The devices, which cost about $11,000 each, could help spot a so-called dirty bomb, a conventional explosive wrapped in radioactive material.
Rather, they would be spread using conventional explosives in so-called dirty bombs.
The newspaper said Washington was eyeing the sale of 4,900 of the so-called smart bombs.
Accuracy is the main reason for developing a weapon system of this kind, rather than continuing to use so-called "dumb bombs".
He was peddling it for use in so-called dirty bombs, according to American law enforcement officials.
Furthermore, in spite of being fitted with so-called smart bombs, they failed to hit certain targets that had been carefully pinpointed by intelligence reports.
Allison is less concerned with biological and chemical weapons and so-called dirty bombs because they kill in the thousands, not millions.
Such sensors could also help protect against so-called dirty bombs, in which a conventional explosive would be used to disperse radioactive material.
Its officials note that the medium-level sources sometimes have enough radioactivity to fuel so-called "dirty bombs."
This is the latest model - the so-called "clean" atomic bomb.