Boeing announced in February 2023 that it would commence the development of two new variants of its E-7A Wedgetail airborne early warning and control aircraft for the United States Air Force under a “undefinitized contract action” (UCA) valued at up to $1.2 billion. In substance, the Pentagon still required agreement on the aircraft’s specifications and price.
The US Air Force intends to acquire 26 E-7 Wedgetail aircraft to replace its 31 E-3B/G AWACS aircraft, which have been in service for over forty years and are currently enduring availability issues, beginning in 2027.
At first, the negotiations to finalize the contract did not appear to be insurmountable, as the United Kingdom, Turkey, Australia, and South Korea had already chosen the E-7 Wedgetail, which is based on the Boeing 737 airframe. Furthermore, NATO declared its intention to acquire six units to replace the E-3A Sentry in its Airborne Early Warning and Control Force (NAEW&C).
In a nutshell the E-7A Wedgetail is equipped with a Multi-role Electronically Scanned Array (MESA) radar that has a range of over 400 km, electronic countermeasures, and a variety of communication systems, including UHF, HF, VHF, Link 11, Link 16, ICS, and SATCOM.
Nevertheless, the Pentagon’s planned aircraft purchase will require aircraft that are tailored to the US Air Force’s requirements, such as a “open” mission systems architecture and improved satellite communication capabilities. This resulted in “challenging” discussions with Boeing, particularly in relation to pricing. The legal complications associated with Boeing’s two B-737 MAX catastrophes in 2018 and 2019, which resulted in the deaths of 346 individuals, further complicated these discussions.
Boeing consented to a $243.6 million fine and pleaded guilty to “conspiracy to defraud the FAA in the certification of the 737 Max” on July 8, in order to avoid a criminal conviction. However, experts cited by Reuters have expressed concern that this procedure might prevent the aircraft manufacturer from obtaining government contracts. The Pentagon is obligated to guarantee that any supplier it does business with is a responsible company.
Nevertheless, an agreement was ultimately reached eighteen months after the “undefinitized contract action” was notified. Frank Kendall, the Secretary of the US Air Force, disclosed the information during the Royal International Air Tattoo military airshow in England.
The US Airforce has reached an agreement with Boeing, the official informed the press. He said that they had secured a price that was both reasonable and within their budget. He further stated that a formal contract will be concluded in August, without providing any additional information.
Andrew Hunter, the US Air Force Assistant Secretary for Acquisition and Technology, praised Boeing and its suppliers for their efforts in cost reduction. “Boeing and its suppliers deserve congratulations,” Hunter said. “They have really worked hard and done a good job to reduce the cost of the rapid prototyping program. That’s what we asked them to do. And that’s what they did.”
At first, he clarified that US Air Force officials believed that their requirements would closely align with those of the E-7s acquired by the United Kingdom. However, these requirements diverged throughout the process, which escalated the development of the prototypes and the contract negotiations. Moreover, Mr. Hunter observed that Boeing was averse to becoming ensnared in a problematic agreement, as had been the case with the KC-46A Pegasus tanker aircraft.
The KC-46A Pegasus tanker program, a joint effort between aerospace giant Boeing and the US Air Force, has become a prime example of the difficulties that can occur in complicated military procurement projects. What was once seen as a promising effort to update the USAF’s aerial refueling capability has now become a cause of irritation, delays, and financial pressure for all parties.
Boeing has encountered several technical challenges that have adversely impacted the program’s timeline and bottom line. The company has suffered huge losses of more than $7 billion, demonstrating the project’s unanticipated complexity. These financial difficulties originate from a variety of technological issues that have hampered the tanker’s growth.
These setbacks have had an equally frustrating impact on the US Air Force. The initial delivery of combat-ready tankers, which was originally scheduled for August 2017, has been moved back until January 2019. Despite this, the delivered aircraft were not completely operational due to continued technical concerns. This delay has pushed the USAF to rely on antiquated tanker fleets, potentially jeopardizing its global reach and operational capabilities.
Many of these concerns stem from the contract structure itself. A fixed-price contract funds the KC-46A program; thus, Boeing bears the financial weight of any unexpected issues. While this structure was designed to safeguard taxpayer interests, it has resulted in Boeing incurring significant losses while it attempts to remedy the tanker’s issues.
Despite the persistent hurdles, there is evidence of progress. In November 2023, the USAF underlined its continued confidence in the program by granting Boeing a contract for 15 more KC-46A aircraft. This decision implies that both sides are still dedicated to completing the project successfully.
As of July 2024, Boeing and the USAF were still working closely to resolve the outstanding technical challenges. The KC-46A story is a harsh reminder of the complications that come with producing cutting-edge military hardware. It emphasizes the significance of realistic deadlines, extensive testing, and adaptable contract structures that can handle unexpected obstacles.
While the road forward is uncertain, the lessons learned from the KC-46A program will likely affect future military procurement policies. As Boeing struggles to deliver on its promises and the USAF eagerly anticipates fully operational tankers, the aerospace industry keeps a careful eye on the situation, hoping that the tumultuous trip will eventually result in a game-changing aerial refueling capability for the US military.
Boeing is currently in the process of creating the initial B-737 Next Generation plane, which will subsequently be transformed into a prototype of the E-7 Wedgetail for the US Air Force. The initial flight of this aircraft is anticipated to take place in 2025.