[Federal Register Volume 85, Number 16 (Friday, January 24, 2020)]
[Notices]
[Pages 4301-4305]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-01135]


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DEPARTMENT OF DEFENSE

Office of the Secretary

[Transmittal No. 19-66]


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 19-66, Policy 
Justification and Sensitivity of Technology.

    Dated: January 17, 2020.
Aaron T. Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
BILLING CODE 5001-06-P

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[GRAPHIC] [TIFF OMITTED] TN24JA20.048

BILLING CODE 5001-06-C
Transmittal No. 19-66
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 Australia
    (ii) Total Estimated Value:

Major Defense Equipment *...............  $ .50 billion
Other...................................  $1.00 billion
                                         -------------------------------
  TOTAL.................................  $1.50 billion
 

    (iii) Description and Quantity or Quantities of Articles or 
Services under Consideration for Purchase: The Government of Australia 
has requested to buy long lead items, engineering development 
activities, and other defense services to support the Australian 
Surface Combatant Program, including the modernization of three Hobart 
Class Destroyers, and construction of the first three (of nine total) 
Hunter Class Frigates.
    Major Defense Equipment (MDE):
    Three (3) Shipsets of the AEGIS Weapon System (AWS) in the MK 6 Mod 
1 configuration to support the Modernization of the Hobart Class DDGs, 
including: AEGIS Combat System Support Equipment (ACSSE); Weapon

[[Page 4303]]

Data Recording Cabinet (WDRC) equipment; Multi-Mission Signal Processor 
(MMSP-R) equipment; Network, Processing and Storage (NPS) equipment; 
Consoles Displays and Peripherals (CDP) equipment; Embedded Training 
System (ETS); Kill Assessment System (KAS); and Shipboard Gridlock 
System (SGS).
    Three (3) Shipsets of the AEGIS Weapon System (AWS) in the MK 6 Mod 
1 configuration to support the New Construction of the Hunter Class 
FFGs, including AEGIS Combat System Support Equipment (ACSSE); 
Electronic Equipment Fluid Cooler (EEFC) equipment; and Network, 
Processing and Storage (NPS) equipment; and Consoles Displays and 
Peripherals (CDP) equipment; Shipboard Gridlock System (SGS); Embedded 
Training System (ETS) and AN/SPQ-15 equipment.
    Three (3) shipsets of the MK 41 Vertical Launching Systems (VLS) 
for installation on the Hunter Class Frigates;
    Three (3) shipsets (2 mounts per ship) of the Close-In Weapons 
System (CIWS) for installation on the Hunter Class Frigates;
    Two (2) Australia AEGIS Weapon System Computer Programs (one for 
Hobart Class, one for Hunter Class), and associated computer programs 
for AEGIS Combat System components for installation on both the Hobart 
and Hunter Class ships;
    Six (6) shipsets of the Global Positioning System (GPS)--Based 
Positioning, Navigation and Timing Service (GPNTS) Navigation Systems 
and associated Advanced Digital Antenna Production (ADAP) antennas and 
support equipment for installation on the Hobart and Hunter Class 
ships;
    Six (6) shipsets of upgraded Cooperative Engagement Capability 
(CEC) equipment for installation on the Hobart and Hunter Class ships;
    Six (6) shipsets of Command and Control Processor (C2P) equipment 
for installation on the Hobart and Hunter Class ships;
    Eight (8) shipsets of Multifunctional Information Distribution 
System Joint Tactical Radio Set (MIDS JTRS) terminals for installation 
on the Hobart and Hunter Class ships.
    Non-MDE:
    Also included are:
    Three (3) shipsets of MK 34 Gun Weapon System (GWS) modification 
equipment to include the Electro Optical Sight System and changes 
supporting Naval Fires Planner and associated TacLink Control System 
for installation on the Hobart Class Destroyers;
    Three (3) shipsets of MK 34 Gun Weapon System components to include 
the MK 160 Gun Computing System and the MK 20 Electro Optical Sight 
System, and the Naval Fires Planner and associated TacLink Control 
System for installation on the Hunter Class Frigates;
    Three (3) shipsets of: Mode 5/S capable Identification, Friend of 
Foe (IFF) Systems; Gigabit Ethernet Data Multiplexing System (GEDMS); 
AN/WSN-7 Ring Laser Gyrocompass Inertial Navigation Systems; WSN-9 
Digital Hybrid Speed Log systems; Common Data Link Management System 
(CDLMS); and Global Command and Control System--Maritime (GCCS-M) 
systems for installation on the Hunter Class Frigates;
    Six (6) shipsets of AN/SRQ-4 Hawklink and SQQ-89 Sonobuoy 
processing equipment for installation on the Hobart and Hunter Class 
ships;
    Defense services for development and integration of a capability 
upgrade for the installed AEGIS Combat System on the Hobart Class 
Destroyer, including Integrated Air and Missile Defense capability and 
growth capability for Ballistic Missile Defense;
    Development, integration and testing support for installation of a 
AEGIS Combat System for installation on the Hunter Class FFG, a Global 
Combat Ship Type 26 (BAE) platform, including the integration of the 
indigenous CEAFAR 2 Phased Array Radar (CEA Industries) with the AEGIS 
Combat System (including Cooperative Engagement Capability) and the 
primary radar sensor and illuminator;
    Integration of selected Australian provided combat system 
components including Undersea Warfare and Ship Self Defense for 
installation on the Hobart and Hunter Class ships;
    Integration of the MH-60R helicopter into the AEGIS Combat System 
for installation on the Hobart and Hunter Class ships;
    Procurement and delivery of installation support material, special 
purpose test equipment, initial logistics outfitting, spares and other 
ancillary equipment to support the installation and integration of 
AEGIS Combat System equipment in the Hunter and Hobart class ship 
platforms;
    Development of technical documentation to support both programs; 
provision of logistics and other support services to support the Hobart 
and Hunter Class ships;
    Procurement, staging, delivery and installation support for AEGIS 
Combat System equipment for the Hobart and Hunter Class ships;
    Provision of training support for curriculum development, training 
tool development, front-end analysis, and crew training for the Hobart 
and Hunter Class ships;
    U.S. Government and contractor representative engineering, 
logistics, and technical support services; and other related elements 
of logistics and program support for the Hobart and Hunter Class ships.
    (iv) Military Department: Navy (AT-P-LFZ)
    (v) Prior Related Cases, if any: AT-P-LCQ, AT-P-GSU, and AT-P-GSC
    (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: January 14, 2020

