82 FR 24322 - 36(b)(1) Arms Sales Notification

DEPARTMENT OF DEFENSE
Office of the Secretary

Federal Register Volume 82, Issue 101 (May 26, 2017)

The Department of Defense is publishing the unclassified text of a section 36(b)(1) arms sales notification.

[Federal Register Volume 82, Number 101 (Friday, May 26, 2017)]
[Notices]
[Pages 24322-24325]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-09654]



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DEPARTMENT OF DEFENSE

Office of the Secretary

[Transmittal No. 17-13]


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.

FOR FURTHER INFORMATION CONTACT: Kathy Valadez, (703) 697-9217 or 
Pamela Young, (703) 697-9107; DSCA/DSA-RAN.

SUPPLEMENTARY INFORMATION: This 36(b)(1) arms sales notification is 
published to fulfill the requirements of section 155 of Public Law 104-
164 dated July 21, 1996. The following is a copy of a letter to the 
Speaker of the House of Representatives, Transmittal 17-13 with 
attached Policy Justification and Sensitivity of Technology.

    Dated: May 9, 2017.
Aaron Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.

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Transmittal No. 17-13
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: New Zealand
    (ii) Total Estimated Value:

Major Defense Equipment *...............................   $1.03 billion
Other...................................................   $ .43 billion
                                                         ---------------
  Total.................................................   $1.46 billion
 

    (iii) Description and Quantity or Quantities of Articles or 
Services under Consideration for Purchase:
    Major Defense Equipment (MDE):
Four (4) P-8A Patrol Aircraft, which includes:
Eight (8) Multifunctional Information Distribution System Joint 
Tactical Radio System (MIDS JTRS) (one (1) for each aircraft, two (2) 
for the ground operations support center, and two (2) spares)
Five (5) Guardian Laser Transmitter Assemblies (GLTA) for the AN/AAQ-
24(V)N Large Aircraft Infrared Counter Measures (LAIRCM) system (one 
(1) for each aircraft and one (1) spare)
Five (5) System Processors for AN/AAQ-24(V)N LAIRCM system (one (1) for 
each aircraft and one (1) spare)
Thirty (30) AN/AAR-54 Missile Warning Sensors for the AN/AAQ-24(V)N 
LAIRCM system (six (6) for each aircraft and six (6) spares)
Ten (10) LN-251 with Embedded Global Positioning Systems (GPS)/Inertial 
Navigations Systems (EGIs) (two (2) for each aircraft and two (2) 
spares)
    Non-MDE includes:
Commercial engines; Tactical Open Mission Software (TOMS); Electro-
Optical (EO) and Infrared (IR) MX-20HD; AN/AAQ-2(V)1 Acoustic System; 
AN/APY-10 Radar; ALQ-240 Electronic Support Measures; support 
equipment; operation support systems; maintenance trainer/classrooms; 
publications; software, engineering, and logistics technical 
assistance; foreign Liaison officer support, contractor engineering 
technical services; repair and return; transportation; aircraft ferry; 
and other associated training, support equipment and services.
    (iv) Military Department: Navy (XX-P-SAH)
    (v) Prior Related Cases, if any: This would be New Zealand's first 
purchase of the P-8A Patrol Aircraft. New Zealand has one related P-8A 
case, NZ-P-GEE, which provides P-8A study and technical analysis 
support.
    (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: April 27, 2017
    * As defined in Section 47(6) of the Arms Export Control Act.

POLICY JUSTIFICATION

New Zealand--P-8A Aircraft and Associated Support

    New Zealand has requested the potential sale of up to four (4) P-8A 
Patrol Aircraft. Each includes: commercial engines, Tactical Open 
Mission Software (TOMS), Electro-Optical (EO) and Infrared (IR) MX-
20HD, AN/AAQ-2(V)1 Acoustic System, AN/APY-10 Radar, ALQ-240 Electronic 
Support Measures. Also included are eight (8) Multifunctional 
Information Distribution System Joint Tactical Radio System (MIDS 
JTRS); five (5) Guardian Laser Transmitter Assemblies (GLTA) for the 
AN/AAQ-24(V)N; five (5) System Processors for AN/AAQ-24(V)N; thirty 
(30) AN/AAR-54 Missile Warning Sensors for the AN/AAQ-24(V)N; ten (10) 
LN-251 with Embedded Global Positioning Systems (GPS)/Inertial 
Navigations Systems (EGIs); support equipment; operation support 
systems; maintenance trainer/classrooms; publications; software, 
engineering, and logistics technical assistance; foreign Liaison 
officer support, contractor engineering technical services; repair and 
return; transportation; aircraft ferry; and other associated training, 
support equipment and services. The total estimated cost is $1.46 
billion.
    This proposed sale will enhance the foreign policy and national 
security of the United States by strengthening the security of a Major 
Non-NATO ally which has been, and continues to be, an important force 
for political stability within the region. New Zealand is a close ally 
in the region and an important partner on critical foreign policy and 
defense issues.
    The Government of New Zealand intends to use these defense articles 
and services to continue its Maritime Surveillance Aircraft (MSA) 
capability, following retirement of its P-3K maritime patrol aircraft. 
The sale will strengthen collective defense and enhance New Zealand's 
regional and global allied contributions.
    New Zealand has procured and operated U.S. produced P-3 MSA for 
over 40 years, providing critical capabilities to NATO and coalition 
maritime operations. New Zealand has maintained a close MSA acquisition 
and sustainment relationship with the U.S. Navy over this period. The 
proposed sale will allow New Zealand to recapitalize, modernize and 
sustain its MSA capability for the next 30 years. As a long-time P-3 
operator, New Zealand will have no difficulty transitioning its MSA 
force to the P-8A and absorbing these aircraft into its armed forces.
    The proposed sale of this equipment and support does not alter the 
basic military balance in the region.
    The prime contractor will be The Boeing Company, Seattle, WA. 
Additional contractors include:
Air Cruisers Co LLC
Arnprior Aerospace, Canada
AVOX Zodiac Aerospace
BAE
Canadian Commercial Corporation (CCC)/EMS
Compass David Clark
DLS/NiaSat, Carlsbad, CA
DRS
Exelis, McLean VA
GC Micro, Petaluma, CA
General Electric, UK
Harris
Joint Electronics
Marin Baker
Northrop Grumman Corp, Falls Church, VA
Pole Zero, Cincinnati, OH
Raytheon, Waltham, MA
Raytheon, UK
Rockwell Collins, Cedar Rapids, IA
Spirit Aero, Wichita, KS
Symmetries Telephonics, Farmingdale, NY
Terma, Arlington, VA
Viking
WESCAM
    There are no known offset agreements proposed in connection with 
this potential sale.
    Implementation of this proposed sale will require approximately 
five (5) contractor representatives to support the program in New 
Zealand.
    There will be no adverse impact on U.S. defense readiness as a 
result of this proposed sale.
Transmittal No. 17-13
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 P-8A aircraft is a militarized version of the Boeing 737-800 
Next Generation (NG) commercial aircraft. The P-8A is replacing the P3C 
as the Navy's long-range Anti-Submarine Warfare (ASW), Anti-Surface 
Warfare (ASuW), Intelligence, Surveillance and Reconnaissance (ISR) 
aircraft capable of broad-area, maritime and littoral operations. The 
overall highest classification of the P-8A weapon

