LSM Vessel Construction Manager (VCM) contract

Agency

US Navy (Naval Sea Systems Command)

Award ID

NAVSEA LSM VCM

Ceiling value

$2.2B (up to ~$2.6B with options for 8 McClung-class LSMs)

Vehicle

Firm-fixed-price Vessel Construction Manager (VCM); first-ever Navy VCM award

Awarded

2026-07-13

Period of performance ends

2030-06-30

• CompanyTOTE Services LLCJacksonville, Florida ship-management and vessel-construction-management firm, part of the Saltchuk family of companies. Pioneered the third-party Vessel Construction Manager (VCM) model for US government shipbuilding; won the US Navy's first-ever VCM award for the Medium Landing Ship program in July 2026, and serves as VCM for MARAD's NSMV program.

• CompanyFincantieri Marinette MarineNaval shipyard subsidiary of Fincantieri S.p.A. (Italy), builder of the Freedom-variant Littoral Combat Ship and current prime builder of the Constellation-class (FFG-62) frigate; one of TOTE Services' LSM VCM subcontractors.
• CompanyBollinger ShipyardsThe largest privately-owned shipbuilder in the US, operating 11 shipyards in South Louisiana; builds the Sentinel-class Fast Response Cutter and Polar Security Cutter for the Coast Guard. One of TOTE Services' LSM VCM subcontractors.

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What is the LSM Vessel Construction Manager (VCM) contract contract?

On July 13, 2026, the U.S. Navy (Naval Sea Systems Command) awarded TOTE Services LLC a $2.2 billion contract — expandable to roughly $2.6 billion with options — to serve as Vessel Construction Manager (VCM) for the Navy's Medium Landing Ship (McClung-class) program, the Navy's first use of the commercial VCM model (previously used by TOTE for MARAD's National Security Multi-Mission Vessel program). As VCM, TOTE oversees subcontracted construction of up to eight LSMs: Fincantieri Marinette Marine will build four, Bollinger Shipyards will build one, and TOTE will determine the award strategy for the remaining three. Construction is slated to begin later in 2026, with the first LSM delivery expected in fall 2029.

Which agency awarded the LSM Vessel Construction Manager (VCM) contract contract?

The LSM Vessel Construction Manager (VCM) contract contract was awarded by US Navy (Naval Sea Systems Command) under a Firm-fixed-price Vessel Construction Manager (VCM); first-ever Navy VCM award vehicle.

How much is the LSM Vessel Construction Manager (VCM) contract contract worth?

The LSM Vessel Construction Manager (VCM) contract contract has a value of $2.2B (up to ~$2.6B with options for 8 McClung-class LSMs), awarded on 2026-07-13.