30 April 2015

US Approves $275Mn Support Package for Australian Hobart AWD

30 April 2015


Hobart AWD (photo : korearms)

WASHINGTON - The State Department has made a determination approving a possible Foreign Military Sale to Australia for Hobart Class Destroyer Sustainment and associated equipment, parts and logistical support for an estimated cost of $275 million. The Defense Security Cooperation Agency delivered the required certification notifying Congress of this possible sale today.

The Government of Australia has requested a possible sale of follow-on sustainment support and services in support of three (3) Hobart Class Destroyers. The sustainment efforts will include AEGIS computer software and hardware updates, system integration and testing, tools and test equipment, spare and repair parts, support equipment, publications and technical documentation, personnel training and training equipment, aircrew trainer devices upgrades, U.S. Government and contractor technical assistance, and other related elements of logistics and program support. The estimated cost is $275 million.

This sale will contribute to the foreign policy and national security of the United States by helping to improve the security of a major contributor to political stability, security, and economic development in Southeast Asia. Australia is an important ally and partner that contributes significantly to coalition, peacekeeping and humanitarian operations around the world. It is vital to the U.S. national interest to assist our ally in developing and maintaining a strong and ready self-defense capability. This proposed sale is consistent with those objectives and facilitates burden sharing with a key ally.

The proposed sale will improve Australia’s capability in current and future coalition efforts. Australia will use the enhanced capability as a deterrent to regional threats and to strengthen its homeland defense. Australia will have no difficulty absorbing this additional support into its armed forces.

The proposed sale of this additional support will not alter the basic military balance in the region.

The principal contractor will be Lockheed Martin Mission Systems and Training in Washington, District of Columbia. There are no known offset agreements proposed in connection with this potential sale.

Implementation of this proposed sale will require the temporary assignment of approximately five U.S. Government or contractor representatives for a period of three years to Australia on an intermittent basis for the life of the case.

There will be no adverse impact on U.S. defense readiness as a result of this proposed sale.

This notice of a potential sale is required by law and does not mean the sale has been concluded.

(DSCA)

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