The U.S. Navy has selected BAE Systems to execute comprehensive maintenance, modernization, and repair services for the Arleigh Burke-class guided-missile destroyer USS Forrest Sherman Maintenance (DDG 98). The Naval Sea Systems Command (NAVSEA) awarded the company a firm-fixed-price contract initially valued at $123.2 million, with options that could elevate the total ceiling value to $139.1 million.
This competitive award tasks BAE Systems with ensuring the vessel returns to the fleet fully mission-ready, underscoring the company’s critical role in sustaining U.S. Navy assets.
Executing the Depot Modernization Period
BAE Systems’ Norfolk Ship Repair division will manage the Depot Modernization Period (DMP) for the destroyer, officially designated as a Chief of Naval Operations (CNO) Availability. This significant scope of work requires the contractor to provide all necessary labor, supervision, equipment, production, testing, facilities, and quality assurance.
The company will conduct deep-level repairs and modernization activities across the vessel to enhance its longevity and operational capability. Specific tasks involve critical propulsion system maintenance, extensive mechanical and electrical repairs, underwater hull preservation, and significant modernization upgrades. These efforts are vital for maximizing the operational lifespan of the ship.
Timeline and Operational Impact
The Fiscal Year 2026 Depot Modernization Period for the USS Forrest Sherman is scheduled to begin in February 2026. BAE Systems anticipates completing the extensive USS Forrest Sherman Maintenance and modernization work by August 2027. The 18-month timeline reflects the complexity and depth of the required overhauls, which ensure the destroyer maintains a high state of readiness.
As a leading provider of ship repair and modernization services for the U.S. Navy, BAE Systems continues to strengthen the fleet’s capacity to operate globally. The successful execution of this contract will directly contribute to the Forrest Sherman’s ability to perform its crucial maritime security missions for years to come.







