• Tuesday, December 16, 2025
BAE Systems logo. The U.S. Navy awarded BAE Systems a contract modification to modernize and maintain the USS Sherman.
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BAE Systems Secures $118M Navy Contract Modification for USS Sherman Modernization

    Author: Miles Jamison || Date Published: December 16, 2025

    BAE Systems has received a $117.7 million contract modification from the U.S. Navy to support depot-level modernization, maintenance and repair of USS Forrest Sherman (DDG 98) during fiscal year 2026. 

    What Is the Scope of the USS Forrest Sherman Contract Modification?

    The Department of War said Monday the firm-fixed-price modification covers all required labor, equipment, supervision, production, testing, facilities, and quality assurance to execute the Chief of Naval Operations availability. BAE Systems will carry out the work on the Arleigh Burke‑class guided‑missile destroyer at its Norfolk Ship Repair facility in Virginia, with completion scheduled for August 2027. 

    The Naval Sea Systems Command in Washington, D.C., will allocate the full amount from fiscal 2026 Navy procurement funds at the time of award. These funds will remain available and will not expire at the end of the current fiscal year.

    What Is the Initial Navy Contract BAE Systems Secured?

    The Naval Sea Systems Command awarded BAE Systems the initial contract in November. The deal, under the Navy Depot Modernization Period contract, has a base value of $123 million but could potentially reach $139.1 million.

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