Navy to pay Florida company $2.2 billion to manage construction of its new amphibious warfare ships

By Mike Glenn - The Washington Times - Wednesday, July 15, 2026

The Navy has awarded Florida-based TOTE Services a $2.2 billion contract to oversee construction of its newest class of amphibious assault ships.

In hiring TOTE as vessel construction manager (VCM) for its new Medium Landing Ship program, the Navy is adapting a business model more common in commercial shipbuilding.

In that role, the company acts as an independent third-party prime contractor hired by a shipowner to manage the construction of new vessels. It is expected to supervise subcontracts with shipyards and handle any supply chain issues using commercial practices to both accelerate delivery and control costs.

“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, acting assistant Secretary of the Navy for research, development, and acquisition, said in a statement.

The new fleet of McClung-class Medium Landing Ships (LSM) will operate as agile shore-to-shore transporters for shuttling Marine units operating throughout Pacific island chains as part of the Pentagon’s strategy for countering Chinese military activity in the region.

The Navy chose an off-the-shelf design for the McClung-class vessels that is based on the LST-100 tank landing ship from Dutch shipbuilder Damen. The LSM will fill the capability gap between smaller, short-range landing craft and the Navy’s long-duration, multi-purpose amphibious warfare ships, Pentagon officials said.

“We’re taking a proven design and leveraging congressional authorities to move with urgency and approach shipbuilding differently,” said Christopher Miller, the portfolio acquisition executive for maritime at the Defense Department. “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.”

For the initial production of up to eight LSMs, the Navy will direct TOTE Services to execute and manage subcontracts with Louisiana-based Bollinger Shipyards for the construction of one vessel and four others at Fincantieri Marinette Marine in Wisconsin.

As the Navy’s VCM for the program, TOTE Services will have the flexibility to determine the best award strategy for up to three additional LSMs, officials said.