Bagley was laid down on 5 October 1970 at Seattle, Washington, by the Lockheed Shipbuilding and Construction Company; launched on 17 April 1971; sponsored by Mrs. Marie Louise H. Bagley, widow of Admiral David Worth Bagley and posthumous sister-in-law of Ensign Worth Bagley; and commissioned on 6 May 1972 at the Puget Sound Naval Shipyard, Commander William J. Bredbeck in command.