The State Department has approved a possible $148 million deal with Australia for explosive howitzer ammunition.

The Defense Security Cooperation Agency (DSCA) notified Congress of the potential foreign military sale on April 4.

Australia has requested to purchase 2,504 rounds of Insensitive Munitions Explosive (IMX)-101 ammunition, which are to be used on M795 howitzer munition projectiles. BAE Systems makes the IMX-101 ammunition.

“The proposed sale of 155mm howitzer ammunition will improve Australia’s capability to meet out-year Operational Readiness Training requirements. Australia will use this capability to strengthen its homeland defense and deter regional threats,” the DSCA said in a statement.

Under the deal, Australia would also receive Illumination and White Phosphorus munitions, point detonating fuzes, electronic-timed fuzes and M231 and M232/M232A1 propelling charges.

There is no principal contractor for the deal at the moment and material for the FMS could be sourced from a combination of stock and procurement, according to DSCA officials.