The US Navy has awarded BAE Systems a $123-million contract to modernize the 48th Arleigh Burke-class destroyer, the USS Forrest Sherman (DDG 98).
Commissioned in January 2006, the USS Forrest Sherman honors former Chief of Naval Operations Adm. Forrest Sherman, one of the youngest individuals to hold the position and a key figure during the Second World War.
The ship is currently stationed at Naval Station Norfolk and regularly participates in missions with the US 5th Fleet in the Middle East, as well as in European waters alongside NATO allies.
The agreement covers the vessel’s depot modernization period, a scheduled overhaul designed to sustain the vessel’s readiness and extend its service life.
Work will be performed at the company’s Norfolk shipyard in Virginia and will include underwater hull preservation, engineering space optimization, command-and-control suite upgrades, and cabin renovations.
BAE will also provide labor, equipment, evaluations, and facilities to support the destroyer’s fiscal year 2026 maintenance cycle.
The depot modernization period is set to begin in February 2026, with options that could bring the contract’s total value to $139 million.
The modernization project is scheduled to conclude in early 2027, with the award timeline extending through August 2027, depending on federal orders.
“The modernization of USS Forrest Sherman will be a major project for our team,” said David 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.”









