Søknad om salg av 15 F-5 Freedom fighter - NRK

lJFORSVARETForsyning

Vår saksbehandler Vår dato Vår referanseOK MELSÆTER ODD STEIN, [email protected] 2007-11-29 2007/056195-001/FORSVARET/75+47 63 80 81 52, 0505 8152FORSYNING/ PROSJEKT AVH Tidligere dato Tidligere referanse

Til Kopi til

764

Forsvarsdepartementet ForsyningPostboks 8126 Dep Forsvarsstaben0032 OSLO

1 av 1

Forsvarets logistikkorganisasjon/Luft (FLO/LUFT) mottok høsten 2001 oppdrag om utfasing avF-5 Freedom fighter. Oppdraget ble overført til Forsvarets logistikkorganisasjon/Forsvaretsavhendingsprosjekt (FLO/FAP) vinteren 2003.

Søknad om salg av 15 F-5 Freedom fighter

1 Bakgrunn

2 DrøftingFLO/FAP søker nå om godkjenning på salg av 15 F-5 Freedom fighter, komplett med historiskedokumenter, reservemotorer, reservedeler samt verktøy spesifikt for systemet F-5. Det er inngåtten avtale mellom Northern General Leasing LLC og FLO, med et forbehold om at UtenriksDepartementet og Forsvarsdepartementet (FD) godkjenner salget. Videre kreves End Usergodkjenning fra amerikanske myndigheter.

3 KonklusjonSøknaden fremmes herved FD for godkjenning.

Vedlagt ligger også kopi av godkjent End Use, and Retransfer and Security assurances, ogutførselsbevis fra Det Norske Utenriks Departemenet.

FLO anmoder om beslutning om avhending av følgende fly med tilhørende reservedeler ogbakkeutstyr (flyenes serienummer):

F-5A 67- 67- 69- 69- 69- 69- 69-712814896 14902 7131 7133 7134 7130

F-5B 67 - 66 - 9243 66 - 67- 67 - 67 - 67 - 69-13387 9244 14906 14907 14908 14909 7136

GeneralmajorSjef FLO

ond R Karlsen

Postadresse Besøksadresse Sivil telefon /telefaks E-postPostmottak Fetvn. 80-86 / [email protected] Lillehammer 2007 KJELLER Militær telefon/telefaks (FDN) Internett VedleggNORGE NORGE 0505-8440 www.mil.no 0

t.ein MeisCommander Odd-SNorwegian DcfcriL Logistics Organisation/Surplus Materiel ilIt:J;jtrtt Prc±Yrwn

Dear Commander Melsaeter;

In re-sponse a to your letter dated April 28, 20W the U.S. Department of Statebas a}.prøved c)f Norway"s request to transfer 15 F-: --,ie

entity,

il i . v`;3C a 3'. i' '7Zifod L`-I -.w C,')mP a,,,,\ , LLC).li1 .

S'-c)u1d you have am, qut, :i7sofRegional , aid 1lt L-1Lj,,s titr -' ot.ads,

telerhk-)Y)e (201.) 647r '-»'- and e-rriaii at

,?id P. QuiDepu-,,\ DirectorOffice of Regional Security and Arms Transfers

.;.>rreian Embassy3+" Street, NW, Washington DC 2-0008

08:25 FRA-FLO/F/FORSYNINGT-W J.UUI/uUl t-as(

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3_.Ek3portørens.nåvn og Ø"sø.. ,'.':'•'i...i • • .. ' rl

Forsvarets-LogiittlclOrg nisås;å-Cårdermoen Flystøsjon' '.-2060:*. GÅr.2D>iØOE :•

Kjøpcrens navn;-ådrt§se oQ i;Yt: -oanisasjonsnummereNort ern, Grenerarl Tasmg 1,CC. ; _ . :; :.; :

Hillwood'Devclop>n.ent Company,%I;C.`,Fortli-W9 fth ..Alliance .Airpci 't ''•.:Fort:Worth, Tx 76177:Usa; . - ;-

I+47-63808038

1,11',

::y.arets,ventio;s`uFFmi2.(rnnå7år)'.' ,'Tb)Osto #oflsred i le4et-åv 2Q07-2008

:14. For vurcr med utcolsri4 opprinclsc:1;1> r mynaighGtcno'i rippnnneise$Iendot påIugt rastrikC1ancrved rak6purt fGarIorgc4 "'

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Wa.rio,°..under "Nedlasting-avskjeniaer og•and•re fl.okumenter".

