[Federal Register Volume 81, Number 163 (Tuesday, August 23, 2016)]
[Notices]
[Pages 57571-57574]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-20094]


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DEPARTMENT OF DEFENSE

Office of the Secretary

[Transmittal No. 16-32]


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: Chandelle K. Parker, DSCA/OGC, (703) 
697-9027.
    The following is a copy of a letter to the Speaker of the House of 
Representatives, Transmittal 16-32 with attached Policy Justification 
and Sensitivity of Technology.

    Dated: August 18, 2016.
Aaron Siegel,
Alternate OSD Liaison Officer, Department of Defense.

[[Page 57572]]

[GRAPHIC] [TIFF OMITTED] TN23AU16.004

Transmittal No. 16-32
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: The Kingdom of Saudi Arabia
    (ii) Total Estimated Value:

Major Defense Equipment *................  $0.15 billion
Other....................................  $1.00 billion
                                          ------------------------------
  TOTAL..................................  $1.15 billion
 

    (iii) Description and Quantity or Quantities of Articles or 
Services under consideration for Purchase:
Major Defense Equipment (MDE):
One hundred fifty-three (153) M1Al/A2 Abrams Tank structures for 
conversion to one hundred thirty-three (133) M1A2S Saudi Abrams 
configured Main Battle Tanks and twenty (20) battle damage replacements 
for the existing fleet
One hundred fifty-three (153) M2 .50 Caliber Machine Guns
Two hundred sixty-six (266) 7.62mm M240 Machine Guns
One hundred fifty-three (153) M250 Smoke Grenade Launchers
Twenty (20) M88Al/A2 Heavy Equipment Recovery Combat Utility Lift
Evacuation System (HERCULES) Armored Recovery Vehicle (ARV)
Structures for conversion to twenty (20) M88Al/A2 HERCULES ARVs
One hundred sixty-nine (169) AN/VAS-5 Driver Vision Enhancer--Abrams 
(DVE-A)
One hundred thirty-three (133) AN/PVS-7B Night Vision Devices
Four thousand two hundred fifty-six (4,256) Rounds M865 Training 
Ammunition
Two thousand three hundred ninety-four (2,394) Rounds M831Al Training 
Ammunition
Non-MDE:

[[Page 57573]]

This request also includes the following Non-MDE: M1Al/A2 Tank and 
M88Al/A2 ARV overhaul, conversion and refurbishment services; Special 
Tools and Test Equipment; Basic Issue Items; Program Management 
Support; Verification Testing; System Technical Support; Advanced 
Gunnery Training System (AGTS); Deployable Advanced Gunnery Training
System (DAGTS); Transportation; Binoculars; Camouflage Netting; spare 
and repair parts; communications equipment; personnel training and 
training equipment; tool and test equipment; repair and return; 
publications and technical documentation; Quality Assurance Team (QAT); 
U.S. Government and contractor engineering, technical and logistics 
support services; and other related elements of logistics and program 
support.
    (iv) Military Department: Army (SR-B-VTF)
    (v) Sales Commission, Fee, etc., Paid, Offered, or Agreed to be 
Paid: None
    (vi) Sensitivity of Technology Contained in the Defense Article or 
Defense Services Proposed to be Sold: See Annex attached.
    (vii) Prior Related Case, if any:
SR-B-VKZ, Implemented 27 Nov 06, TCV: 3,220,367,024
SR-B-VTC, Implemented 08 Dec 14, TCV: 1,887,611,823
    (viii) Date Report Delivered to Congress: 08 AUG 2016
    * as defined in Section 47(6) of the Arms Export Control Act.

