81 FR 42671 - 36(b)(1) Arms Sales Notification

DEPARTMENT OF DEFENSE
Office of the Secretary

Federal Register Volume 81, Issue 126 (June 30, 2016)

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, Number 126 (Thursday, June 30, 2016)]
[Notices]
[Pages 42671-42672]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-15517]



[[Page 42671]]

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DEPARTMENT OF DEFENSE

Office of the Secretary

[Transmittal No. 16-17]


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: Chandelle K. Parker, DSCA/LMO, (703) 
697-9027.
    The following is a copy of a letter to the Speaker of the House of 
Representatives, Transmittal 16-17 with attached Policy Justification 
and Sensitivity of Technology.

    Dated: June 27, 2016.
Aaron Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
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[GRAPHIC] [TIFF OMITTED] TN30JN16.011

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[[Page 42672]]

Transmittal No. 16-17
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: Government of Australia
    (ii) Total Estimated Value:

Major Defense Equipment *................  $216 million
Other....................................  $ 85 million
                                          ------------------------------
    Total................................  $301 million
 

    (iii) Description and Quantity or Quantities of Articles or 
Services under Consideration for Purchase:

Major Defense Equipment (MDE):
    Up to eighty (80) STANDARD Missile, SM-2 Block IIIB Vertical 
Launching Tactical All-Up Rounds, RIM-66M-09
    Up to fifteen (15) MK 97 SM-2 Block IIIB Guidance Sections (GSs)
Non-MDE:
    This request also includes the following Non-MDE: MK 13 MOD 0 
Vertical Launching System Canisters, operator manuals and technical 
documentation, U.S. Government and contractor engineering, technical 
and logistics support services.

    (iv) Military Department: Navy (AMM)
    (v) Prior Related Cases, if any: AT-P-AYR-28 JUL 10-$39,499,569, 
AT-P-LCY-30 APR 05-$221,521,728, AT-P-GSQ-22 APR 11-$58,842,285
    (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: 27 May 2016
    * as defined in Section 47(6) of the Arms Export Control Act.

POLICY JUSTIFICATION

Australia--SM-2 Block IIIB STANDARD Missiles

    The Government of Australia requested a possible sale of:

Major Defense Equipment (MDE):
    Up to eighty (80) STANDARD Missile, SM-2 Block IIIB Vertical 
Launching Tactical All-Up Rounds, RIM-66M-09
    Up to fifteen (15) MK 97 SM-2 Block IIIB Guidance Sections (GSs)

    This request also includes the following Non-MDE: MK 13 MOD 0 
Vertical Launching System Canisters, operator manuals and technical 
documentation, U.S. Government and contractor engineering, technical 
and logistics support services.
    The total estimated value of MDE is $216 million. The total overall 
estimated value is $301 million.
    Australia is one of the major political and economic powers in 
Southeast Asia, a key democratic partner of the United States in 
ensuring regional peace and stability, a close coalition ally in major/
lesser regional contingency operations, and a close cooperative and 
international exchange agreement partner. It is vital to U.S. national 
interests that Australia develops and maintains a strong and ready 
self-defense capability. This sale is consistent with U.S. regional 
objectives.
    The SM-2 Block IIIB missiles proposed in this purchase will be used 
for anti-air warfare test firings during Combat Systems Ship 
Qualification Trials for the Royal Australian Navy's three new Air 
Warfare Destroyers (AWD) currently under construction). The SM-2 Block 
IIIB missiles, combined with the Aegis combat systems in the AWDs, will 
provide significantly enhanced area defense capabilities over critical 
South East Asian air-and-sea-lines of communication. Australia has 
already integrated the SM-2 Block IIIA into its Perry-class FFGs and 
recently upgraded its Intermediate-Level Maintenance Depot at Defense 
Establishment Orchard Hills with new guided missile test equipment 
capable of maintaining the SM-2 All-Up Round. Australia will have no 
difficulty absorbing these new missiles.
    The proposed sale of this equipment and support will not alter the 
basic military balance in the region.
    The principal contractors will be Raytheon Missile Systems Company, 
Tucson, Arizona; Raytheon Company, Camden, Arkansas; and BAE of 
Minneapolis and Aberdeen, South Dakota. There are no known offset 
agreements proposed in connection with this potential sale.
    Implementation of this sale will not require the assignment of any 
U.S. 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. 16-17
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. A completely assembled STANDARD Missile-2 (SM-2) Block IIIB with 
or without a conventional warhead, whether a tactical, telemetry or 
inert (training) configuration, is classified CONFIDENTIAL. Missile 
component hardware includes: Guidance Section (classified 
CONFIDENTIAL), Target Detection Device (classified CONFIDENTIAL), 
Warhead (UNCLASSIFIED), Rocket Motor (UNCLASSIFIED), Steering Control 
Section (UNCLASSIFIED), Safe and Arming Device (UNCLASSIFIED), 
Autopilot Battery Unit (classified CONFIDENTIAL), and if telemetry 
missiles, AN/DKT-71 Telemeters (UNCLASSIFIED).
    2. SM-2 operator and maintenance documentation is usually 
CONFIDENTIAL. Shipboard operation/firing guidance is generally 
CONFIDENTIAL. Pre-firing missile assembly/pedigree information is 
UNCLASSIFIED.
    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 or 
advanced capabilities.
    4. A determination has been made that Australia 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.
    5. All defense articles and services listed in this transmittal 
have been authorized for release and export to the Government of 
Australia.

[FR Doc. 2016-15517 Filed 6-29-16; 8:45 am]
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