WASHINGTON — The Navy has tapped maritime company TOTE Services to serve as the vessel construction manager (VCM) for the Landing Ship Medium (LSM) program.
The Navy announced the $2.2 billion contract award on Monday, and said it aims to “maximize commercial practices to accelerate delivery, improve cost discipline, and expand the U.S. shipbuilding industrial base,” according to a service news release.
While the VCM model is common in commercial shipbuilding, it is a departure from the Navy’s status quo, with TOTE serving as the service’s first VCM. The VCM has the prime contract, and as a result, has direct contractual oversight of construction and delivery for the LSM, the Navy said Monday.
“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,” Will Mahan, who is performing the duties of assistant secretary of the Navy for research, development and acquisition, said in a statement on Monday.
The Navy has selected Bollinger Shipyards to construct the initial LSM and Fincantieri Marinette Marine to build four more. The VCM will oversee subcontracts with these yards for those five ships, and have the authority to determine the “best award strategy” for up to three more ships for total initial production of up to eight vessels, according to the Navy.
TOTE Services has prior experience with the VCM model, and is currently the VCM for the National Security Multi-Mission Vessel (NSMV) program for the US Maritime Administration.
“This is a tremendous responsibility and a defining moment for American shipbuilding, the VCM model, and TOTE Services,” Jeff Dixon, president of TOTE Services, said in a statement Monday.
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“We look forward to collaborating with and supporting PAE Maritime as we work together on LSM,” Dixon said. “The U.S. is counting on this program to succeed, and our job is clear: steward the work responsibly, cultivate the best talent and expertise, move with urgency, and deliver for the American people.”
The Navy and Marine Corps announced in December 2025 that a ship design from Dutch shipbuilder Damen would serve as the foundation for the LSM program. The ship is intended to carry Marines and their equipment through island chains in the Indo-Pacific region.
The first vessel is currently slated for delivery in the fall of 2029, according to the Navy. Altogether, the services are seeking to acquire 35 ships for the program.
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