Graham Warwick/WASHINGTON DC Peter La franchi/CANBERRA
Boeing has been fined $4.2 million for violating US export controls during the competition to meet Australia's Project Wedgetail airborne early warning and control (AEW&C) requirement.
Flight International first revealed Boeing was being investigated for export control violations during Wedgetail bidding (11-17 August 1999). The US Department of Defense denied an investigation was under way, but later launched a review of its AEW&C export policy.
The US Department of State says Boeing was fined for at least 110 violations of its export licences while offering the 737-based AEW&C to Australia, Italy, Malaysia, Singapore, Spain and Turkey. The consent order clears the way for Australia's $1.5 billion agreement to buy four 737 AEW&Cs, with an option for three more, to be presented to US Congress for approval.
The fine was less than it might have been because Australia is a close US ally and few of the violations involved the actual transfer of technology. Most involved Boeing offering more than its export licence allowed. Some $400,000 of the fine was suspended and will be used to offset the cost of personnel to monitor Boeing's compliance with export controls.
Vice-president AEW&C programmes Patrick Gill says Boeing has spent large sums improving its compliance controls. Programme management has been changed and all 1,100 staff in the unit retrained.
Most of the violations related to the performance of the 737 AEW&C's MESA active-array radar, developed by Northrop Grumman as a private venture.
The hardware violations included an offer to Australia of titanium alloy based radar transmit and receive modules in place of standard silicon germanium modules being offered to other potential customers. Alternative modules offer a dramatically increased signal amplification capability with significant reductions in the overall weight of the radar array.
The software breaches investigated included alleged release of classified radar signature data on a range of target types to Australia, including Verification Cross Reference Indexing information.
"We have a much clearer picture on releasability today," Gill says, and there is "zero tolerance" of licence violations.
Turkey also has selected the 737AEW&C, but has criticised the releasability offered (Flight International, 3-9 April). "We would have liked more freedom in Turkey, but we respect the limits," says Gill. "The licence basis is agreed, no matter what it costs us."
Source: Flight International
