81 FR 917 - 36(b)(1) Arms Sales Notification

DEPARTMENT OF DEFENSE
Office of the Secretary

Federal Register Volume 81, Issue 5 (January 8, 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 5 (Friday, January 8, 2016)]
[Notices]
[Pages 917-920]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-00148]


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DEPARTMENT OF DEFENSE

Office of the Secretary

[Transmittal No. 16-10]


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: 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 16-10 with attached Policy Justification.

    Dated: January 5, 2016.
Aaron Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
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[GRAPHIC] [TIFF OMITTED] TN08JA16.004

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Transmittal No. 16-10
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*.................  $105 million
Other....................................  $ 75 million
                                          ------------------------------
  Total..................................  $180 million
 

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

Major Defense Equipment (MDE):
Three (3) CH-47F Chinook Helicopters
Six (6) T55-GA-714A Aircraft Turbine Engines
Three (3) Force XXI Battle Command, Brigade & Below (FBCB2)/Blue Force 
Tracker (BFT)
Three (3) Common Missile Warning Systems (CMWS)
Three (3) Honeywell H-764 Embedded Global Positioning/Inertial 
Navigation Systems
Three (3) Infrared Signature Suppression Systems

    This request also includes the following Non-Major Defense 
Equipment; AN/APX-123A Identification Friend or Foe (IFF) Transponders, 
Defense Advanced Global Positioning System (GPS) Receiver (DAGR), AN/
ARC-201D SINCGARS Airborne Radio Systems, AN/ARC-220 High Frequency 
Airborne Communication Systems, AN/ARC-231(V)(C) Airborne VHF/UHF/LOS 
SATCOM Communications Systems,

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KY-100 Secure Communication Systems, KIV-77 Common IFF Cryptographic 
Computers, AN/AVS-6 Aviator's Night Vision Systems, AN/ARN-147 Very 
High Frequency (VHF) Omni Ranging/Instrument Landing System Receiver, 
AN/PYQ-10(C) Simple Key Loaders, AN/ARN-153 Tactical Airborne 
Navigation (TACAN) System, Spare Parts, Tools, Ground Support 
Equipment, Technical Publications, Contractor and U.S. Government 
Technical Services.
    (iv) Military Department: Army, VAF
    (v) Prior Related Cases, if any: UDK--$353M--May 2010
    (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: 18 DEC 2015
    *as defined in Section 47(6) of the Arms Export Control Act.

Policy Justification

Australia--CH-47F--Aircraft

    The Government of Australia has requested a possible sale of:

Major Defense Equipment (MDE):
Three (3) CH-47F Chinook Helicopters
Six (6) T55-GA-714A Aircraft Turbine Engines
Three (3) Force XXI Battle Command, Brigade & Below (FBCB2)/Blue Force 
Tracker (BFT)
Three (3) Common Missile Warning Systems (CMWS)
Three (3) Honeywell H-764 Embedded Global Positioning/Inertial 
Navigation Systems
Three (3) Infrared Signature Suppression Systems

