Congress Asked to Approve $54 Million Australian Arms Sale

The Defense Security Cooperation Agency notified Congress (link opens in PDF) Monday of plans to sell to the government of Australia up to 4,002 M1156 Precision Guidance Kits (PGK) for 155mm munitions, along with associated training, equipment, and documents necessary to use the kits.

PGKs are attached to howitzer rounds to transform them, in the words of manufacturer Alliant Techsystems (NYSE: ATK  ) , "into affordable, GPS-guided precision weapons" capable of striking a target "with a circular error probable (CEP) of less than 50 meters."

If Congress approves the sale -- or fails to refuse it within 15 days of notification, which has the same effect -- then this sale will produce some $54 million in incremental revenues for principal contractor ATK.

Explaining the need for this sale, DSCA advised Congress that "Australia has requested these PGKs to provide for the defense of deployed troops, in pursuit of regional security objectives and interoperability with the United States. This proposed sale is consistent with U.S. objectives to strengthen Australia's military capabilities and facilitate burden sharing."

DSCA assured Congress that "this proposed sale of this equipment will not alter the basic military balance in the region," nor will it adversely "impact on U.S. defense readiness."


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