Defense company BAE Systems has received a $123 million contract from the US Navy to modernize the Arleigh Burke-class guided-missile destroyer USS Forrest Sherman (DDG 98).
BAE Systems’ Norfolk shipyard will begin work aboard the 9,200-ton ship in February 2026 under the Navy Depot Modernization Period (DMP) contract.
In addition to underwater hull preservation work, the team will also recondition the ship’s engineering spaces, upgrade its command-and-control equipment, and refurbish the crew’s living spaces.
The total value of the competitively awarded contract could reach $139 million if all options are exercised. The DMP work is expected to be completed in early 2027.
“The modernization of USS Forrest Sherman will be a major project for our team, building upon our recent DMP work,” said David M. Thomas , Jr., vice president and general manager of BAE Systems Maritime Solutions Norfolk.
“More importantly, our work will ensure that the Forrest Sherman is fit to provide a high level of service in the fleet for many years.”
To remind, the shipyard completed similar work aboard the guided-missile destroyer USS Nitze (DDG 94) in June 2024, and other types of repair work are currently being performed aboard five US Navy and commercially operated vessels.
USS Forrest Sherman is the 48th ship of the Arleigh Burke class and was commissioned in January 2006. The ship is named in honor of former Chief of Naval Operations Admiral Forrest P. Sherman. A previous US Navy destroyer, USS Forrest Sherman (DD 931), also bore the admiral’s name and was the lead ship in a class of 18 destroyers built in the 1950s.
BAE Systems recently renamed its US maritime business to Maritime Solutions, reflecting the broadened mission of its shipyards and continued investment in serving a wider range of clients.