Defence

The Australian Army has signed a $12.7 million contract with Boeing Australia for the supply of Boeing-Insitu ScanEagle unmanned air vehicle services for a six-month period. Newly released Australian government purchasing records show the lease runs until 30 June 2007. The Australian Department of Defence is planning to announce the deal this month.

The sole-source contract was awarded on 8 November by the Australian Defence Materiel Organisation's Army Aviation System Programme Office. The deal follows unsolicited proposals to the Australian Army headquarters by Boeing proposing a lease ahead of the army's proposed acquisition of Israel Aircraft Industries I-View 250 tactical UAVs.

Boeing Australia is also the proposed prime contractor for the I-View deal, a contract for which is expected by mid-December after protracted delays.

ScanEagle is in operational service in Iraq with the US Marine Corps under rolling service-lease contracts. The UAV has also been tested by the UK Ministry of Defence for ship-launched surveillance and reconnaissance.