On April 25, the Defense Department sent a 'show cause' letter to Boeing notifying them that the JTRS Cluster 1 contract may be terminated because of anticipated failures to meet cost, schedule and performance requirements. This program builds upon the concept of the software-defined radio (SDR).

It was in 2002 that Army officials awarded the $856 million contract to an industry team led by Boeing to develop, test and build JTRS SDR radios for Army, Marine Corps and Air Force tactical air control parties and for Army rotary-wing aircraft. Of the $856 million, $573 million is said to have been spent. However, DOD and Army officials could recover $28 million if they terminate the program.

The letter marks the second significant step taken by DOD and Army officials this year related to the JTRS Cluster 1 program brought about by concerns that the SDR may be behind schedule and over budget. In January, DOD officials told Boeing to stop work on future development and instead to focus on short-term goals. This occurred after Boeing reported to the government in December that they would require more time and money to develop the JTRS Cluster 1 SDR.

Boeing officials must send a letter within 30 days to the Army officials managing the program at Fort Monmouth, NJ, explaining how they plan to execute the contract. After reviewing the letter, DOD and service officials can decide to terminate, restructure or continue the contract. We asked Boeing to comment on the matter. Here was their response:

"We are in the process of responding to the letter from our government customer regarding concerns about the Joint Tactical Radio System Cluster 1 program. Additionally, we are preparing a 'go forward' plan that transforms the program focus from legacy radio replacement to the earliest delivery of joint networked interoperability to the warfighter. Boeing expects the JTRS Cluster 1 program will continue innovating, mitigating risks, and developing the foundational elements in support of the overall JTRS Cluster 1 program."

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