Industrial Base Alpha

USS Pinckney enters DDG MOD 2.0 Phase Two with $149.6M General Dynamics contract

•3 min read•Analysis
Duotone cutout of the destroyer USS Pinckney underway in side profile, on a sand background.
U.S. Navy photo, via Wikimedia Commons (USS Pinckney departs JBPHH for RIMPAC 2016)

USS Pinckney entered Phase Two of the U.S. Navy's DDG MOD 2.0 modernization program at General Dynamics NASSCO, receiving a $149.6 million contract to install advanced radar and fire control systems. The first of four Arleigh Burke-class destroyers receiving this upgrade, Pinckney is expected to complete modernization by September 2028.

What's happening

  • USS Pinckney (DDG 91) entered Phase Two modernization at General Dynamics NASSCO drydock following an eight-and-a-half month Middle East and Pacific deployment.
  • The ship receives Raytheon's AN/SPY-6(V)4 radars and Lockheon Martin's Aegis Baseline 10 fire control system, enabling simultaneous air and ballistic missile defense.
  • Phase One equipped four ships, including Pinckney, with SLQ-32(V)7 electronic warfare upgrades; Phase Two adds the new radar suite under this $149.6 million contract.
  • Work is scheduled to complete by September 2028, with USS Chung-Hoon (DDG 93), USS James E. Williams (DDG 95), and USS Halsey (DDG 97) following in the modernization sequence.

Why it matters

  • DDG MOD 2.0 sustains the combat capability of the Navy's primary surface combatant fleet against expanding ballistic missile, drone and anti-ship threats in the Indo-Pacific and Middle East.
  • Future modernization phases will consolidate electronic warfare and radar upgrades into a single shipyard availability, reducing ship downtime and improving fleet availability rates.
  • The upgrade extends Arleigh Burke-class service life for decades and avoids the cost and schedule risk of early hull replacement, preserving 21st century surface warfare capacity.
  • These four ships serve as operational test cases for integrating multi-spectral sensor systems that will define the standard retrofit approach for the 65-ship Arleigh Burke class.

Going deeper

  • Aegis Baseline 10 represents a major leap in simultaneous air defense and ballistic missile interception, addressing operational gaps revealed during recent Middle East deployments.
  • AN/SPY-6(V)4 radar replaces legacy systems with active electronically scanned array technology, improving detection range and tracking of small, fast-moving maritime threats.
  • Future DDG MOD 2.0 ships beginning with USS Sterett (DDG 104) will receive both Phase One and Phase Two upgrades in a single depot modernization period, setting the production model for the class.

Financial impact

  • General Dynamics NASSCO recognizes the $149.6 million contract as revenue over the modernization period from now through September 2028, with timing distributed across fiscal years 2026 through 2028.
  • Raytheon and Lockheed Martin realize equipment and integration revenue as hardware is delivered and installed during Pinckney's depot modernization availability.
  • The contract funds labor, material and overhead at General Dynamics' San Diego shipyard, supporting production continuity for a multi-ship modernization line that will extend through at least USS Sterett.

The intrigue

  • The Navy is consolidating Phase One and Phase Two into a single availability for ships starting with USS Sterett, but the economics of executing two phases on Pinckney and three other ships remains undefined.
  • Pressure to reduce surface combatant downtime conflicts with the complexity of installing multiple new sensor and fire control systems, raising questions about the actual schedule and cost for future ships.

The fine print

  • The $149.6 million figure is obligated value for this contract; total program ceiling value and full-ship lifecycle cost for all Arleigh Burke modernizations are not disclosed.
  • Completion date of September 2028 is a planned estimate and is subject to industrial base capacity, supply chain delivery of long-lead items such as radar components, and potential schedule growth.
  • Four ships (Pinckney, Chung-Hoon, Williams, Halsey) are in the dual-phase modernization pipeline; future DDG MOD 2.0 scope and funding for the remaining 61 Arleigh Burke-class destroyers remain subject to future budget cycles.
Source: navalnews.com · Oct 24, 2026 · Drafted with Claude, reviewed by Industrial Base Alpha.

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