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tfar sel••på: • nlrig av, denne lis us skal -rapporteres på. fastsatt skjema.-Se Ø. eksportkontroll.

I

'

SØKNAD OM UTFØRSELSLISENS 051. Eksportørens organisasjonsnummer (uten mellomrom) 2. Sett X nedenfor hvis søknaden også sendes som e-post

986105174

3. EksportørForsvarets Logistikk organisasjon

AdresseGardermoen Flystasjon

Postnr. Sted

2060 Gardermoen

Søknaden sendes til:Seksjon for eksportkontrollPostboks 8114 Dep

0032 OSLO

4. Kjøperens navn, adresse og evt. organisasjonsnummer 5. Sluttbrukerens navn/adresse (hvisannen enn kjøperen)Northern General Leasing LCC

Hillwood Development Company,LLC

Forth Worth Alliance Airport

Fort Worth, Tx 76177 Usa.

6. Varens opprinnelsesland 7. Varen ventes utført (mnd/år). Oppgi tollsted om mulig.Norge Oslo tollsted i løpet av 2007-2008

8. Varebeskrivelse (Bruk norsk varebetegnelse. 9. For varer på 10. For varer 11. Netto 12. FOB-verdi

Betegnelsen må være presis, med angivelse av liste I: på liste II: mengde (NOK)produktnavn/typenummer om mulig). Hovedpkt Underpkt

(Eks: 7 e)

Posisjon (Eks:

5A001.b.8.a)

(kg/stk)

Militære jagerfly type F-5 9 15 stk 14000.000.-

Deler til jagerfly type F-5 17 9

13. Type utførsel (sett X) 14.For varer med utenlandsk opprinnelse:

x Salg Midlertidig utførsel, Har myndighetene i opprinnelseslandet pålagt

retur til Norge restriksjoner ved re-eksport fra Norge?GENERELL LISENS Annet (beskriv i rubrikk 17) Ja

15. Varen skal anvendes til (sluttbruk) Nei

Flyene skal brukes til trening av Amerikanske og allierte piloter ved Fort Worth Tx

16. Vedlagte dokumenter (sett X)

x Sluttbrukererklæring ImportsertifikatFx Kontrakt, faktura, e.l. EAnnet

17. Andre opplysninger (Vis til eventuell forhåndskontakt med departementet. Rubrikken benyttes også til opplysninger som

ikke passer inn noe annet sted på skjemaet).

18. Har De kjennskap til at de produkter som sølmaden omfatter er helt eller delvis bestemt for bruk i forbindelse medutvikling, produksjon, håndtering, anvendelse, vedlikehold, lagring, identifisering eller spredning av kjemiske-, biologiske-eller kjernevåpen, eller utvikling, produksjon, vedlikehold eller lagring avmissiler som er i stand til å bære slike våpen?

Ja

Eksportørens erklæring:

x Nei

Jeg erklærer å være kjent med Utenriksdepartementets.forslciifteii av ,l0. 1t 1'9,89 ril gjennomføring av utførselsreguleringen

og bekrefter at disse er iakttatt ved utfyllingen av denne søknad.19. Sted og dato 20. Firmastempel og underskrift (Søknaden skalGardermoen 24 juli 2007 underskrives av den egentlige eksportør eller den som

21. Kontaktperson(oppgi den person (med 1 jennslcap til varen) som har fullmakt til å opptre på eksportørens vegne).

departementet bør henvende seg til i forbindelse med søknaden).

21. Telefon og e-postadresse64 80 38 03 [email protected]

Svein Solvang

15.2.05

RGENO ^2

31 Kolli00

.S rAvsender/Eksportel1497 nr. 986105174

FORSVARET FORSVARETS MILITÆRE ORGA

cio Forsvarets Regnskapsadm.

5886 BERGEN8 Mottaker

1 675nr.