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

POLICY JUSTIFICATION

Australia - Australia Surface Combatant (ASC) Program

    The Government of Australia has requested to buy long lead items, 
engineering development activities, and other defense services to 
support the Australian Surface Combatant Program, including the 
modernization of three Hobart Class Destroyers, and construction of the 
first three (of nine total) Hunter Class Frigates which includes: three 
(3) Shipsets of the AEGIS Weapon System (AWS) in the MK 6 Mod 1 
configuration to support the Modernization of the Hobart Class DDGs; 
three (3) Shipsets of the AEGIS Weapon System (AWS) in the MK 6 Mod 1 
configuration to support the New Construction of the Hunter Class FFGs; 
three (3) shipsets of the MK 41 Vertical Launching Systems (VLS) for 
installation on the Hunter Class Frigates; three (3) shipsets (2 mounts 
per ship) of the Close-In Weapons System (CIWS) for installation on the 
Hunter Class Frigates; two (2) Australia AEGIS Weapon System Computer 
Programs (one for Hobart Class, one for Hunter Class), and associated 
computer programs for AEGIS Combat System components for installation 
on both the Hobart and Hunter Class ships; six (6) shipsets of the 
Global Positioning System (GPS) - Based Positioning, Navigation and 
Timing Service (GPNTS) Navigation Systems and associated Advanced 
Digital Antenna Production (ADAP) antennas and support equipment for 
installation on the Hobart and Hunter Class ships; six (6) shipsets of 
upgraded Cooperative Engagement

[[Page 4304]]

