TOTE Services, LLC, a leading U.S. maritime services company specializing in vessel construction management and ship management, announced its first shipyard selection for the Medium Landing Ship (LSM) program under TOTE Services’ Vessel Construction Manager (VCM) contract for the U.S. Navy and Marine Corps.
As VCM for the LSM program, TOTE Services issued a competitive request for proposals (RFP) to qualified U.S. shipyards in July 2026. Hanwha Defense USA (HDUSA) is the first shipbuilder selected through that process, based on its competitive pricing and acceptance of TOTE Services’ subcontract terms and conditions.
The award covers construction of one LSM, valued at $269 million, at Hanwha Philly Shipyard (HPSI), with options for three additional vessels.
The program will include up to eight new vessels under the base contract. TOTE Services continues productive contract discussions with Bollinger Shipyards and Fincantieri Marinette Marine, both directed shipyards under the VCM contract, which are expected to play a meaningful role in building the LSM fleet.
“This award shows the speed at which the VCM model can move from RFP to contract,” said Jeff Dixon, President of TOTE Services. “Through a competitive process, we secured strong terms that benefit the government, along with build positions that allow construction to start in the fourth quarter of 2027.”
“TOTE Service’s selection of Hanwha Defense USA and Hanwha Philly Shipyard for the LSM program is a testament to the skilled union workforce, transformational investments, and experienced partnerships that make Philadelphia one of the nation’s premier shipbuilding centers,” said Rep. Mary Gay Scanlon (PA-05). “This selection is a significant step forward for the Hanwha Philly Shipyard as it supports Navy and Marine Corps efforts to rebuild U.S. shipbuilding.”
TOTE Services’ $2.2 billion VCM contract supports the Navy and Marine Corps’ planned 35-ship LSM fleet. The first vessel is expected to deliver in 2030.
TOTE Services will provide one accountable management structure connecting government requirements to shipyard execution across three domestic shipbuilders, helping to accelerate delivery, strengthen cost and schedule discipline, and expand the U.S. shipbuilding industrial base. That work includes standardizing configuration across the fleet, using block buys to secure favorable pricing, and rapidly delivering high-quality vessels.
Beyond the ships themselves, the LSM program can 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.
TOTE Services pioneered the VCM model in U.S. government shipbuilding through its work on the National Security Multi-Mission Vessel 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. Four vessels have been delivered, with the fifth, Golden State, expected in 2027. The LSM award builds on that work at Hanwha Philly Shipyard, where an experienced workforce and established supply chain position the yard to begin construction quickly. It also reinforces Hanwha’s ongoing investments to expand the yard’s shipbuilding capacity.