A Royal Australian Air Force E-7A Wedgetail prior to a flight during Operation Kudu, Germany (Defence Australia)

RIAT 2024 — Following a price dispute that dragged out negotiations, the US Air Force has reached a deal with Boeing to produce rapid prototypes of the E-7 Wedgetail, according to service Secretary Frank Kendall.

The Air Force intends to definitize final terms for the contract in August, Kendall said in a briefing with reporters at the Royal International Air Tattoo (RIAT) air show. Kendall did not share details of the agreement, but stated that the service brought on Shay Assad, the Pentagon’s former longtime director of pricing, to broker a deal with Boeing.

“We’re very glad to have an affordable basis for the rapid prototyping program, which is again, the basis for the production program going forward,” said Andrew Hunter, the service’s top acquisition official.

The Air Force originally awarded Boeing a contract worth up to $1.2 billion to kickstart work on the Wedgetail in 2023, though the deal was signed as an undefinitized contract action as the two parties worked to come to terms. The agreement announced today covers two rapid prototypes, and the Air Force eventually expects to field a fleet of 26 aircraft. 

Amid negotiations, Kendall earlier this year turned the heat up on Boeing, telling reporters that the service was “having a hard time” nailing down a price with the planemaker. Complications in ironing out the deal caused the Air Force to postpone procurement funding for the program, though Hunter previously said that he still expects Boeing could deliver the first prototype plane in fiscal year 2027.  

According to Hunter, Air Force officials originally believed that their requirements would closely mirror those for E-7s acquired by the United Kingdom. But as the process went on, the requirements diverged, complicating the radar plane’s development and contract negotiations. Hunter also previously noted that it’s “not surprising” Boeing is “trying hard to do their homework” to avoid getting trapped in troublesome agreements like those that have contributed to losses for the company’s troubled defense unit.

A replacement for the aging E-3 Sentry, the E-7 is poised to be the Air Force’s newest eye in the sky. Using tools like its distinctive “top hat” radar manufactured by Northrop Grumman, the Wedgetail — a militarized version of Boeing’s commercial 737NG — can gather tracking information on targets that on-board personnel can then use to help manage a battlespace. Boeing’s vision for the E-7 also includes controlling the Air Force’s forthcoming drone wingmen known as Collaborative Combat Aircraft. 

Reaching a deal with the Air Force adds another win for the Wedgetail, which recently prevailed in a competition to replace E-3s for NATO. Demand for the platform has even prompted Boeing to aim for an annual output of six Wedgetails near the end of the decade.