WASHINGTON, July 11, 2008 - On July 9, the Defense Security Cooperation Agency notified
Congress of a possible Foreign Military Sale to the Government of Australia of the AEGIS
Combat System and associated equipment and services. The total value, if all options are
exercised, could be as high as $700 million.
The Government of Australia has requested a possible sale of the AEGIS Combat System and
select combat system and communication components consisting of 1 MK 41 Vertical Launch
System, 1 AN/SPQ-9B Horizon Search Radar, 1 Cooperative Engagement Capability System, 1
Naval Fire Control System, 1 Multi-Functional Information Distribution System, AN/SLQ-25A
Nixie Countermeasure Suite, MK160 Gun Computer System with MK 20 Electro-Optical Sight,
AIMS MK XII Identification Friend or Foe (IFF) for the Air Warfare Destroyer platform,
communication and information distribution systems, U.S. Government and contractor
engineering and logistics personnel services, personnel training and training equipment, support
and test equipment, spare and repair parts, publications and technical documentation, and other
related elements of logistics support. The estimated cost is $700 million.
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. Australia's efforts in peacekeeping and humanitarian operations in Iraq and in
Afghanistan have had a significant impact on regional political and economic stability and have
served U.S. national security interests. This proposed sale is consistent with those objectives and
facilitates burden-sharing with our allies.
The proposed sale of the AEGIS Combat System and components to Australia will contribute to
U.S. security objectives by providing a coalition partner with significantly improved Air Warfare
capability. This will improve the Royal Australian Navy's ability to participate in coalition
operations, will enhance the lethality of its Air Warfare Destroyer platform, and will provide
common logistical support with the U.S. Navy. The Royal Australian Navy can easily integrate
the capabilities of the AEGIS Combat System into its concept of operations. Australia will have
no difficulty absorbing these systems into its armed forces.
The proposed sale of this equipment and support will not affect the basic military balance in the
The principal contractors will be: Lockheed Martin Maritime Systems and Sensors Moorestown, New Jersey (three locations) Eagan, Minnesota Baltimore, Maryland; Raytheon Systems Company St. Petersburg, Florida (two locations) Sudbury, Massachusetts; Northrop Grumman Corporation Melville, New York.
There are no known offset agreements proposed in connection with this potential sale.
Implementation of this proposed sale will require the assignment of three contractor
representatives in Australia for approximately six months during the equipment installations, test
and checkout of the AEGIS Combat System.
There will be no adverse impact on U.S. defense readiness as a result of this proposed sale.
Source: Australia - AEGIS Combat System Components for Air Warfare Destroyer Program
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