80 FR 48831 - 36(b)(1) Arms Sales Notification

DEPARTMENT OF DEFENSE
Office of the Secretary

Federal Register Volume 80, Issue 157 (August 14, 2015)

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.

[Federal Register Volume 80, Number 157 (Friday, August 14, 2015)]
[Notices]
[Pages 48831-48833]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-20062]


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DEPARTMENT OF DEFENSE

Office of the Secretary

[Transmittal No. 15-43]


36(b)(1) Arms Sales Notification

AGENCY: Defense Security Cooperation Agency, DoD.

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: Sarah A. Ragan or Heather N. Harwell, 
DSCA/LMO, (703) 604-1546/(703) 607-5339.
    The following is a copy of a letter to the Speaker of the House of 
Representatives, Transmittal 15-43 with attached Policy Justification 
and Sensitivity of Technology.

     Dated: August 11, 2015.
Aaron Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
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[[Page 48832]]

[GRAPHIC] [TIFF OMITTED] TN14AU15.080

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Transmittal No. 15-43
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 *...............................  $4.600 billion
Other...................................................  $ .800 billion
                                                         ---------------
  TOTAL.................................................  $5.400 billion
 

    (iii) Description and Quantity or Quantities of Articles or 
Services under Consideration for Purchase: Six hundred (600) Patriot 
Advanced Capability-3 (PAC-3) Cost Reduction Initiative (CRI) Missiles 
with containers, eight (8) PAC-3 CRI Test Missiles for fly-to-buy. Also 
included are PAC-3 Telemetry Kits, PAC-3 Guidance Enhanced Missile 
(GEM) Flight Test Target/Patriot as a Target (PAAT) missiles, Fire 
Solution Computers, Launcher Modification Kits, PAC-3 Missile Round 
Trainers, PAC-3 Slings, Patriot Automated Logistics System (PALS) Kits, 
Shorting Plugs, spare and repair parts, lot validation and range 
support, 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.
    (iv) Military Department: Army (ZAB)
    (v) Prior Related Cases, if any:
FMS case UAK-$991M-30Nov90

[[Page 48833]]

FMS case JBV-$2.7B-16Dec92
FMS case ZAA-$1.3B-8Apr15
    (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: 28 July 2015

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

POLICY JUSTIFICATION

Kingdom of Saudi Arabia (KSA)--Patriot Advanced Capability-3 (PAC-3) 
Missiles and Support Equipment

    The Kingdom of Saudi Arabia has requested a possible sale of six 
hundred (600) Patriot Advanced Capability-3 (PAC-3) Cost Reduction 
Initiative (CRI) Missiles with containers, eight (8) PAC-3 CRI Test 
Missiles for fly-to-buy. Also included are PAC-3 Telemetry Kits, PAC-3 
Guidance Enhanced Missile (GEM) Flight Test Target/Patriot as a Target 
(PAAT) missiles, Fire Solution Computers, Launcher Modification Kits, 
PAC-3 Missile Round Trainers, PAC-3 Slings, Patriot Automated Logistics 
System (PALS) Kits, Shorting Plugs, spare and repair parts, lot 
validation and range support, 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 total cost is 
$5.4 billion.
    The proposed sale 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 modernize and replenish Saudi Arabia's 
current Patriot missile stockpile, which is becoming obsolete and 
difficult to sustain due to age and limited availability of repair 
parts. The purchase of the 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 Saudi Arabia 
and the contractor.
    Implementation of this sale will require approximately thirty (30) 
U.S. Government and forty (40) contractor representatives to travel to 
Saudi Arabia for up to sixty (60) months for equipment de-processing, 
fielding, system checkout, training, and technical logistics support.
    There will be no adverse impact on U.S. defense readiness as a 
result of this proposed sale.
Transmittal No. 15-43
Notice of Proposed Issuance of Letter of Offer Pursuant to Section 
36(b)(1) of the Arms Export Control Act, as amended
Annex
Item No. vii
    (vii) Sensitivity of Technology:
    1. The Patriot Air Defense System contains hardware components and 
critical/sensitive technology classified Confidential. The Patriot 
Advanced Capability-3 (PAC-3) Cost Reduction Initiative (CRI) 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 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 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.
    5. A determination has been made that 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.
    6. All defense articles and services listed in this transmittal 
have been authorized for release and export to the Kingdom of Saudi 
Arabia.

[FR Doc. 2015-20062 Filed 8-13-15; 8:45 am]
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