[Federal Register Volume 83, Number 217 (Thursday, November 8, 2018)]
[Notices]
[Pages 55859-55861]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-24417]


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DEPARTMENT OF DEFENSE

Office of the Secretary

[Transmittal No. 18-37]


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 18-37 with 
attached Policy Justification and Sensitivity of Technology.

    Dated: November 2, 2018.
Aaron T. Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.

[[Page 55860]]

[GRAPHIC] [TIFF OMITTED] TN08NO18.005

Transmittal No. 18-37
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 United Kingdom
    (ii) Total Estimated Value:

Major Defense Equipment *...............................     $57 million
Other...................................................     $18 million
                                                         ---------------
  Total.................................................     $75 million
 

    (iii) Description and Quantity or Quantities of Articles or 
Services under Consideration for Purchase:
    Major Defense Equipment (MDE): Fifty (50) MK 15 Phalanx Close-In 
Weapon System (CIWS) Block IB Baseline 2 Upgrade Kits
    Non-MDE: Also included are support equipment, test equipment, 
initial spare parts, technical documentation, training, and engineering 
technical assistance, and other related elements of logistics and 
program support.
    (iv) Military Department: Navy (UK-P-LWD)
    (v) Prior Related Cases, if any: UK-P-BRB, UK-P-FBH, UK-P-FBR, UK-
P-GAH, UK-P-JZO, UK-P-KAX, UK-P-KPM, UK-P-KPQ, UK-P-LFK, UK-P-LGP, UK-
P-LHD, and UK-P-LHO
    (vi) Sales Commission, Fee, etc., Paid, Offered, or Agreed to be 
Paid: None

[[Page 55861]]

    (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: September 19, 2018
    * As defined in Section 47(6) of the Arms Export Control Act.

POLICY JUSTIFICATION

United Kingdom--Phalanx Baseline 2 Radar Upgrade Kits

    The Government of the United Kingdom (UK) has requested to buy 
fifty (50) MK 15 Phalanx Close-in Weapon System (CIWS) Block IB 
Baseline 2 Upgrade Kits. Also included are support equipment, test 
equipment, initial spare parts, technical documentation, training, and 
engineering technical assistance, and other related elements of 
logistics and program support. The total estimated program cost is $75 
million.
    This proposed sale will support U.S. 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 partner on 
critical foreign policy and defense issues.
    The proposed sale of the Phalanx Baseline 2 Radar Upgrade Kits will 
be used for close-in ship self-defense against air and surface threats 
onboard the UK's naval combatants and auxiliaries. The UK, which 
already has earlier versions of the MK 15 Phalanx in its inventory, 
will have no difficulty absorbing these upgrades and 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 Raytheon Missile Systems, Tucson, AZ. 
There are no known offset agreements proposed in connection with this 
potential sale.
    Implementation of this proposed sale will require multiple trips by 
U.S. Government and contractor representatives to participate in 
program and technical reviews, plus training and maintenance support in 
country as required.
    There will be no adverse impact on U.S. defense readiness as a 
result of this proposed sale.
Transmittal No. 18-37
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 MK15 Phalanx Close-in Weapon System (CIWS) consists of a 
rapid-fire, computer-controlled radar and gun system mounted on a 
turret designed to defeat anti-ship missiles; small surface craft; low, 
slow aircraft; rockets; and mortars. The weapon system automatically 
carries out search, detection, target threat evaluation, tracking, 
firing, and kill loop fire control that uses advanced radar and 
computer technology to locate, identify, and direct a system of armor 
piercing projectiles to the target. The Phalanx Block IB Baseline 2 
Radar Upgrade Kits converts the system's radar from an analog to 
digital suite, significantly improving obsolescence of hardware. Some 
performance in range, speed, maneuverability, and organic sensor 
capabilities will be enhanced over the existing UK Phalanx system. 
These kits will allow for the UK to upgrade its current Block IB 
Baseline 1 systems via approved in-country Depot-Level Maintenance 
Facility (DLMF) capability. The highest classification of the hardware 
in the proposed sale is SECRET. The highest classification of the 
technical documentation in the proposed sale is SECRET. The highest 
classification of the operational software to be exported is SECRET.
    2. If a technologically advanced adversary obtains knowledge of the 
specific hardware and software elements, the information could be used 
to develop countermeasures or equivalent systems that might reduce 
weapon 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 United 
Kingdom can provide substantially the same degree of protection for the 
sensitive technology being released as the U.S. Government. This 
proposed sale 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 in this transmittal are 
authorized for release and export to the Government of the United 
Kingdom.

[FR Doc. 2018-24417 Filed 11-7-18; 8:45 am]
 BILLING CODE 5001-06-P