The DMO and Boeing Australia have agreed to terminate the contract, awarded to Boeing in December 2006, for the delivery of a TUAV System under Joint Project 129.
The contract aimed to deliver the Israeli Aircraft Industries’ I-View 250 Tactical UAV system for use by the Australian Army in airborne surveillance, reconnaissance and target acquisition.
Since contract award, Boeing Australia and its subcontractors have experienced a range of technical issues making it increasingly difficult to deliver the full scope of the contract within a time frame acceptable to Defence.
With a Defence imperative to field a TUAV capability as soon as possible, and the potential for a number of lower-risk alternative systems, the DMO and Boeing Australia have agreed to terminate the contract on mutually acceptable terms which includes a $6-million refund by Boeing for advance payments.
Defence will now focus on the acquisition of an alternative TUAV to meet the JP129 requirement.
Boeing’s ScanEagle contract with the ADF is unaffected.