[Federal Register Volume 81, Number 240 (Wednesday, December 14, 2016)]
[Notices]
[Pages 90339-90341]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-29962]


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DEPARTMENT OF DEFENSE

Office of the Secretary

[Transmittal No. 16-54]


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: Pam Young, DSCA/SE&E-RAN, (703) 697-
9107.
    The following is a copy of a letter to the Speaker of the House of 
Representatives, Transmittal 16-54 with attached Policy Justification 
and Sensitivity of Technology.

    Dated: December 9, 2016.
Aaron Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.

[[Page 90340]]

[GRAPHIC] [TIFF OMITTED] TN14DE16.021

Transmittal No. 16-54
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 Australia
    (ii) Total Estimated Value:

Major Defense Equipment (MDE) *.........  $0.00 million
Basic Case (GUW)........................  $79.07 million
Amendment Funding.......................  $35.93 million
                                         -------------------------------
  TOTAL.................................  $115.00 million
 

    (iii) Description and Quantity or Quantities of Articles or 
Services under Consideration for Purchase:
    Non-MDE: FMS case AT-P-GUW, originally offered below congressional 
notification threshold at $79.07 million, was for acquisition of two 
Range Systems to conduct Electronic Warfare (EW), Electronic 
Surveillance, and Airborne Electronic Attack for Royal Australian Air 
Force aircrew training on its twelve (12) Australian EA-18G aircraft. 
An amendment to AT-P-GUW is required to add $35.93 million in funding, 
to provide for unfunded requirements to meet the scope of the basic 
case and provide for the sale of additional classified technical data 
and software, system integration and testing, tools and test equipment, 
support equipment, spare and repair parts, publications, operations 
manuals, and

[[Page 90341]]

technical documents, personnel training, U.S. Government and contractor 
technical assistance, and other related elements of engineering, 
logistics, and program management. This amendment will push the 
original case value above notification threshold and thus requires 
notification of the entire case.
    (iv) Military Department: Navy (AT-P-GUW-A1)
    (v) Prior Related Cases, if any:
FMS case AT-P-LEN: $992M September 13, 2012 (Airborne Electronic Attack 
Kits)
FMS case AT-P-SCI $1.3B July 4, 2013 (twelve EA-18G aircrafts)
FMS case AT-P-GUW $79M February 12, 2015 (Electronic Warfare Range 
System)
    (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: December 2, 2016
    * as defined in Section 47(6) of the Arms Export Control Act.

POLICY JUSTIFICATION

Government of Australia--AEA-18G Electronic Warfare Range System

    The Government of Australia has requested additional funding to a 
previously implemented case for two Electronic Warfare Range Systems to 
conduct Electronic Warfare and Electronic Surveillance training within 
the borders of Australia. The original FMS case, valued at $79.07 
million, includes non-MDE costs for all support elements required to 
provide for system integration testing, tools and test equipment, 
support equipment, spare and repair parts, publications, operations 
manuals, technical documents, personnel training, U.S. Government and 
contractor technical assistance, and other related elements of 
logistics and program support. The addition of $35.93 million in non-
MDE funding to the basic case will provide for unfunded requirements to 
meet the scope of the basic case and provide for the sale of additional 
classified technical data and software, system integration and testing, 
tools and test equipment, support equipment, spare and repair parts, 
publications, operations manuals, and technical documents, personnel 
training, U.S. Government and contractor technical assistance, and 
other related elements of engineering, logistics, and program 
management. This amendment will push the original case value above 
notification threshold and thus requires notification of the entire 
case. The total overall estimated value is $115 million.
    This sale will contribute to the foreign policy and national 
security of the United States by helping to improve the security of a 
major contributor to political stability, security, and economic 
development in the Western Pacific. Australia is an important Major 
non-NATO Ally and partner that contributes significantly to 
peacekeeping and humanitarian operations around the world. It is vital 
to the U.S. national interest to assist our ally in developing and 
maintaining a strong and ready self-defense capability. By enabling 
Australian Defense Force (ADF) ranges, the U.S. Government will ensure 
consistency in training across platforms and theaters, whether the 
exercises are conducted in the United State or in Australia, where U.S. 
aircrews will be able to participate in training exercises alongside 
their Australian counterparts.
    The proposed sale will allow continued efforts to improve 
Australia's capability in current and future coalition operations. 
Australia will use the range to enhance Electronic Warfare capabilities 
as a deterrent to regional threats and to strengthen its homeland 
defense. Australia will have no difficulty absorbing these items into 
its armed forces.
    The proposed sale will not alter the basic military balance in the 
region.
    The prime contractors will be Leidos (hardware) and General 
Dynamics Mission Systems (software). The U.S. Government is not aware 
of any known offsets associated with this sale.
    Implementation of this sale will require ten (10) temporary U.S. 
Government or contractor representatives to Australia for assistance in 
integration and range operational and maintenance training.
    There will be no adverse impact on U.S. defense readiness as a 
result of this proposed amendment.
Transmittal No. 16-54
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. Provides two (2) in-country Electronic Warfare (EW) ranges for 
EA-18G aircrew training to detect, identify, locate, and suppress 
hostile emitters. Range technology transfers programmable equipment 
able to emulate generic Integrated Air Defense Systems, threat and 
other emitters, along with authentic threat emitters purchased from 
vendors in Former Soviet Block states. The range hardware is 
Unclassified either stand-alone or integrated. The range software is 
unclassified with the exception of one (1) Secret Digital Integrated 
Air Defense System (DIADS) software suite. The amendment facilitates 
transfer of classified information such as software, classified threat 
and fly-out models, user event captured data, range operations manuals, 
and security classification guidance. The classified information 
enhances the usefulness of the range technology being transferred and 
provides guidance on safeguarding sensitive information.
    2. When EW range hardware and software work together against a 
particular aircraft platform, the visual and recorded information 
becomes classified Secret. The range capability is unclassified until 
the networks touch a Secret network (e.g., Link 16) or perform against 
real world training missions. The customer may capture intelligence 
regarding the authentic threat emitters that is classified Confidential 
or Secret, as well as other training artifacts and debrief products 
capturing weapons capability and tactics.
    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 EA-18G weapon 
system effectiveness or be used in the development of a system with 
similar or advanced capabilities.
    4. All defense articles and services listed in this transmittal are 
authorized for release and export to the Government of Australia.

[FR Doc. 2016-29962 Filed 12-13-16; 8:45 am]
BILLING CODE 5001-06-P