[Federal Register Volume 83, Number 47 (Friday, March 9, 2018)]
[Notices]
[Pages 10449-10452]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-04807]


-----------------------------------------------------------------------

DEPARTMENT OF DEFENSE

[Transmittal No. 17-66]


Arms Sales Notification

AGENCY: Defense Security Cooperation Agency, Department of Defense.

ACTION: Arms sales notice.

-----------------------------------------------------------------------

SUMMARY: The Department of Defense is publishing the unclassified text 
of an arms sales notification.

FOR FURTHER INFORMATION CONTACT: Pamela Young, (703) 697-9107, 
[email protected] or Kathy Valadez, (703) 697-9217, 
[email protected]; DSCA/DSA-RAN.

SUPPLEMENTARY INFORMATION: This 36(b)(1) arms sales notification is 
published to fulfill the requirements of section 155 of Public Law 104-
164 dated July 21, 1996. The following is a copy of a letter to the 
Speaker of the House of Representatives, Transmittal 17-66 with 
attached Policy Justification and Sensitivity of Technology.

    Dated: March 6, 2018.
Aaron Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
BILLING CODE 5001-06-P

[[Page 10450]]

[GRAPHIC] [TIFF OMITTED] TN09MR18.002

BILLING CODE 5001-06-C
Transmittal No. 17-66
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 the Netherlands
    (ii) Total Estimated Value:

Major Defense Equipment *...............................   $ 829 million
Other...................................................   $ 362 million
                                                         ---------------
  Total.................................................  $1.191 billion
 

    (iii) Description and Quantity or Quantities of Articles or 
Services under Consideration for Purchase: The Government of the 
Netherlands has requested the possible sale of items and services to 
support the upgrade/remanufacture of twenty-eight (28) AH-64D Block II 
Apache Attack Helicopters to the AH-64E configuration.
    Major Defense Equipment (MDE):

Fifty-one (51) T700-GE-701D Engines (42 remanufactured engines to be 
installed and 9 spares)
Seventeen (17) AN/APG-78 Fire Control Radars and Subcomponents
Twenty-eight (28) AN/ASQ-170 Modernized Target Acquisition and 
Designation Sights (MTADS)/AN/AAR-11 Modernized Pilot Night Vision 
Sensors (PNVS)
Twenty-eight (28) AN/APR-48B Modernized Radar Frequency Interferometers 
(MRFI)
Seventy (70) Embedded Global Positioning System/Inertial Navigation 
Systems (EGI) plus Multi-Mode Receiver (56 installed, 14 spares)

    Non-MDE:

    Non-MDE items and services to support the upgrade/remanufacturing 
of

[[Page 10451]]

the existing AH-64D Block II Apache Attack Helicopters to AH-64E 
configuration, training devices, helmets, simulators, generators, 
transportation, wheeled vehicles and organization equipment, 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 and program support.
    (iv) Military Department: Army (NE-B-WJW)
    (v) Prior Related Cases, if any: NE-B-VXC, NE-B-WDP, NE-B-WES, NE-
B-WBW, NE-B-WHD, NE-B-WGC
    (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: February 20, 2018

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

POLICY JUSTIFICATION

Netherlands--AH-64E Remanufactured Apache Attack Helicopters

    The Government of the Netherlands has requested the possible sale 
of items and services to support the upgrade/remanufacture of twenty-
eight (28) AH-64D Block II Apache Attack Helicopters to the AH-64E 
configuration to include upgrading fifty-one (51) remaining T700-GE-
701C Engines to T700-GE-701D (42 engines to be installed, 9 spares), 
seventeen (17) AN/APG-78 Fire Control Radar (FCR) and subcomponents, 
twenty-eight (28) AN/ASQ-170 Modernized Target Acquisition and 
Designation Sights (MTADS)/AN/AAR-11 Modernized Pilot Night Vision 
Sensors (PNVS), twenty-eight (28) AN/APR-48B Modernized Radar Frequency 
Interferometers (MRFI), and seventy (70) Embedded Global Positioning 
System/Inertial Navigation Systems (EGI) plus Multi-Mode Receiver. Non-
MDE items and services to support the upgrade/remanufacturing of the 
existing AH-64D Block II Apache Attack Helicopters to AH-64E 
configuration, training devices, helmets, simulators, generators, 
transportation, wheeled vehicles and organization equipment, 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 and program support. 
The estimated total case value is $1.191 billion.
    This proposed sale will support the foreign policy and national 
security objectives of the United States by improving the security of a 
NATO ally which has been, and continues to be, an important force for 
political stability and economic progress in Europe. It is vital to 
U.S. national interests to assist the Netherlands to develop and 
maintain a strong and ready self-defense capability.
    The proposed sale of the AH-64E remanufacture will improve the 
Netherlands' capability to meet current and future threats of enemy. 
The Netherlands will use the enhanced capability to strengthen its 
homeland defense and deter regional threats, and provide direct support 
to coalition and security cooperation efforts. The Netherlands will 
have no difficulty absorbing this aircraft upgrade 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 are Boeing Company, St. Louis, MO and 
Lockheed Martin, Bethesda, MD. The purchaser typically requests 
offsets. Any offset agreement 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 the Netherlands.
    There will be no adverse impact on U.S. defense readiness as a 
result of this proposed sale.
Transmittal No. 17-66
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. The AH-64E Apache Attack Helicopter weapon system contains 
communications and target identification equipment, navigation 
equipment, aircraft survivability equipment, displays, and sensors. The 
airframe itself does not contain sensitive technology; however, the 
pertinent equipment listed below will either be installed on the 
aircraft or included in the sale:
    a. The AN/APG-78 Fire Control Radar (FCR) is an active, low-
probability of intercept, millimeter-wave radar, combined with a 
passive AN/APR-48B Modernized Radar Frequency Interferometer (M-RFI) 
mounted on top of the helicopter mast. The FCR Ground Targeting Mode 
detects, locates, classifies and prioritizes stationary or moving 
armored vehicles, tanks and mobile air defense systems as well as 
hovering helicopters, helicopters, and fixed wing aircraft in normal 
flight. The M-RFI detects threat radar emissions and determines the 
type of radar and mode of operation. The FCR data and M-RFI data are 
fused for maximum synergism. If desired, the radar data can be used to 
refer targets to the regular electro-optical Modernized Target 
Acquisition and Designation Sight (MTADS), permitting additional 
visual/infrared imagery and control of weapons, including the semi-
active laser version of the HELLFIRE II missile. Critical system 
information is stored in the FCR in the form of mission executable 
code, target detection, classification algorithms and coded threat 
parametrics. This information is provided in a form that cannot be 
extracted by the foreign user via anti-tamper provisions built into the 
system. The content of these items is classified SECRET. The M-RFI is a 
passive radar detection and direction finding system, which utilizes a 
detachable User Data Module (UDM) on the RFI processor, which contains 
the Radio Frequency threat library. The UDM, which is a hardware 
assemblage, is classified CONFIDENTIAL when programmed with threat 
parameters, threat priorities and/or techniques derived from U.S. 
intelligence information.
    b. The AN/ASQ-170 Modernized Target Acquisition and Designation 
Sight/AN/AAQ-11 Pilot Night Vision Sensor (MTADS/PNVS) provides day, 
night, and limited adverse weather target information, as well as night 
navigation capabilities. The PNVS provides thermal imaging that permits 
map-of-the-earth flight to, from, and within the battle area, while 
TADS provides the co-pilot gunner with search, detection, recognition, 
and designation by means of Direct View Optics (DVO), EI\2\ television, 
and Forward Looking Infrared (FLIR) sighting systems that may be used 
singularly or in combinations. Hardware is UNCLASSIFIED. Technical 
manuals for authorized maintenance levels are UNCLASSIFIED.
    c. The AN/APR-48B Modernized Radar Frequency Interferometer (M-RFI) 
is an updated version of the passive radar detection and direction 
finding system. It utilizes a detachable UDM on the M-RFI processor, 
which contains the Radar Frequency (RF) threat library. The UDM, which 
is a hardware assemblage item, is classified

