BAE Systems - San Diego Ship Repair has been awarded a $177.8m firm-fixed-price contract modification for repairing, maintaining, and modernising the USS Halsey (DDG 97), a US Navy Arleigh Burke-class destroyer.

The project, part of the Fiscal Year 2024 Depot Modernisation Period, is expected to be completed by April 2026 and, with all options exercised, could reach a total value of $225.6m.

This contract modifies the previously awarded undefinitised contract action (N00024-24-C-4423).

The scope of work under this contract includes all labour, supervision, facilities, equipment, production, testing, and quality assurance necessary to prepare for and accomplish the USS Halsey's DMP.

The project will be at BAE Systems' San Diego Ship Repair facility in California.

Based in Washington, DC, the Naval Sea Systems Command (NAVSEA) is the contracting authority overseeing this modernisation effort.

Impact and industry significance

The repair, maintenance, and modernisation of the USS Halsey are significant as the US Navy continues to invest in maintaining and upgrading its fleet capabilities. The USS Halsey, commissioned in 2005, plays a role in the Navy's surface combatant force, providing multi-mission offensive and defensive capabilities, including anti-air, anti-surface, anti-submarine warfare, and land-attack operations.

On May 10, 2024, the USS Halsey (DDG 97) operated a Freedom of Navigation operation through the Taiwan Strait and near the Paracel Islands, challenging China's restrictive claims. This move, intended to uphold international maritime law as outlined in the 1982 Law of the Sea Convention, prompted strong criticism from China.

This latest contract further reinforces BAE Systems' position as a partner in sustaining the Navy's operational readiness and fleet modernisation objectives.

By enhancing the capabilities of the USS Halsey through this DMP, the Navy ensures that its surface fleet is ready to meet the challenges of modern maritime security environments.