BAE Systems has been awarded a U.S. Navy contract to carry out modernisation work on the Arleigh Burke-class guided-missile destroyer USS Forrest Sherman (DDG 98).
The initial contract is valued at $123 million, with the total potentially rising to $139 million if all options are exercised, BAE Systems said. The work will be conducted at the company’s Norfolk shipyard under a Navy Depot Modernisation Period contract, with activity scheduled to begin in February 2026 and conclude in early 2027.
According to BAE Systems, the modernisation package will include underwater hull preservation, refurbishment of the ship’s engineering spaces, upgrades to command-and-control systems, and improvements to crew living areas. The company said the work is intended to extend the operational life and readiness of the 9,200-ton destroyer.
David M. Thomas Jr., vice president and general manager of BAE Systems Maritime Solutions Norfolk, said the project builds on recent experience with similar refits. “The modernisation of USS Forrest Sherman will be a major project for our team, building upon our recent DMP work,” he said. “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.”
BAE Systems noted that its Norfolk facility completed a comparable modernisation of USS Nitze (DDG 94) in June 2024 and is currently performing other repair work on multiple U.S. Navy and commercial vessels.
USS Forrest Sherman is the 48th ship of the Arleigh Burke class and was commissioned in January 2006. The destroyer is named after Admiral Forrest P. Sherman, a former Chief of Naval Operations. According to the company, the ship will enter the modernisation period following its current operational commitments.












That must be some considerable work needed at that price. Mind you, the Flight 1s have OSDs between 2030 and 2036, whereas the USS Forrest Sherman is a Flight IIA variant. This work will likely add another 15 years or more to her life. In that context the price is good compared to replacement and the T23 LIFEX program. No T23 has lasted more than 6 years after that.
I don’t think the Forrest Sherman is scheduled for the full SPY-6(V)4 radar upgrade of the DDG Mod 2.0, but she will definitely get the AEGIS Baseline 9 upgrade.