[Federal Register Volume 82, Number 80 (Thursday, April 27, 2017)]
[Notices]
[Pages 19357-19359]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-08495]


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DEPARTMENT OF DEFENSE

Office of the Secretary

[Transmittal No. 17-18]


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: Kathy Valadez, (703) 697-9217 or 
Pamela Young, (703) 697-9107; DSCA/DSA-RAN.
    The following is a copy of a letter to the Speaker of the House of 
Representatives, Transmittal 17-18 with attached Policy Justification.

    Dated: April 24, 2017.
Aaron Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
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[[Page 19358]]

[GRAPHIC] [TIFF OMITTED] TN27AP17.003

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Transmittal No. 17-18
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: Government of Canada
    (ii) Total Estimated Value:

Major Defense Equipment *...............................     $ 0 million
Other...................................................    $195 million
  TOTAL.................................................    $195 million
 

    (iii) Description and Quantity or Quantities of Articles or 
Services under Consideration for Purchase:
    Major Defense Equipment (MDE): None.
    Non-MDE:
    Non-MDE items and services under consideration for sale are follow-
on support for five (5) CC177 aircraft (Canada's designator for the C-
17), including contractor logistics support (CLS) provided through the 
Globemaster III Integrated Sustainment Program (GISP), in-country field 
services support, alternate mission equipment,

[[Page 19359]]

major modification and retrofit, software support, aircraft maintenance 
and technical support, support equipment, personnel training and 
training equipment, additional spare and repair parts, publications and 
technical documentation, and other U.S. Government and contractor 
engineering, logistics and program support.
    (iv) Military Department: Air Force (QCR)
    (v) Prior Related Cases, if any: CN-D-QZZ--$1.3B--15 Nov 06
    (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: None
    (viii) Date Report Delivered to Congress: April 19, 2017
    * as defined in Section 47(6) of the Arms Export Control Act.

POLICY JUSTIFICATION

Government of Canada--Sustainment Support for C-17 Aircraft

    The Government of Canada has requested a possible sale of follow-on 
support for five (5) CC177 aircraft (Canada's designator for the C-17), 
including contractor logistics support (CLS) provided through the 
Globemaster III Integrated Sustainment Program (GISP), in-country field 
services support, aircraft maintenance and technical support, support 
equipment, alternate mission equipment, software support, spares, 
personnel training and training equipment, U.S. Government and 
contractor engineering and logistics support services, publications and 
technical documentation, and major modification and retrofit kits 
support. The total estimated program cost is $195 million.
    This proposed sale will contribute to the foreign policy and 
national security objectives of the United States by sustaining the 
military capabilities of Canada, a NATO ally that has been, and 
continues to be, an important force for ensuring political stability 
and economic progress in the world, including through its involvement 
in military, peacekeeping, and humanitarian operations. The sustainment 
of Canada's C-17s will ensure the country's continued capability to 
rapidly deploy its forces, as well as the continued interoperability 
between the U.S. and Canadian Air Forces' C-17s.
    The proposed sale of defense articles and services is required to 
maintain the operational readiness of the Royal Canadian Air Force C-17 
aircraft. Canada's current contract supporting its five (5) C-17s will 
expire on 20 September 2017. The Royal Canadian Air Force will have no 
difficulty absorbing this support.
    The proposed sale of this equipment and support will not alter the 
basic military balance in the region.
    Sources of supply will award contracts when necessary to provide 
the defense articles ordered if items ordered are not available from 
U.S. stock or are considered lead-time away.
    The prime contractor will involve the following contractors:

Boeing Company, Long Beach, California
Boeing Company Training Systems, St. Louis, Missouri
Lockheed Martin Corporation/MFC, Lexington, Kentucky

    There are no known offsets. Any offset agreements will be defined 
in negotiations between the purchaser and the contractor.
    Implementation of this proposed sale will not require the 
assignment of any additional U.S. Government or contractor 
representatives to Canada. There is an on-going foreign military sales 
case providing C-17 sustainment services. There are currently 13 
contractors from Boeing in-country providing contractor technical 
services support on a continuing basis.
    There will be no adverse impact to U.S. defense readiness as a 
result of this proposed sale.

[FR Doc. 2017-08495 Filed 4-26-17; 8:45 am]
BILLING CODE 5001-06-P