The Lion Air jet that crashed reportedly had issues with its "angle of attack" sensors.
The glitch had been repeatedly serviced and Lion Air's technical team declared the plane to be airworthy.
Images distributed on social media showed passengers on the runway observing the broken part of the plane.
The FAA said erroneous data from the "angle of attack" sensor, which helps prevent the plane from stalling and diving, could cause flight crew to have difficulty controlling the airplane and lead to "excessive nose-down attitude, significant altitude loss, and possible impact with the terrain".
Aviation regulators such as the U.S. FAA and the European Aviation Safety Agency often follow such actions by mandating that carriers follow the bulletins.
He added that the broken sensor from the Bali-Jakarta flight would be sent to the manufacturer in Chicago for further examination.
The 737 MAX now operates with 40 airlines around the world.
Boeing has warned about improper readings from the plane's monitoring system - which have the potential to force the aircraft to take a sharp dive.
U.S. Issues Emergency Directive After Jet Crash in Indonesia
The AD requires flight crew to comply with a runaway stabiliser procedure in the Boeing operating procedures manual. In December 2014, an AirAsia flight from Surabaya to Singapore plunged into the sea, killing all 162 on board.
The bulletin is being prepared based on preliminary findings from the crash of one of the planes off the coast of Indonesia, said the person, who asked not to be named discussing the inquiry.
The aircraft has been grounded and Lion Air has said that the carrier too will investigate the issue.
Soerjanto Tjahjono, chairman of the transport safety committee, said Wednesday that airspeed indicator malfunctions on the jet's last four flights, which were revealed by analysis of the flight data recorder, were intertwined with the sensor issue.
"The draft of what will be conveyed by Boeing this morning has been presented to us", said air accident investigator Nurcahyo Utomo.
An angle of attack sensor had been changed by mechanics on the ground in Bali the day before the crash, Indonesia's National Transportation Safety Committee (KNKT) has said.
Boeing is now warning pilots that if they experience inaccurate or erroneous readings from the sensor to follow standard flight procedures, though it's not clear what those are.
"The bulletin reinforces existing procedures which all Air Canada crews are now trained on", Fitzpatrick said.
Bloomberg says the plane's velocity was uncharacteristically high, possibly touching speeds of 970 kilometres an hour as it hit the water.