NORTHERN GENERAL LCC13600 HERITAGE PARKWAYFORT WORTH TX

76177 FORT WORTH14 DeklaranllRepresentant nr 986105174 Tlf:

FORSVARETS MILITÆRE ORGANISASJON

GARDERMOEN18 Transportmidlets identitet og nasjonalitet ved ankomst

21 Del aktive transportmidlets identitet og nasjonalitet ved grensepassering

25 Transportmåte ved

40 grensen

29 lnnpasseringstollsted

26 Transportmåte

innenlands

27 Lossested

30 Varenes lagringssted

Mercer og nr.-Conlainemr. - Antall og vareslag15 KLI-

vans, ADRbeskrivelse FAPJAGERFLY F-5

37PR0 SEDYRE

U1 LISENS 171293TXT SALG IHT.TXT KONTRAKT FDTXT UD.

10 l

19 Cont.

0

NO

I DEKLARASJON

EX 113 Blanketter

i _L_15 Vareposter

4 Lastelister

6 Antall kolli

15

A BESTEMMELSESTOLLSTED

LinjedekiarertKiokkenr.: 010290År/løpenr .: 2007 159251Dato : 20071001

7 Referansenummer

SAS 1870 271959 Den økonomisk ansvarlige nr.

10 Siste avs.

land

11 Handels-/

Prod.Land

15 Avsender-/utførselsland

16 Opprinnelsesland

20 Leveringsvilkår---------

DDU FORT WORTH

12 Verdiopplysninger

22 Fakturert valutaogtotalbeløp ... . ._.

USD 14000000, 0028 Finansielle opplysninger og bankdata --.-....

INVOICE, 20071001

-32 Varepost

j

nr.

33 -Varenummer

880230 100134 Kode appr.land

a1 b 91

15 Kode avs.lutf.land

a i---1I17 Bestemmelsesland

23.Dmregningskarv _.

5,530

13 F.L.P.

17 Kode bestland

arUSA_lb1

24 Transaksjonstype

W

35 Bruttovekt(kg) 36 Preferanse

6000038 Nettovekt(KG) 39 Kvote

6000040 Summarisk deklarasjonlTitlligere dokument

44 Tilleggsopp-lysninger/

Fremlagtedokumenter/Sertifikaterog autorisa-sjoner

47 Beregning Type I Grunnlag Sats Beløp

41 Mengde i annen enhet

15 STK

42 Varens pris

14000000T.O.kade 1 45 Justering

46 Statistisk verdi

77420000

avgifter I I I Månedskreditt

Sum:

51 Planlagte-transitt-erings

tollsteder(og land)

52 Garanti

gjelder ikke

50 Hovedansvarlig nr.

representert ved

Sted og dato:

J KONTROLL VED BESTEMMELSESTOLLSTEDET

Kode 1 53 Bestemmelsestollsted (og land)

54 Sted og dato:

GARDERMOEN 20071001

43 VF

kode

Deklarantenslmpresentantens navn og underskrift

FORSVARETS MILITÆRE ORGANISASJON

RG-0155KS02000

SVEIN ARNE SOLVANG

CHASE- OR AUTHORITY No SHIP FROM PRIORITY SHIPPING Officers

NORWEGIAN DEFENCE LOG/ORG No Voucher NUMBER

FAP-2006-0008 FETVN. 80-84 2007 KJELLER/NORWAY.Date PREPARED S H I P T 0 MARK F O R SHIPPERS Control No

Northern General Leasing LCC

STOCK RECORD CLERK 13600 Heritage Parkway, Suite 200 Date SHIPPED

Fort Worth Alliance Airport

Fort Worth, Texas 76177 USA WEIGHT

STORE KEEPER

INSPECTOR

TBD

CUBE

No of PKGS

tbdFREIGHT COST to be born by AUTHORITY

EXW Forsvarets avdelinger Tore Christensen, FLO F FAPITEM UNIT QTY QTY - UNIT TOTAL

NO STOCK OR PART No DESCRIPTION of SHIPPED RECEIVED COST COSTISSUE

1 F-5 A/C ea 10+5 14 000 0002 Aircraft parts and handling equipment ea

RECEIVING DATA

RECEIVED DATE INSPECTOR STORE KEEPER RECEIVER CONTROL No

SHIPPING DOCUMENTAF FORM 104 B.

