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Many times you will find yourself with obsolete ships. As your tec level increase your older ships might become less useful. You can scrap them and build new ones but with expensive ships or specialty ships, like scouts can be useful just by overhauling them to the new tec level. To overhaul a ship or ships you can use action code 28 to both move the fleet and overhaul the ships in the same action. You will need to provide a location where the planet has shipyards and the planetary tec level is high enough to overhaul the ship. So you need action code 28, LOCATION#1, FLEET#1, and the BUILD CODE of the class of ship you want to overhaul goes in the BCDE box. Each shipyard can overhaul one ship per action. So you normally want to send the fleet to a planet that has 5 shipyards if possible so you can overhaul 5 ships at a time.

One more useful thing overhauling a ship does is repair all the damage the ship might have taken from various combats or jumps. So when your ships are overhauled they are automatically repaired at the same time.