BAE Systems awarded modernization contract

BAE Systems has received a $177.8 million contract from the U.S. Navy for the maintenance and modernisation of the Arleigh Burke-class guided-missile destroyer USS Halsey (DDG 97).

The total value of the previously awarded undefinitized contract award could reach $225.5 million if all options are exercised.

Under the Depot Maintenance Period (DMP) contract, BAE Systems San Diego shipyard will dry-dock the 509.5-foot-long ship, perform underwater hull preservation work, enhance the ship’s Aegis combat system with the Surface Electronic Warfare Improvement Program (Block 3), upgrade the command-and-control systems, and refurbish the living spaces for the ship’s 260 crewmembers. The work is expected to begin later this month and will continue into 2026.

“This type of deep-level sustainment work is necessary and critical to maintain the combat effectiveness of the USS Halsey,” said Eric Icke, vice president and general manager of BAE Systems San Diego Ship Repair. “Our San Diego team is ready to conduct the assigned DMP work that will enable the Halsey to move into its next phase of fleet readiness.”

The San Diego shipyard recently completed similar work aboard the USS Mustin (DDG 89). The Halsey will be the shipyard’s fifth DMP project.

USS Halsey is the 47th ship in the Arleigh Burke class of guided missile destroyers and was commissioned in July 2005. It is the second Navy ship named in honour of Fleet Admiral William F. “Bull” Halsey, who gained fame in the Pacific theatre during World War II.

BAE Systems is a leading provider of ship repair, maintenance, modernisation, conversion, and overhaul services for the Navy, other government agencies, and select commercial customers. The company operates three full-service shipyards in California, Florida, and Virginia and offers a highly skilled, experienced workforce, seven dry docks and railways, and significant pier space and ship support services. The company’s San Diego shipyard employs about 650 people and works with the Navy and several subcontractor companies to accomplish ship sustainment work.