Aerospace
TOTE Services Names Hanwha Defense USA to Build $269 Million Landing Ship
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TOTE Services announced its first shipyard selection for the U.S. Navy and Marine Corps Medium Landing Ship program on October 30, 2026, naming Hanwha Defense USA as the first shipbuilder under its Vessel Construction Manager (VCM) contract. The award covers construction of one LSM valued at $269 million at Hanwha Philly Shipyard, with options for three additional vessels.
According to the company’s announcement, TOTE Services issued a competitive request for proposals to qualified U.S. shipyards in July 2026 and selected HDUSA based on its competitive pricing and acceptance of TOTE Services’ subcontract terms and conditions.
“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.”
The program will include up to eight new vessels under the base contract. TOTE Services said it continues contract discussions with Bollinger Shipyards and Fincantieri Marinette Marine, both directed shipyards under the VCM contract, and that it expects them to play a meaningful role in building the LSM fleet. TOTE Services’ $2.2 billion VCM contract supports the Navy and Marine Corps’ planned 35-ship LSM fleet, and the company said the first vessel is expected to deliver in 2030.
Vessel Construction Manager Contract
The U.S. Navy awarded TOTE Services the $2.2 billion Vessel Construction Management contract on July 13, 2026, through the Portfolio Acquisition Executive for Maritime. TOTE Services holds the prime contract and awards and manages shipyard subcontracts directly, a structure the Navy said places the VCM in direct contractual control of shipyard performance. In its July 2026 award announcement, the company said it would soon begin issuing requests for proposals to qualified U.S. shipyards and advance shipyard selection, supplier engagement, construction planning, and program mobilization.
In its July 13, 2026 announcement, the Navy said it would direct the VCM to execute and manage subcontracts with Bollinger Shipyards for the construction of one LSM and Fincantieri Marinette Marine for the construction of four LSMs, with the VCM retaining flexibility to determine the award strategy for up to three additional vessels. The Navy’s release stated that the first LSM was anticipated for delivery in fall 2029.
The Navy described the LSM as filling the capability gap between smaller, short-range landing craft and its long-duration, multi-purpose amphibious warfare ships, providing littoral mobility for Marine forces in contested environments. Will Mahan, performing the duties of assistant secretary of the Navy for research, development and acquisition, said in that announcement that the five-month duration between RFP release and contract award achieved a nearly 50% reduction to traditional contracting timelines.
TOTE Services said it will provide one accountable management structure connecting government requirements to shipyard execution across three domestic shipbuilders, with work that includes standardizing configuration across the fleet and using block buys to secure favorable pricing. The company said in July 2026 that teaming partners Leidos Gibbs & Cox, The McHenry Management Group, MAD Security, and Damen would support technical execution of the LSM program.
Hanwha Philly Shipyard Record and Ownership
TOTE Services said it pioneered the VCM model in U.S. government shipbuilding through the five-vessel National Security Multi-Mission Vessel program for the U.S. Maritime Administration, where it has overseen shipyard selection, design, construction, testing, delivery, and lifecycle logistics. According to the company, four vessels have been delivered and the fifth, Golden State, is expected in 2027.
“Since early this year, HDUSA personnel have been in Philadelphia working to ensure the shipyard is ready for naval work,” said HDUSA Senior Vice President of Program Management Tim Glinatsis. “HPSI has already built and delivered four National Security Multi-Mission Vessels under the VCM model with TOTE Services, and we will leverage that experience to deliver LSM to the U.S. Navy and Marine Corps.”
Hanwha acquired Philly Shipyard in December 2024, with Hanwha Systems holding a 60% stake and Hanwha Ocean holding the remaining 40%. In an October 27, 2026 announcement, HDUSA said it is acquiring a controlling stake in Hanwha Philly Shipyard through Hanwha Defense USA Shipbuilding LLC, an HDUSA-led joint venture with Hanwha FutureProof, bringing the yard under HDUSA’s leadership and governance structure as it transitions to dual-use work for the U.S. Navy and commercial customers. HDUSA President of U.S. Shipbuilding RADM Tom Anderson (Ret.) will oversee all of the company’s shipbuilding operations in the U.S.
HDUSA President and CEO Michael Coulter said Hanwha has made significant investments in the shipyard’s workforce and technology since the 2024 acquisition to pave the way to build for the U.S. Navy and other federal customers. Rep. Mary Gay Scanlon (PA-05) called the LSM selection a significant step forward for Hanwha Philly Shipyard, pointing to the yard’s skilled union workforce and transformational investments.
