[Congressional Record Volume 167, Number 93 (Thursday, May 27, 2021)]
[Senate]
[Pages S3886-S3887]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
ARMS SALES NOTIFICATION
Mr. MENENDEZ. 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 consent 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 Robert Menendez,
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. 21-17
concerning the Navy's proposed Letter(s) of Offer and
Acceptance to the Government of Canada for defense articles
and services estimated to cost $1.7 billion. After this
letter is delivered to your office, we plan to issue a news
release to notify the public of this proposed sale.
Sincerely,
Heidi H. Grant,
Director.
Enclosures
Transmittal No. 21-17
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 Canada.
(ii) Total Estimated Value:
Major Defense Equipment* $ .7 billion.
Other $1.0 billion.
Total $1.7 billion.
(iii) Description and Quantity or Quantities of Articles or
Services under Consideration for Purchase:
Major Defense Equipment (MDE):
Four (4) Shipsets of the AEGIS Combat System (ACS).
One (1) AEGIS Combat System Computer Program.
Four (4) Shipsets of AN/SPY-7 Solid State Radar Components.
Four (4) Shipsets of Cooperative Engagement Capability
(CEC).
Three (3) Shipsets of the MK 41 Vertical Launch System.
Non-MDE: Also included is Mode 5/S capable Identification
Friend or Foe (IFF) equipment; early ACS development
activities for the Canadian Surface Combatant (CSC) Project
to include U.S. Government and contractor representative
engineering activities supporting design, integration,
testing, technical documentation, modeling, and training;
hardware to support development and testing in U.S.
facilities; software; documentation (including combat system
capabilities and limitations); training devices and services;
technical support; and other related elements of logistical
and program support.
(iv) Military Department: Navy (CN-P-FFFAl, CN-P-LLG).
(v) Prior Related Cases, if any: CN-P-FDP, CN-P-FFA, CN-P-
FFF.
(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: May 10, 2021.
*As defined in Section 47(6) of the Arms Export Control
Act.
POLICY JUSTIFICATION
Canada--AEGIS Combat System.
The Government of Canada has requested to buy four (4)
Shipsets of the AEGIS Combat System (ACS); one (1) AEGIS
Combat System Computer Program; four (4) Shipsets of AN/SPY-7
Solid State Radar Components; four (4) Shipsets of
Cooperative Engagement Capability (CEC); and three (3)
Shipsets of the MK 41 Vertical Launch System. Also included
is Mode 5/S capable Identification Friend or Foe (IFF)
equipment; early ACS development activities for the Canadian
Surface Combatant (CSC) Project to include U.S. Government
and contractor representative engineering activities
supporting design, integration, testing, technical
documentation, modeling, and training; hardware to support
development and testing in U.S. facilities; software;
documentation (including combat system capabilities and
limitations); training devices and services; technical
support; and other related elements of logistical and program
support. The estimated total cost is $1.7 billion.
This proposed sale will support the foreign policy and
national security objectives of the United States by helping
to improve the military capability of Canada, a NATO ally
that is an important force for ensuring political stability
and economic progress, and a contributor to military,
peacekeeping and humanitarian operations around the world.
This proposed sale will increase Canadian maritime forces'
interoperability with the United States and other allied
forces, as well as their ability to contribute to missions of
mutual interest by delivering the first AEGIS-capable
Canadian Surface Combatant ships. This will significantly
improve network-centric warfare capability for the U.S.
forces operating globally alongside Canada. Canada will have
no difficulty absorbing this equipment into its armed forces.
The proposed sale of this equipment and support will not
alter the basic military balance in the region.
The prime contractor will be Lockheed Martin Rotary and
Mission Systems, Moorestown, NJ. There are a significant
number of other companies under contract with the U.S. Navy
that will provide components, systems, and engineering
services during the execution of this effort. While the
purchaser typically requests offsets, any offset agreement
will be defined in future negotiations between the purchaser
and the contractor(s).
Implementation of this proposed sale will require multiple
trips by U.S. Government representatives and the assignment
of contractor representatives to Canada on an intermittent
basis over the life of the case to support delivery and
integration of items and to provide supply support
management, inventory control and equipment familiarization.
There will be no adverse impact on U.S. defense readiness
as a result of this proposed sale.
Transmittal No. 21-17
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. This sale involves the procurement of long lead material
and services to support the Canadian Surface Combatant
Program. The AEGIS Combat System (ACS) to be procured to
support Canadian Surface Combatant construction is derived
from U.S. Navy AEGIS Baseline 9 capability. Key components of
the ACS include:
a. The ACS is a multi-mission combat system providing
integrated Air and Missile Defense for surface ships. AEGIS
Baseline 9 capability will provide computing, display and
processing hardware and software to be integrated with
Canada-furnished elements, including radar and illuminator
sensors and
[[Page S3887]]
Canada's domestic Combat Management System (CMS 330). No
integrated Ballistic Missile Defense will be provided.
b. The AEGIS Combat System Computer Program supports
operation of the ACS Baseline 9 capability.
c. The AN/SPY-7 Solid State Radar Components will be
integrated with Lockheed Martin's Solid State Radar (SSR),
which is being procured by Canada via Direct Commercial Sale
contract.
d. The Cooperative Engagement Capability (CEC) system fuses
tracking data from shipboard and off-ship sensors and
distributes radar measurement data to other platforms with
CEC capability. The system includes a Communications Security
(COMSEC) card.
e. The Mk 41 Vertical Launch System (VLS) is a fixed,
vertical, multi-missile launching system with the capability
to store and launch multiple missile variants depending on
the warfighting mission, including the Evolved Sea Sparrow
Missile (ESSM), Standard Missile, and Tomahawk Cruise
Missiles.
2. The highest level of classification of defense articles,
components, and services included in this potential sale is
SECRET.
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 Canada 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 are authorized for release and export to the
Government of Canada.
____________________