Chertoff won't pay Boeing until it fixes virtual fence

TUCSON, Ariz. — Homeland Security Secretary Michael Chertoff said he is withholding further payments to Boeing for the first high-tech "virtual fence" on the nation's borders because it remains inoperable, three months after its scheduled debut, due to a software glitch.

Boeing is the prime contractor on the pilot project stretching 28 miles near the border southwest of Tucson.

About three-fourths of the $20 million cost for the project has been paid, Homeland Security officials said. The fencing was announced as part of a $67 million initial contract awarded last September to Boeing, the bulk going to set up program management, systems engineering and planning support.

"We're working with our customer to solve some remaining technical issues," said Boeing spokeswoman Deborah Bosick.

As part of the fencing project, nine 98-foot towers laden with radar, sensors and sophisticated cameras have been built in an area heavily trafficked by illegal immigrants and drug smugglers. The towers, each a few miles apart, are intended to deter or detect border crossers and enhance the ability of Border Patrol agents to catch them.

The virtual fence system is supposed to coordinate camera, sensor and radar sightings and provide a common operating picture to agents on the ground to intercept those entering the country illegally.

"The integration of all the systems into a common operating picture continues to be the challenge," said Homeland Security spokesman Russ Knocke. Boeing has put new people on the project who are working to resolve the problems, he said.

In June, with the towers up, a radar problem caused a brief delay. Then federal officials said there was a software problem.

More testing is expected by early October, Chertoff told the House Committee on Homeland Security this month in Washington.

Boeing has "retooled their team on the ground and replaced some of the managers. ... They are now working through the problems of system integration as we speak," Chertoff said. "I think they put their A-team in place to do it."

As for the testing, Chertoff added, "We should get it done well before the end of the year."