TOTE Services has selected Hanwha Defense USA as the first shipbuilder for the US Navy's Medium Landing Ship (LSM) program, awarding a $269 million contract for the construction of the initial vessel at Hanwha Philly Shipyard.
As vessel construction manager (VCM) for the LSM program, TOTE Services issued a competitive request for proposals (RFP) to qualified US shipyards in July 2026. Hanwha Defense USA (HDUSA) is the first shipbuilder selected through that process, based on its competitive pricing and acceptance of TOTE Services’ subcontract terms and conditions.
The award covers construction of one LSM, valued at $269 million, at Hanwha Philly Shipyard (HPSI), with options for three additional vessels.
The program will include up to eight new vessels under the base contract. TOTE Services continues productive contract discussions with Bollinger Shipyards and Fincantieri Marinette Marine, both directed shipyards under the VCM contract, which are expected to play a meaningful role in building the LSM fleet.
“This award shows the speed at which the VCM model can move from RFP to contract,” said Jeff Dixon, President of TOTE Services.
“Through a competitive process, we secured strong terms that benefit the government, along with build positions that allow construction to start in the fourth quarter of 2027.”
“TOTE Service’s selection of Hanwha Defense USA and Hanwha Philly Shipyard for the LSM program is a testament to the skilled union workforce, transformational investments, and experienced partnerships that make Philadelphia one of the nation’s premier shipbuilding centers,” said Rep. Mary Gay Scanlon (PA-05).
“This selection is a significant step forward for the Hanwha Philly Shipyard as it supports Navy and Marine Corps efforts to rebuild U.S. shipbuilding.”
TOTE Services’ $2.2 billion VCM contract supports the US Navy and Marine Corps’ planned 35-ship LSM fleet. The first vessel is expected to deliver in 2030.
The company will provide one accountable management structure connecting government requirements to shipyard execution across three domestic shipbuilders, helping to accelerate delivery, strengthen cost and schedule discipline, and expand the US shipbuilding industrial base.
That work includes standardizing configuration across the fleet, using block buys to secure favorable pricing, and rapidly delivering high-quality vessels.
TOTE Services previously served as VCM for the US Maritime Administration’s five-ship National Security Multi-Mission Vessel (NSMV) program, overseeing shipyard selection, design, construction, testing, delivery and lifecycle logistics.
Four vessels have been delivered, while the fifth, Golden State, is scheduled for delivery in 2027.
The Medium Landing Ship award extends TOTE Services’ involvement with Hanwha Philly Shipyard, which has participated in the NSMV program and is expected to construct the first LSM under the new contract. Hanwha has also announced investments aimed at expanding the shipyard’s production capacity.