[Congressional Record Volume 164, Number 10 (Wednesday, January 17, 2018)]
[Senate]
[Pages S248-S249]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        ARMS SALES NOTIFICATION

  Mr. CORKER. Mr. President, section 36(b) of the Arms Export Control 
Act requires that Congress receive prior notification of certain 
proposed arms sales as defined by that statute. Upon such notification, 
the Congress has 30 calendar days during which the sale may be 
reviewed. The provision stipulates that, in the Senate, the 
notification of proposed sales shall be sent to the chairman of the 
Senate Foreign Relations Committee.
  In keeping with the committee's intention to see that relevant 
information is available to the full Senate, I ask unanimous congent to 
have printed in the Record the notifications which have been received. 
If the cover letter references a classified annex, then such annex is 
available to all Senators in the office of the Foreign Relations 
Committee, Room SD-423.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:
                                                  Defense Security


                                           Cooperation Agency,

                                                    Arlington, VA.
     Hon. Bob Corker,
     Chairman, Committee on Foreign Relations,
     U.S. Senate, Washington, DC.
       Dear Mr. Chairman: Pursuant to the reporting requirements 
     of Section 36(b)(1) of the Arms Export Control Act, as 
     amended, we are forwarding herewith Transmittal No. 17-61, 
     concerning the Army's proposed Letter(s) of Offer and 
     Acceptance to Saudi Arabia for defense articles and services 
     estimated to cost $500 million. After this letter is 
     delivered to your office, we plan to issue a news release to 
     notify the public of this proposed sale.
           Sincerely.
                                               Gregory M. Kausner,
       (for Charles W. Hooper, Lieutenant General, USA, Director).
       Enclosures.


                         Transmittal No. 17-61

     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 * $0 million.
       Other $500 million.
       Total $500 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE): None.
       Non-MDE: Continued participation, technical assistance, and 
     support in the Patriot Legacy Field Surveillance Program 
     (FSP); the Patriot Advanced Capability 3 (PAC-3) FSP; and the 
     Patriot Engineering Services Program (ESP). Also included are 
     Patriot and HAWK Missile System spare parts and repair and 
     return management services and component repairs, and other 
     related elements of logistics and program support.
       (iv) Military Department: Army (SR-B-ZAT, ZAS, BDN A2, WAK 
     AS, and subsequent cases).
       (v) Prior Related Cases, if any: SR-B-UAJ Al.
       (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 Attached 
     Annex.
       (viii) Date Report Delivered to Congress: January 17, 2018.
        *As defined in Section 47(6) of the Arms Export Control 
     Act.


                          Policy Justification

     Saudi Arabia--Continuation of Missile System Support Services

       The Government of the Kingdom of Saudi Arabia has requested 
     a possible purchase for continued participation, technical 
     assistance, and support in the Patriot Legacy Field 
     Surveillance Program (FSP); the Patriot Advanced Capability 3 
     (PAC-3) FSP;

[[Page S249]]

     and the Patriot Engineering Services Program (ESP). Also 
     included are Patriot and HAWK Missile System spare parts and 
     repair and return management services and component repairs, 
     and other related elements of logistics and program support. 
     The total estimated program cost is $500 million.
       This proposed sale will support U.S. foreign policy and 
     national security objectives by helping to improve the 
     security of a friendly country which has been, and continues 
     to be, an important force for political stability and 
     economic growth in the Middle East. This potential sale is a 
     continuation of current support. Saudi Arabia will have no 
     difficulty absorbing this equipment and support into its 
     armed forces.
       The proposed sale of this equipment and support will not 
     alter the basic military balance in the region.
       The principal contractors are Lockheed Martin, Bethesda, MD 
     for the FSP and Raytheon Company, Andover, MA for the ESP. 
     There are no known offset agreements proposed in connection 
     with this potential sale.
       Implementation of this proposed sale will not require the 
     permanent assignment of any U.S. Government or contractor 
     representatives to Saudi Arabia. Support teams of 4-10 people 
     will travel to the country on a temporary basis for 1-3 weeks 
     at a time.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.


                         Transmittal No. 17-61

     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 Patriot Legacy and PAC-3 FSP programs assist 
     international customers to maintain the readiness of their 
     systems. These programs include the shared programs and 
     country unique costs such as the Stockpile Reliability Test 
     (SRT) and Missile Recertification programs. Services include 
     the storage and aging program, surveillance firing program, 
     the Patriot PAC-3 Missile Support Center (P3MSC), program 
     support and a parts library.
       2. As a participating international partner in the Patriot 
     Engineering Services Program (ESP), Saudi Arabia is granted 
     access to information such as engineering changes in 
     development and under consideration, schedules for important 
     events such as procurement and fielding of Patriot system 
     improvements, development of Post Deployment Build (PDB) 
     software, and a comprehensive program to address the issue of 
     loss of sources of supply and advanced technology and their 
     impact on availability of components. The program provides 
     funding for the publication effort to incorporate country 
     specific changes to Technical Manuals (TM). Preparation of 
     all necessary Country specific TM change pages based on the 
     latest version of the USG Department of Army Technical 
     Manuals (DATMs) that support PDB requirements and the 
     existing Repair Parts and Special Tools Lists (RPSTLs). Tasks 
     include technical writing, illustrating, editing and quality 
     review of all changes in accordance with Technical 
     Information Operating Procedures (TIOPS). Organizational 
     Maintenance, Intermediate maintenance and repair parts are 
     covered. Preparation of change pages documenting any upgrades 
     to the existing manuals. These manuals shall include and 
     document any configuration changes as identified resulting in 
     a new manual. Examples of country specific tasks include 
     country unique communication studies and analysis, 
     specialized training for operations and maintenance personnel 
     for new versions (builds) of system software, power 
     generation trade studies, country unique publications, and in 
     country technical and logistical support for system 
     modifications.
       3. Increasing Patriot and Hawk spares support provides 
     Saudi Arabia the capability to sustain and bolster missile 
     system operations through the purchase of spares, consumable 
     repair parts, support equipment, supplies, and maintenance. 
     Included is support for the procurement and transportation of 
     classified parts that are part of Saudi Arabia's current 
     Patriot and Hawk Missile System configurations, with a 
     highest classification of CONFIDENTIAL.
       4. If a technologically advanced adversary obtains 
     knowledge of the specific hardware and software source code 
     in this proposed sale, the information could be used to 
     develop countermeasures or equivalent systems that might 
     reduce weapon system effectiveness or be used in the 
     development of a system with similar or advanced 
     capabilities.
       5. A determination has been made that Saudi Arabia 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.
       6. All defense articles and services listed in this 
     transmittal are authorized for release and export to the 
     Kingdom of Saudi Arabia.

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