The US Navy has awarded a contract to BAE Systems to upgrade 11 Arleigh Burke (DDG 51) Class guided-missile destroyers.

Under the $365m contract, the company will upgrade the equipment and systems of DDG 51 destroyers home-ported or visiting the Norfolk area.

BAE Systems Ship Repair president Bill Clifford said the company would begin the DDG modernisation process on the USS John Paul Jones in San Diego when the USS Arleigh Burke comes into Norfolk for the same work.

The contract has one base year with four option years and could reach up to $500m if all options are exercised.

Modernisation, including maintenance and repair work, will start with the flagship of the class, the USS Arleigh Burke, in August 2010.