The U.S. Department of State has made a determination approving a possible Foreign Military Sale to the Kingdom of Saudi Arabia for AGT-1500 Engines and related equipment. The estimated total cost is $750 million.
The Kingdom of Saudi Arabia has requested to buy sixty (60) AGT-1500 tank engines. The following non-major defense equipment items will also be included: AGT-1500 containers; spare parts, consumables, and accessories; contractor logistics support; U.S. Government and contractor engineering, technical, and logistics support services; and other related elements of logistics and program support.
This proposed sale will support the foreign policy and national security objectives of the United States by improving the security of a partner country that is a force for political stability and economic progress in the Middle East.
The proposed sale will improve Saudi Arabia’s capability to meet current and future threats by bolstering its readiness, its ability to support operational requirements, and contributing to capabilities necessary to achieve improved interoperability and execution of bilateral contingency plans. The Kingdom of Saudi Arabia will have no difficulty absorbing these articles and services 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 will be Honeywell, located in Anniston Army Depot, Alabama. At this time, the U.S. Government is not aware of any offset agreement proposed in connection with this potential sale. Any offset agreement will be defined in negotiations between the purchaser and the contractor.
Implementation of this proposed sale will not require the assignment of any additional U.S. government or contractor representatives to Saudi Arabia.
There will be no adverse impact on U.S. defense readiness as a result of this proposed sale.
Source: U. .S. Bureau of Political-Military Affairs; File Photo: AGT-1500 Gas Turbine Engine © Honeywell
