Peter La Franchi/CANBERRA Paul Lewis and Graham Warwick/WASHINGTON DC

Boeing is being investigated by the US Government for alleged breaches of US restrictions on the release of stealth technology as part of its bid for Australia's Project Wedgetail airborne early warning and control (AEW&C) contract.

Investigations by Flight International show the inquiry is concentrating on the alleged release to the Australian Department of Defence between November and January of classified low-observable/counter low-observable (LO/CLO) radar signature and verification cross reference indexing data.

US Department of Defense officials and Boeing have acknowledged to Flight International that the investigation is under way. Information provided by sources suggests, however, that a draft report may have been provided in April to US Undersecretary for Defense Acquisition and Technology Paul Gansler.

The investigation was officially launched in January, although a preliminary inquiry is understood to have been conducted in the final two months of last year.

Boeing was selected as the preferred supplier for the $1.7 billion Australian project on 21 July, defeating rival bids by Lockheed Martin and Raytheon. Boeing is also shortlisted in Turkey for a four-aircraft requirement and plans to contest any relaunched competition in South Korea.

Boeing won the Australian contract with a 737-700 equipped with the Northrop Grumman Multirole Electronically Scanned Array radar. The same solution is being offered to Turkey.

Boeing confirms it was asked in January to provide information on its bid for the Australian project. "Boeing provided the Pentagon with the data the company gave the Australians. We believe we have complied with US export and licence requirements. Boeing will continue to meet the US export control requirements necessary to fulfil its commitment to the Australians on the Wedgetail programme."

If it is found to have breached LO/CLO policies in its Australian bid, Boeing could face sanctions by the US State Department and a US Congress already concerned on releasability issues in the wake of the Cox Report, which dealt with the unintentional leaking of defence and space information to China by Hughes and Loral.

The investigation is understood to have been discussed in Washington earlier this month during a meeting between Pentagon officials and the head of the Australian AEW&C project office, Grp Capt Paul Ekin-Smith. The Australian project office says that the talks explored a broad range of "way ahead" issues.

The investigation involves the Pentagon's Defence Threat Reduction Agency (DTRA), Defence Security Co-operation Agency, the US Navy and the US Air Force. US regulations require that the Pentagon hand the matter to the US State Department's Office of Defence Trade Controls for formal investigation once a breach has been confirmed through internal inquiries.

DTRA officials have declined to comment, but confirm that Boeing has yet to be granted the export licences required for it to be able to deliver aircraft to Australia.

Source: Flight International