air war
An E-4B aircraft sits on the tarmac at Travis Air Force Base, California, Sept. 11, 2017. (U.S. Air Force photo by Louis Briscese)
SIMI VALLEY, Calif. – Boeing is no longer in the running to build the Air Force’s E-4B Nightwatch “Doomsday” replacement aircraft, leaving Sierra Nevada Corporation (SNC) as the only known remaining competitor.
In a statement to Breaking Defense on Friday, a company spokesperson confirmed that the aerospace giant’s offer is no longer being considered by the Air Force. Portal first reported Boeing’s elimination.
“We approach all new contract opportunities with additional discipline to ensure we can meet our obligations and support the long-term health of our business. We remain confident [E-4B replacement] “The approach is the most comprehensive, technically sophisticated and lowest-risk solution for the customer and Boeing,” said the Boeing spokesman.
“Our proposal is based on 60 years of knowledge and experience with military commercial aircraft, including the design, development and maintenance of the E-4B Nightwatch, which currently serves the national security command and control mission,” they added.
According to Portal, Boeing and the Air Force were unable to reach an agreement on data rights or contract terms. Boeing executives refused to sign new fixed-price development contracts after the company suffered billions of dollars in losses in recent years. In the third quarter of 2023 alone, Boeing recorded charges of almost $1 billion for its defense division.
In a statement, an Air Force spokesman said: “We cannot discuss active source selection and detailed program information is being kept secret to protect our investment in this important capability.”
Boeing is the manufacturer of the current E-4B, a modified 747 that serves as the Secretary of Defense’s primary transport but can also act as an airborne command center in the event of a national emergency such as a nuclear attack. The aircraft is also known as the Survivable Airborne Operations Center (SAOC) and four of the jets are currently in the service’s inventory.
The Air Force’s 2024 budget rollout earlier this year showed a massive increase in funding for the SAOC replacement effort, with about $889 million for the coming fiscal year alone as the service moves toward a contract award. The award is expected in 2024, with SNC now the only public competitor still vying for the prize.
Boeing isn’t alone in opposing fixed-price development contracts. For example, L3Harris CEO Chris Kubasik has promised that his company will refuse to sign contracts with such terms.
Negotiations between industry and government over data rights are often a sticking point for programs that the government typically wants to enable service-based maintenance. Boeing’s sustainability arm, which handles both commercial and defense contracts and is called Boeing Global Services, is typically a bright spot for the company’s profits, posting a profit of $784 million in the third quarter of this year.
“We have great relationships with our customers. When I say great, sometimes it’s painful,” Steve Nordlund, head of Boeing’s Air Dominance division, said in an interview with Breaking Defense earlier this year.
“And sometimes we don’t immediately have the answer in mind. But we’re digging in to figure out how we can give them what they want, which is to be operational.”
Updated 12/1/23 at 7:50 p.m. ET with comment from the Air Force.