Saturday, September 25, 2021

US Approves $1.7B Aegis Combat System Contract to Canada – Defense Security Agency

The United States has approved a $1.7 billion sale of the Aegis Combat System to Canada, the US Defense Security Cooperation Agency said in a press release.

The State Department has made a determination approving a possible Foreign Military Sale to the Government of Canada of AEGIS Combat System and related equipment for an estimated cost of $1.7 billion.  The Defense Security Cooperation Agency delivered the required certification notifying Congress of this possible sale today.

The Press Release Read:

The Government of Canada has requested to buy four (4) Shipsets of the AEGIS Combat System (ACS); one (1) AEGIS Combat System Computer Program; four (4) Shipsets of AN/SPY-7 Solid State Radar Components; four (4) Shipsets of Cooperative Engagement Capability (CEC); and three (3) Shipsets of the MK 41 Vertical Launch System.  Also included is Mode 5/S capable Identification Friend or Foe (IFF) equipment; early ACS development activities for the Canadian Surface Combatant (CSC) Project to include U.S. Government and contractor representative engineering activities supporting design, integration, testing, technical documentation, modeling, and training; hardware to support development and testing in U.S. facilities; software; documentation (including combat system capabilities and limitations); training devices and services; technical support; and other related elements of logistical and program support.  The estimated total cost is $1.7 billion.

This proposed sale will support the foreign policy and national security objectives of the United States by helping to improve the military capability of Canada, a NATO ally that is an important force for ensuring political stability and economic progress, and a contributor to military, peacekeeping and humanitarian operations around the world.

This proposed sale will increase Canadian maritime forces’ interoperability with the United States and other allied forces, as well as their ability to contribute to missions of mutual interest by delivering the first AEGIS-capable Canadian Surface Combatant.

This will significantly improve network-centric warfare capability for the U.S. forces operating globally alongside Canada.  Canada 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 prime contractor will be Lockheed Martin Rotary and Mission Systems, Moorestown, NJ.  There are a significant number of other companies under contract with the U.S. Navy that will provide components, systems, and engineering services during the execution of this effort. While the purchaser typically requests offsets, any offset agreement will be defined in future negotiations between the purchaser and the contractor(s).

Implementation of this proposed sale will require multiple trips by U.S. Government representatives and the assignment of contractor representatives to Canada on an intermittent basis over the life of the case to support delivery and integration of items and to provide supply support management, inventory control and equipment familiarization.

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.  The description and dollar value is for the highest estimated quantity and dollar value based on initial requirements.  Actual dollar value will be lower depending on final requirements, budget authority, and signed sales agreement(s), if and when concluded

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