[Federal Register Volume 82, Number 6 (Tuesday, January 10, 2017)]
[Notices]
[Pages 2970-2975]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-00246]


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DEPARTMENT OF DEFENSE

Office of the Secretary

[Transmittal No. 16-66]


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

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Representatives, Transmittal 16-66 with attached Policy Justification 
and Sensitivity of Technology.

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

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[GRAPHIC] [TIFF OMITTED] TN10JA17.001


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Transmittal No. 16-66
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 Kuwait
    (ii) Total Estimated Value:

 
 
 
Major Defense Equipment*................  $ .04 billion
Other...................................  $1.66 billion
                                         -------------------------------
    TOTAL...............................  $1.70 billion
 

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

Major Defense Equipment (MDE):
    Two hundred and forty (240) .50 Cal M2A1 Machine Guns
    Four hundred and eighty (480) 7.62mm M240 Machine Guns
    Two hundred and forty (240) AN/VRC-92E SINCGARS Radios
    One thousand and eight five (1,085) AN/PVS-7B Night Vision Goggles

    Non-MDE includes: Incorporation of cooling system/thermal 
management systems; Common Remotely Operated Weapons Station (CROWS) 
II--Low Profile Stabilized Weapon Stations; special armor; 120mm gun 
tubes; 2nd generation Forward Looking Infrared (FLIR) sights; embedded 
diagnostics; gunner's primary sights; Counter Sniper and Anti-Materiel 
Mount (CSAMM) hardware; upgrade/maintenance of engines and 
transmissions; depot level support; training devices; 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: Army (UXA)
    (v) Prior Related Cases, if any: FMS Case KU-B-JAT (9 July 1993, 
$1.9 billion), FMS Case KU-B-UKO (20 July 2001, $44.3 million), FMS 
Case KU-B-UKN (23 July 2001, $42 million), FMS Case KU-B-ULB (19 May 
2006, $36.8 million), FMS Case KU-B-ULX (20 July 2011, $34.8 million).
    (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

Government of Kuwait--Recapitalization of 218 M1A2 Tanks and Related 
Equipment and Support

    The Government of Kuwait has requested a possible sale in support 
of its recapitalization of 218 M1A2 tanks, to include two hundred and 
forty (240) .50 Cal M2A1 machine guns; four hundred and eighty (480) 
7.62mm M240 machine guns; two hundred and forty (240) AN/VRC-92E 
SINCGARS radios; and one thousand and eight five (1,085) AN/PVS-7B 
Night Vision Goggles. Also included is the incorporation of cooling 
system/thermal management systems; Common Remotely Operated Weapons 
Station (CROWS) II--Low Profile Stabilized Weapon Stations; special 
armor; 120mm gun tubes; 2nd generation Forward Looking Infrared (FLIR) 
sights; embedded diagnostics; gunner's primary sights; Counter Sniper 
and Anti-Materiel Mount (CSAMM) hardware; upgrade/maintenance of 
engines and transmissions; depot level support; training devices; 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. Total estimated program cost is $1.7 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 friendly country which has been and continues to be an 
important force for political stability and economic progress in the 
Middle East.
    Kuwait intends to use this equipment to recapitalize its fleet of 
M1A2 full track tanks in order to modernize and extend the service of 
the tanks. Kuwait 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 contractors involved in this program are: General 
Dynamics Land Systems, Sterling Heights, MI; Joint Services 
Manufacturing Center (JSMC), Lima, OH; Konsberg Defense Systems, 
Alexandria, VA, and Johnstown, PA; Raytheon, McKinney, TX; Meggitt 
Defense Systems, Irvine, CA; Palomar, Carlsbad, CA; Northrop Grumman, 
West Falls Church, VA; DRS Technologies, Arlington, VA; Lockheed 
Martin, Bethesda, MD; Honeywell, Morristown, NJ; Miltope, Hope Hull, 
AL. There are no known offset agreements proposed in connect with this 
potential sale.
    Implementation of this proposed sale is estimated to require five 
to seven contractors and twenty-five to thirty U.S. Government 
representatives to Kuwait.
    There will be no adverse impact on U.S. defense readiness as a 
result of this proposed sale.
Transmittal No. 16-66
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. Components considered to contain sensitive technology in the 
proposed sale are as follows:
    a. M1A2 Thermal Imaging System (TIS)--The TIS 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 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 
target acquisition range which is CONFIDENTIAL and hardening data is 
classified up to SECRET. The consequences of such compromise would 
increase potential enemy capabilities to neutralize effectiveness of 
the tank main armament system by denying the crew ability to acquire 
targets.
    b. Special Armor--Major components of special armor are fabricated 
in sealed modules and in serialized removable subassemblies. Special 
armor vulnerability data for both chemical and kinetic energy rounds 
are classified SECRET. Engineering design and manufacturing data 
related to special armor are also classified SECRET. The consequences 
of such compromise of classified information would be the capability to 
neutralize or defeat the armor. The sale or transfer of armor modules 
are done on a government-to-government basis. This serves to minimize, 
but not eliminate, the danger of compromise.
    c. 120mm Gun--the gun is composed of a 120mm smoothbore gun 
(cannon) manufactured at Watervliet Arsenal; ``long rod'' APFSDS 
warheads; and combustible cartridge case ammunition.