USD

Page 1 of 2

Norwegian Defence Logistics Organisation/Surplus Materiel ManagementProgram

1 of 2

Actions officerOdd-Stein Melsæter0505-5402 / 63925402

Our date Our reference2006-04-28

Previous date Previous reference

To Copy to

Embassy of the United States of America The Norwegian Ministry of DefenceThe Royal Norwegian Embassy in Washington

Staff Staff - info only

End-use, retransfer and security assurancesWith reference to our purchase order no NDLO/SMMP Contract number F-004-05 for

• Fifteen (15), surplus RnoAF F-5 A/B aircraft, complete with all historicalrecords, spare engines, components, spare parts, specific tooling and ground handlingequipment.

• The materiel is nationally owned excess Significant Military Equipment (SME) atoriginal acquisition price approximately NoK 15.000.000,- for each aircraft andapproximately NoK 40.000.000,- for the remaining spare parts, totally approximatelyNoK 265.000.000,-

• Funding source of original acquisition of the materiel is FMS Cash

From the Norwegian Defence Logistics Organisation/Norwegian Defence LogisticsAgency/Surplus Materiel Management Program (NDLO/SMMP), we hereby declare:

1. The equipment will be used/installed at: Northern General Leasing, LLC (NGL)5430 LBJ Freeway, Suite 800, Dallas, Texas 75240.The nature of NGL's business is to own and lease certain aircraft and relatedequipment and facilities in support of various flight training programs to be basedat NGL'S facilities at 13600 Heritage Parkway, Suite 200, Fort Worth, AllianceAirport, Fort Worth Texas 76177 USA.

2. The equipment will be used for the following civil application:

The aircraft will be leased to an appropriately qualified civilian U.S militaryaviation training contractor for its use in certain " Graduate Introduction to FighterFundamental training " for U.S. allies in support of the United States Government(USG).This basic fighter training will prepare U.S. allies pilots for follow-on U.S. major

Mailing address Billing address Telephone no / Fax no Organizational no (NOR)

Delivery address Visiting address E-mail address Document file No of encl.0

2 of 2

weapon system training conducted in the United States by the United States AirForce (USAF) or organic training programs utilizing U.S. hardware.It is herby certified that the application, to our knowledge, has no relation toweapons of mass destruction or vehicles for delivery of such weapons.

3. NDLO or its representative can visit the installation at any time, without priornotification.

Northern General Leasing, LLC, hereby gives our assurances:

NGL will maintain the security of said equipment and will provide substantially the same degreeof security protection afforded to such articles by the United States Government.

That NGL shall not, unless the prior written consent of the Government of United States hasbeen first obtained:

• Permit any use of said equipment by anyone not an officer, employee or agent ofNGL.

Transfer or-permit any officer, employee or agent of NGL to transfer said equipmentby gift, sale or otherwise

• Use, or permit the use, of said equipment for purpose other than those for witchprovide.

dd-Stein MelsæterCommanderNorwegian Defence Logistics Organisation/-Surplus Materiel Management Program

NORTHERN GENERAL LEASING, LLC13600 Heritage Parkway, Suite 200

Fort Worth, Texas 76177

David Newsom, as authorized representative of Northern General Leasing, LLC(Northern General Leasing), the proposed recipient of 15 F-5 aircraft, spare engines, andassociated spare parts to be transferred from the Government of Norway to NorthernGeneral Leasing and then leased to Lockheed Martin Simulation, Training and Support ,a business unit of Lockheed Martin Corporation (Lockheed Martin) to provide flighttraining to pilots from allied and friendly countries, hereby provides on behalf ofNorthern General Leasing:

A. The following acknowledgements:

l . Said F-5 aircraft are defense articles subject to the Arms Export ControlAct and International Traffic in Arms Regulations (ITAR).

Private ownership of said F-5 aircraft is contingent on Northern GeneralLeasing leasing the aircraft to Lockheed Martin and Lockheed Martinentering into and maintaining a contractual relationship with the U.S. AirForce (USAF) that requires F-5 aircraft to fulfill the requirements of thecontract.

3 The United States Government (USG) may rescind its retransferauthorizations, particularly if it believes that a reasonable period of time,pursuant to Assurance 3 below, has lapsed.

