The U.S. Navy has awarded a $2.2 billion contract to TOTE Services LLC for vessel construction management (VCM) of the new Medium Landing Ships.
The contract will allow TOTE Services to oversee the acquisition of the new LSM, and will maximize commercial practices to accelerate delivery, improve cost discipline and expand the U.S. shipbuilding industrial base. The first LSM is anticipated in the fall of 2029.
For the initial production of up to eight LSMs, VCM will manage subcontracts with Bollinger Shipyards for the construction of one LSM, and with Fincantieri Marinette Marine for the construction of four LSMs. TOTE Services will have the flexibility as VCM to determine the best award strategy for the three additional vessels.
“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,” Will Mahan, performing the duties of assistant secretary of the Navy for research, development and acquisition, said. “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 holds the prime contract with the Navy, and will hold direct contractual responsibility for issuing and managing subcontracts to build and deliver the vessels. The prime contract places the CCM in direct control of shipyard performance and allows TOTES Service to leverage commercial practices and flexibilities designed to reduce cost and schedule risks.
“We’re taking a proven design and leveraging congressional authorities to move with urgency and approach shipbuilding differently,” Christopher Miller, portfolio acquisition executive for Maritime, said. “TOTE Services will be an important partner, and we’re excited to work with them to continue the momentum on this program and begin bending steel.”