Overview
- The Navy on July 13 awarded TOTE Services a $2.2 billion VCM contract, with options that raise the award to $2.6 billion to support initial production of up to eight Medium Landing Ships.
- Under the arrangement TOTE will manage shipbuilder subcontracts already directed by the Navy to Bollinger Shipyards for one LSM and to Fincantieri Marinette Marine for four LSMs and will decide award strategy for up to three more vessels.
- The ships will use a proven Damen LST-100‑based design to reduce technical risk, and the Navy projects the first LSM delivery in fall 2029 while planning a potential 35‑ship fleet for Marine littoral maneuver and sustainment.
- The VCM model places a single commercial-style prime in contractual control of shipyard performance to apply commercial practices and centralize program management even though the Navy unusually retained early control by awarding initial production contracts itself.
- Congress provided roughly $2.8 billion for the first eight LSMs and officials say the program aims to stabilize U.S. shipyards and supply chains, support steady skilled-workforce hiring, and create a predictable production demand signal for the industrial base.