JULY 14, 2026 – The U.S. Navy has awarded a $2.2 billion contract to TOTE Services LLC for Vessel Construction Management to oversee the acquisition of the new Medium Landing Ships (LSM). This contract will maximize commercial practices to accelerate delivery, improve cost discipline, and expand the U.S. shipbuilding industrial base. The first LSM is anticipated for delivery in fall of 2029.
For the initial production of up to eight LSMs, the Navy will direct the VCM to execute and manage subcontracts with Bollinger Shipyards for the construction of one LSM and Fincantieri Marinette Marine for the construction of four LSMs. The VCM will have the flexibility to determine the best award strategy for up to three additional vessels.
“The VCM strategy is an innovative shift in Navy shipbuilding. We are changing the way we do business, and leveraging commercial best practices to improve cost, schedule, and performance,” said Mr. Will Mahan, performing the duties of assistant secretary of the Navy for research, development and acquisition. “With a five-month duration between RFP release and contract award, we achieved a nearly 50% reduction to traditional contracting timelines. This reflects the immediate impact our Portfolio Acquisition Executives are having to accelerate shipbuilding.”
The VCM will hold the prime contract with the Navy; therefore, it will hold direct contractual responsibility for issuing and managing shipbuilder subcontracts to construct and deliver LSM vessels. This prime contract places the VCM in direct contractual control of shipyard performance and leverages commercial practices and flexibilities that, together with a proven design, are expected to reduce cost and schedule risks.
“We’re taking a proven design and leveraging congressional authorities to move with urgency and approach shipbuilding differently,” said Mr. Christopher Miller, portfolio acquisition executive for Maritime. “TOTE Services will be an important partner, and we’re excited to work with them to continue the momentum on this program and begin bending steel.”
The LSM will fill the capability gap between smaller, short-range landing craft and the Navy’s long-duration, multi-purpose amphibious warfare ships. It is essential for the maneuver and sustainment of Marine forces, providing the critical littoral mobility required in contested environments. The program will deliver a 35-ship fleet that enhances expeditionary agility and supports the Marine Corps’ concept of distributed maneuver and logistics.
The Portfolio Acquisition Executive (PAE) for Maritime is the single accountable organization for delivering surface ships for the U.S. Navy. This new centralized organizational construct will empower leaders with broader scope and greater authority to accelerate delivery of combat capability and ensure acquisition speed and discipline are driven by what the warfighter needs—when they need it.