B. The following assurances to the USG, any deviation from which requires thatprior written consent must first be obtained from the USG:

1. Except as provided for in the contract contemplated in paragraph A.2 above,Northern General Leasing shall not transfer title or possession of said F-5 aircraft,spare engines, and associated spare parts, or any component thereof by sale, lease,release, assignment, loan, conveyance or any other means to any government,entity, international organization or person other than Lockheed Martin.

2. Said F-5 aircraft, spare engines, and associated spare parts shall be whollyowned and operated by a U.S. company that is registered either a broker,manufacturer or exporter with the Directorate of Defense Trade Control, or itssuccessor, regardless of whether such registration is required pursuant to theITAR

3. Upon completion of any contract with the USAF, the F-5 aircraft shall bedisposed of or demilitarized unless Northern General Leasing and/or LockheedMartin within a reasonable period of time thereafter enters into another contract

with the USAF that requires F-5 aircraft to fulfill contractual requirements, or theUSG otherwise consents in writing. The new contract number and expirationdate of the contract must be provided to the Department of State's Office ofRegional Security and Arms Transfers (PM/RSAT) or any successor office.

4. Northern General Leasing, and not the USG, will be liable for any costsassociated with Northern General Leasing's ownership of said F-5 aircraft.

5. Northern General Leasing shall include the following paragraphs a-I in thelease of the F-5 aircraft and spares to Lockheed Martin:

a. In the event classified information is used at the facility, a facilitysecurity clearance must be obtained from the Defense Security Service foruse/storage of U.S. classified material at contractor facilities.

b. Lockheed Martin must comply with the terms and conditions of the AirForce contract, including liability, security, access control, foreigndisclosure, flight and munitions safety, and : aircraft maintenance and-operation requirements.

c. Aircraft must not carry/employ live ordnance; BDU-33 (25 pound inertconcrete) practice bombs and AIM-9L Sidewinder Practice TrainingMissiles (inert, concrete filled body, captive, non-jettisonable, and bolted)may be carried/employed. Said F-5 aircraft 20mm cannon will not beemployed. F-5 20mm cannons in the aircraft and spares will be"deweaponized" by removing the breach and welding it open to makeemployment impossible.

d. Said F-5 aircraft may be used solely for the purpose of providing flighttraining to U.S. or foreign students, or to provide other services undercontract with the USAF or the DOD. Training of foreign students must beconducted in accordance with a Foreign Military Sales contract.

e. Flight training syllabi and courseware must be approved by the USAF.

f. Lockheed Martin agrees to periodic USAF site surveys andevaluations/oversight (i.e. review of courseware, flight instruction, etc.)

g. Said F-5 aircraft must be owned and operated in the 48 contiguousUnited States.

h. Flight operations must be conducted in accordance withstandard/current USAF flight safety and standardization/ evaluationcriteria.

i. Aircraft maintenance must be provided by a U.S. owned and operatedvendor in accordance with USAF maintenance standards and procedures.

j. Secure/anti-jam voice communication equipment either must beremoved from the aircraft or disabled from operation, unless specificallyapproved by the USAF for training mode use only.

k. When not engaged in flight operations, aircraft must be secured inside acontrolled area in accordance with USAF security requirements. Entryinto the controlled area will be in accordance with applicable USAFsecurity requirements.

L. Lockheed Martin, and not the USG will be liable for any costsassociated with Lockheed Martin's lease and operation of said F-5 aircraft.However, all F-5 aircraft lese and operation costs shall be allowable andincluded within the negotiated value of the Foreign Military Sales contractcontemplated by paragraph A.2 herein.

By:Q-

David A. NewsomExecutive Vice President

Date: September27 , 2006

LOCKHEED MARTIN COR PORATIONSiinulation. Training Ø. Support

i''50o Lake Underhill RoadGrlandor Florida 32$25

S. Wall, as an authorized representative oi" Lockheed Martin Simulation ,. Training;and Support, a business unit of Lockheed Martin Corporation (Lockheed Martin), theproposed lessee of 15 F-5 aircraft, spare engines. and associated 'spare parts to betransferred from the Government of Norway to Northern General Leasing, LLC(Northern General Leasing) to provide flight training to pilots from allied and friendlycountries, hereby provide on behalf of Lockheed Martin:

A. The following acknowledgements:

Said F-5 aircraft are defense articles subject to the Arms Export Control.Act and international Traffic in Arms Regulations (IT AR).

