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BAE Systems Wins $98M US Navy Modernization Contracts

BAE Systems’ San Diego shipyard has secured $98 million in contracts from the US Navy to perform scheduled modernization and repair work. 

The agreements cover the littoral combat ship (LCS) USS Kansas City and the guided missile destroyer USS Stockdale, ensuring both vessels return to service-ready condition.

Under the $37-million docking selected restricted availability for the Kansas City, BAE will drydock the trimaran, perform underwater hull preservation, upgrade onboard systems, and refurbish living spaces for the 41 crew members. 

Work on the Stockdale, valued at $61 million, will include hull preservation, reconditioning the superstructure, interior fuel and ballast tanks, and crew quarters.

Both projects are slated to begin in May 2026.

The Kansas City is the 12th Independence-class LCS, while the Stockdale is the 56th Arleigh Burke-class destroyer, commissioned in April 2009.

BAE Systems-US Navy Ties

Over the past four years, BAE Systems has continued to secure multi-million-dollar sustainment and modernization contracts for the US Navy. 

In September 2024, the navy awarded a $177.8-million contract to maintain and upgrade the USS Halsey, including hull preservation, Aegis combat system improvements, and living space refurbishments.

BAE received a $202-million contract in November 2024 covering maintenance on the USS Laboon and the amphibious assault ship USS Wasp, focused on dry-docking and system upgrades.

The company also won an $87-million contract for repairs and restoration of USS Carter Hall the same year.

And in December 2025, a $123-million depot modernization contract was awarded for the USS Forrest Sherman, including hull and command-and-control suite enhancements.

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