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There may be a need to procure/produce new gun cannon tubes from 
Watervliet Arsenal. New cannons inducted at Anniston Army Depot would 
be inspected according to established criteria and shipped to Lima Army 
Tank Plant for tank upgrade process. Gun production and technology are 
generally known. Disclosure of gun production and technology specific 
to the 120mm (advance materials and tolerances) would degrade the 
advantage.
    d. AGT-1500 Gas Turbine Propulsion System--The use of a gas turbine 
propulsion system in the M1A2 is a unique application of armored 
vehicle power pack technology. The hardware is composed of the AGT-1500 
engine and transmission and is not UNCLASSIFIED. Manufacturing 
processes associated with the production of turbine blades, 
recuperator, bearings and shafts, and hydrostatic pump and motor are 
propriety and therefore commercially competition sensitive. 
Unauthorized release and exploitation of sensitive propulsion 
information would adversely impact U.S. commercial interests. 
Acquisition of production data by a potential enemy could enhance its 
ability to design and produce gas turbine engine propulsion system with 
application to land vehicles.
    e. Compartmentation--A major survivability feature of the M1 tank 
is the compartmentation of fuel and ammunition. Compartmentation is the 
positive separation of the crew and critical components from 
combustible materials such that in the event that the fuel or 
ammunition is ignited or deteriorated by an incoming threat round, the 
crew is fully protected. Sensitive information includes the performance 
of the ammunition compartments as well as the compartment design 
parameters. The design of the compartments cannot be protected, however 
the guidelines, parametric inductions and test data used to develop the 
compartments do not have to be disclosed to permit a sale.
    f. Common Remotely Operated Weapons Station--Low Profile (CROWS-
LP)--The CROWS-LP (M153A2E1) is a commanders' weapon station. It allows 
for under armor operation of weapons--M2HB, M2A1, M250B, and M240. The 
CROWS-LP is an updated version of the M153A2 CROWS that is 
approximately 10 inches shorter; the CROWS-LP M153A2E1 increases 
visibility over the weapon station. The fire control system of the 
CROWS-LP allows the ``first-burst'' on target capability from 
stationary and moving platforms. The CROWS-LP ingratiates a day camera 
(VIM-C), thermal camera (TIM 1500), and laser range finder (STORM/
STORM-PI). Engineering design and manufacturing data would provide 
potential enemy with the means to increase small arms fire control from 
under armor. The consequences of this would be improved enemy equipment 
in the field and decrease technological fire control advantages.
    2. The M1 tank will include the following communications suite: 
Defense Advanced Global Positioning System (GPS) Receiver (DAGR); AN/
VAS-5 Driver's Vision Enhancer (DVE) and Rear View Sensor System 
(RVSS); and Single Channel Ground and Airborne Radio System (SINCGARS).
    a. Defense Advanced Global Positioning System (GPS) Receiver 
(DAGR)--DAGR is a lightweight (less than two pounds) hand-held or host 
platform-mounted, dual frequency, Selective Availability Anti-Spoofing 
Module (SAASM) based, Precise Positioning Service (PPS) device. The 
DAGR provides real-time positioning, velocity (ground speed), 
navigation, and timing (PVNT) information, in stand-alone (dismounted) 
and mounted (ground facilities, sea, air, and land vehicles) 
configurations. The DAGR can support missions involving land-based war-
fighting and non-war fighting operations. The DAGR can also be used as 
a secondary or supplemental aid to aviation-based missions which 
