US Navy awards $2.2B contract to speed delivery of new medium landing ships

July 15, 2026, by Fatima Bahtić

The US Navy has awarded a $2.2 billion contract to TOTE Services for vessel construction management (VCM) to oversee the acquisition of the new medium landing ships (LSM).

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.

This contract is expected to maximize commercial practices to accelerate delivery, improve cost discipline, and expand the US shipbuilding industrial base. The first LSM is anticipated for delivery in the fall of 2029.

“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 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.

The aim of the LSM is to fill the capability gap between smaller, short-range landing craft and the US 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 US Marine Corps’ concept of distributed maneuver and logistics.

To remind, in February this year, the US Navy selected two shipyards that will construct the LSMs, Bollinger Shipyards and Fincantieri Marinette Marine.