In twin announcements (link opens in PDF), Defense Security Cooperation Agency says (link opens in PDF) it has notified Congress of plans to make "Foreign Military Sales" to Singapore of two batches of air-to-air missiles.
The first delivery DSCA wishes to proceed with involves 100 AIM-120C7 Advanced Medium Range Air-to-Air Missiles (AMRAAM) manufactured by Raytheon (NYS: RTN) , Honeywell (NYS: HON) , Exelis (NYS: XLS) , and Alliant TechSystems (NYS: ATK) . Factoring associated equipment, parts, training, and logistical support into the cost of the order, the AMRAAM delivery would be worth an estimated $210 million to the companies involved.
Additionally, DSCA informed Congress of a planned sale of 20 AIM 9X-2 SIDEWINDER Block II All Up Round Missiles manufactured by Raytheon -- also with included equipment, parts, training, and logistical support -- valued at $36 million in total.
DSCA clarified that the AMRAAM missiles would be used to arm F-15SG fighter jets for the Singaporean Air Force. The intended use of the Sidewinders was not spelled out, but they seem likely to be destined for the same purpose.
According to DSCA, "The Republic of Singapore requires these missiles to meet current and future threats of enemy aircraft."
Justifying the sale, DSCA advised Congress that both sales "will contribute to the foreign policy and national security of the United States by increasing the ability of the Republic of Singapore to contribute to regional security ... [bolstering Singapore's] counter-piracy and counterterrorism efforts ... to stabilize a critical chokepoint where much of the world's goods and services transit en route to and from the Asia Pacific region."
The article DSCA Seeks Authorization to Sell Singapore $246 Million Worth of Missiles originally appeared on Fool.com.Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Raytheon Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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