[[Page 10452]]

CONFIDENTIAL when programmed with threat parametrics, threat priorities 
and/or techniques derived from U.S. intelligence information. Hardware 
becomes CLASSIFIED when populated with threat parametric data.
    d. KIV-77 A common IFF Applique Crypto Computer that provides 
information assurance for the IFF interrogators and transponders using 
Modes 4 and 5. The hardware is classified UNCLASSIFIED. This item is 
CCI and SENSITIVE. Releasable technical manuals for operation and 
maintenance are classified FOUO.
    e. The Embedded Global Positioning System/Inertial Navigation 
System plus Multi- Mode Receiver (EGI+MMR) EGI GEM V 3.3 W/SAASM PN: 
3424 9950-R004-XXX Software Security Core PN: CP34211974-003 
(CP34211903-002), GCORE 3 ver 3 SAASM with MMR. The aircraft has two 
EGIs which use internal accelerometers, rate gyro measurements, and 
external sensor measurements to estimate the aircraft state, provides 
aircraft flight and position data to aircraft systems. The EGI is a 
velocity-aided, strap down, ring laser gyro based inertial unit. The 
EGI unit houses a 12-channel (GEM 5) GPS receiver. The receiver is 
capable of operating in either non-encrypted (C/A code) or encrypted 
(P/Y code). The Group User Variable (GUV) is the normal encryption key 
used when operating in the P/Y code mode. The GUV key is loaded into 
the EGI using an ANACD-10 or equivalent device. When keyed, the GPS 
receiver will automatically use anti-spoof/jam capabilities when they 
are in use. The EGI will retain the key through power on/off/on cycles. 
Because of safeguards built into the EGI, it is not considered 
classified when keyed. Integrated within the EGI is an Inertial 
Measurement Unit (IMU) with processing functions for performing the 
inertial navigation computations, GPS card, receiver management, and 
Kalman filter estimates to support all aircraft and weapon systems 
position and navigation computations. Each EGI also houses a Multi-Mode 
Receiver (MMR). The MMR is incorporated to provide for reception of 
ground based NAVAID signals for instrument aided flight. Provides IMC/
IFR integration and certification of improved Embedded Global 
Positioning System and Inertial (EGI) unit with attached MMR, with 
specific cockpit instrumentation that allows Apaches to operate within 
the worldwide IFR route structure. Also includes integration of the 
Common Army Aviation Map (CAAM), Area Navigation (RNAV), Digital 
Aeronautical Flight Information File (DAFIF) and Global Air Traffic 
Management (GATM) compliance.
    2. If a technologically advanced adversary were to obtain knowledge 
of specific hardware, the information could be used to develop 
countermeasures which might reduce weapons system effectiveness or be 
used in the development of a system with similar or advanced 
capabilities.
    3. A determination has been made that the Netherlands can provide 
substantially the same degree of protection for sensitive technology 
being released as the U.S. Government. This proposed sustainment 
program is necessary to the furtherance of the U.S. foreign policy and 
national security objectives outlined in the policy justification.
    4. All defense articles and services listed on this transmittal are 
authorized for release and export to the Government of the Netherlands.

[FR Doc. 2018-04807 Filed 3-8-18; 8:45 am]
BILLING CODE 5001-06-P