The Defense Security Cooperation Agency notified Congress (link opens a PDF) Monday of plans to conduct a foreign military "sale" of an F-16 Formal Training Unit, or FTU, to the Netherlands.

According to the DSCA, the provision to the Royal Netherlands Air Force of the F-16 FTU -- a training course for fighter pilots -- along with 50,000 Infrared Decoy Flares, 30,000 units of Training Chaff, 3,750 "dummy" training bombs, 4,050 inert training bombs of assorted types, and 120,000 blank training rounds, along with necessary fuel and support services, pilot training services, and "other related elements of logistics support" -- will cost the Dutch an estimated $191 million.

The DSCA justifies the "sale" of this course to the Dutch by saying that it will further the "foreign policy and national security objectives of the U.S. by improving the capabilities of the Royal Netherlands Air Force and enhancing its standardization and interoperability with U.S. forces." Training, if approved, will take place in the U.S. with the Tucson Air National Guard, 162nd Fighter Wing, serving in the role of course manager.

Companies that might expect to receive revenues from the contract include Lockheed Martin (NYSE:LMT), Boeing, and Raytheon, all involved in the manufacture of the dummy ordnance that is expected to be used as part of the training course. Lockheed also manufactures the F-16 itself.


This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.