    This request also includes the following Non-Major Defense 
Equipment; AN/APX-123A Identification Friend or Foe (IFF) Transponders, 
Defense Advanced Global Positioning System (GPS) Receiver (DAGR), AN/
ARC-201D SINCGARS Airborne Radio Systems, AN/ARC-220 High Frequency 
Airborne Communication Systems, AN/ARC-231(V)(C) Airborne VHF/UHF/LOS 
SATCOM Communications Systems, KY-100 Secure Communication Systems, 
KIV-77 Common IFF Cryptographic Computers, AN/AVS-6 Aviator's Night 
Vision Systems, AN/ARN-147 Very High Frequency (VHF) Omni Ranging/
Instrument Landing System Receiver, AN/PYQ-10(C) Simple Key Loaders, 
AN/ARN-153 Tactical Airborne Navigation (TACAN) System, Spare Parts, 
Tools, Ground Support Equipment, Technical Publications, Contractor and 
U.S. Government Technical Services.
    The total estimated value of MDE is $105 million. The total overall 
estimated value is $180 million.
    This proposed sale will enhance the foreign policy and national 
security objectives of the United States by helping to improve the 
security of a strategic partner which has been, and continues to be an 
important force for political stability and economic progress within 
the Pacific region and globally.
    The proposed sale of the CH-47F aircraft will improve Australia's 
heavy lift capability. Australia will use the enhanced capability to 
strengthen its homeland defense and deter regional threats. The CH-47F 
aircraft will replace Australia's retiring CH-47D aircraft. Australia 
will have no difficulty absorbing these aircraft 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 the Boeing Helicopter Company of 
Philadelphia, Pennsylvania. There are no known offset agreements at 
this time associated with this proposed sale.
    Implementation of this sale will not require the assignment of any 
additional 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. 16-10
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 CH-47F aircraft, which includes two T55-GA-714A engines, has 
been identified as Major Defense Equipment (MDE). The CH-47F is a 
medium lift, newly manufactured rotary winged aircraft. The CH-47F has 
the Common Avionics Architecture System (CAAS) cockpit, which provides 
aircraft system, flight, mission, and communication management systems. 
The Navigation System will have two Embedded GPS/INS (EGIs), two 
Digital Advanced Flight Control System (DAFCS), one ARN-149 Automatic 
Direction Finder, one ARN-147 (VOR/ILS marker Beacon System), one ARN-
153 TACAN, two air data computers, one Radar Altimeter system. The 
communications suite is as follows: Two each AN/ARC-231 Multi-mode 
radios, and two each AN/ARC-201D SINCGARS radios. The Identification 
Friend or Foe (IFF) will be the APX-123A, which provides the additional 
functionality of Mode 5 capability. Aircraft survivability equipment 
(ASE) will not be provided on this LOA. Support and fielding for the 
CH-47Fs and installed CAAS would require one copy of technical 
documentation, along with a Contractor Field Representative.
    2. The AN/APX-123A, Identification Friend or Foe (IFF) Transponder 
is a space diversity transponder and is installed on several military 
platforms. When installed in conjunction with platform antennas and the 
Remote Control Unit (RCU) (or other appropriate control unit), the 
transponder provides identification, altitude and surveillance 
reporting in response to interrogations from airborne, ground-based 
and/or surface interrogators. The transponder provides operational 
capabilities for Mark XII IFF capabilities of Modes 1, 2, 3/A, C, 4, 5 
capable and Mode S (levels 1, 2, and 3 capable). Additionally, the AN/
APX-123A also provides automated ID, position and latitude of the 
aircraft, and unencrypted Automatic Dependent Surveillance Broadcast 
(ADS-B) and is compatible with the Traffic Alert and Collision 
Avoidance System (TCAS) II equipment. The AN/APX-123A is classified 
SECRET when loaded with software.
    3. The AN/ARC-201D is a tactical airborne military VHF radio system 
consisting of Receiver-Transmitter, Radio RT-1478D/ARC-201D(V), Battery 
Box CY-8515/ARC-201(V) and; Mounting Base MT-7101/ARC-201D(V). This 
radio system is capable of secure COMSEC, anti-jam, voice and data 
communications in any of 2320 channels and two frequency-hopping (FH) 
modes. The radio is interconnected and interoperated with the 
aircraft's MIL-STD-1553B bus controller equipment. The AN/ARC-201D is 
classified SECRET when loaded with software.
    4. The AN/ARC-220 is a multifunctional, fully digital signal 
processing (DSP) high frequency (HF) radio intended for airborne 
applications. Advanced communications features made possible by DSP 
technology include embedded Automatic Link Establishment (ALE), Serial 
Tone Data Modem, and Anti-jam Electronic Counter-Counter Measures 
(ECCM) functions. The AN/ARC-220 Advanced HF Aircraft Communications 
System is applicable for a variety of tactical rotary-wing and fixed-
wing airborne applications. In addition to offering enhanced voice 
communications capabilities, the AN/ARC-220 is an advanced data 
communications system capable of providing reliable digital

