[Federal Register Volume 83, Number 184 (Friday, September 21, 2018)]
[Notices]
[Pages 47904-47906]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-20566]


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DEPARTMENT OF DEFENSE

Office of the Secretary

[Transmittal No. 18-32]


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 18-32 with 
attached Policy Justification and Sensitivity of Technology.

    Dated: September 18, 2018.
Shelly E. Finke,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
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[GRAPHIC] [TIFF OMITTED] TN21SE18.007

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Transmittal No. 18-32
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*................................     $ 0 million
Other...................................................    $105 million
                                                         ---------------
  TOTAL.................................................    $150 million
 

    (iii) Description and Quantity or Quantities of Articles or 
Services under Consideration for Purchase: Foreign Military Sales Case 
NE-B-WHJ, implemented on December 29, 2016, was below congressional 
notification threshold at $65.5 million for the Recapitalization 
(RECAP) of the four (4) Netherlands Patriot Fire Units. The Netherlands 
has requested the case be amended to include the Launching Stations in 
the RECAP program. This amendment will push the current case above the 
notification threshold and thus requires notification of the entire 
case.
    Major Defense Equipment (MDE): None
    Non-MDE: RECAP of four (4) Patriot Fire Units to include Radar Sets 
(RS), Radar Digital Processors (RDP), Engagement Control Stations 
(ECS), Information and Coordination Central

[[Page 47906]]

(ICC), Modem Man Stations (MMS), Launching Stations, and Post 
Deployment Build (PDB)-8 upgrades along with parts, tools, technical 
and engineering assistance, support services, testing, and other 
related elements of logistics and program support, which will produce 
fire units at the Configuration 3+ capability.
    (iv) Military Department: Army (NE-B-WHJ)
    (v) Prior Related Cases, if any: NE-B-WFX, NE-B-WEC, NE-B-WGF
    (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: September 5, 2018
    *As defined in Section 47(6) of the Arms Export Control Act.

POLICY JUSTIFICATION

The Netherlands--Patriot Recapitalization (RECAP)

    The Netherlands has requested Recapitalization (RECAP) of four (4) 
Netherlands Patriot Fire Units. RECAP includes Radar Sets (RS), Radar 
Digital Processors (RDP), Engagement Control Stations (ECS), 
Information and Coordination Central (ICC), Modem Man Stations (MMS), 
Launching Stations, and Post Deployment Build (PDB)-8 upgrades along 
with parts, tools, technical and engineering assistance, support 
services, testing, and other related elements of logistics and program 
support, which will produce fire units at the Configuration 3+ 
capability. The total estimated program cost is $105 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 the European region.
    This sale improves the Netherlands' capability to meet current and 
future enemy threats. 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 upgraded 
equipment and support into its armed forces.
    The proposed sale of this equipment and support will not alter the 
basic military balance in the region.
    U.S. Government personnel will conduct the RECAP at Letterkenny 
Army Depot. The purchaser typically requests offsets. 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 the Netherlands.
    There will be no adverse impact on U.S. defense readiness as a 
result of this proposed sale.
Transmittal No. 18-32
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 Patriot Air Defense System contains CONFIDENTIAL hardware 
components, SECRET tactical software and CRITICAL/SENSITIVE. Patriot 
ground support equipment and Patriot missile hardware contain 
CONFIDENTIAL components and the associated launcher hardware is 
UNCLASSIFIED. The services requested represent significant 
technological advances for the Netherlands. The Patriot Air Defense 
System continues to hold a significant technology lead over other 
surface-to-air missile systems around the world.
    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. 2018-20566 Filed 9-20-18; 8:45 am]
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