UPDATE 1-Pentagon seeks OK for potential Brazil sale

* Boeing bids $7 bln worth of F-18s in Brazil competition

* Brazil to choose winner in August or September

WASHINGTON, Aug 7 (Reuters) - The Pentagon has proposed a
fleet of Boeing-made (BA.N) F-18 Super Hornets, valued at about
$7 billion, in the Brazil Air Force's competition to choose a
next generation fighter plane, the U.S. Defense Security
Cooperation Agency said on Friday.

The Pentagon agency said it notified Congress of a possible
military sale to Brazil for 28 F-18E Super Hornets, eight F-18F
Super Hornets, 72 installed engines made by General Electric
(GE.N) and spare parts.

Final bids were submitted in June to Brazil's defense
ministry by other plane makers such as Sweden's Saab (SAABb.ST)
and France's Dassault Aviation (AVMD.PA). A final decision is
expected in August or September.

Under U.S. law, the Pentagon must notify Congress of
potential government-to-government arms sales, but the
notification does not mean a sale has been concluded.

"The government of Brazil has yet to select the U.S.
Navy-Boeing proposal," the agency said in a statement. "This
notification is being made in advance of receipt of a letter of
request so that, in the event that the U.S. Navy-Boeing
proposal is selected, the United States might move as quickly
as possible to implement the sale."

Brazil's air force wants to replace its fleet over the next
15 years as the government beefs up its defense infrastructure
to protect offshore oil production and other strategic assets.
Some experts have said Brazil's aircraft order could eventually
increase to more than 100 planes.

The Pentagon agency said U.S. Navy-Boeing's $7 billion bid
also included:

* 36 AN/APG-79 Radar Systems

* 36 M61A2 20mm Gun Systems

* 36 AN/ALR-67(V) three Radar Warning Receivers

* 144 LAU-127 Launchers

* 44 Joint Helmet Mounted Cueing Systems

* 28 AIM-120C-7 Advanced Medium Range Air-to-Air Missiles

* 28 AIM-9M Sidewinder Missiles

* 60 GBU-31/32 Joint Direct Attack Munitions

* 36 AGM-154 Joint Standoff Weapons

* 10 AGM-88B HARM Missiles

* 36 AN/ASQ-228 (V2) Advanced Targeting Forward-Looking
Infrared Pods

* 36 AN/ALQ-214 Radio Frequency Countermeasures

* 40 AN/ALE-47 Electronic Warfare Countermeasures Systems

* 112 AN/ALE-50 Towed Decoys
(Reporting by Julie Vorman; Editing by Steve Orlofsky)