POLICY JUSTIFICATION

Kingdom of Saudi Arabia--M1A2S Saudi Abrams Main Battle Tanks and 
M88Al/A2: Heavy Equipment Recovery Combat Utility Lift Evacuation 
System (HERCULES) Armored Recovery Vehicles (ARV)

    The Kingdom of Saudi Arabia has requested a possible sale of up to 
one hundred fifty-three (153) M1Al/A2 Tank structures for conversion to 
one hundred thirty-three (133) M1A2S Saudi Abrams configured Main 
Battle Tanks and twenty (20) battle damage replacements for their 
existing fleet; one hundred fifty-three (153) M2 .50 Caliber Machine 
Guns; two hundred sixty-six (266) 7.62mm M240 Machine Guns; one hundred 
thirty-three (153) M250 Smoke Grenade Launchers; twenty (20) M88A l/A2 
Heavy Equipment Recovery Combat Utility Lift Evacuation System 
(HERCULES) Armored Recovery Vehicle (ARV) Structures for conversion to 
twenty (20) M88Al/A2 HERCULES ARVs; one hundred sixty-nine (169) AN/
VAS-5 Driver Vision Enhancer-Abrams (DVE-A); one hundred thirty-three 
(133) AN/PVS-7B Night Vision Devices; four thousand two hundred fifty-
six (4,256) Rounds M865 Training Ammunition; and two thousand three 
hundred ninety-four (2,394) Rounds M831Al Training Ammunition. Also 
included are M1Al/A2 Tank and M88Al/A2 ARV overhaul, conversion and 
refurbishment services; Special Tools and Test Equipment; Basic Issue 
Items; Program Management Support; Verification Testing; System 
Technical Support; Advanced Gunnery Training System (AGTS); Deployable 
Advanced Gunnery Training System (DAGTS); Transportation, Binoculars, 
Camouflage Netting; spare and repair parts; communications equipment; 
personnel training and training equipment; tool and test equipment; 
repair and return; publications and technical documentation; Quality 
Assurance Team (QAT); U.S. Government and contractor engineering, 
technical and logistics support services; and other related elements of 
logistics and program support. The total estimated value is $1.15 
billion.
    This proposed sale will contribute to the foreign policy and 
national security of the United States by helping to improve the 
security of a strategic regional partner which has been and continues 
to be a leading contributor of political stability and economic 
progress in the Middle East. This sale will increase the Royal Saudi 
Land Force's (RSLF) interoperability with U.S. forces and conveys U.S. 
commitment to Saudi Arabia's security and armed forces modernization.
    The proposed sale of this equipment and support will not alter the 
basic military balance in the region.
    The proposed sale will improve Saudi Arabia's capability to meet 
current and future threats and provide greater security for its 
critical infrastructure. The addition of these tanks and recovery 
vehicles to the RSLF's inventory will enhance Saudi Arabia's ability to 
support its soldiers in the field and to defend the Kingdom's borders. 
Saudi Arabia will have no difficulty absorbing these vehicles into its 
armed forces.
    The principal contractor will be General Dynamics Land Systems 
(GDLS), Sterling Heights, Michigan. There are no known offset 
agreements in connection with this potential sale.
    Implementation of this sale will not require the assignment of any 
additional U.S. Government or contractor representatives to Saudi 
Arabia. Support teams will travel to the country on a temporary basis.
    There will be no adverse impact on U.S. defense readiness as a 
result of this proposed sale.
Transmittal No. 16-32
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 will involve the release of sensitive technology to 
Saudi Arabia. The MlA2S Main Battle Tank (MBT) is an analog/digital 
hybrid system comprising the best features of the MlAl and MlA2 SEP v2 
tanks, while limiting component obsolescence challenges. This 
configuration is unique to Saudi Arabia. It is armed with the M256 
120mm smooth bore gun and has an improved fire control system with 
range of effective fire in excess of 4 km. Secondary armament of the 
MlA2S consists of a coaxial 7.62mm machine gun, another 7.62mm machine 
gun mounted over the gunner's hatch, and a 12.7mm machine gun mounted 
over commander's hatch. The vehicle is operated by a crew of four, 
including a tank commander, gunner, loader, and a driver. The M88Al/A2 
Heavy Equipment Recovery Combat Utility Lift Evacuation System 
(HERCULES) Armored Recovery Vehicle (ARV) is a full-tracked armored 
vehicle used to perform battlefield recovery missions including towing, 
hoisting, and winching. It is fully capable of recovery support for 
Abrams series tanks and future heavy combat vehicles.
    a. M1A2S Thermal Imaging System (TIS). The TIS is a second 
generation Forward Looking Infrared Radar (FLIR) system and constitutes 
a target acquisition system which, when operated with other tank 
systems, gives the tank crew a substantial advantage over the potential 
threat. The TIS provides the MlA2S crew with the ability to effectively 
aim and fire the tank main armament system under a broad range of 
adverse battlefield conditions. The hardware itself is UNCLASSIFIED. 
The engineering design and manufacturing data associated with the 
detector and infrared (IR) optics and coatings are considered 
sensitive. The technical data package is UNCLASSIFIED with the 
exception of the specifications for the target acquisition range which 
are CONFIDENTIAL.
    b. Special Armor. The major components of special armor are 
fabricated in sealed modules and in serialized removable sub-
assemblies. Special armor vulnerability data for

