The U.S. Department of Defense has awarded Boeing a $2.34 billion contract modification tied to the development of the E-7A Wedgetail airborne early warning and control aircraft.

The modification applies to an existing contract for the E-7A Rapid Prototype Airborne Mission Segment and raises the total contract value to about $4.9 billion, according to the Pentagon.

Work under the program will be carried out primarily in Seattle, Washington, with additional activities in Oklahoma City, Oklahoma; Huntsville, Alabama; and Heath, Ohio. The current phase of the contract is expected to run through Aug. 10, 2032.

The Pentagon said $31 million in fiscal 2026 research, development, test and evaluation funding is being obligated at the time of the award. The U.S. Air Force Life Cycle Management Center at Hanscom Air Force Base, Massachusetts, is overseeing the contract.

The E-7A Wedgetail is intended to detect, identify and track airborne targets while providing battle management and command-and-control functions. The aircraft is based on the Boeing 737 platform and already serves with several air forces, including those of Australia and the United Kingdom.

E-7 Wedgetail AEW aircraft (Boeing)
E-7 Wedgetail AEW aircraft (Boeing)

The latest contract action comes as the Air Force continues to debate how large the future E-7A fleet should be.

Congress included $1.1 billion in the fiscal 2026 budget to fund the first two E-7A prototypes and directed the Air Force to outline a path toward the engineering and manufacturing development phase of the program.

However, Air Force leadership has signaled reluctance to expand the program beyond the initial aircraft. Service officials have argued that part of the mission planned for the E-7A, particularly tracking moving targets, could eventually be shifted to space-based systems.

Lawmakers have raised concerns that satellite capabilities may not be ready soon enough and that orbital sensors cannot fully replace the aircraft’s airborne battle management and command-and-control roles.