News Review: FMS - one more Aegis system? | ADM Sep 08

The Pentagon’s Defense Security Cooperation Agency set hearts fluttering in July when it notified the US Congress of Foreign Military Sales (FMS) requests from Australia for a complete ship set of Aegis air warfare equipment, including radars and missile launchers, for a fourth Air Warfare Destroyer.

The Aegis Combat System and associated equipment and services would be worth up to US$700 million.

Australia’s FMS request is for the Aegis Combat System itself and selected sub-systems, components, spares and support including a MK 41 Vertical Launch System, AN/SPQ-9B Horizon Search Radar, and a Cooperative Engagement.

A source close to Defence Minister Joel Fitzgibbon told ADM no decision had been made as yet to acquire a fourth Air Warfare Destroyer (AWD): “The Australian Government has requested a formal Letter of Offer from the US Navy for the supply of a possible fourth Aegis combat system.

"This Letter of Offer, which will include a firm price for the supply of the system, will be relevant if the Australian Government decides to acquire a fourth AWD.

"A go/no-go decision for a fourth AWD will be made “in the context of the Defence White Paper Force Structure Review, due in December 2008,” ADM was told.

“The request for this Letter of Offer, expected to be received later this year, in no way implies that Australia will be taking up the offer for the fourth Aegis system or, in turn, a fourth Air Warfare Destroyer.

"That decision is subject to the White Paper process.”

Following usual US practice, the ceiling cost quoted in the Congressional notification of 15 July will be well above the actual pricing included in the Letter of Offer, in order to allow for changes in scope.