[Federal Register Volume 82, Number 6 (Tuesday, January 10, 2017)]
[Notices]
[Pages 2964-2966]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-00241]


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DEPARTMENT OF DEFENSE

Office of the Secretary

[Transmittal No. 16-71]


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: Pamela Young, DSCA/SA&E-RAN, (703) 
697-9107.
    The following is a copy of a letter to the Speaker of the House of 
Representatives, Transmittal 16-71 with attached Policy Justification 
and Sensitivity of Technology.

    Dated: January 5, 2017.
Aaron Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.

[[Page 2965]]

[GRAPHIC] [TIFF OMITTED] TN10JA17.000


[[Page 2966]]



Transmittal No. 16-71

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 the Philippines
    (ii) Total Estimated Value:

Major Defense Equipment*................  $20 million
Other...................................  $ 5 million
                                         -------------------------------
    TOTAL...............................  $25 million
 

    (iii) Description and Quantity or Quantities of Articles or 
Services under Consideration for Purchase:

Major Defense Equipment (MDE):
    Two (2) AN/SPS-77 Sea Giraffe 3D Air Search Radars

    Non-Major Defense Equipment (MDE): Support services, including 
installation services, operator training, system operational testing, 
and documentation.

    (iv) Military Department: Navy (LFK)
    (v) Prior Related Cases, if any:

    PI-P-SBV--$4.7M, Excess Defense Article (EDA) transfer of ex-USCG 
cutter Hamilton, now PF-15, BRP Gregorio Del Pilar

    PI-P-SBW--$15.1M, EDA transfer of ex-USCG cutter Dallas, PF-16, now 
BRP Ramon Alcaraz

    (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 Annex Attached.
    (viii) Date Report Delivered to Congress: December 12, 2016

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

Policy Justification

The Philippines--AN/SPS-77 Sea Giraffe 3D Air Search Radars

    The Government of the Philippines has requested a possible sale of 
two (2) AN/SPS-77 Sea Giraffe 3D Air Search Radars, support services, 
including installation services, operator training, system operational 
testing, and documentation. The total estimated program cost is $25 
million.
    The Philippines seeks to increase its Maritime Domain Awareness 
(MDA) capabilities in order to improve monitoring of its vast 
territorial seas and Exclusive Economic Zones (EEZ). An effective 
Philippine MDA capability strengthens its self-defense capabilities and 
supports regional stability and U.S. national interests. This sale is 
consistent with U.S. regional objectives and will further enhance 
interoperability with the U.S. Navy, build upon a longstanding 
cooperative effort with the United States, and provide an enhanced 
capability with a valued partner in a geographic region of critical 
importance to the U.S. government.
    The AN/SPS-77 Air Search Radars will be used to provide an enhanced 
ability to detect and track air contacts. The radars will be installed 
on two Hamilton-class cutters acquired through the Excess Defense 
Articles (EDA) program. The Philippines 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 principal contractor will be VSE and Saab. There are no known 
offset agreements proposed in connection with this potential sale.
    Implementation of this proposed sale will not require the 
assignment of any U.S. or contractor representatives to the 
Philippines. U.S. contractors, under U.S. government oversight, will be 
in the Philippines for installation and associated support of this new 
radar on these Philippine Navy ships.
    There will be no adverse impact on U.S. defense readiness as a 
result of this proposed sale.
Transmittal No. 16-71
Notice of Proposed Issuance of Letter of Offer Pursuant to Section 
36(b)(l) of the Arms Export Control Act
Annex Item No. vii
    (vii) Sensitivity of Technology:
    1. A completely assembled AN/SPS-77 radar, which is a commercial 
product that is outfitted on USN LCS class ships, will be tailored for 
release to the Philippine Navy under this program. The operating 
characteristics and capability of this system as it will be delivered 
to the Philippines Navy will be UNCLASSIFIED.
    2. AN/SPS-77 operation and maintenance documentation, software, and 
support is UNCLASSIFIED.
    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 the Philippines 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 
have been authorized for release and export to the Government of the 
Philippines.
[FR Doc. 2017-00241 Filed 1-9-17; 8:45 am]
 BILLING CODE 5001-06-P