- TOTE Services is holding the prime contract and will manage shipbuilder subcontracts directly
- The Navy went from RFP to award in five months, nearly halving traditional contracting timelines
- The first ship is due in fall 2029, with the program eyeing a 35-vessel fleet
The U.S. Navy has awarded TOTE Services a $2.2 billion vessel construction management contract to oversee the acquisition of its medium landing ship, or LSM, fleet. The first LSM is expected to be delivered in fall 2029, the service said Monday.
Under the arrangement, TOTE Services holds the prime contract and takes direct contractual responsibility for issuing and managing shipbuilder subcontracts. For the initial run of up to eight vessels, the Navy is directing the company to execute subcontracts with Bollinger Shipyards for one ship and Fincantieri Marinette Marine for four, with flexibility to set the award strategy for up to three more.
Will Mahan, acting assistant secretary of the Navy for research, development and acquisition, said the service moved from request for proposals to award in five months, cutting traditional contracting timelines by nearly half. He credited the Navy’s portfolio acquisition executives for the acceleration.
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How Does the Vessel Construction Manager Model Work?
The vessel construction management, or VCM, construct puts a commercial entity in direct control of shipyard performance, an approach the Navy says pairs commercial practices with a proven design to reduce cost and schedule risks. The service is supplying a production-ready design derived from Damen Naval’s LST 100, and the fiscal 2026 National Defense Authorization Act authorized VCM oversight for the first eight LSMs. Christopher Miller, portfolio acquisition executive for maritime, said the Navy is leveraging congressional authorities to move with urgency and is ready to begin bending steel with TOTE Services.
The PAE for Maritime serves as the single accountable organization for delivering the Navy’s surface ships under the service’s centralized acquisition structure.
Why Does the Marine Corps Need the Medium Landing Ship?
The LSM bridges the gap between short-range landing craft and the Navy’s large amphibious warfare ships, giving Marine forces littoral mobility in contested environments. The program calls for a 35-ship fleet supporting the Marine Corps’ distributed maneuver and logistics concept, including the movement of Marine Littoral Regiments between islands and coastal areas in theaters such as the Indo-Pacific.
