

BAE Systems has received a $123 million contract from the US Navy to modernise the Arleigh Burke-class guided-missile destroyer USS Forrest Sherman (DDG 98). The total value of the competitively awarded contract could reach $139 million if all options are exercised.
Work will be performed at the company’s Norfolk shipyard, commencing in February 2026 under a navy depot modernization period (DMP) contract.
The project scope includes underwater hull preservation, reconditioning of engineering spaces, upgrading command-and-control equipment, and refurbishing crew living spaces. The modernisation is expected to be completed by early 2027.
David M. Thomas, Jr., Vice President and General Manager of BAE Systems Maritime Solutions Norfolk, stated, “The modernisation of USS Forrest Sherman will be a major project for our team, building upon our recent DMP work...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.”
The 9,200-ton USS Forrest Sherman, commissioned in 2006, is the 48th ship of its class.