The Pentagon has awarded TOTE Services a $2.2-billion contract to streamline construction management and processes supporting the US Navy’s ongoing Medium Landing Ship (LSM) program.
LSM is a 35-vessel plan to field boats that assist in amphibious logistics, personnel transport, and other littoral tasks.
For the initiative, the Florida-based enterprise will undertake the vessel construction manager (VCM) role, which handles the effort’s prime contract, shipbuilder subcontracts, supply chain organization, construction planning, and shipyard performance, while directly coordinating progress with the navy’s Portfolio Acquisition Executive for Maritime.
During the initial phase, TOTE will oversee construction of up to eight LSMs, including one vessel at Bollinger Shipyards and four at Fincantieri Marinette Marine.
The company will also determine the contracting approach for up to three additional boats.
Leveraging Commercial Expertise
Washington noted that the commercial management model is designed to reduce costs, fast-track delivery, and expand the US shipbuilding industrial base.
“The VCM strategy is an innovative shift in Navy shipbuilding,” said Will Mahan of the US Navy’s assistant secretary office for research, development, and acquisition.
“We are changing the way we do business, and leveraging commercial best practices to improve cost, schedule, and performance.”
TOTE President Jeff Dixon also commented on his company’s designation as VCM, framing it as “a defining moment for American shipbuilding,” adding that the firm will “move with urgency, and deliver for the American people.”
The US Navy expects to begin receiving the first LSMs in the fall of 2029.