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system is SECRET. The P-8A mission systems hardware is largely 
UNCLASSIFIED, while individual software elements (mission systems, 
acoustics, ESM, EWSP, etc.) are classified up to SECRET.
    2. P-8A mission systems include:
    a. Tactical Open Mission Software (TOMS). TOMS functions include 
environment planning, tactical aids, weapons planning aids, and data 
correlation. TOMS includes an algorithm for track fusion which 
automatically correlates tracks produced by on board and off board 
sensors.
    b. Electro-Optical (EO) and Infrared (IR) MX-20HD. The EO/IR system 
processes visible EO and IR spectrum to detect and image objects.
    c. AN/AAQ-2(V)1 Acoustic System. The Acoustic sensor system is 
integrated within the mission system as the primary sensor or the 
aircraft ASW missions. The system has multi-static active coherent 
(MAC) 64 sonobuoy processing capability and acoustic sensor prediction 
tools.
    d. AN/APY-10 Radar. The aircraft radar is a direct derivative of 
the legacy AN/APS-137(V) installed in the P-3C. The radar capabilities 
include GPS selective availability anti-spoofing, SAR and ISAR imagery 
resolutions, and periscope detection mode.
    e. ALQ-240 Electronic Support Measures (ESM). This system provides 
real time capability for the automatic detection, location, 
measurement, and analysis of RF-signals and modes. Real time results 
are compared with a library of known emitters to perform emitter 
classification and specific emitter identification (SEI).
    f. Electronic Warfare Self Protection (EWSP). The P-8A aircraft 
Directional Infrared Countermeasures (DIRCM) suite consists of the ALQ-
213 Electronic Warfare Management System (EWMS), ALE-47 Countermeasures 
Dispensing System (CMDS), and the AN/AAQ-24(V)N Large Aircraft Infrared 
Countermeasure (LAIRCM) Guardian Laser Transmitter Assemblies (GLTA) 
processor, and AAR-54 Missile Warning Sensors (MWS). The AN/AAQ-24(V)N 
LAIRCM is a self-contained, directed energy countermeasures system 
designed to protect aircraft from infrared guided surface-to-air 
missiles. The system features digital technology and micro-miniature 
sold state electronics. LAIRCM system software, including Operation 
Flight Program is classified SECRET. Technical data and documentation 
to be provided are UNCLASSIFIED.
    g. Multifunctional Information Distribution System-Joint Tactical 
Radio System (MIDS JTRS) is an advanced Link-16 command, control, 
communications, and intelligence (C3I) system incorporating high-
capacity, jam-resistant, digital communication links for exchange of 
near real-time tactical information, including both data and vice, 
among air, ground, and sea elements. The MIDS JTRS terminal hardware, 
publications, performance specifications, operational capability, 
parameters, vulnerabilities to countermeasures, and software 
documentation are classified CONFIDENTIAL. The classified information 
to be provided consists of that which is necessary for the operation, 
maintenance, and repair (through intermediate level) of the data link 
terminal, installed systems, and related software.
    3. If a technologically advanced adversary were to obtain access of 
the P-8A specific hardware and software elements, systems could be 
reverse engineering to discover USN capabilities and tactics. The 
consequences of the loss of this technology, to a technologically 
advanced or competent adversary, could result in the development of 
countermeasures or equivalent systems, which could reduce system 
effectiveness or be used in the development of a system with similar 
advanced capabilities.
    4. A determination has been made that the recipient government can 
provide substantially the same degree of protection for the 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 New Zealand.

[FR Doc. 2017-09654 Filed 5-25-17; 8:45 am]
 BILLING CODE 5001-06-P