Private ownership of :Said F-5 aircraft is contingent on Northern GeneralLeasing leasing the aircraft to Lockheed Martin and Lockheed Martinentering into and maintaining a contractual relationship with the U.S. AirForce (USAF) that requires F-S aircraft to fulfill the requirements of thecontract.

The United States Government (USG) may rescind its retransferauthorizations, particularly if it relieves that a reasonable period of tipursuant to Assurance 3 below, has lapsed.

B. The following assurances to the USG, any deviation. from which requires thatprior written consent must first be obtained from the USG:

D

1. Except as provided for in the contract contemplated in paragraph A.2.above, Lockheed Martin snail not transfer title or possession of said F-5aircraft. spare engines, and associated spare parts. or any component thereofby sale, lease, release, assignment, loan, conveyance or any other means toany government, entity. international organization or person other thanNorthern General Leasing.

2. Said F-S aircraft, spare engines, and associated spare parts shall be whollyowned and operated by a U. S. company that is registered either a broker,manufacturer or exporter with the Directorate of Defense Trade Control, or itssuccessor, regardless of whether such registration is required pursuant to theITAR.

son completion of anv contract with the( 'SAT-', the F- aircraft sha.

osed of or demilitarized unless Northern General leasing and/or)ckheed Martin within °a reasonable period .gyt' tisne thereafter enters i

another contract with the USAF that requires -5 aircraft. to fulfll contractualrequirements. or the USC otherwise consents in writing. The new contractnumber and expiration date of the contract must be provided to theDepartment of State's Office of Regional Security and Arms Transfers(PM/RSAT") or any successor office,

4. Lockheed Martin shall utilize and operate the F-> aircraft and snarescompliance with paragraphs a-I below (which provisions shall be includedthe lease from Northern General Leasing);

a, In the event classified informationis used at the facility. a facilitysecurity clearance must be obtained from the Defense Security Servicegor use,/storage of U.S. classified material at contractor facilities.

l,. Lockheed Martin must comply with the terms and conditions of theAir Force contract, including liability, security= access control, foreigndisclosure. flight and munitions safety, and aiivrafi maintenance andoperation requirements.

Aircraft must not carry/employ live ordnance; BDU 3 (25 poundinert concrete) practice bombs and AIM-9L Sidewinder PracticeTraining Missiles (inert. concrete filled body. captive. non-letti.sonable,and bolted) may be carried/employed. Said F-S aircraft 20m cannonwill not be employed. F-S 20mm cannons in the aircraft and spares willbe "deweaponized" by removing the breach and welding it open to makeemployment impossible.

d. Said F-S aircraft may be used solely for the purpose of providingflight training to U.S. or foreign students, or to provide other servicesunder contract with the USAF or the DOD. T raining of foreign studentsmust be conducted in accordance with a Foreign Military Sales contract.

e. Flight training syllabi and courseware must be approved by theUSAF.

f. Lockheed Martin agrees to periodic USAF site surveys andevaluations/oversight (i.e. review of courseware. flight instruction, etc.)

g. Said F-å aircraft must be owned and operated in the 48 contiguousUnited States.

r. Flight opetaEions must be conducted hn accordance withstandardicurrent USAF -ht safety anxa standardizatiott;` evaluationcriteria.

i. Aircraft maintenance must be provided bya.l

.S. o nted and operatedvendor in accordance with USAF maintenance standards andprocedures.

Secure/anti-jam voice communication equipment either must heremoved from the aircraft or disabled from operation. unless specificallyapprovedby the USAF for training mode use only.

k. When not engaged in Hight operations. aircraft must be secured insidea controlled area in accordance with USAF security requirements. Entryinto the controlled area will be in accordance with applicable USAFsecurity requirements.

I. Lockheed 14artin, and not the USG will be liable for any costsassociated with Lockheed Martin"s lease and operation of said F-5aircraft.. However. all F-55 aircraft lease and operation costs shall beallowable and included within the negotiated value of the ForeignMilitary Sales contract contemplated by paragraph A.2 herein.

