[Federal Register Volume 83, Number 183 (Thursday, September 20, 2018)]
[Notices]
[Pages 47611-47613]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-20507]


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DEPARTMENT OF DEFENSE

Office of the Secretary

[Transmittal No. 18-27]


Arms Sales Notification

AGENCY: Defense Security Cooperation Agency, Department of Defense.

ACTION: Arms sales notice.

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

FOR FURTHER INFORMATION CONTACT: DSCA at dsca.ncr.lmo.mbx.info@mail.mil">dsca.ncr.lmo.mbx.info@mail.mil 
or (703) 697-9709.

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 18-27 with 
attached Policy Justification and Sensitivity of Technology.

    Dated: September 17, 2018.
Shelly E. Finke,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
BILLING CODE 5001-06-P

[[Page 47612]]

[GRAPHIC] [TIFF OMITTED] TN20SE18.000

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Transmittal No. 18-27
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: The Government of the Netherlands
    (ii) Total Estimated Value:

Major Defense Equipment *...............................    $122 million
Other...................................................    $ 47 million
                                                         ---------------
  Total.................................................    $169 million
 

    (iii) Description and Quantity or Quantities of Articles or 
Services under Consideration for Purchase:
    Major Defense Equipment (MDE):
One hundred six (106) MK 54 Lightweight Torpedo Conversion Kits
    Non-MDE:
    Also included are torpedo containers, Recoverable Exercise 
Torpedoes (REXTORP) with containers; Fleet Exercise Section (FES) and 
fuel tanks; air launch accessories for rotary wing aircraft; torpedo 
launcher interface cabinets; ground handling equipment; torpedo spare 
parts; training; publications; support and test equipment; U.S. 
Government and contractor engineering, technical, and logistics support 
services; and other related elements of logistics and program support.

[[Page 47613]]

    (iv) Military Department: Navy (NE-P-LHP)
    (v) Prior Related Cases, if any: None
    (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: July 31, 2018
    * As defined in Section 47(6) of the Arms Export Control Act.

POLICY JUSTIFICATION

The Netherlands--MK 54 Lightweight Torpedoes

    The Netherlands requests to buy one hundred six (106) MK 54 
conversion kits. Also included are torpedo containers, Recoverable 
Exercise Torpedoes (REXTORP) with containers; Fleet Exercise Section 
(FES) and fuel tanks; air launch accessories for rotary wing aircraft; 
torpedo launcher interface cabinets; ground handling equipment; torpedo 
spare parts; training; publications; support and test equipment; U.S. 
Government and contractor engineering, technical, and logistics support 
services; and other related elements of logistics and program support. 
The estimated program value is $169 million.
    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 is an important force for political stability and 
economic progress in Europe.
    The Royal Netherlands Navy intends to upgrade its current MK 46 
torpedoes to the MK 54 with the purchase of these kits. The Netherlands 
will have no difficulty absorbing the MK 54 torpedoes.
    The proposed sale of this equipment and support will not alter the 
basic military balance in the region.
    The principal contractor will be Raytheon Integrated Defense 
System, Portsmouth, Rhode Island. 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 additional U.S. Government or contractor 
representatives to Netherlands; however, U.S. Government Engineering 
and Technical Services may be required on an interim basis for 
installations and integration.
    There will be no adverse impact on U.S. defense readiness as a 
result of this proposed sale.
Transmittal No. 18-27
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 MK 54 Torpedo is a conventional torpedo that can be launched 
from surface ships, helicopters, and fixed wing aircraft. The MK 54 is 
an upgrade to the MK 46 Torpedo, which is currently in-service in 
Netherlands. The upgrade to the MK 54 entails replacement of the 
torpedo's sonar and guidance and control systems with modem technology. 
The new guidance and control system uses a mixture of commercial-off-
the-shelf and custom-built electronics. The warhead, fuel tank and 
propulsion system from the MK 46 torpedo are re-used in the MK 54 
configuration with minor modifications. There is no sensitive 
technology in the MK 54 or its support and test equipment. The 
assembled MK 54 torpedo and several of its individual components are 
classified CONFIDENTIAL. The MK 54 operational software is classified 
as SECRET. Netherlands will not be provided with the source code for 
the MK 54 operational software.
    2. If a technologically advanced adversary were to obtain knowledge 
of the hardware and software elements, the information could be used to 
develop countermeasures or equivalent systems which might reduce system 
effectiveness or be used in the development of a system with similar or 
advanced capabilities.
    3. A determination has been made that the Government of the 
Netherlands 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.
    4. All defense articles and services listed in this transmittal 
have been authorized for release and export to the Netherlands.

[FR Doc. 2018-20507 Filed 9-19-18; 8:45 am]
 BILLING CODE 5001-06-P