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connectivity. The AN/ARC-220 is classified SECRET when loaded with 
software.
    5. The AN/ARC-231(V)(C) is a secure communication system that 
provides Line-of-Sight (LOS) communications and Beyond Line-of-Sight 
(BLOS) satellite communications (SATCOM), as well Voice and data 
communications capabilities. In addition to Satellite Communications, 
the AN/ARC-231(V)(C) provides Secure/Electronic CounterCounter Measures 
(ECCM) communications Single Channel Ground and Airborne System 
(SINCGARS) and HAVE QUICK (HQ) waveforms. The AN/ARC-231(V)(C) is 
classified SECRET when loaded with software.
    6. The TSEC KY-100 is COMSEC equipment that has sensitive 
technology and is classified SECRET if software fill is installed. A 
separate case with NSA would be required to procure this equipment. The 
KY-100 is classified SECRET when loaded with software.
    7. Blue Force Tracker--Aviation (BFT-A) within the Force XXI Battle 
Command Brigade & Below program, BFT-AVN is a network system with 
varied configurations utilizing integrated UHF/VHF/FM voice/data 
communications and GPS positioning data that allow integration into 
various Army, joint, and coalition rotary and fixed-wing aircraft 
types. The system provides commanders, staffs, and other key personnel 
situational awareness of aviation assets, including Unmanned Aerial 
Vehicles. With BFT-AVN, aircrews are able to view positions of friendly 
forces as well as enemy locations. The system also enables rapid, 
dynamic tasking and re-tasking of those assets to accomplish aviation 
missions in complex environments. Another key capability of BFT-AVN is 
the ability to send and receive data and messages beyond line-of-sight, 
overcoming the communication challenges of distance and terrain. The 
BFT-A is UNCLASSIFIED.
    Note: The following items are not identified in the CH-47F Security 
Classification Guide and sensitive technology classification could not 
be determined. Therefore the assumption is that they may contain 
sensitive technology.
    8. The Embedded GPS/INS (EGI) unit CN-1689-(H-764GU) contains 
sensitive GPS technology. The EGI+429 is a self-contained, all-attitude 
navigation system providing outputs of linear and angular acceleration, 
linear and angular velocity, position, attitude (roll, pitch), platform 
azimuth, magnetic and true heading, altitude, body angular rates, time 
tags, and Universal Time Coordinated (UTC) synchronized time. The EGI 
is UNCLASSIFIED/Missile Technology Regime (MTCR) Controlled.
    9. The AN/ARN-149, Automatic Direction Finder (ADF) Receiver, is a 
low frequency radio that provides automatic compass bearing on any 
radio signal within the frequency range of 100 to 2199.5 kHz as well as 
navigation where a commercial AM broadcast signal is the only available 
navigation aid. The AN/ARN-149 is UNCLASSIFIED.
    10. The AN/ARN-153, Tactical Airborne Navigation (TACAN) System, is 
a full featured navigational system that supports four modes of 
operation: receive mode; transmit receive mode; air-to-air receive 
mode; and air-to-air transmit-receive mode. The ARN-153 is 
UNCLASSIFIED.
    11. The AN/ARN-147, Very High Frequency (VHF) Omni Ranging/
Instrument Landing System Receiver that provides internal MIL-STD-1553B 
capability and is MIL-E-5400 class II qualified. The ARN-147 is 
UNCLASSIFIED.
    12. The KIV-77, is a Common Crypto Applique for Identification, 
Friend or Foe (IFF) that provides Mode 4/5 capability. The KIV-77 is 
SECRET when loaded with software.
    13. The AN/PYQ-10 (C) Simple Key Loader (SKL) is a ruggedized, 
portable, hand-held fill device used for securely receiving, storing, 
and transferring electronic key material and data between compatible 
end cryptographic units (ECU) and communications equipment. The AN/PYQ-
10(C) is SECRET when loaded with software.
    14. The ramifications of this technology in the hands of an 
adversary are severe. Should a fill device or cryptographic asset with 
the accompanying radio system become compromised, it would enable an 
adversary to intercept our communications, both verbal and encrypted 
until the COMSEC keys were changed.
    15. 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.
    16. All defense articles and services listed in this transmittal 
have been authorized for release and export to the Government of 
Australia.

[FR Doc. 2016-00148 Filed 1-7-16; 8:45 am]
 BILLING CODE 5001-06-P