Quantities of Articles or 
Services under Consideration for Purchase: 202 Patriot Advanced 
Capability (PAC)-3 Missiles with containers, and 1 Guidance Enhanced 
Missile (GEM) Flight Test Target/Patriot as a Target. Also included are 
2 PAC-3 Telemetry Kits, 6 Fire Solution Computers, 36 Launcher Station 
Modification Kits, 2 Missile Round Trainers, 2 PAC-3 Slings, 6 Patriot 
Automated Logistics Systems Kits, 6 Shorting Plugs, spare and repair 
parts, lot validation and range support, ground support equipment, 
repair and return, publications and technical documentation, personnel 
training and training equipment, Quality Assurance Team, U.S. 
Government and contractor technical and logistics support services,

[[Page 61061]]

and other related elements of logistics and program support.
    (iv) Military Department: Army (WAS)
    (v) Prior Related Cases, if any:
    FMS case UAK-$991M-30Nov90
    FMS case JBV-$2.7B-16Dec92
    (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 Annex Attached
    (viii) Date Report Delivered to Congress: 30 Sep 14

POLICY JUSTIFICATION

Kingdom of Saudi Arabia (KSA)--Patriot Air Defense System with PAC-3 
Enhancement

    The Kingdom of Saudi Arabia has requested a possible sale of 202 
Patriot Advanced Capability (PAC)-3 Missiles with containers, and 1 
Guidance Enhanced Missile (GEM) Flight Test Target/Patriot as a Target. 
Also included are 2 PAC-3 Telemetry Kits, 6 Fire Solution Computers, 36 
Launcher Station Modification Kits, 2 Missile Round Trainers, 2 PAC-3 
Slings, 6 Patriot Automated Logistics Systems Kits, 6 Shorting Plugs, 
spare and repair parts, lot validation and range support, ground 
support equipment, repair and return, publications and technical 
documentation, personnel training and training equipment, Quality 
Assurance Team, U.S. Government and contractor technical and logistics 
support services, and other related elements of logistics and program 
support. The estimated cost is $1.750 billion.
    The program will contribute to the foreign policy and national 
security of the United States by helping to improve the security of a 
partner which has been, and continues to be, an important force for 
political stability and economic progress in the Middle East.
    The proposed sale will help replenish Saudi's current Patriot 
missiles which are becoming obsolete and difficult to sustain due to 
age and the limited availability of repair parts. The purchase of PAC-3 
missiles will support current and future defense missions and promote 
stability within the region. Saudi Arabia, which already has Patriot 
missiles in its inventory, will have no difficulty absorbing these 
additional missiles into its armed forces.
    The proposed sale will not alter the basic military balance in the 
region.
    The principal contractors will be Lockheed Martin Missiles and Fire 
Control in Dallas, Texas; and Raytheon Corporation in Tewksbury, 
Massachusetts. Although offsets are requested, they are unknown at this 
time and will be determined during negotiations between the KSA and 
contractor.
    Implementation of this proposed program will require one U.S. 
contractor to travel to the Kingdom of Saudi Arabia for a period of 
three years for equipment fielding and system checkout.
    There will be no adverse impact on U.S. defense readiness as a 
result of this proposed sale.
Transmittal No. 14-43
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 Patriot Air Defense System contains classified Confidential 
hardware components and critical/sensitive technology. The Patriot 
Advance Capability-3 (PAC-3) Missile Four-Pack is classified 
Confidential and the improved PAC-3 launcher hardware is Unclassified. 
The missiles requested represent significant technological advances for 
the existing Kingdom of Saudi Arabia Patriot system capabilities. With 
the incorporation of the PAC-3 missile, the Patriot System will 
continue to hold a significant technology lead over other surface-to-
air missile systems in the world.
    2. The PAC-3 sensitive/critical technology is primarily in the area 
of design and production know-how and primarily inherent in the design, 
development and/or manufacturing data related to certain components. 
The list of components is classified Confidential.
    3. Information on system performance capabilities, effectiveness, 
survivability, PAC-3 Missile seeker capabilities, select software/
software documentation and test data are classified up to and including 
Secret.
    4. Loss of this hardware, software, documentation and/or data could 
permit development of information which may lead to a significant 
threat to future U.S. military operations. If a technology 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 capabilities.
    5. 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 
advance capabilities.
    6. A determination has been made that the Kingdom of Saudi Arabia 
can provide substantially the same degree of protection for this 
technology as the U.S. Government. This proposed sale is necessary in 
furtherance of the U.S. foreign policy and national security objectives 
outlined in the Policy Justification.
    7. All defense articles and services listed in this transmittal 
have been authorized for release and export to the Kingdom of Saudi 
Arabia.

[FR Doc. 2014-24136 Filed 10-8-14; 8:45 am]
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