August 25, 2021 – The State Department has made a determination approving a possible Foreign Military Sale to the Government of Australia of Defense Services Related to Future Standard Missile Production and related equipment for an estimated cost of $350 million. The Defense Security Cooperation Agency delivered the required certification notifying Congress of this possible sale today.
The Government of Australia has requested to buy defense services related to the future purchase of Standard Missile 6 Block I (SM-6) and Standard Missile 2 Block IIIC (SM-2 IIIC) missiles. These services include development; engineering, integration, and testing (EI&T); obsolescence engineering activities required to ensure readiness; U.S. Government and contractor engineering/technical assistance, and related studies and analysis support; technical and logistics support services; and other related elements of program and logistical support. The total estimated value is $350 million.
This proposed sale will support the foreign policy and national security objectives of the United States. Australia is one of our most important allies in the Western Pacific. Australia is strategically positioned to contribute significantly to ensuring peace and economic stability in the region. It is vital to the U.S. national interest to assist our ally in developing and maintaining a strong and ready self-defense capability.
The proposed sale will support the readiness and future sale of vital anti-air warfare capability that can be deployed from Australia’s newest Hunter-Class Destroyers equipped with the latest AEGIS Combat Systems. The purchase of Standard Missile 6 Block I (SM-6) and Standard Missile 2 Block IIIC (SM-2 IIIC) missiles is currently included in Australia’s procurement roadmap and will improve their ability to operate alongside U.S. and Allied naval forces against the full spectrum of naval threats. Australia will have no difficulty absorbing these defense services into its armed forces.
The proposed sale of this equipment and support will not alter the basic military balance in the region.
The principal U.S. contractor will be Raytheon Missiles and Defense (RMD), Tucson, AZ. There are no known offset agreements proposed in connection with this potential sale.
Implementation of the proposed sale will require U.S. Government and contractor personnel to visit Australia on a temporary basis in conjunction with program technical oversight and support requirements, including program and technical reviews.
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.