[Federal Register Volume 82, Number 18 (Monday, January 30, 2017)]
[Notices]
[Pages 8730-8732]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-01965]


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DEPARTMENT OF DEFENSE

Office of the Secretary

[Transmittal No. 16-82]


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 16-82 with attached Policy Justification 
and Sensitivity of Technology.

    Dated: January 25, 2017.
Aaron Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
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Transmittal No. 16-82
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 United Kingdom
    (ii) Total Estimated Value:

Major Defense Equipment.................  $ 0 million
(MDE) * Other...........................  $400 million
                                         -------------------------------
  TOTAL.................................  $400 million
 

    (iii) Description and Quantity or Quantities of Articles or 
Services under Consideration for Purchase:
    MDE: None
    Non-MDE includes:
    Follow-on support for eight (8) C-17 aircraft, including contract 
labor for sustainment engineering, on-site COMSEC support, Quality 
Assurance, support equipment repair, supply chain management, spares 
replenishment, maintenance, back shop support, and centralized 
maintenance support/associated services. Required upgrades will include 
fixed installation satellite antenna, Mode 5+ installation and 
sustainment, Automatic Dependent Surveillance-Broadcast Out, 
Communications Modernization (CNS/ATM) Phase II, Replacement Heads-Up 
Display and three special operations loading ramps.
    (iv) Military Department: Air Force (X7-D-QDD)

[[Page 8732]]

    (v) Prior Related Cases, if any: UK-D-QBK, UK-D-QBL, UK-D-QCX, UK-
D-QCY
    (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: January 23, 2017

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

POLICY JUSTIFICATION

United Kingdom--Continuation of C-17 Logistics Support Services and 
Equipment

    The Government of the United Kingdom has requested a possible sale 
of continued logistics support for eight (8) C-17 aircraft which will 
include: contract labor for sustainment engineering, on-site COMSEC 
support, Quality Assurance, support equipment repair, supply chain 
management, spares replenishment, maintenance, back shop support, 
centralized maintenance support/associated services, and additional 
spare and repair parts, publications and technical documentation. 
Required upgrades will include fixed installation satellite antenna, 
Mode 5+ installation and sustainment, Automatic Dependent Surveillance-
Broadcast Out, Communications Modernization (CNS/ATM) Phase II, 
Replacement Heads-Up Display and three special operations loading 
ramps. The estimated total cost is $400 million.
    The United Kingdom is a close ally and an important partner on 
critical foreign policy and defense issues. The proposed sale will 
enhance U.S. foreign policy and national security objectives by 
enhancing the United Kingdom's capabilities to provide national defense 
and contribute to NATO and coalition operations.
    The proposed sale of defense articles and services are required to 
maintain the operational readiness of the Royal Air Force. The United 
Kingdom's current contract supporting its C-17 aircraft will expire in 
September 2017. The United Kingdom will have no difficulty absorbing 
this support into its armed forces.
    The proposed sale of this equipment and support will not alter the 
basic military balance in the region.
    The prime contractor will be the Boeing Corporation of Chicago, 
Illinois. The U.S. Government is not aware of any known offsets 
associated with this sale. Any offset agreement will be defined in 
negotiations between the purchaser and the contractor.
    Implementation of this sale will require the assignment of 
approximately three additional U.S. Government and approximately 55 
contractor representatives to the United Kingdom.
    There will be no adverse impact on U.S. defense readiness as a 
result of this proposed sale.
Transmittal No. 16-82
Notice of Proposed Issuance of Letter of Offer Pursuant to Section 
36(b)(1) Of the Arms Export Control Act
Annex A
Item No. vii
    (vii) Sensitivity of Technology:
    1. This sale will involve the release of sensitive technology to 
the United Kingdom in the performance of services to sustain eight (8) 
United Kingdom C-17 aircraft. While much of the below equipment 
supporting the C-17 is not new to the country, there will be 
replenishment spares of the below sensitive technologies purchased to 
support the fleet.
    2. The Force 524D is a 24-channel SAASM based Global Positioning 
System (GPS) receiver, with precise positioning service (PPS) 
capability built upon Trimble's next generation OPS technology. The 
Force 524D retains backward compatibility with the proven Force 5GS, 
while adding new functionality to interface with digital antenna 
electronics, to significantly improve anti-jam (AJ) performance. The 
host platform can select the radio frequency (RF) or digital antenna 
electronics (DAE) interface. In the digital mode, the Force 524D is 
capable of controlling up to 16 independent beams. The hardware and 
software associated with the 524D receiver card is UNCLASSIFIED.
    3. The C-17 aircraft will be equipped with the GAS-1, which is 
comprised of the Controlled Reception Pattern Antennas (CRPA), with the 
associated wiring harness and the Antenna Electronics (AE)-1, to 
provide AJ capability. The hardware is UNCLASSIFIED.
    4. The KIV-77 is the crypto applique for Mode V Identification 
Friend of Foe (IFF). The hardware is UNCLASSIFIED and COMSEC 
controlled.
    5. Software, hardware, and other data/information, which is 
classified or sensitive, is 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 management of the basic software 
programs, of highly sensitive systems and software-controlled weapon 
systems, on a case-by-case basis.
    6. The United Kingdom is both willing and able to protect United 
States classified military information. The United Kingdom's physical 
and document security standards are equivalent to U.S. standards. The 
United Kingdom has demonstrated its willingness and capability to 
protect sensitive military technology and information released to its 
military in the past. The United Kingdom is firmly committed to its 
relationship with the United States and to its promise to protect 
classified information and prevent its transfer to a third party.
    7. If a technologically advanced adversary were to obtain knowledge 
of the specific hardware or software source code in this proposed sale, 
the information could be used to develop countermeasures which might 
reduce weapon system effectiveness or be used in the development of 
systems with similar or advanced capabilities. The benefits to be 
derived from this sale in the furtherance of the U.S. foreign policy 
and national security objectives, as outlined in the Policy 
Justification, outweigh the potential damage that could result if the 
sensitive technology, where revealed to unauthorized persons.
    8. All defense articles and services listed in this transmittal are 
authorized for release and export to the Government of the United 
Kingdom.

[FR Doc. 2017-01965 Filed 1-27-17; 8:45 am]
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