TOTE Services wins $2.2B LSM vessel construction manager contract

The design selected for the LSM is the Damen Landing Ship Transport (LST) 100 design. [Image: Damen Shipyards]

The Navy’s new acquisition framework is moving right along. TOTE Services LLC, Jacksonville, Fla., has been awarded a $2,206,000,000 firm-fixed-price contract by the Navy’s Portfolio Acquisition Executive for Maritime (PAE Maritime) to serve as Vessel Construction Manager (VCM) for the Medium Landing Ship (LSM) program.

The contract covers the provision of services to award and manage shipbuilder subcontracts for the new construction of up to eight Medium Landing Ships. This contract includes options that, if exercised, would bring its cumulative value t to $2,605,075,850. Work will be performed in Marinette, Wisconsin (65%); Houma, Louisiana (16%); Jacksonville, Florida (9%); and other locations (10%), and is expected to be completed by June 2030. If all options are exercised, work will continue through September 2031.

TOTE Services says that the LSM program is a complex, multi-ship effort requiring coordination across U.S. shipyards, suppliers, designers, manufacturers, and government stakeholders. The program will require standardizing configuration across the fleet, using multi-ship procurement to support favorable pricing, and delivering mission-ready vessels with lifecycle logistics in place. As VCM, TOTE Services will provide one accountable management structure connecting government requirements to shipyard execution, helping to accelerate delivery, strengthen cost and schedule discipline, and expand the U.S. shipbuilding industrial base.

The LSM program can also provide a more reliable demand signal for American shipyards, suppliers, manufacturers, and skilled trades, helping the industrial base plan, invest, and build with greater consistency.

“This is a tremendous responsibility and a defining moment for American shipbuilding, the VCM model, and TOTE Services,” said Jeff Dixon, president of TOTE Services. “We are grateful to PAE Maritime, the Marine Corps, Congress, and the many government leaders who have championed this important program and helped bring the VCM model to a mission of national importance. We look forward to collaborating with and supporting PAE Maritime as we work together on LSM. 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 helped pioneer the VCM model in U.S. government shipbuilding through its work on the National Security Multi-Mission Vessel (NSMV) program for the U.S. Maritime Administration. As VCM for the five-vessel program, TOTE Services has overseen shipyard selection, design, construction, testing, delivery, and lifecycle logistics, with three vessels delivered and the remaining ships expected within the next 12 months.

“The VCM model shows what is possible when government requirements are paired with commercial shipbuilding practices and sustained investment in American shipyards and maritime workers,” said Matthew Paxton, president of the Shipbuilders Council of America. “The success of the NSMV program has created a strong foundation for expanding domestic shipbuilding capacity and delivering the ships our nation needs.”

TOTE Services will hold the prime LSM contract and award and manage shipyard subcontracts directly. The company says that it will soon begin issuing requests for proposals to qualified U.S. shipyards and will advance shipyard selection, supplier engagement, construction planning, and program mobilization.

“The shipyards building these vessels are central to the success of the LSM program, and we are ready to support them every step of the way,” said Chris Clark, vice president of new construction at TOTE Services. “Our commitment is to provide the clarity, consistency, and support our industry partners need to do what they do best: deliver high-quality ships for the American people.”

TOTE Services will also subcontract with several industry organizations to support the technical execution of the LSM program. These teaming partners include Leidos Gibbs & Cox, The McHenry Management Group (TMMG), MAD Security, and Damen (the design selected for the LSM is the Damen Landing Ship Transport (LST) 100 design.)