EGYPT: COUNTRY TEAM ASSESSMENT FOR THE PROCUREMENT

UNCLAS CAIRO 000124


SIPDIS

E.O. 12958: N/A
TAGS: PREL MASS MARR EG

SUBJECT: EGYPT: COUNTRY TEAM ASSESSMENT FOR THE PROCUREMENT
OF SIX (6) REDUCED PRICE CH-47D HELICOPTERS TO SUPPORT THE
GOVERNMENT OF EGYPT,S (GOE) SECURITY AND HUMANITARIAN
ASSISTANCE MISSIONS.

REF: A. EGYPTIAN MINISTRY OF DEFENSE LETTER OF REQUEST
(LOR) 08-134 FOR LETTER OF OFFER AND
ACCEPTANCE (LOA) DATED 13 JUL 08.

B. ATTACHMENT 1 TO LOR 08-134 TOTAL PACKAGE
REQUIREMENTS FOR CASE DEVELOPMENT DATED
15 OCT 08.


1. (SBU) Description. In REF A, The GOE submitted a request
to procure six (6) reduced price CH-47D Helicopters utilizing
the U.S. Army Cargo Helicopter Alternative Procurement
Strategy (CHAPS). These aircraft will perform a myriad of
Security and Humanitarian Assistance missions for the EAF, as
well as support several of the Ministry of Defense (MOD)
Services. These aircraft will perform tasks associated with
the Airborne Landing of Forces, Medical Evacuation (MEDEVAC)
and Disaster Relief missions. All missions will be in
compliance with the standards and regulations outlined within
current international and regional agreements. Additional
information is available at www.mmc.gov.eg.


2. (SBU) Reason the purchaser desires the articles or
services. Recent events throughout Egypt and the region with
regard to disaster relief, humanitarian assistance and
medical evacuation support the GOE initiative to increase its
rotary-wing capability to perform critical tasks associated
with these missions. The CH-47D (Chinook) helicopter with
additional search and rescue mission equipment was identified
by the U.S. Army and Chinook Program Manager more than a year
ago, as a suitable rotary-wing platform to support the GOE
specific Mission Requirements. This action will greatly
increase the overall capability of the EAF to support cargo
helicopter operations across multiple mission profiles. An
increase in aircraft availability will enhance the overall
readiness of the fleet and individual aviator proficiency.


3. (SBU) How the articles or services would affect the
recipient,s force structure. The EAF originally procured 19
CH-47 Helicopters (15 x C, 4 x D Models) in 1981 and has had
one incident since then that resulted in the total loss of
the aircraft. The EAF completed the upgrade of the 15 C
Model aircraft in 2007 and currently operate and maintain 18
CH-47D aircraft. There will be no change to the existing
mission and primary roles of the CH-47D. The addition of six
(6) aircraft would substantially assist the MOD and EAF with
allocating additional resources to the various missions.


4. (SBU) How the articles or services would contribute to
both the U.S. and the recipient,s defense/security goals.
Aircraft sales are consistent with DOD's Security Cooperation
Guidance as it enhances the territorial security and crisis
response capabilities of regional states. It assists the
U.S. in enabling allies and partners, while also protecting
U.S. and partner interests. It supports the modernization
and transformation of allies or partners to reduce their
vulnerability to external military sales. Finally, it
improves their ability to operate independently without
significant reliance on U.S. or coalition Forces. These
additional aircraft will significantly increase the amount of
US-based training, joint training exercises and possibly
impact the frequency of coalition operations with the US and
its other allies.


5. (SBU) Justification for the type and quantity of articles
or services requested. A detailed analysis and review of
several suitable airframes was completed by EAF with input
from the Utility Cargo Helicopter Office (UPHO) and Cargo
Helicopter Program Manager. Their findings revealed that the
CH-47D Chinook Helicopter with optional medical and search
and rescue equipment would be an excellent airframe to
support the various GOE missions. The procurement of these
aircraft is a natural progression to modernize assets and
significantly improve an existing capability.


6. (SBU) Combatant Commander's concurrence to the
introduction of a new warfighting capability to the nation or
region. Combatant Commander's concurrence will be provided
separately.


7. (SBU) Anticipated reactions of the neighboring nations.
The procurement of these additional cargo helicopters should
not influence the regional balance of power or cause negative
reactions from any of Egypt's neighbors. This procurement
introduces an increase in capability for Egypt, but does not
introduce new technology to the country or region. Several
regional allies have recently purchased similar airframes
through the Foreign Military Sales (FMS) or Direct Commercial
Sales (DCS) programs, with U.S. concurrence. These assets
will greatly enhance Egypt,s ability to participate in
combined regional training exercises, as well as disaster
relief missions. This procurement will not impact Israel's
qualitative military edge.


