TOTE, Hanwha Finalize Deal to Build U.S. Missile Defense Ship

TOTE Services has finalized its contract with the U.S. Maritime Administration to oversee construction of a new generation of missile-tracking ships, clearing the way for Hanwha Philly Shipyard to begin work on the first vessel.

The Jacksonville, Florida-based company announced Wednesday that it signed a vessel construction management contract with MARAD and immediately awarded a shipbuilding subcontract to Hanwha Philly Shipyard.

The agreement moves forward a program announced in July to replace two aging Missile Range Instrumentation Vessels used by the U.S. Missile Defense Agency. The first new ship, to be named Golden Defender, is scheduled for delivery in 2030.

The vessels will replace the Pacific Tracker and Pacific Collector, which were built in 1965 and 1970, respectively, and currently support missile testing and tracking operations.

The project builds on the partnership between TOTE and Hanwha Philly Shipyard, which has been constructing five National Security Multi-Mission Vessels (NSMVs) for MARAD under the same vessel construction manager model.

According to TOTE, the new missile-tracking vessels will share the same hull design as the NSMVs, with approximately 70% commonality between the two designs. That will allow Hanwha to draw on an existing production line, supply chain and workforce rather than starting a new shipbuilding program from scratch.

TOTE said it completed the design advancement, contract negotiations and firm fixed-price arrangements in less than three months, compared with a process that could take a year or longer under traditional government shipbuilding procurement.

“Signing the Missile Range Instrumentation Vessel contract and executing the shipyard subcontract brings us closer to delivering the next generation of U.S. defense capability,” said TOTE Services President Jeff Dixon. “Our proven Vessel Construction Management model means we’re hitting the milestones sooner and making meaningful progress faster.”

Under the VCM model, MARAD contracts with TOTE to manage the shipbuilding program, while TOTE awards and oversees construction contracts with shipyards. The arrangement places responsibility for coordinating design, suppliers, construction schedules and costs with a commercial vessel manager.

TOTE claims the approach can reduce acquisition costs by at least 50% compared with traditional government procurement methods. The company did not disclose the value of the newly signed MRIV contract in Wednesday’s announcement.

For Hanwha Philly Shipyard, the agreement provides another source of government shipbuilding work as the yard nears completion of the NSMV program. The Philadelphia facility now employs more than 2,000 production workers, according to TOTE, following a major expansion tied to the training ship program.

The missile defense contract also adds to TOTE’s growing portfolio of government shipbuilding projects.

In July, the company secured a contract worth up to $2.2 billion to manage construction of the U.S. Navy and Marine Corps’ new Medium Landing Ship fleet, which could include up to eight vessels under the initial agreement.

The MRIV program is being carried out through cooperation between the Department of Transportation, Department of War and Missile Defense Agency. The ships are intended to support the Trump administration’s Golden Dome missile defense initiative.

The newly signed agreement covers construction of the first vessel in what TOTE describes as a planned series of missile-tracking ships.

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