The U.S. Defense Security Cooperation Agency notified Congress Tuesday of plans to sell the Brazilian Air Force an arms package consisting of AGM-84L Harpoon Block II Missiles and associated equipment, parts, training, and logistical support . If approved, this sale would generate new revenues of approximately $169 million for principal contractors Boeing (NYSE: BA ) and Delex Systems.
The specific equipment to be purchased consists of 16 AGM-84L Harpoon Block II Missiles and 4 CATM-84L Harpoon Block II Captive Air Training Missiles, plus necessary containers, spare parts, support and test equipment, and other equipment, training, and logistics services.
DSCA noted that Brazil needs the weapons as part of its "process of modernizing and upgrading its Anti-Surface Warfare capability on its P-3 aircraft," a maritime patrol aircraft used (among other things) for anti-submarine warfare, maritime border security, protection of off-shore assets, and counter-transnational organized crime efforts.
DSCA explained the sale as aiming "to improve the security of Brazil, which has been, and continues to be, an important force for regional stability and economic progress in South America."
According to DSCA, "there will be no adverse impact on U.S. defense readiness as a result of this proposed sale." Nor will the sale "alter the basic military balance in the region."