TOTE Wins $2.2 Billion Contract to Manage U.S. Navy Medium Landing Ship Program

TOTE Services has been selected to oversee construction of the U.S. Navy and Marine Corps’ new Medium Landing Ship (LSM) fleet under a contract valued at up to $2.2 billion, marking another major endorsement of the commercial-style shipbuilding model the Navy is using to accelerate production and strengthen the domestic industrial base. 

The Jacksonville, Florida-based company was awarded the Vessel Construction Manager (VCM) contract by the Portfolio Acquisition Executive for Maritime (PAE Maritime), making it responsible for managing construction of up to eight LSMs during the initial phase of the program.

Rather than having the government contract directly with individual shipyards, the VCM model places a single commercial manager in charge of coordinating shipyards, suppliers, designers, manufacturers and government stakeholders. TOTE Services will hold the prime contract, award and manage shipyard subcontracts, oversee schedules and costs, and ensure vessels are delivered with lifecycle logistics in place. 

“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,” TOTE Services President Jeff Dixon said in announcing the award. 

The company plans to begin issuing requests for proposals to qualified U.S. shipyards as it moves into shipyard selection, supplier engagement and construction planning.

The award builds on TOTE Services’ role as Vessel Construction Manager for the U.S. Maritime Administration’s National Security Multi-Mission Vessel (NSMV) program, one of the few recent U.S. government shipbuilding efforts widely regarded as having stayed on schedule and within budget. TOTE has overseen construction of five NSMVs at Philly Shipyard, with three vessels already delivered and the remaining two expected over the next year. 

The Navy adopted the same VCM approach for the LSM program after years of cost overruns and schedule delays across several major shipbuilding efforts. Rather than relying on traditional Navy acquisition practices, officials have sought to import commercial shipbuilding discipline by using a mature design and centralized construction management.

The Medium Landing Ship has become a cornerstone of the Marine Corps’ Expeditionary Advanced Base Operations concept, which calls for small, dispersed Marine units capable of rapidly moving between islands and austere coastal locations, particularly across the Indo-Pacific. The approximately 4,000-ton ships will transport troops, vehicles and equipment while supporting logistics and other operations in contested littoral environments.

Earlier this year, the Navy selected Damen Naval’s LST-100 as the baseline design after canceling four Constellation-class frigates that had yet to begin construction amid mounting delays. In April, Fincantieri Marine Group received a $30 million contract covering long-lead materials, engineering and production readiness work for the first four vessels, positioning the program for construction to begin as early as the fourth quarter of 2026. 

Under the Navy’s current plan, Fincantieri Marinette Marine and Bollinger Shipyards are expected to construct the initial ships, with TOTE Services responsible for managing the broader production effort and determining awards for additional vessels.

The current VCM contract covers management services for up to eight ships, while the broader program supports the Navy and Marine Corps’ long-term objective of building a 35-ship Medium Landing Ship fleet. 

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