Capability (CEC) equipment for installation on the Hobart and Hunter 
Class ships; six (6) shipsets of Command and Control Processor (C2P) 
equipment for installation on the Hobart and Hunter Class ships; and 
eight (8) shipsets of Multifunctional Information Distribution System 
Joint Tactical Radio Set (MIDS JTRS) terminals for installation on the 
Hobart and Hunter Class ships. Also included are: three (3) shipsets of 
MK 34 Gun Weapon System (GWS) modification equipment to include the 
Electro Optical Sight System and changes supporting Naval Fires Planner 
and associated TacLink Control System for installation on the Hobart 
Class Destroyers; three (3) shipsets of MK 34 Gun Weapon System 
components to include the MK 160 Gun Computing System and the MK 20 
Electro Optical Sight System, and the Naval Fires Planner and 
associated TacLink Control System for installation on the Hunter Class 
Frigates; three (3) shipsets of: Mode 5/S capable Identification, 
Friend of Foe (IFF) Systems; Gigabit Ethernet Data Multiplexing System 
(GEDMS); AN/WSN-7 Ring Laser Gyrocompass Inertial Navigation Systems; 
WSN-9 Digital Hybrid Speed Log systems; Common Data Link Management 
System (CDLMS); and Global Command and Control System-Maritime (GCCS-M) 
systems for installation on the Hunter Class Frigates; six (6) shipsets 
of AN/SRQ-4 Hawklink and SQQ-89 Sonobuoy processing equipment for 
installation on the Hobart and Hunter Class ships; defense services for 
development and integration of a capability upgrade for the installed 
AEGIS Combat System on the Hobart Class Destroyer, including Integrated 
Air and Missile Defense capability and growth capability for Ballistic 
Missile Defense; development, integration and testing support for 
installation of a AEGIS Combat System for installation on the Hunter 
Class FFG, a Global Combat Ship Type 26 (BAE) platform, including the 
integration of the indigenous CEAFAR 2 Phased Array Radar (CEA 
Industries) with the AEGIS Combat System (including Cooperative 
Engagement Capability) and the primary radar sensor and illuminator; 
integration of selected Australian provided combat system components 
including Undersea Warfare and Ship Self Defense for installation on 
the Hobart and Hunter Class ships; integration of the MH-60R helicopter 
into the AEGIS Combat System for installation on the Hobart and Hunter 
Class ships; Procurement and delivery of installation support material, 
special purpose test equipment, initial logistics outfitting, spares 
and other ancillary equipment to support the installation and 
integration of AEGIS Combat System equipment in the Hunter and Hobart 
class ship platforms; development of technical documentation to support 
both programs; provision of logistics and other support services to 
support the Hobart and Hunter Class ships; procurement, staging, 
delivery and installation support for AEGIS Combat System equipment for 
the Hobart and Hunter Class ships; provision of training support for 
curriculum development, training tool development, front-end analysis, 
and crew training for the Hobart and Hunter Class ships; U.S. 
Government and contractor representative engineering, logistics, and 
technical support services; and other related elements of logistics and 
program support for the Hobart and Hunter Class ships. The total 
estimated cost is $1.50 billion.
    This proposed sale will support the foreign policy and national 
security objectives of the United States. Australia is one of our most 
important allies in the Western Pacific. The strategic location of this 
political and economic power contributes significantly to ensuring 
peace and economic stability in the region.
    The proposed sale will enhance Australia's Surface Combatant 
capability by modernizing their existing three AEGIS capable Hobart 
Class Destroyers with the latest technology and capability, and 
delivering the first three (of nine) AEGIS capable Hunter Class Future 
Frigates. This sale enhances Australia's self-defense capability, while 
significantly improving interoperability with U.S. Navy AEGIS 
combatants in the region. By deploying a surface combatant fleet that 
will incorporate Cooperative Engagement Capability (CEC), Australia 
will significantly improve network-centric warfare capability for US 
forces operating in the region. Australia will have no difficulty 
absorbing this equipment into its armed forces.
    The proposed sale of this equipment and support will not alter the 
basic military balance in the region.
    There are a significant number of companies under contract with the 
U.S. Navy that will provide components and systems as well as 
engineering services during the execution of this effort, with a 
significant portion of the effort to be performed by Lockheed Martin, 
Rotary and Mission Systems, Moorestown, NJ. There are no known offset 
agreements proposed in connection with this potential sale.
    Implementation of this proposed sale will require travel of U.S. 
Government and/or contractor representatives to Australia on a 
temporary basis for program support and management oversight. No 
extended (long-term) visits to Australia will be required as part of 
this effort.
    There will be no adverse impact on U.S. defense readiness as a 
result of this proposed sale.
Transmittal No. 19-66
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. This sale involves the procurement of long lead material and 
services to support the Australian Surface Combatant Program. The AEGIS 
Combat System (ACS) to be procured to support the modernization of the 
Hobart Class Destroyers is a multi-mission combat system providing 
Integrated Air and Missile Defense (IAMD) and a growth path to 
Ballistic Missile Defense (BMD) capability, derived from USN AEGIS 
Weapon System Baseline 9 capability. In addition to shipboard AEGIS 
equipment, this proposed sale will provide software, documentation 
(including combat system capabilities and limitations), training 
devices and services, and other technical support to ensure the proper 
installation, testing and operation of the provided equipment.
    2. AEGIS Weapon System simulation software, documentation, training 
and study material will be provided a classification levels up to and 
including SECRET. Delivery of sensitive technological information, up 
to and including SECRET, will be limited to the minimum level of 
information required to progress activities associated with the 
integration of indigenous combat system systems into the AEGIS Combat 
System. This consists primarily of AEGIS Combat System requirements and 
integration information to support early combat system development 
activities, in the form of documentation, simulation software, and 
technical specifications. This information is sensitive as it provides 
limited insight into AEGIS Combat System capabilities and requirements 
- as tailored to the Australian AEGIS Combat System configurations.
    3. The Cooperative Engagement Capability (CEC) is a system that 
fuses tracking data from shipboard sensors and distributes radar 
measurement data to other platforms with CEC capability. This data is 
filtered and combined to create a common tactical picture, based

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on available sensor data from all platforms netted through the CEC 
system. The hardware is unclassified with the exception of a 
Communications Security (COMSEC) card which is classified SECRET. The 
software and documentation are classified SECRET. All manuals and 
technical documentation disclosure will be limited to those necessary 
for operational use and organizational maintenance.
    4. If a technologically advanced adversary were to obtain knowledge 
of the specific hardware and software elements, the information could 
be used to develop countermeasures, which might reduce weapon system 
effectiveness or be used in the development of a system with similar or 
advanced capabilities.
    5. This sale is necessary in furtherance of the U.S. foreign policy 
and national security objectives outlined in the enclosed Policy 
Justification. A determination has been made that Australia can provide 
the same degree of protection for the sensitive technology being 
released as the U.S. Government.
    6. All defense articles and services listed on this transmittal 
have been authorized for release and export to the Government of 
Australia.

[FR Doc. 2020-01135 Filed 1-23-20; 8:45 am]
 BILLING CODE 5001-06-P