81_FR_11567 81 FR 11524 - 36(b)(1) Arms Sales Notification

81 FR 11524 - 36(b)(1) Arms Sales Notification

DEPARTMENT OF DEFENSE
Office of the Secretary

Federal Register Volume 81, Issue 43 (March 4, 2016)

Page Range11524-11526
FR Document2016-04823

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 81 Issue 43 (Friday, March 4, 2016)
[Federal Register Volume 81, Number 43 (Friday, March 4, 2016)]
[Notices]
[Pages 11524-11526]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-04823]


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DEPARTMENT OF DEFENSE

Office of the Secretary

[Transmittal No. 15-82]


36(b)(1) Arms Sales Notification

AGENCY: Defense Security Cooperation Agency, Department of Defense.

ACTION: Notice.

-----------------------------------------------------------------------

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 15-82 with attached Policy Justification 
and Sensitivity of Technology.

    Dated: March 1, 2016.
Aaron Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
BILLING CODE 5001-06-P

[[Page 11525]]

[GRAPHIC] [TIFF OMITTED] TN04MR16.001

BILLING CODE 5001-06-C
Transmittal No. 15-82
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 *.............................     $72.5 million
Other.................................................     $82.4 million
                                                       -----------------
  Total...............................................    $154.9 million
 

    (iii) Description and Quantity or Quantities of Articles or 
Services under Consideration for Purchase:
    Major Defense Equipment (MDE):
    Five (5) MK 15 Phalanx Close-In Weapons System (CIWS) Block 0 to 
Block 1B Baseline 2 upgrade kits
    Also included are the following non-MDE items: five (5) local 
control stations, spare and repair parts, upgrade and conversion of the 
kits, support and test equipment, personnel training and training 
equipment, publications, software and technical documentation, U.S. 
Government and contractor engineering, technical and logistics support 
services, and other related elements of program and logistics support. 
The estimated cost is $154.9 million.
    (iv) Military Department: Navy (SR-P-LCR)
    (v) Prior Related Cases, if any: FMS Case: SR-P-SAT, 24 Mar 74, 
$147.8 million
    (vi) Sales Commission, Fee, etc., Paid, Offered, or Agreed to be 
Paid: None
    (vii) Sensitivity of Technology Contained in the Defense Article or

[[Page 11526]]

Defense Services Proposed to be Sold: See Attached Annex
    (viii) Date Report Delivered to Congress: 10 February 2016
    * as defined in Section 47(6) of the Arms Export Control Act.

POLICY JUSTIFICATION

Kingdom of Saudi Arabia-MK 15 Phalanx Close-In Weapons System (CIWS) 
Block 1B Baseline 2 Kits

    The Kingdom of Saudi Arabia has requested a sale for the upgrade 
and conversion of five (5) MK 15 Phalanx Close-In Weapons System (CIWS) 
Block 0 systems to the Block 1B Baseline 2 configuration. The Block 0 
systems are currently installed on four (4) Royal Saudi Naval Forces 
(RSNF) Patrol Chaser Missile (PCG) Ships (U.S. origin) in their Eastern 
Fleet and one (1) system is located at its Naval Forces School. Also 
included are; five (5) local control stations, spare and repair parts, 
support and test equipment, personnel training and training equipment, 
publications, software, and technical documentation, U.S. Government 
and contractor engineering, technical and logistics support services, 
and other related elements of program and logistics support. The total 
estimated value of MDE is $72.5 million. The overall total estimated 
value is $154.9 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 strategic regional partner, which has been, and continues 
to be, an important force for political stability and economic progress 
in the Middle East. This acquisition will enhance regional stability 
and maritime security and support strategic objectives of the United 
States.
    The proposed sale will provide Saudi Arabia with self-defense 
capabilities for surface combatants supporting both national and multi-
national naval operations. The sale will extend the life of existing 
PCG Class ships. Saudi Arabia will use the enhanced capability as a 
deterrent to regional threats and to strengthen its homeland defense. 
Saudi Arabia will have no difficulty absorbing this equipment into its 
armed forces.
    The proposed sale of this equipment, services, and support will not 
alter the basic military balance in the region.
    The prime contractor will be Raytheon Missiles Systems of 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 Saudi Arabia; however, contractor engineering and 
technical services may be required on an interim basis for 
installations and integration.
    There will be no adverse impact on U.S. defense readiness as a 
result of this proposed sale.
Transmittal No. 15-82
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 MK 15 CIWS Phalanx Block 1B is a fast reaction detect-
through-engage combat system that provides terminal defense against 
low-flying, high speed, anti-ship missiles; slow speed general purpose 
aircraft, helicopters, and small surface craft; and rockets, artillery, 
and mortars. The system is an automatic, self-contained unit consisting 
of a search and track radar, digitalized fire control system, and 
electro-optical thermal imager, and a stabilization system, as well as 
a 20mm M61A1 gun subsystem. CIWS Block 0 provides terminal defense 
capability but is no longer in the U.S. Navy inventory decreasing its 
sustainability. By comparison, the CIWS Block 1B upgrade included in 
this sale would add surface mode and enhanced anti-air warfare 
capabilities.
    a. There is no Critical Program Information associated with the MK 
15 CIWS Phalanx hardware, technical documentation, or software. The 
highest classification of the hardware to be exported is UNCLASSIFIED. 
The highest classification of the technical documentation to be 
exported is CONFIDENTIAL. The highest classification of software to be 
exported is UNCLASSIFIED.
    2. If a technologically advanced adversary were to obtain knowledge 
of the specific hardware and software elements, the information could 
be used to develop countermeasures which might reduce weapon system 
effectiveness or be used in the development of a system with similar or 
advanced capabilities.
    3. A determination has been made that the recipient country can 
provide substantially 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.
    4. All defense articles and services listed in this transmittal 
have been authorized for release and export to Saudi Arabia.

