The Defence Materiel Organisation (DMO) and Boeing Australia have agreed to terminate the contract for the delivery of a Tactical Unmanned Aerial Vehicle (TUAV) System, announced Defence Minister Joel Fitzgibbon.
Under a contract awarded to Boeing Australia in December 2006, Joint Project 129 was to deliver the Israel Aircraft Industries (IAI) I-View 250 TUAV 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 timeframe acceptable to Defence.
Mr Fitzgibbon acknowledged Boeing Australia’s cooperation with the DMO in taking this action.
“I note that both Boeing Australia and the DMO took a mature and positive approach towards working to a mutually acceptable conclusion to the contract," he said.
"This has avoided dragging this out in a protracted legal battle that would ultimately benefited neither party.
“This decisive action will enable Defence to focus on the earliest acquisition of an alternative TUAV to meet the JP129 requirement.”
As part of the agreement to terminate, Boeing will refund to Defence the $6 million they have been paid to date under the contract.