[Federal Register Volume 79, Number 206 (Friday, October 24, 2014)]
[Notices]
[Pages 63605-63607]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-25311]


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DEPARTMENT OF DEFENSE

Office of the Secretary

[Transmittal Nos. 14-50]


36(b)(1) Arms Sales Notification

AGENCY: Defense Security Cooperation Agency, Department of Defense.

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, Transmittal 14-50 with attached transmittal, policy 
justification, and Sensitivity of Technology.

    Dated: October 21, 2014.
Aaron Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
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[[Page 63606]]

[GRAPHIC] [TIFF OMITTED] TN24OC14.017

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Transmittal No. 14-50
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: Australia
    (ii) Total Estimated Value:

Major Defense Equipment*.................  $62 million
Other....................................  $14 million
                                          ------------------------------
  Total..................................  $76 million
 

    (iii) Description and Quantity or Quantities of Articles or 
Services under Consideration for Purchase: up to 3 Close-In Weapon 
System (CIWS) Block 1B Baseline 1 to Baseline 2 upgrade kits: The 
overhaul and upgrade of up to 9 CIWS Block 1A mounts to Block 1B 
Baseline 2 systems; 11 Remote Control Stations; 11 Local Control 
Stations, spare and repair parts; support equipment; test equipment; 
personnel training and training equipment; publications and technical 
documentation; U.S. Government and contractor logistics and technical 
support services; and other related elements of logistics and program 
support.
    (iv) Military Department: Navy (LFC)
    (v) Prior Related Cases, if any:

FMS case SAY-$184M-15Nov77
FMS case SBJ-$275M-5May80
FMS case LWZ-$79M-12Nov81
FMS case LXN-$15M-23Jul82


[[Page 63607]]


    (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: 10 Oct 14
    * as defined in Section 47(6) of the Arms Export Control Act.

Policy Justification

Australia--Close-In Weapon System Block 1B Baseline 2 Upgrade

    The Government of Australia has requested a possible sale of up to 
3 Close-In Weapon System (CIWS) Block 1B Baseline 1 to Baseline 2 
upgrade kits: the overhaul and upgrade of up to 9 CIWS Block 1A mounts 
to Block 1B Baseline 2 systems; 11 Remote Control Stations; 11 Local 
Control Stations, spare and repair parts; support equipment; test 
equipment; personnel training and training equipment; publications and 
technical documentation; U.S. Government and contractor logistics and 
technical support services; and other related elements of logistics and 
program support. The estimated cost is $76 million.
    This proposed sale will contribute to the foreign policy and 
national security of the United States by helping to improve the 
security of a major ally which has been, and continues to be a staunch 
coalition partner and important force for political stability 
throughout the world.
    The proposed sale will improve Australia's maritime defense 
capability to contribute to national defense and future coalition 
operations. Australia will use the enhanced capability as a deterrent 
to regional threats and to strengthen its shipboard defense. Australia 
will have no difficulty absorbing this new upgrade into its armed 
forces.
    The proposed sale of this equipment and support will not alter the 
basic military balance in the region.
    The principal contractor will be Raytheon Missile Systems Company 
in Tucson, Arizona. There are no known offset agreements proposed in 
connection with this potential sale.
    Implementation of this proposed sale will not require the 
assignment of any additional U.S. Government or contractor 
representatives to Australia.
    There will be no adverse impact on U.S. defense readiness as a 
result of this proposed sale.
Transmittal No. 14-50
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 CIWS Block 1B Baseline 2 upgrade represents an increase in 
threat acquisition and firepower accuracy over the Block 1B Baseline 1 
and CIWS Block 1A configurations. The Baseline 2 variant includes a 
radar improvement upgrade and an electro-optical sensor to improve 
weapon system performance against low-observable; sea-skimming threats, 
and provides improved capability to concentrate hard-kill ordnance in a 
tighter pattern on the threat. The CIWS mount and spare hardware are 
Unclassified. The radar improvement/upgrade is the most sensitive 
portion of the Baseline 2 configuration. The hardware, software, and 
the majority of the technical documentation are Unclassified.
    2. The CIWS Block 1B Baseline 2 upgrade will result in the transfer 
of highly accurate close-in engagement technology and ship self-defense 
capability. The equipment, hardware, and the majority of documentation 
are Unclassified. The embedded software and operational performance are 
classified Confidential. The seeker/electro-optical control section and 
the target detector are Unclassified, but contain sensitive state-of-
the-art technology. Twelve sets of Technical Manuals used to support 
the operation and provisioning of organizational-level maintenance are 
Confidential. The technical and operational data identified above is 
classified to protect vulnerabilities, design and performance 
parameters, and similar critical information.
    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 
advanced capabilities.
    4. A determination has been made that the recipient country can 
provide 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 
Australia.

[FR Doc. 2014-25311 Filed 10-23-14; 8:45 am]
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