8. (SBU) Assessment of the nation's ability to account for,
safeguard, operate, maintain, and support the articles. The
GOE has demonstrated the intent and ability to protect
sensitive, classified military technology over an extended
period. Egypt signed a General Security of Information
Agreement with the U.S. and as a customer, has purchased and
protected the sensitive technology of other U.S. weapons
systems. Egypt has procured similar rotary-wing aircraft in
the past to include eighteen (18) CH-47 Chinook Helicopters
that currently provide support to the EAF, MOD services and
the Search and Rescue Operations Center at Al Maza Air Base.
The EAF has met all previous security and End Use monitoring
(EUM) requirements.


9. (SBU) Training required either in-country or in the United
States and anticipated reactions resulting from the presence
of U.S. trainers in country. The EAF already maintains a
squadron of eighteen (18) CH-47D Helicopters. The EAF pilots
and maintenance personnel currently complete all CH-47
Chinook Aviator Qualification Courses (AQC),Instructor Pilot
Courses (IPC),Maintenance Test Pilot (MTP) Courses, Flight
Engineer and maintenance related courses in the U.S. The
addition of six (6) aircraft will increase the EAF,s
stateside training requirements by a minimum of twelve (12)
AQCs, two (2) IPCs, two (2) MTP courses and eight (8) flight
engineer courses. There is no requirement for an additional
Mobile Training Team (MTT). The continued presence of the
Chinook Technical Assistance and Fielding Team (TAFT) is
required to support the fleet throughout the duration of
aircraft delivery. The presence of U.S. trainers in country
will have little anticipated reaction because of the
long-term existence of Security Assistance Teams (SATs)
already assigned in country.


10. (SBU) Possible impact of any in-country U.S. presence
that might be required as a result of providing the article.
U.S. Government civilian personnel and U.S. contractors are
permanently assigned to Egypt to support the current EAF
CH-47D program. Those US positions have been filled for over
six years. There is an expected increase of US personnel
in-country that would be necessary to support the arrival,
bed-down and sustainment of the additional aircraft resulting
from this procurement. A majority of the personnel will be
on temporary duty status and very few positions will require
additional personnel to remain in Egypt for more than one
year. Additionally, U.S. Government teams and U.S.
contractor teams routinely travel to Egypt to support the
various weapon systems procured through the U.S. FMS
programs. There is no anticipated negative impact that would
result from the continued presence of these Americans in
Egypt.


11. (SBU) Source of financing and the economic impact of the
proposed acquisition. Egypt plans to procure these six (6)
aircraft utilizing Foreign Military Financing and has already
allocated sufficient funds within their FY09-FY13 budget.
This acquisition is essential for the GOE to conduct airborne
landing of forces, humanitarian assistance and search and
rescue missions. This requirement is on both the FY09 JAVITS
Report and the Egyptian Armament Authority (EAA) Priority
List. Egypt is not planning to use national funds to pay for
any portion of this procurement. The economic impact of the
proposed acquisition will generate more than $200 million
dollars for the U.S. Army,s Cargo Helicopter Program and the
U.S. economy. The sale of these reduced price aircraft is
critical to offset the costs of the U.S. Army,s CH-47D,
total fleet conversion to F Model aircraft over the next six
years.


12. (SBU) Human rights considerations relevant to the
proposed acquisition. None.


13. (SBU) A plan for end-use monitoring for sensitive and
advanced warfighting technology and the SAO,s plan for
compliance verification. The Office of Military Cooperation
(OMC) Egypt has a robust Golden Sentry Program. The Golden
Sentry Program representative and Security Assistance Officer
(SAO) responsible for the program, will coordinate for the
review and maintenance of required documentation. All
parties will maintain serial number lists of all components
within the inventory or transferred, and will conduct the
mandated inspections as required. This coordination will
ensure that historical copies of all EUM Inspection results
and customer,s physical security and accountability control
plans remain on file. The Egyptian military currently has
over 100 helicopters (FMS) of various configurations in
country. Egypt has maintained accountability and security of
these aircraft without unauthorized loss, theft, or access to
date. The GOE has indicated a willingness to meet U.S.
guidelines for accountability and security of these advanced
aircraft, and the Office of Military Cooperation will conduct
End Use Monitoring (EUM) of all required components if this
request is approved.


14. (SBU) Recommendation whether the USG should approve
transfer of the article and justification. The country team
supports USG approval of the GOE procurement of up to six (6)
Reduced Price CH-47D helicopters for the airborne transport
of troops, humanitarian assistance, medical evacuation and
search and rescue missions. The purchase of additional
airframes should in no way diminish the amount of follow-on
support for the current fleet. Also, there will be funding
lines in the Letter of Acceptance for training, to include
pilot and English language and infrastructure for overall
base improvements. Particulars for the infrastructure and
training are contained as an attachment to the Letter of
Request. This is a coordinated mission position.
SCOBEY


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