[Federal Register Volume 84, Number 25 (Wednesday, February 6, 2019)]
[Notices]
[Pages 2190-2192]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-01230]


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DEPARTMENT OF DEFENSE

Office of the Secretary

[Transmittal No. 18-47]


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: Karma Job at [email protected] 
or (703) 697-8976.

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 18-47 with 
attached Policy Justification.

    Dated: February 1, 2019.
Shelly E. Finke,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
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Transmittal No. 18-47
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 Egypt
    (ii) Total Estimated Value:

Major Defense Equipment *................  $156 million
Other....................................  $ 45 million
                                          ------------------------------
  TOTAL..................................  $201 million
 

    (iii) Description and Quantity or Quantities of Articles or 
Services under Consideration for Purchase:
    Major Defense Equipment (MDE):

Forty-six thousand (46,000) 120MM Target Practice--Tracer (M831A1) and 
120MM Target Practice, Cone Stabilized, Discarding Sabot--(M865) Rounds
Ten thousand (10,000) 120MM 4th-Generation Kinetic Energy-Tungsten (KE-
W) A4 Armor-Piercing Fin-Stabilized Discarding Sabot with Tracer 
(APFSDS-T) Rounds

    Non-MDE:
    Also included are four thousand five hundred (4,500) 120MM 
Insensitive Munitions High Explosive with Tracer (IM HE-T) tank rounds, 
field implementation, testing inspections, spares and repair parts, 
support and test equipment, field support publications and technical 
data, U.S. government and contractor engineering and logistics support 
services, personnel training and training equipment, quality assurance 
team support services, preparation of ammunition for shipment, 
ammunition delivery, component improvement program and repair, other 
associated equipment and support, and other related elements of 
logistical and program support.
    (iv) Military Department: Army (EG-B-VHH, EG-B-NGB, EG-B-VGS)
    (v) Prior Related Cases, if any: EG-B-VAX, EG-B-NFP, EG-B-NFX, EG-
B-UWB
    (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: November 27, 2018

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

POLICY JUSTIFICATION

Egypt--120MM Tank Rounds

    This notification supersedes and replaces Transmittal No. 18-05 
delivered to Congress on September 17, 2018. Although the descriptions 
and quantities of all defense articles and services are unchanged, the 
dollar values were under-reported and are updated with this new 
transmittal.
    The Government of Egypt has requested to buy forty-six thousand 
(46,000) 120MM Target Practice--Tracer (M831A1) and 120MM Target 
Practice, Cone Stabilized, Discarding Sabot--(M865) rounds and ten 
thousand (10,000) 120MM 4th-Generation Kinetic Energy-Tungsten (KE-W) 
A4 Armor-Piercing Fin-Stabilized Discarding Sabot with Tracer (APFSDS-
T) rounds. Also included are four thousand five hundred (4,500) 120MM 
Insensitive Munitions High Explosive with Tracer (IM HE-T) tank rounds, 
field implementation, testing inspections, spares and repair parts, 
support and test equipment, field support publications and technical 
data, U.S. government and contractor engineering and logistics support 
services, personnel training and training equipment, quality assurance 
team support services, preparation of ammunition for shipment, 
ammunition delivery, component improvement program and repair, other 
associated equipment and support, and other related elements of 
logistical and program support. The estimated cost is $201 million.
    This proposed sale will contribute to the foreign policy and 
national security of the United States by helping to improve the 
security of a friendly country that continues to be an important 
strategic partner in the Middle East.
    The proposed sale will improve Egypt's capability to meet current 
and future threats and provide greater security for its critical 
infrastructure. Egypt will use the 120MM IM HE-T cartridges to maintain 
a strategic munitions inventory for its M1A1 tank fleet and in support 
of operations against militants affiliated with the Islamic State of 
Iraq and Syria in the Sinai. They will use the target practice rounds 
to train M1A1 crews in proper crew procedures in a training environment 
using munitions that cost a fraction of tactical rounds and have nearly 
zero explosive or penetrating capability. Egypt has been producing this 
type of ammunition under an existing co-production agreement for 
approximately 15 years. Egypt intends to use the APFSDS-T rounds to 
replace older model 120MM KE-W, KE-W Al, and KE-W A2 ammunition to 
maintain a strategic munitions inventory for its M1A1 tank fleet. Egypt 
will have no difficulty absorbing these munitions into its armed 
forces.
    The proposed sale of the munition and support will not alter the 
basic military balance in the region.
    The prime contractor involved in this program is General Dynamics 
Ordnance and Tactical Systems, St. Petersburg, FL. There are no known 
offset agreements proposed in connection with this potential sale.
    Implementation of this proposed sale will involve multiple trips to 
Egypt involving up to six (6) U.S. Government and contractor 
representatives over a period of up to 5 years.
    There will be no adverse impact on U.S. defense readiness as a 
result of this proposed sale.

[FR Doc. 2019-01230 Filed 2-5-19; 8:45 am]
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