The State Department approved two possible Foreign Military Sales (FMS) requests with a total value of nearly $1.8 billion to Australia for Hobart-class destroyer, F/A-18E/F Super Hornet, and EA-18G Growler aircraft sustainment and associated equipment, parts, and logistical support. The destroyer sale is worth $275 million while the combined aircraft sale is worth $1.5 billion.
The Defense Security Cooperation Agency (DSCA) notified Congress of the potential sales on April 28.
Lockheed Martin [LMT] would be the primary contractor for the destroyer sale and Boeing [BA] would be the primary contractor for the aircraft sale.
The requested destroyer FMS would include follow-on sustainment support and services in support of three Hobart-class Destroyers. Sustainment efforts include Aegis computer software and hardware updates. The aircraft FMS would include follow-on sustainment support and services for 24 AF/A-18Fs Super Hornet and 12 AEA-18G Growler aircraft. The sustainment efforts will include software and hardware updates, Engineering Change Proposals, System Configuration upgrades, and engine component improvement.
Sustainment efforts for both sales also include 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.
Australia intends to use the enhanced capability as a deterrent to regional threats while strengthening homeland defense. The services would also enable Australia to maintain aircraft availability/operational rates with enhanced interoperability with the U.S. and others, DSCA said.
DSCA noted this would 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,” DSCA said in a statement.
Implementation of the destroyer FMS would require the temporary assignment of about five U.S. government or contractor representatives to Australia for three years on an intermittent basis for life of the case. Implementation of the aircraft FMS may require continued assignment of government or contractor representatives to Australia.