US Clears $1.2Bn Sale of Remanufactured AH-64 Apaches to Netherlands

WASHINGTON --- The State Department has made a determination approving a possible Foreign Military Sale to the Netherlands of items and services to support the upgrade/remanufacture of AH-64D Block II Apache Attack Helicopters to the AH-64E configuration for an estimated cost of $1.191 billion. The Defense Security Cooperation Agency delivered the required certification notifying Congress of this possible sale today.

The Government of the Netherlands has requested the possible sale of items and services to support the upgrade/remanufacture of twenty-eight (28) AH-64D Block II Apache Attack Helicopters to the AH-64E configuration to include upgrading fifty-one (51) remaining T700-GE-701C Engines to T700-GE-701D (42 engines to be installed, 9 spares), seventeen (17) AN/APG-78 Fire Control Radar (FCR) and subcomponents, twenty-eight (28) AN/ASQ-170 Modernized Target Acquisition and Designation Sights (MTADS)/AN/AAR-11 Modernized Pilot Night Vision Sensors (PNVS), twenty-eight (28) AN/APR-48B Modernized Radar Frequency Interferometers (MRFI), and seventy (70) Embedded Global Positioning System/Inertial Navigation Systems (EGI) plus Multi-Mode Receiver.

Non-MDE items and services to support the upgrade/remanufacturing of the existing AH-64D Block II Apache Attack Helicopters to AH-64E configuration, training devices, helmets, simulators, generators, transportation, wheeled vehicles and organization equipment, spare and repair parts, support equipment, tools and test equipment, technical data and publications, personnel training and training equipment, U.S. Government and contractor engineering, technical, and logistics support services, and other related elements of logistics and program support.

The estimated total case value is $1.191 billion.

This proposed sale will support the foreign policy and national security objectives of the United States by improving the security of a NATO ally which has been, and continues to be, an important force for political stability and economic progress in Europe. It is vital to U.S. national interests to assist the Netherlands to develop and maintain a strong and ready self-defense capability.

The proposed sale of the AH-64E remanufacture will improve the Netherlands' capability to meet current and future threats of enemy. The Netherlands will use the enhanced capability to strengthen its homeland defense and deter regional threats, and provide direct support to coalition and security cooperation efforts. The Netherlands will have no difficulty absorbing this aircraft upgrade into its armed forces.

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

The principal contractors are Boeing Company, St. Louis, MO and Lockheed Martin, Bethesda, MD. The purchaser typically requests offsets. 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 the Netherlands.

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 and does not mean the sale has been concluded.

(EDITOR’S NOTE: The $1.191 billion that The Netherlands will pay to upgrade 28 AH-64D Apache attack helicopters to the latest AH-64E standard means that each will cost $42.5 million.
In FY2018 budget, the US Army is paying $911.1 million to remanufacture 48 AH-64Ds to “E” standard, which works out to $18.7 million each – much less than half of what it is charging The Netherlands for the same upgrade.
And it should be noted that these are aircraft that have already been built, and so require refurbishing and upgrade, but not new production.)

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US Clears $1.2Bn Sale of Remanufactured AH-64 Apaches to Netherlands US Clears $1.2Bn Sale of Remanufactured AH-64 Apaches to Netherlands Reviewed by Defense Alert on 05:08:00 Rating: 5

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