[FR Doc. 2016-04823 Filed 3-3-16; 8:45 am]
 BILLING CODE 5001-06-P



                                                  11524                           Federal Register / Vol. 81, No. 43 / Friday, March 4, 2016 / Notices

                                                  Helmet Vehicle Interface (HVI) interacts                and national security objectives                      ACTION:   Notice.
                                                  with the aircraft system bus to provide                 outlined in the Policy Justification.
                                                  signal generation for the helmet display.                 10. A determination has been made                   SUMMARY:  The Department of Defense is
                                                  This provides significant improvement                   that the recipient country can provide                publishing the unclassified text of a
                                                  for close combat targeting and                          the same degree of protection for the                 section 36(b)(1) arms sales notification.
                                                  engagement. The hardware is                             sensitive technology being released as                This is published to fulfill the
                                                  UNCLASSIFIED; technical data and                        the U.S. Government. This sale is                     requirements of section 155 of Public
                                                  documents are classified up to SECRET.                  necessary in furtherance of the U.S.                  Law 104–164 dated July 21, 1996.
                                                    8. If a technologically advanced                      foreign policy and national security
                                                  adversary were to obtain knowledge of                   objectives outlined in the Policy                     FOR FURTHER INFORMATION CONTACT:
                                                  the specific hardware or software source                Justification.                                        Sarah A. Ragan or Heather N. Harwell,
                                                  code in this proposed sale, the                           11. All defense articles and services               DSCA/LMO, (703) 604–1546/(703) 607–
                                                  information could be used to develop                    are approved for release to the                       5339.
                                                  countermeasures which might reduce                      Government of Pakistan.
                                                                                                                                                                   The following is a copy of a letter to
                                                  weapon system effectiveness or be used                  [FR Doc. 2016–04860 Filed 3–3–16; 8:45 am]            the Speaker of the House of
                                                  in the development of systems with                      BILLING CODE 5001–06–P                                Representatives, Transmittal 15–82 with
                                                  similar or advanced capabilities. The                                                                         attached Policy Justification and
                                                  benefits to be derived from this sale in                                                                      Sensitivity of Technology.
                                                  the furtherance of the U.S. foreign                     DEPARTMENT OF DEFENSE
                                                  policy and national security objectives,                                                                        Dated: March 1, 2016.
                                                                                                          Office of the Secretary                               Aaron Siegel,
                                                  as outlined in the Policy Justification,
                                                  outweigh the potential damage that                      [Transmittal No. 15–82]                               Alternate OSD Federal Register Liaison
                                                  could result if the sensitive technology                                                                      Officer, Department of Defense.
                                                  were revealed to unauthorized persons.                  36(b)(1) Arms Sales Notification                      BILLING CODE 5001–06–P
                                                    9. This sale is necessary in                          AGENCY: Defense Security Cooperation
                                                  furtherance of the U.S. foreign policy                  Agency, Department of Defense.
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                                                                                  Federal Register / Vol. 81, No. 43 / Friday, March 4, 2016 / Notices                                           11525