involve operations in low-dynamic aircraft, and as an aid to navigation 
in water-borne operations. DAGR AN/PSN-13(A) is fitted with the 
Selective Availability Anti-Spoofing Module (SAASM) 3.7 and can accept 
cryptographic keys for increased PVNT accuracy and protection from 
intentional false or spoofed satellite signals. The AN/PSN-13(A) DAGR 
does not output classified information. If a technology advanced 
adversary were to obtain knowledge of the specific hardware and 
software elements, the information could be used to identify ways of 
countering the detection capabilities of the DAGR or improve the 
performance of their GPS receivers; however, information available for 
the SAASM would not be obtainable. SAASM is a tamper-resistant security 
module. The remaining hardware used in the DAGR is considered mature 
and available in other industrial nation's comparable performance 
thresholds.
    b. Drivers Vision Enhancer (DVE) AN/VAS-5 and Rear View Sensor 
System (RVSS)--The AN/VAS-5 and RVSS are un-cooled thermal imaging 
systems developed for use while driving Combat Vehicles and Tactical 
Wheeled Vehicles. DVE and RVSS allow for tactical vehicle movement in 
support of operational missions in all environment 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. Engineering design and manufacturing data would provide a 
potential enemy with the means to upgrade the quality of efficiency of 
thermal devices production. The consequences of this would be improved 
enemy equipment of the field. Technical information regarding DVE and 
RVSS, including UNCLASSIFIED information, should generally not be 
considered for release. The highest level of information that must be 
disclosed for production, operation or sale of the end item is 
UNCLASSIFIED/FOR OFFICIAL USE ONLY.
    c. Single Channel Ground and Airborne Radio System (SINCGARS)--The 
AN/VRC-92E and RT-1702 SINCGARS provides war-fighting commanders and 
troops with a highly reliable, secure, easily maintained Combat Net 
Radio (CNR) that has both voice and data handling capability in support 
of command and control operations. SINCGARS, with the Internet 
Controller, provides the communications link for the digitized force. 
SINCGARS is a radio fielded to tactical field elements. It facilitates 
the transmission of voice and/or data information, which allows for the 
conducting of a myriad of missions across the operational continuum. 
SINCGARS is available for the dismounted soldier, ground and aviation 
platforms. Training will vary for the radio (RT-1702) and spare and 
repair parts for the RT-1702 model are not supported by the Standard 
Army Supply Systems. There is sensitive or restricted information 
contained in the AN/VRC-92E or software. There would be adverse 
consequences of the AN/VRC-92E and software were to be lost to a 
technically advanced adversary. If a technology advances adversary were 
to obtain knowledge of the specific hardware and software elements, the 
information could be used to identify ways of countering the Electronic 
Counter-Counter Measures (ECCM). The hardware used in the AN/VRC-92E 
and RT-1702 is considered mature.
    3. This sale is necessary in furtherance of the U.S. foreign policy 
and national security objectives outlined in the Policy Justification. 
Moreover, the benefits to be derived from this sale, as outlined in the 
Policy

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Justification, outweigh the potential damage that could result if the 
sensitive technology were revealed to unauthorized persons.
    4. All defense articles and services listed in this transmittal 
have been authorized for release and export to the Government of 
Kuwait.
[FR Doc. 2017-00246 Filed 1-9-17; 8:45 am]
 BILLING CODE 5001-06-P