Taipei Economic and Cultural Representative Office in the United States - Volcano System

The State Department has made a determination approving a possible Foreign Military Sale to the Taipei Economic and Cultural Representative Office in the United States of Volcano (vehicle-launched) anti-tank munition-laying systems and related equipment for an estimated cost of $180 million. The Defense Security Cooperation Agency delivered the required certification notifying Congress of this possible sale today.

The Taipei Economic and Cultural Representative Office in the United States (TECRO) has requested to buy Volcano (vehicle-launched) anti-tank munition-laying systems; M977A4 HEMTT 10-Ton cargo trucks; M87A1 Anti-Tank (AT) munitions; M88 canister training munitions (practice dummy ammunition rounds); M89 training munitions (test ammunition rounds); organic U.S. Army Depot build of Volcano system permanently mounted on M977A4 HEMTT truck; logistics support packages to include spare parts, spare secondary assemblies, tool kits and test equipment; technical manuals; organic depot production, integration and testing; Operator and Maintenance Training; logistics and fielding support; USG technical assistance CONUS and OCONUS to include engineering services, program management, site surveys, facility, logistics and maintenance evaluations; quality assurance and de-processing team; field service representative(s); Repair and Return services; any transportation charges to execute the program; and related elements of logistical and program support. The estimated total cost is $180 million.

This proposed sale is consistent with U.S. law and policy as expressed in Public Law 96-8.

This proposed sale serves U.S. national, economic, and security interests by supporting the recipient’s continuing efforts to modernize its armed forces and to maintain a credible defensive capability. The proposed sale will help improve the security of the recipient and assist in maintaining political stability, military balance, and economic progress in the region.

The proposed sale will improve the recipient’s capability to meet current and future threats by providing a credible force capable of deterring adversaries and participating in regional operations. The recipient will have no difficulty absorbing this equipment into its armed forces.

The proposed sale of this equipment and support will not alter the basic military balance in the region.

The principal contractor(s) will be Northrup Grumman, West Falls Church, VA for production of munition canister mines; and Oshkosh Corporation, Oshkosh, WI for production of the M977A4 HEMTT vehicles. There are no known offset agreements proposed in connection with this potential sale.

Implementation of this proposed sale will require assignment of one (1) technical representative in country for an estimated two (2) years of support; and U.S. Government representatives and contractor personnel to travel OCONUS for a duration of up to five years to support equipment fielding/training and program management.

There will be no adverse impact on U.S. defense readiness as a result of this proposed sale.

This notice of a potential sale is required by law. The description and dollar value is for the highest estimated quantity and dollar value based on initial requirements. Actual dollar value will be lower depending on final requirements, budget authority, and signed sales agreement(s), if and when concluded.