[Federal Register Volume 81, Number 29 (Friday, February 12, 2016)]
[Notices]
[Pages 7518-7520]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-02842]


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DEPARTMENT OF DEFENSE

Office of the Secretary

[Transmittal No. 15-27]


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: Sarah A. Ragan or Heather N. Harwell, 
DSCA/LMO, (703) 604-1546/(703) 607-5339.

[[Page 7519]]

    The following is a copy of a letter to the Speaker of the House of 
Representatives, Transmittal 15-27 with attached Policy Justification 
and Sensitivity of Technology.

    Dated: February 8, 2016.
Aaron Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
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Transmittal No. 15-27
Notice of Proposed Issuance of Letter of Offer Pursuant to Section 
36(b)(l) of the Arms Export Control Act, as amended
    (i) Prospective Purchaser: Taipei Economic and Cultural 
Representative Office in the United States
    (ii) Total Estimated Value:

 
Major Defense Equipment *...............................    $ 25 million
Other...................................................    $165 million
                                                         ---------------
  Total.................................................    $190 million
 

    (iii) Description and Quantity or Quantities of Articles or 
Services under Consideration for Purchase: The sale, refurbishment, and 
upgrade of two (2) Oliver Hazard Perry Class Frigates (FFG-7) being 
provided as Excess Defense Articles (EDA). Each vessel will be equipped 
with the MK-92 Mod 6 Fire Control System, the SSQ-89V(9) Anti-Submarine 
Warfare System, the MK-75 76mm Gun System, Phalanx 20mm Close-In-Weapon 
System (CIWS) (Block l B), MK-13 Guided Missile Launching System 
(GMLS), AN/SLQ-32 Electronic Warfare System, SPS-49

[[Page 7520]]

Radar, SQR-19 Towed Array Sonar, SQS-56 Sonar, spare and repair parts, 
publications and technical documentation, personnel training and 
training equipment, provisioning, system integration, U.S. Government 
and contractor logistics, engineering, and technical support services, 
and other related elements of logistics and program support.
    (iv) Military Department: Navy (SEP)
    (v) Prior Related Cases, if any: None
    (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: 16 December 2015
    * as defined in Section 47(6) of the Arms Export Control Act.

POLICY JUSTIFICATION

Taipei Economic and Cultural Representative Office in the United 
States--Refurbishment and Upgrades of EDA Oliver Perry Class Frigates 
(FFG-7)

    The Taipei Economic and Cultural Representative Office in the 
United States has requested the possible sale, refurbishment, and 
upgrade of two (2) Oliver Hazard Perry Class Frigates (FFG-7) being 
provided as Excess Defense Articles (EDA). Each vessel will be equipped 
with the MK-92 Mod 6 Fire Control System, the SQQ-89V(9) Anti-Submarine 
Warfare System, the MK-75 76mm Gun System, Phalanx 20mm Close-In-Weapon 
System (CIWS) (Block I B), MK-13 Guided Missile Launching System 
(GMLS), AN/SLQ-32 Electronic Warfare System, SPS-49 Radar, SQR-19 Towed 
Array Sonar, SQS-56 Sonar, spare and repair parts, publications and 
technical documentation, personnel training and training equipment, 
provisioning, system integration, U.S. Government and contractor 
logistics, engineering, and technical support services, and other 
related elements of logistics and program support. The estimated cost 
is $190 million.
    This sale is consistent with United States law and policy as 
expressed in Public Law 96-8.
    This proposed sale serves U.S. national, economic, and security 
interests by supporting the recipient's continuing efforts to modernize 
its armed forces and enhance its defensive capability. The proposed 
sale will help improve the security of the recipient and assist in 
maintaining political stability, military balance, and economic 
progress in the region.
    The proposed sale will improve the recipient's capability in 
current and future defensive efforts. The recipient will use these 
ships to replace existing Knox Class destroyers which have reached the 
end of their useful service life. The EDA Oliver Hazard Perry Class 
Frigates (FFG-7) will be more sustainable, provide increased Anti-
Submarine Warfare (ASW) capability as a deterrent to local threats, 
require less maintenance, and reduce life cycle support costs. The 
recipient will have no difficulty absorbing these ships and equipment 
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 selected through a competitive 
procurement conducted by the U.S. Government in accordance with the 
Federal Acquisition Regulation. The purchaser normally requests 
industrial cooperation at forty percent, but at this time there are no 
known offset agreements proposed in connection with this potential 
sale.
    Implementation of this sale will not require the assignment of any 
additional U.S. Government personnel or contractor representatives to 
the recipient.
    There will be no adverse impact on U.S. defense readiness as a 
result of this proposed sale.
Transmittal No. 15-27
Notice of Proposed Issuance of Letter of Offer Pursuant to Section 
36(b)(1) of the Arms Export Control Act
Item No. vii
    (vii) Sensitivity of Technology:
    1. The equipment to be delivered with these Oliver Perry Class 
Frigates (FFG-7) is similar to the equipment currently on customer 
ships or in inventory. This includes Close-ln- Weapon System (CIWS) 
(Block IB), MK 75 76mm gun, MK 13 Guided Missile Launching System 
(GMLS) for their STANDARD Missile (SM-1) and Harpoon Block II missiles. 
MK 32 SVTT is an over-the-side launching system for light weight 
torpedoes. The Link 11 system provides data sharing capability with 
other platforms. Operational performance characteristics for CIWS, 
Harpoon, and the MK 75 gun are classified SECRET. With the exception of 
CIWS IB and Harpoon Block II, all other equipment being provided in 
this program is considered legacy technology within the U.S. Navy.
    2. The SQQ-89V(9) Anti-Submarine Warfare (ASW) system is being 
introduced to customer inventory through this program. This system 
represents an upgrade in capability for the customer, which will 
enhance the recipient's ASW capabilities. The operating system software 
and operating manuals are both classified SECRET. Operational 
performance is classified SECRET. The technical and operational 
elements of this system, and any related data, are classified SECRET. 
The SQQ-89V(9) will result in the transfer of highly accurate ASW 
sensing and detection capability.
    3. The technical and operational elements of these systems, and any 
related data, are classified to protect vulnerabilities, design and 
performance parameters, and similar critical information. Uncontrolled 
release of sensitive technological information on these systems could 
reveal capabilities and possible vulnerabilities.
    4. 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 
advanced capabilities.
    5. A determination has been made that the recipient 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.
    6. All defense articles and services listed in this transmittal 
have been authorized for release and export to the recipient.

[FR Doc. 2016-02842 Filed 2-11-16; 8:45 am]
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