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THAAD Foreign Military Sales (FMS)

The Foreign Military Sales (FMS) program was part of Security Assistance (SA) authorized by the Arms Export Control Act (AECA) and was a fundamental tool of United States (US) foreign policy. The FMS process begins when the customer conducts a threat analysis in conjunction with its national security objectives. During this assessment, the customer typically looks at material and non-material solutions to address mission deficiencies. Non-material solutions may involve areas such as military doctrine, force structure, and training philosophy. For potential material solutions to defense requirements, the customer may explore options by seeking information from the USG about specific systems. An important element of this analysis was for the customer to quantify system life cycle costs to determine if the potential capability was a viable cost alternative.

As of December 7, 2011, all requirements identified in the tripartite Memorandum of Understanding (MOU) between the Army, MDA, and Defense Security Cooperation Agency (DSCA) have been satisfied. MDA was hereby officially recognized as the IA for the Foreign Military Sales (FMS) Terminal High Altitude Area Defense (THAAD) program to include the AN/TPY-2 Radar System. MDA was responsible for all Letter of Offer and Acceptance (LOA) development, implementation, execution, and closure for the THAAD FMS program to include the AN/TPY-2 Radar System. The development, implementation, execution, and closure of all FMS LOAs for non-contractor provided training related to the THAAD program, to include training for the AN/TPY-2 Radar System, will be executed by the appropriate military departments. DSCA will revisit the roles and responsibilities related to non-contractor training once the MDA has the capability to conduct such training.

In mid-2008 the recently-elected government in Warsaw announced that Poland would no longer consent to be a site for ten of the U.S. ballistic missile defense system interceptors unless Washington agreed at the same time to provide them with a number of short- and medium-range air defense systems, such as the Raytheon Patriot PAC-3 and Lockheed Martin Terminal High-Altitude Air Defense (THAAD). Polish officials said the interceptor sites make their country a bigger, high-value target and they want their air defenses bolstered accordingly. The rotation of a Patriot battery for training was agreed on by the two nations in the August 2008 Declaration of Strategic Cooperation. The training was designed to provide mutual benefits for improving Polish defense capabilities while also helping develop the U.S. patriot crew members’ proficiency.

United Arab Emirates

The Defense Security Cooperation Agency notified Congress September 9, 2008 of a possible Foreign Military Sale to the United Arab Emirates of Terminal High Altitude Air Defense (THAAD) Fire Units as well as associated equipment and services. The total value, if all options are exercised, could be as high as $6.95 billion.

The Government of the United Arab Emirates has requested a possible sale of 3 Terminal High Altitude Air Defense (THAAD) Fire Units with 147 THAAD missiles, 4 THAAD Radar Sets (3 tactical and one maintenance float), 6 THAAD Fire and Control Communication stations, and 9 THAAD Launchers. Also included are fire unit maintenance equipment, prime movers (trucks), generators, electrical power units, trailers, communications equipment, tools, test and maintenance equipment, repair and return, system integration and checkout, spare/repair parts, publications, documentation, personnel training, training equipment, contractor technical and logistics personnel services, and other related support elements.

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 has been and continues to be an important force for political stability and economic progress in the Middle East. The proposed sale of the weapons will strengthen the effectiveness and interoperability of a potential coalition partner, reduce the dependence on U.S. forces in the region, and enhance any coalition operations the U.S. may undertake. The United Arab Emirates will have no difficulty absorbing this weapon system into its armed forces. The proposed sale of this weapon system will not affect the basic military balance in the region.

The principal contractor was Lockheed Martin Space Systems Corporation in Sunnyvale, CA and the sub-contractor was Raytheon Corporation in Andover, MA. The purchaser requested offsets; however, at this time, agreements are undetermined and will be defined in negotiations between the purchaser and contractor. The United Arab Emirates does not desire a government support presence in its country on an extended basis. A total of 66 contractor logistic support personnel could be stationed in United Arab Emirates for extended periods. Additional training and major defense equipment personnel may be in the United Arab Emirates for short periods of time, not to exceed 24 months. There will be no adverse impact on U.S. defense readiness as a result of this proposed sale. This notice of a potential sale was required by law; it does not mean that the sale has been concluded.

The Defense Security Cooperation Agency notified Congress 02 November 2012 of a possible Foreign Military Sale to the Government of the United Arab Emirates (UAE) for 48 Terminal High Altitude Area Defense (THAAD) missiles and associated equipment, parts, training and logistical support for an estimated cost of $1.135 billion. The Government of the United Arab Emirates (UAE) has requested a possible sale of 48 Terminal High Altitude Area Defense (THAAD) missiles, 9 THAAD launchers; test components, repair and return, support equipment, spare and repair parts, personnel training and training equipment, publications and technical data, U.S. Government and contractor technical assistance, and other related logistics support.

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 has been, and continues to be, an important force for political stability and economic progress in the Middle East. This proposed sale will help strengthen the UAE’s capability to counter current and future threats in the region and reduce dependence on U.S. forces. The proposed sale of these missiles and equipment will not alter the basic military balance in the region.

The principal contractors will be Lockheed Martin Space Systems Corporation in Sunnyvale, CA and Raytheon Corporation in Andover, MA. There are no known offset agreements proposed in connection with this potential sale. Implementation of this proposed sale will not require the assignment of any additional U.S. Government or contractor representatives to the UAE. There will be no adverse impact on U.S. defense readiness as a result of this proposed sale. This notice of a potential sale was required by law and does not mean the sale has been concluded.

