BAE Systems has been awarded a significant $123 million contract by the U.S. Navy to perform a comprehensive modernization of the Arleigh Burke-class destroyer USS Forrest Sherman (DDG 98). This Depot Modernization Period (DMP) contract, with a potential total value of $139 million if all options are fulfilled, underscores the Navy’s investment in extending the operational life and capability of its frontline surface combatants.
Work will commence at BAE Systems’ Norfolk shipyard in February 2026. The project encompasses a wide range of critical updates and preservation efforts, designed to ensure the Forrest Sherman remains a potent asset for the fleet for years to come. Key aspects of the modernization include underwater hull preservation, reconditioning of the ship’s engineering spaces, and upgrades to advanced command-and-control equipment. Additionally, the refurbishment of crew living spaces will enhance quality of life for sailors aboard the 9,200-ton vessel, with all work targeted for completion in early 2027.
The contract builds on BAE Systems’ established expertise in such complex overhauls. The shipyard recently completed a similar DMP for the guided-missile destroyer USS Nitze (DDG 94) in June 2024 and is currently engaged in repair work on five other Navy and commercial vessels.
“The modernization of USS Forrest Sherman will be a major project for our team, building upon our recent DMP work,” said David M. 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.”
USS Forrest Sherman (DDG 98) is the 48th Arleigh Burke-class destroyer and was commissioned in January 2006. The ship honors Admiral Forrest P. Sherman, a former Chief of Naval Operations. This namesake continues a naval legacy, as an earlier destroyer, USS Forrest Sherman (DD 931), served as the lead ship of its own class in the 1950s. This latest modernization ensures the admiral’s name will continue to sail with a technologically advanced and fully capable warship.