LOCKHEED MARTIN SIMULATION. TR. INING AND SUPPORT.a business unit of Lockheed Martin Corporation

By: '/

Name: Mark S. WallTitle: Director. Contracts

Date: September -j?_,

2006

Res onses to Con ressional Concerns(Keyed to Paragraph Numbers in the May 8 letter)

The U.S. Air Force would prefer to conduct international flight training in theUnited States, with U.S. Air Force owned and maintained equipment,. and withU.S. Air Force instructors. However, the Air Force simply does not currentlyhave the capacity to provide Introduction to Fighter Fundamentals (1FF)training to the t AE in the tineframe and in the numbers required by the UAE.Rather than turn the UAE away potentially to a foreign provider, the Air Forcebelieves it is in the best interest of the United States to outsource the training toa U.S. company under Air Force supervision. In this case, the Air Force viewsoutsourcing as a means of maintaining its traditional role in training foreignmilitaries to fly U.S.-origin fighter aircraft. The LUE IFF program will use asyllabus that closely resembles that used by the U.S. Air Force. Most of thecivilian flight instructors to be employed by the contractor have been selectedfrom persons who are also U.S. Air Force Reserve Officers/Pilots who haveexperience teaching U.S. Air Force Undergraduate Pilot Training. Air Forcepersonnel will directly oversee flight training operations as detailed in the FMSWA. Upon IFF graduation, U AE students will matriculate to 'U.S. Air ForceF-16 training with the 162ndFighter Wing (Air National Guard) at Tucson,Arizona, The U.S. Air Force does not intend to outsource training other thanIFF training for foreign militaries. Future requirements for international IFFtraining will depend on new F-16 sales to countries that do not already haveF-I 6s. As these sales continue, it is likely that the Air Force will also continueto depend on contracts such as this to meet its IFF training needs.

Lockheed Martin will conduct the LUE IFF training program at the AllianceAviation Center of Excellence (RACE) in Fort Worth, Texas in accordancewith 'USAF operations, maintenance, safety and security regulations, proceduresand standards, the same as it would be conducted and used at a USAF pilottraining base. AACE meets or exceeds FAA and Air Force airport safety andphysical security requirements, AACE has ten letters of agreement with severalDoD organizations (including the Air Force) and the Drug Enforcement Agencyto support approximately 60 flights per day. The Air Force Air Education andTraining Command AETC:) has maintained a letter of agreement with AACEsince l 995. Numerous AETC training flights already transit AACE daily,including solo flights by foreign students in T-38 (F-5 equivalent), T-37 andT-6 aircraft.

As established in the LOA, two full-time U.S. Air Force Quality AssuranceEvaluators (

,'QAE) will be permanently assigned to the UAE IFl program.

least one U.S. Air Force QAE will be present at the training location whenflight training operations are in progress. Anytime the U.S. Air Force QAEsidentify a problem with any aspect of the program, including flight operations,they have the authority to stop all operations until the issue is resolved.

The Air Force contract with Lockheed Martin will include an " Inspection ofServices" clause. The on-site U.S. Air Force Quality Assurance personnelinspect the quality of services and accordingly bring any discrepancies to theattention of the contractor's representative who must document in writing to theQAE's satisfaction corrective actions taken and measures adopted to preventthe discrepancy from recurring. The on-sight QAEs have the authority to stopany performance they deem inconsistent with required operations, maintenance,flight, safety and security practices, until such time as it is corrected.

I.AE 1FF trainees will be subject to the same interagency backg round checksand visa process used for all foreign students attending U.S. Air Force trainingprograms under FMS programs.

14 CFR 91.319 prohibits operation of fighter type ("experimental" certification)aircraft in U.S. airspace by private("civil") entities for compensation or hire(i.e., flight training).. However, a private entity may operate fighter aircraft forthe purpose of providing flight training if such operations are conducted inaccordance with regulatory and safety oversight by an agency of the I.J.S.Government. Thus, the UAE IFF program contractor will not be able to legallyprovide flight training (i,e. a defense service), or operate F-5 aircraft forcompensation or hire in I.J.S. airspace absent a FMS LOA and contract with theU.S. Air Force.

