[Federal Register Volume 77, Number 246 (Friday, December 21, 2012)]
[Notices]
[Pages 75617-75619]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-30810]


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DEPARTMENT OF DEFENSE

Office of the Secretary

[Transmittal Nos. 12-68]


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: Ms. B. English, DSCA/DBO/CFM, (703) 
601-3740.
    The following is a copy of a letter to the Speaker of the House of 
Representatives, Transmittals 12-68 with attached transmittal, policy 
justification, and Sensitivity of Technology.

    Dated: December 18, 2012.
Aaron Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
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[GRAPHIC] [TIFF OMITTED] TN21DE12.000

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Transmittal No. 12-68
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: Japan
    (ii) Total Estimated Value:


Major Defense Equipment\*\...............  $ 0 million
Other....................................  $421 million
                                          ------------------------------
    Total................................  $421 million
 


    (iii) Description and Quantity or Quantities of Articles or 
Services under Consideration for Purchase: For the upgrade of 
previously provided AEGIS Combat Systems as part of the modernization 
of two ATAGO Class Ships (DDG-177 ATAGO and DDG-178 ASHIGARA) with 
Integrated Air Missile Defense capability. The modifications/
replacements consist of the following components: J6 AEGIS Weapon 
System Computer Program, 2 Multi-Mission Signal Processors for existing 
AN/SPY-1D(V) radar, 2 Common Processor Systems, 2 ship sets Common 
Display Systems (44 OJ-827(V)1 Tri Screen Display Consoles, 8 Display 
Processor Cabinets, 2 Video Wall Screen and Projector Systems, 46 Flat 
Panel Displays, and 2 Distributed Video Systems), 2 ship sets AN/SPQ-15 
Digital Video Distribution Systems, 2 ship sets Operational Readiness 
Test Systems hosted in AEGIS Weapon Systems computing infrastructure, 
Ballistic Missile Defense (Mission Planner Blade server processors 
hosted in CPS, and 2 Kill Assessment Systems/

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Weapon Data Recording Cabinets), Vertical Launching System MK41 upgrade 
to Baseline 7 (24 Motor Control Panels MK 448 Mod 1, 48 Programmable 
Power4 Supplies MK 179 Mod 0, and 24 Launch Sequencers MK 5 Mod 1, 4 
Fiber Optic Distribution Boxes, and 24 Single Module Junction Boxes), 4 
Launch Control Units MK 235 Mod 7 with Global Positioning System 
Integrator, 2 ship sets Gun Weapon Systems MK 34, and 2 ship sets MK 20 
Electro-Optical Sensor Systems. Also included: Software updates, 
ordnance alterations and engineering changes, spare and repair parts, 
support equipment, tools and test equipment, technical data and 
publications, personnel training and training equipment, U.S. 
Government and contractor engineering, technical, and logistics support 
services, and other related elements of logistics support.
    (iv) Military Department: Navy (LYJ)
    (v) Prior Related Cases, if any:
FMS case LSU-$521M-22Jul02
FMS case LTS-$417M-14Aug03
    (vi) Sales Commission, Fee, etc., Paid, Offered, or Agreed to be 
Paid: None

* as defined in Section 47(6) of the Arms Export Control Act.

    (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: 10 Dec 2012

POLICY JUSTIFICATION

Japan--AEGIS WEAPON SYSTEM UPGRADE

    The Government of Japan has requested a possible sale for the 
upgrade of previously provided AEGIS Combat Systems as part of the 
modernization of two ATAGO Class Ships (DDG-177 ATAGO and DDG-178 
ASHIGARA) with Integrated Air Missile Defense capability. The 
modifications/replacements consist of the following components: J6 
AEGIS Weapon System Computer Program, 2 Multi-Mission Signal Processors 
for existing AN/SPY-1D(V) radar, 2 Common Processor Systems, 2 ship 
sets Common Display Systems (44 OJ-827(V)1 Tri Screen Display Consoles, 
8 Display Processor Cabinets, 2 Video Wall Screen and Projector 
Systems, 46 Flat Panel Displays, and 2 Distributed Video Systems), 2 
ship sets AN/SPQ-15 Digital Video Distribution Systems, 2 ship sets 
Operational Readiness Test Systems hosted in AEGIS Weapon Systems 
computing infrastructure, Ballistic Missile Defense (Mission Planner 
Blade server processors hosted in CPS, and 2 Kill Assessment Systems/
Weapon Data Recording Cabinets), Vertical Launching System MK41 upgrade 
to Baseline 7 (24 Motor Control Panels MK 448 Mod 1, 48 Programmable 
Power4 Supplies MK 179 Mod 0, and 24 Launch Sequencers MK 5 Mod 1, 4 
Fiber Optic Distribution Boxes, and 24 Single Module Junction Boxes), 4 
Launch Control Units MK 235 Mod 7 with Global Positioning System 
Integrator, 2 ship sets Gun Weapon Systems MK 34, and 2 ship sets MK 20 
Electro-Optical Sensor Systems. Also included: Software updates, 
ordnance alterations and engineering changes, spare and repair parts, 
support equipment, tools and test equipment, technical data and 
publications, personnel training and training equipment, U.S. 
Government and contractor engineering, technical, and logistics support 
services, and other related elements of logistics support. The 
estimated cost is $421 million.
    Japan is one of the major political and economic powers in East 
Asia and the Western Pacific and a key ally of the United States in 
ensuring the peace and stability of this region. The U.S. Government 
shares bases and facilities in Japan. This proposed sale is consistent 
with U.S. objectives and with the 1960 Treaty of Mutual Cooperation and 
Security.
    The proposed sale of AEGIS components to Japan will contribute to 
U.S. security objectives by providing a significantly improved Air 
Warfare capability. This sale will enhance Japan's Ballistic Missile 
Defense (BMD) capabilities by modernizing and upgrading the AEGIS 
technology on its two Atago-class destroyers. The Government of Japan 
can easily integrate the capabilities of these upgraded AEGIS Weapon 
Systems into its concept of operations. Japan will have no difficulty 
absorbing these systems 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 Lockheed Martin MS2 in Mooretown, 
New Jersey. There are no known offset agreements proposed in connection 
with this potential sale.
    Implementation of this proposed sale will require multiple trips to 
Japan involving six U.S. Government and ten contractor representatives 
for technical reviews/support, programs management, and training over a 
period of three years.
    There will be no adverse impact on U.S. defense readiness as a 
result of this proposed sale.
Transmittal No. 12-68
Notice of Proposed Issuance of Letter of Offer Pursuant to Section 
36(b)(1) of the Arms Export Control Act, as Amended
Annex
Item No. vii
    (vii) Sensitivity of Technology:
    1. AEGIS Weapon System (AWS) hardware is Unclassified. The 
software, documentation, combat system training, and technical 
services/documentation will be provided up to and including Secret. 
Access to the manuals and technical documents is limited to those for 
whom the manuals and documents are necessary for operational use and 
organizational maintenance. AWS Baseline 9 requires modernization of 
the installed AEGIS combat system hardware to include Common Display 
System, Common Processing System, and Multi-Mission Signal Processor 
and is Unclassified.
    2. If a technologically advanced adversary were to obtain knowledge 
of the specific hardware and software elements, the information could 
be used to develop countermeasures which might reduce weapon system 
effectiveness or be used in the development of a system with similar or 
advanced capabilities.

[FR Doc. 2012-30810 Filed 12-20-12; 8:45 am]
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