[[Page 57574]]

both chemical and kinetic energy rounds are classified SECRET. 
Engineering design and manufacturing data related to special armor are 
also classified SECRET.
    c. M256 120mm Gun and Ammunition System. It is composed of a 120mm 
smoothbore gun, ``long rod'' Armor Piercing Fin Stabilized Discarding 
Sabot (APFSDS) kinetic warheads; and combustible cartridge case 
ammunition. The suite is UNCLASSIFIED.
    d. Advanced Gas Turbine (AGT) 1500 Gas Turbine Propulsion System. 
The use of a gas turbine propulsion system in the MlA2S is a unique 
application of armored vehicle power pack technology. The hardware is 
composed of the AGT-1500 engine and transmission, and is UNCLASSIFIED. 
Manufacturing processes associated with the production of turbine 
blades, recuperator, bearings and shafts, and hydrostatic pump and 
motor, are proprietary and therefore are commercially competition 
sensitive.
    e. Compartmentation. A major survivability feature of the Abrams 
Tank is the compartmentation of fuel and ammunition. Compartmentation 
is the positive separation of the crew and critical components from 
combustible materials. In the event that the fuel or ammunition is 
ignited or deteriorated by an incoming threat round, the crew is fully 
protected. As demonstrated during the Abram Live Fire tests, 
compartmentation significantly enhances crew survivability and 
substantially reduces the likelihood of the tank being immobilized by 
an ammunition explosion and fire. Sensitive information includes the 
performance of the ammunition compartments as well as the compartment 
design parameters.
    f. The Driver's Vision Enhancer-Abrams (DVE-A), AN/VAS-5. The AN/
VAS-5 is an un-cooled thermal imaging system developed for use while 
driving Combat Vehicles (CVs) and Tactical Wheeled Vehicles (TWVs). It 
allows for tactical vehicle movement in support of operational missions 
in all environmental conditions (day/night and all weather) and 
provides enhanced driving capability during limited visibility 
conditions (darkness, smoke, dust, fog, etc.). The DVE program provides 
night vision targeting capabilities for armored vehicles and long range 
night vision reconnaissance capability to the warfighter. The highest 
level of classification is CONFIDENTIAL for hardware and software.
    g. AN/PVS-7B Night Vision Devices (NVD). These devices are man-
portable NVDs which incorporate image intensification technology. This 
technology is contained in a sealed intensifier tube that is serialized 
and removable. Engineering and manufacturing data related to the image 
intensification tube sub-components are classified CONFIDENTIAL. All 
data related to vulnerabilities and weaknesses are classified SECRET.
    2. Software, hardware, and other classified or sensitive data are 
reviewed prior to release to protect system vulnerabilities, design 
data, and performance parameters. Some end-item hardware, software, and 
other data identified above are classified at the CONFIDENTIAL and 
SECRET level. Potential compromise of these systems is controlled 
through the management of the basic software programs of highly 
sensitive systems and software-controlled weapons systems on a case-by-
case bases.
    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 or equivalent systems which 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 Saudi Arabia 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.
    5. All defense articles and services listed in this transmittal 
have been authorized for release and export to the Kingdom of Saudi 
Arabia.

[FR Doc. 2016-20094 Filed 8-22-16; 8:45 am]
 BILLING CODE 5001-06-P