BAE Systems inks modernization deal for Arleigh Burke-class destroyer USS Halsey

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

Under the Depot Maintenance Period (DMP) contract, BAE Systems’ San Diego shipyard is set to undertake a comprehensive overhaul of a 155.3-meter-long naval vessel. This extensive maintenance project will involve dry-docking the ship to facilitate underwater hull preservation work, ensuring the vessel’s structural integrity and operational readiness for years to come, according to the firm.

In addition to the hull preservation, the ship will receive significant upgrades to its Aegis combat system through the Surface Electronic Warfare Improvement Program (Block 3). This enhancement is expected to bolster the ship’s defensive and offensive capabilities, integrating advanced technologies to better counter modern threats.

Moreover, the command-and-control systems aboard the ship will be upgraded, improving the crew’s ability to coordinate operations effectively and respond to dynamic maritime situations. The refurbishment of living spaces for the ship’s 260 crewmembers is also a key component of this project, aiming to enhance their comfort and overall quality of life during deployments.

Work on this critical maintenance effort is slated to commence later this month and is expected to 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 total value of the previously awarded undefinitized contract award could reach $225.5 million if all options are exercised.

USS Halsey is the 47th ship in the Arleigh Burke class of guided missile destroyers and was commissioned in July 2005.

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