New contracts continue development of Air Force E-7A prototype aircraft

The Pentagon announced on Thursday that The Boeing Company has been awarded two contracts to continue developing two E-7A Wedgetail aircraft prototypes, a plane the Air Force doesn’t want.

The first contract is a $2.3 billion option exercise modification to a previously awarded contract for E-7A Rapid Prototype Airborne Mission Segment. The modification brings the contract's cumulative face value to $4.9 billion. The work will be performed in Seattle, Wash. (primary); Oklahoma City, Okla.; Huntsville, Ala.; and Heath, Ohio, and is expected to be completed by August 10, 2032.

The second contract is a $99 million modification to a previously awarded contract for E-7A Diminishing Manufacturing Sources Multi-Role Electronically Scanned Array. The modification increases the contract's cumulative face value to $5 billion.

The Air Force Lifecycle Management Center, Hanscom Air Force Base, Mass., is the contracting organization managing the awards.

Air Force Cancels Plans

In June, the U.S. Air Force canceled plans to acquire new E-7A Wedgetail aircraft from Boeing due to significant delays and cost increases. The Department of the Air Force would have acquired the E-7A aircraft to replace a portion of the E-3 Sentry Airborne Warning and Control System fleet.

“The Department is canceling the E-7 Wedgetail program due to significant delays with cost increases from $588 million to $724 million for aircraft and survivability concerns in this contested environment, while investing in alternate solutions, including space-based capabilities and adding additional E-2D aircraft,” a senior military official told reporters in June. But work continues on two E-7A Wedgetail aircraft prototypes for the Air Force.

Business Case Analysis

On Tuesday, the Air Force released a Request for Information (RFI) document indicating it is now requesting a Product Support Business Case Analysis (PS-BCA) for a “fleet” of the E-7As.

“The objective of this BCA is to identify the most effective and efficient product support strategy for the E-7A fleet throughout its planned life cycle,” the Air Force said in the RFI. “The PS-BCA will need to accommodate a fleet of at least two but possibly up to 26 aircraft. The analysis will inform the Air Force’s decision-making process for structuring the E-7A’s sustainment enterprise.” The BCA will include costs, benefits, and risks of different product support strategies for the E-7A aircraft.

The Royal Australian Air Force was the first country to acquire the E-7A Wedgetail, followed by the Turkish Air Force and the Republic of Korea Air Force.