March 16, 2026 — Washington — The U.S. Air Force awarded The Boeing Co. two sole-source contract modifications totaling approximately $2.43 billion on March 12 to procure developmental E-7A Wedgetail aircraft and address radar manufacturing issues, fulfilling congressional directives to advance the program into its engineering and manufacturing development phase.
The primary modification, an option exercise valued at $2.335 billion (P00045), supports acquisition of an undisclosed number of E-7A prototypes, while a separate $99.3 million contract tackles diminishing manufacturing sources for the aircraft’s multirole electronically scanned array radar. These actions bring the overall contract value to more than $5 billion, with $35 million obligated in fiscal 2026 research, development, test, and evaluation funds. Work will primarily occur in Seattle, Washington, with additional sites in Oklahoma City, Huntsville, Alabama, and Heath, Ohio, with completion expected by August 2032.
Congressional Push and Program Revival
Congress rejected the Air Force’s prior attempts to cancel the E-7A program—intended to replace the aging E-3 Sentry AWACS—in the Fiscal Year 2026 Consolidated Appropriations Act, directing continuation and allocating funds for prototyping and transition to the EMD phase. Lawmakers cited concerns over cost increases and survivability but mandated maturation of the system design, risk reduction, and testing.
“In accordance with the Fiscal Year 2026 Consolidated Appropriations Act, the Department of the Air Force (DAF) has approved an updated acquisition strategy for the E-7A Wedgetail program. This strategy executes Congressional direction to continue development and transition to an Engineering and Manufacturing Development (EMD) phase.”
— Air Force spokesperson
The E-7A, based on the Boeing 737 Next Generation airliner with a Northrop Grumman “top hat” radar, provides airborne early warning, air moving target indication, and battle management capabilities with a smaller crew and faster sensor refresh rates than the E-3.
Air Force and Boeing Statements
An Air Force spokesperson emphasized the contracts’ role in prototyping:
“The aircraft acquired for the EMD phase will allow the Air Force to mature the system design, conduct risk reduction, and perform comprehensive test and verification activities in accordance with Congressional intent.”
— Air Force spokesperson (Air & Space Forces Magazine)
Boeing expressed commitment:
“We’re proud to support the U.S. Air Force’s Airborne Early Warning & Control fleet with unmatched capabilities for greater situational awareness and battle management.”
— Boeing spokesperson
Air Force Secretary Meink noted in February that delivering a plan does not guarantee budget inclusion, while Gen. Alexus Grynkewich indicated NATO interest could revive depending on U.S. decisions.
Background and International Context
The program previously secured $2.56 billion for two rapid prototypes. Despite Air Force proposals for alternatives like satellites and E-2D Hawkeyes, allies such as Australia operate E-7s, recently deploying one to the Middle East amid Iranian threats. A recent Air Force solicitation explores support for fleets ranging from prototypes to 26 aircraft, but full production remains undecided (GovCon Wire).