While there are risks associated with the proposed transfer and training, wehave worked within the Executive Branch to develop mechanisms that areintended to minimize such risks. First, we have required detailed assurancesfrom both Northern General Leasing LLC and Lockheed Martin Corporation.Second, pursuant to existing requirements, Northern General Leasing LLB' willbe required to obtain an import authorization from the Bureau of Alcohol,Tobacco, Firearms, and Explosives. Third, we have insisted that training beprovided only pursuant to the FMS program. We frequently require that itemsbe sold only pursuant to the FMS program where it is important, particularly

with respect to the national security of the United States, that the United StatesGovernment be directly involved in the transaction.

The proposed flight training is not unique in that the United States hasrepeatedly provided training to foreign military personnel in the United Statesthrough the FMS program. We determined that the oversight, supervision, andenforcement built into the FMS program were appropriate for each of thoseother sales and do not see a reason to change the practice with respect to theproposed training program,

Your letter suggests that there is a higher burden with respect to trainingprovided aboard aircraft that were retransferred by a foreign government. Wedisagree. We believe that the standard must be high regardless of the method ofacquisition. We will be considering risks and protections accordingly when weconnsider each potential sale through the FMS program.

In this regard, we note that 38(b)(2) of the Arms Export Control Act, asamended, (AECA) states in part that no license shall be required for exportsmade for an agency of the United States Government for carrying out any salesprogram authorized by law and subject to the control of the President by othermeans. Moreover, requiring a TAA may have the unintended and undesirableeffect of undermining Air Force control over the contractor as it would likelydiminish Air Force involvement in the transaction.

Under the proposal, all training will be carried out through the FMS program,there will be no direct commercial sales. We selected the FMS programbecause of the control that will be exercised by the Air Force. For these reasonsit is not appropriate or necessary to require that the parties enter into a TA.A.

4. The Air Force has provided flight training to thousands of foreign militarystudents in the United States pursuant to FMS LOAs for more than 30 years.The LOA is the agreement used for all transactions involving sales of defensearticles and defense services by the USG through the FMS program. LOAs aresigned on behalf of the USG and the purchasing government by officials fromeach government with the authority to commit to the LOA terms for theirgovernment. Every LOA includes verbatim the Standard Terms and Conditionswhich implement the 3, 21 and 22 of the Arms Export Control Act, asamended. (.22 U.S.C. Sections 2753, 2761 and 2762) requirements. One suchrequirement is that the FMS purchaser pay the full cost to the U.S. Government

of furnishing the defense articles and defense services. In particular Section 3of the Standard Terms and Conditions addresses liability as follows:

indemnification and Assumptiorr of Risks

The Purchaser recognizes that the (j"SG will procure and filrnish theitems described in this LOA on a non-profit basisfar r6rcry hcaeflt of thePurchaser. The Purchaser ther*qfore undertakes to indcinniy and holdthe USG, its agents, crfficers, and employees harmless ii-om any and allloss or liability (rvhether. in tort or in contract) u,'hic.hrrrtgIi; aconnection with this LOA because of.'

IryurVv to or death of per°sØrrrreT cafL'ur-cl2userF or tlrirAd pcrr•ties., or

3.1.2 Damage to or° destrzrctiorz of :(q)properii)of Do.D firrnis-lrc,d tciPurchaser or suppliers specificaly, to implement this LØ4, (b)property ofParrclrcrser (including the iterns ordered byPurchaser pursuant to this L0.4, before or after passage oftitleto Purchaser), or (cj property of third parties, or

Infringement of other violations of intellectual property ortechnical data rights.

In Section 7.2 of the Standard Terms and Conditions, the U.S. Government andthe Purchaser agree to resolve any disagreement regarding the LOA byconsultation and to not refer- any such disagreement to an international tribunalor third party settlement. The United States -must rely on the purchasinggovernment's commitment (as indicated by LOA signature) to fulfill itsobligations. We believe that the current mechanism adequately protects ourinterests with respect to this and every other sale pursuant to the FMS program.Moreover, entering into an international agreement addressing the issue ofliability with respect to sales made pursuant to the FMS program could have theunintended effect of calling into question the adequacy and enforceability ofthis standard provision in other LOAs.