                                                  BILLING CODE 5001–06–C                                                                                        U.S. Government and contractor
                                                                                                           (iii) Description and Quantity or
                                                  Transmittal No. 15–82                                 Quantities of Articles or Services under                engineering, technical and logistics
                                                                                                        Consideration for Purchase:                             support services, and other related
                                                  Notice of Proposed Issuance of Letter of                                                                      elements of program and logistics
                                                                                                           Major Defense Equipment (MDE):
                                                  Offer Pursuant to Section 36(b)(1) of the                                                                     support. The estimated cost is $154.9
                                                  Arms Export Control Act, as amended                      Five (5) MK 15 Phalanx Close-In
                                                                                                                                                                million.
                                                                                                        Weapons System (CIWS) Block 0 to
                                                                                                                                                                  (iv) Military Department: Navy (SR–
                                                    (i) Prospective Purchaser: Kingdom of Block 1B Baseline 2 upgrade kits
jstallworth on DSK7TPTVN1PROD with NOTICES




                                                                                                                                                                P–LCR)
                                                  Saudi Arabia                                             Also included are the following non-                   (v) Prior Related Cases, if any: FMS
                                                    (ii) Total Estimated Value:                         MDE items: five (5) local control                       Case: SR–P–SAT, 24 Mar 74, $147.8
                                                  Major Defense Equip-                                  stations, spare and repair parts, upgrade               million
                                                    ment * ...........................    $72.5 million and conversion of the kits, support and                   (vi) Sales Commission, Fee, etc., Paid,
                                                  Other ................................  $82.4 million test equipment, personnel training and                  Offered, or Agreed to be Paid: None
                                                                                                        training equipment, publications,                         (vii) Sensitivity of Technology
                                                                                                                                                                                                            EN04MR16.001</GPH>




                                                    Total .............................. $154.9 million software and technical documentation,                   Contained in the Defense Article or


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                                                  11526                           Federal Register / Vol. 81, No. 43 / Friday, March 4, 2016 / Notices

