[Federal Register Volume 86, Number 198 (Monday, October 18, 2021)]
[Notices]
[Pages 57648-57650]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-22669]


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DEPARTMENT OF DEFENSE

Office of the Secretary

[Transmittal No. 21-17]


Arms Sales Notification

AGENCY: Defense Security Cooperation Agency, Department of Defense 
(DoD).

ACTION: Arms sales notice.

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

FOR FURTHER INFORMATION CONTACT: Neil Hedlund at 
[email protected] or (703) 697-9214.

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 21-17 with 
attached Policy Justification and Sensitivity of Technology.

    Dated: October 13, 2021.
Aaron T. Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.

[[Page 57649]]

[GRAPHIC] [TIFF OMITTED] TN18OC21.003

BILLING CODE 5001-06-C
Transmittal No. 21-17
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 Canada
    (ii) Total Estimated Value:

Major Defense Equipment *................  $ .7 billion
Other....................................  $1.0 billion
                                          ------------------------------
  Total..................................  $1.7 billion
 

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

Four (4) Shipsets of the AEGIS Combat System (ACS)
One (1) AEGIS Combat System Computer Program
Four (4) Shipsets of AN/SPY-7 Solid State Radar Components
Four (4) Shipsets of Cooperative Engagement Capability (CEC)
Three (3) Shipsets of the MK 41 Vertical Launch System

    Non-MDE: Also included is Mode 5/S capable Identification Friend or 
Foe (IFF) equipment; early ACS development activities for the Canadian 
Surface Combatant (CSC) Project to include U.S. Government and 
contractor representative engineering activities

[[Page 57650]]

supporting design, integration, testing, technical documentation, 
modeling, and training; hardware to support development and testing in 
U.S. facilities; software; documentation (including combat system 
capabilities and limitations); training devices and services; technical 
support; and other related elements of logistical and program support.
    (iv) Military Department: Navy (CN-P-FFFA1, CN-P-LLG)
    (v) Prior Related Cases, if any: CN-P-FDP, CN-P-FFA, CN-P-FFF
    (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: May 10, 2021
    * As defined in Section 47(6) of the Arms Export Control Act.

POLICY JUSTIFICATION

Canada--AEGIS Combat System

    The Government of Canada has requested to buy four (4) Shipsets of 
the AEGIS Combat System (ACS); one (1) AEGIS Combat System Computer 
Program; four (4) Shipsets of AN/SPY-7 Solid State Radar Components; 
four (4) Shipsets of Cooperative Engagement Capability (CEC); and three 
(3) Shipsets of the MK 41 Vertical Launch System. Also included is Mode 
5/S capable Identification Friend or Foe (IFF) equipment; early ACS 
development activities for the Canadian Surface Combatant (CSC) Project 
to include U.S. Government and contractor representative engineering 
activities supporting design, integration, testing, technical 
documentation, modeling, and training; hardware to support development 
and testing in U.S. facilities; software; documentation (including 
combat system capabilities and limitations); training devices and 
services; technical support; and other related elements of logistical 
and program support. The estimated total cost is $1.7 billion.
    This proposed sale will support the foreign policy and national 
security objectives of the United States by helping to improve the 
military capability of Canada, a NATO ally that is an important force 
for ensuring political stability and economic progress, and a 
contributor to military, peacekeeping and humanitarian operations 
around the world.
    This proposed sale will increase Canadian maritime forces' 
interoperability with the United States and other allied forces, as 
well as their ability to contribute to missions of mutual interest by 
delivering the first AEGIS-capable Canadian Surface Combatant ships. 
This will significantly improve network-centric warfare capability for 
the U.S. forces operating globally alongside Canada. Canada 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.
    The prime contractor will be Lockheed Martin Rotary and Mission 
Systems, Moorestown, NJ. There are a significant number of other 
companies under contract with the U.S. Navy that will provide 
components, systems, and engineering services during the execution of 
this effort. While the purchaser typically requests offsets, any offset 
agreement will be defined in future negotiations between the purchaser 
and the contractor(s).
    Implementation of this proposed sale will require multiple trips by 
U.S. Government representatives and the assignment of contractor 
representatives to Canada on an intermittent basis over the life of the 
case to support delivery and integration of items and to provide supply 
support management, inventory control and equipment familiarization.
    There will be no adverse impact on U.S. defense readiness as a 
result of this proposed sale.
Transmittal No. 21-17
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 Canadian Surface Combatant Program. The AEGIS 
Combat System (ACS) to be procured to support Canadian Surface 
Combatant construction is derived from U.S. Navy AEGIS Baseline 9 
capability. Key components of the ACS include:
    a. The ACS is a multi-mission combat system providing integrated 
Air and Missile Defense for surface ships. AEGIS Baseline 9 capability 
will provide computing, display and processing hardware and software to 
be integrated with Canada-furnished elements, including radar and 
illuminator sensors and Canada's domestic Combat Management System (CMS 
330). No integrated Ballistic Missile Defense will be provided.
    b. The AEGIS Combat System Computer Program supports operation of 
the ACS Baseline 9 capability.
    c. The AN/SPY-7 Solid State Radar Components will be integrated 
with Lockheed Martin's Solid State Radar (SSR), which is being procured 
by Canada via Direct Commercial Sale contract.
    d. The Cooperative Engagement Capability (CEC) system fuses 
tracking data from shipboard and off-ship sensors and distributes radar 
measurement data to other platforms with CEC capability. The system 
includes a Communications Security (COMSEC) card.
    e. The Mk 41 Vertical Launch System (VLS) is a fixed, vertical, 
multi-missile launching system with the capability to store and launch 
multiple missile variants depending on the warfighting mission, 
including the Evolved Sea Sparrow Missile (ESSM), Standard Missile, and 
Tomahawk Cruise Missiles.
    2. The highest level of classification of defense articles, 
components, and services included in this potential sale is SECRET.
    3. If a technologically advanced adversary were to obtain knowledge 
of the specific hardware and software elements, the information could 
be used to develop countermeasures that might reduce weapon system 
effectiveness or be used in the development of a system with similar or 
advanced capabilities.
    4. A determination has been made that Canada 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.
    5. All defense articles and services listed in this transmittal are 
authorized for release and export to the Government of Canada.
[FR Doc. 2021-22669 Filed 10-15-21; 8:45 am]
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