Qatar

The Defense Security Cooperation Agency notified Congress 02 November 2012 of a possible Foreign Military Sale to the Government of Qatar for two Terminal High Altitude Area Defense (THAAD) Fire Units and associated equipment, parts, training and logistical support for an estimated cost of $6.5 billion. The Government of Qatar has requested a possible sale of 2 Terminal High Altitude Area Defense (THAAD) Fire Units, 12 THAAD Launchers, 150 THAAD Interceptors, 2 THAAD Fire Control and Communications, 2 AN/TPY-2 THAAD Radars, and 1 Early Warning Radar (EWR). Also included are fire unit maintenance equipment, prime movers (trucks), generators, electrical power units, trailers, communications equipment, tools, test and maintenance equipment, repair and return, system integration and checkout, spare/repair parts, publications and technical documentation, personnel training and training equipment, U.S. Government and contractor technical and logistics personnel support services, and other related support elements.

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 has been and continues to be an important force for political stability and economic progress in the Middle East. This proposed sale will help strengthen U.S. efforts to promote regional stability by enhancing regional defense capabilities of a key U.S. partner. The proposed sale will help strengthen Qatar’s capability to counter current and future threats in the region and reduce dependence on U.S. forces. Qatar will have no difficulty absorbing this weapon system into its armed forces. The proposed sale of this equipment and support will not alter the basic military balance in the region.

The principal contractors are Lockheed Martin Space Systems Corporation in Sunnyvale, California, and the sub-contractor was Raytheon Corporation in Andover, Massachusetts. There are no known offset agreements proposed in connection with this potential sale at this time. Implementation of this proposed sale will require periodic travel of up to13 U.S. Government and contractor representatives to Qatar for an undetermined period for delivery, system checkout, and training as determined by the schedule. There was no known adverse impact on U.S. defense readiness as a result of this proposed sale. This notice of a potential sale was required by law and does not mean the sale has been concluded.

Saudi Arabia

The US State Department made a determination approving a possible Foreign Military Sale to the Government of Saudi Arabia for Terminal High Altitude Area Defense (THAAD) and related support, equipment and services for an estimated cost of $15 billion. The Defense Security Cooperation Agency delivered the required certification notifying Congress of this possible sale Oct 6, 2017.

The Government of Saudi Arabia requested a possible sale of forty-four (44) Terminal High Altitude Area Defense (THAAD) launchers, three hundred sixty (360) THAAD Interceptor Missiles, sixteen (16) THAAD Fire Control and Communications Mobile Tactical Station Group, seven (7) AN/TPY-2 THAAD radars. Also included are THAAD Battery maintenance equipment, forty-three (43) prime movers (trucks), generators, electrical power units, trailers, communications equipment, tools, test and maintenance equipment, repair and return, system integration and checkout, spare/repair parts, publications and technical documentation, personnel training and training equipment, U.S. Government and contractor technical and logistics personnel support services, facilities construction, studies, and other related elements of logistics and program support.

This proposed sale will support the foreign policy and national security objectives of the United States by improving the security of a friendly country. This sale furthers U.S. national security and foreign policy interests, and supports the long-term security of Saudi Arabia and the Gulf region in the face of Iranian and other regional threats. This potential sale will substantially increase Saudi Arabia’s capability to defend itself against the growing ballistic missile threat in the region. THAAD’s exo-atmospheric, hit-to-kill capability will add an upper-tier to Saudi Arabia’s layered missile defense architecture and will support modernization of the Royal Saudi Air Defense Force (RSADF). Saudi Arabia 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 principal contractors for the THAAD system are Lockheed Martin Space Systems Corporation, Dallas, TX, Camden, AR, Troy, AL and Huntsville, AL; and Raytheon Corporation, Andover, MA. There are no known offset agreements proposed in connection with this potential sale. Implementation of this proposed sale will require one hundred eleven (111) contractor representatives and eighteen (18) U.S. Government personnel in country for an extended period of time.

On March 4, 2019 Lockheed Martin Corporation Missiles and Fire Control, Dallas, Texas, was awarded a non-competitive hybrid contract line item numbers type (cost-plus-incentive-fee, firm-fixed-price and cost reimbursement) contract under Foreign Military Sale (FMS) cases to the Kingdom of Saudi Arabia (KSA). The total estimated value of this contract is $945,900,000. Under this undefinitized contract action, the contractor will provide Terminal High Altitude Area Defense (THAAD) FMS KSA Phase I long lead items, obsolescence, tooling and test equipment, key personnel, line requalification activities, initial training development, System Integration Lab and testbeds, three-level maintenance concept, exportability, and early engineering development. The work will be performed in: Dallas, Texas; Lufkin, Texas; Huntsville, Alabama; Anniston, Alabama; Camden, Arkansas; Troy, Alabama; and Sunnyvale, California. The performance period is from Feb. 28, 2019, through Oct. 31, 2026. KSA FMS funds in the amount of $945,900,000 will be used to fund this effort. The Missile Defense Agency, Huntsville, Alabama, is the contracting activity (HQ0147-19-C-0007).




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