                                                  Defense Services Proposed to be Sold:                     The proposed sale of this equipment,                   2. If a technologically advanced
                                                  See Attached Annex                                      services, and support will not alter the              adversary were to obtain knowledge of
                                                    (viii) Date Report Delivered to                       basic military balance in the region.                 the specific hardware and software
                                                  Congress: 10 February 2016                                The prime contractor will be                        elements, the information could be used
                                                                                                          Raytheon Missiles Systems of Tucson,                  to develop countermeasures which
                                                    * as defined in Section 47(6) of the                  Arizona. There are no known offset                    might reduce weapon system
                                                  Arms Export Control Act.                                agreements proposed in connection                     effectiveness or be used in the
                                                  POLICY JUSTIFICATION                                    with this potential sale.                             development of a system with similar or
                                                                                                            Implementation of this proposed sale                advanced capabilities.
                                                  Kingdom of Saudi Arabia-MK 15                           will not require the assignment of any
                                                  Phalanx Close-In Weapons System                                                                                  3. A determination has been made
                                                                                                          additional U.S. Government or                         that the recipient country can provide
                                                  (CIWS) Block 1B Baseline 2 Kits                         contractor representatives to Saudi                   substantially the same degree of
                                                                                                          Arabia; however, contractor engineering               protection for the sensitive technology
                                                     The Kingdom of Saudi Arabia has
                                                                                                          and technical services may be required                being released as the U.S. Government.
                                                  requested a sale for the upgrade and
                                                                                                          on an interim basis for installations and             This sale is necessary in furtherance of
                                                  conversion of five (5) MK 15 Phalanx
                                                                                                          integration.                                          the U.S. foreign policy and national
                                                  Close-In Weapons System (CIWS) Block                      There will be no adverse impact on
                                                  0 systems to the Block 1B Baseline 2                                                                          security objectives outlined in the
                                                                                                          U.S. defense readiness as a result of this
                                                  configuration. The Block 0 systems are                                                                        Policy Justification.
                                                                                                          proposed sale.
                                                  currently installed on four (4) Royal                                                                            4. All defense articles and services
                                                  Saudi Naval Forces (RSNF) Patrol                        Transmittal No. 15–82                                 listed in this transmittal have been
                                                  Chaser Missile (PCG) Ships (U.S. origin)                Notice of Proposed Issuance of Letter of              authorized for release and export to
                                                  in their Eastern Fleet and one (1) system               Offer Pursuant to Section 36(b)(1) of the             Saudi Arabia.
                                                  is located at its Naval Forces School.                  Arms Export Control Act, as amended                   [FR Doc. 2016–04823 Filed 3–3–16; 8:45 am]
                                                  Also included are; five (5) local control                                                                     BILLING CODE 5001–06–P
                                                  stations, spare and repair parts, support               Annex Item No. vii
                                                  and test equipment, personnel training                     (vii) Sensitivity of Technology
                                                  and training equipment, publications,                      1. The MK 15 CIWS Phalanx Block 1B                 DEPARTMENT OF DEFENSE
                                                  software, and technical documentation,                  is a fast reaction detect-through-engage
                                                  U.S. Government and contractor                          combat system that provides terminal                  Office of the Secretary
                                                  engineering, technical and logistics                    defense against low-flying, high speed,
                                                  support services, and other related                     anti-ship missiles; slow speed general                [Transmittal No. 16–14]
                                                  elements of program and logistics                       purpose aircraft, helicopters, and small
                                                  support. The total estimated value of                   surface craft; and rockets, artillery, and            36(b)(1) Arms Sales Notification
                                                  MDE is $72.5 million. The overall total                 mortars. The system is an automatic,
                                                  estimated value is $154.9 million.                      self-contained unit consisting of a                   AGENCY:  Department of Defense, Defense
                                                                                                          search and track radar, digitalized fire              Security Cooperation Agency.
                                                     This proposed sale will contribute to
                                                                                                          control system, and electro-optical                   ACTION: Notice.
                                                  the foreign policy and national security
                                                                                                          thermal imager, and a stabilization
                                                  of the United States by helping to                                                                                       The Department of Defense is
                                                                                                          system, as well as a 20mm M61A1 gun                   SUMMARY:
                                                  improve the security of a strategic                     subsystem. CIWS Block 0 provides                      publishing the unclassified text of a
                                                  regional partner, which has been, and                   terminal defense capability but is no                 section 36(b)(1) arms sales notification.
                                                  continues to be, an important force for                 longer in the U.S. Navy inventory                     This is published to fulfill the
                                                  political stability and economic progress               decreasing its sustainability. By                     requirements of section 155 of Public
                                                  in the Middle East. This acquisition will               comparison, the CIWS Block 1B upgrade                 Law 104–164 dated July 21, 1996.
                                                  enhance regional stability and maritime                 included in this sale would add surface
                                                  security and support strategic objectives                                                                     FOR FURTHER INFORMATION CONTACT:
                                                                                                          mode and enhanced anti-air warfare                    Sarah A. Ragan or Heather N. Harwell,
                                                  of the United States.                                   capabilities.                                         DSCA/LMO, (703) 604–1546/(703) 607–
                                                     The proposed sale will provide Saudi                    a. There is no Critical Program                    5339.
                                                  Arabia with self-defense capabilities for               Information associated with the MK 15
                                                                                                                                                                   The following is a copy of a letter to
                                                  surface combatants supporting both                      CIWS Phalanx hardware, technical
                                                                                                                                                                the Speaker of the House of
                                                  national and multi-national naval                       documentation, or software. The highest
                                                                                                                                                                Representatives, Transmittal 16–14 with
                                                  operations. The sale will extend the life               classification of the hardware to be
                                                                                                                                                                attached Policy Justification.
                                                  of existing PCG Class ships. Saudi                      exported is UNCLASSIFIED. The
                                                  Arabia will use the enhanced capability                 highest classification of the technical                 Dated: February 29, 2016.
                                                  as a deterrent to regional threats and to               documentation to be exported is                       Aaron Siegel,
                                                  strengthen its homeland defense. Saudi                  CONFIDENTIAL. The highest                             Alternate OSD Federal Register Liaison
                                                  Arabia will have no difficulty absorbing                classification of software to be exported             Officer, Department of Defense.
                                                  this equipment into its armed forces.                   is UNCLASSIFIED.                                      BILLING CODE 5001–06–P
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Document Created: 2018-02-02 15:05:30
Document Modified: 2018-02-02 15:05:30
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice.
ContactSarah A. Ragan or Heather N. Harwell, DSCA/LMO, (703) 604-1546/(703) 607-5339.
FR Citation81 FR 11524 

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