U.S. Navy Awards $2.2B Medium Landing Ship Contract to Boost US Marine Corps Amphibious Capabilities.

The U.S. Navy has awarded a $2.2 billion Vessel Construction Management contract to TOTE Services LLC to oversee construction of the new Medium Landing Ship (LSM) fleet, a move announced on July 13, 2026, by the U.S. Navy, that aims to speed delivery of a critical amphibious capability while strengthening the U.S. shipbuilding industrial base. The new procurement model is designed to reduce construction delays, improve cost control, and help the U.S. Marine Corps field the vessels needed to sustain operations across contested coastal and island environments.

The first Medium Landing Ship is scheduled for delivery in fall 2029, providing U.S. Marines with a platform optimized to move troops, equipment, and supplies between dispersed littoral positions where larger amphibious ships face greater risk. The program also reflects a broader shift toward more resilient maritime logistics and distributed force projection, reinforcing the Corps' evolving role in potential Indo-Pacific conflict scenarios.

Related Topic: US Navy's Medium Landing Ship (LSM) Program: Transforming Amphibious Warfare for Indo-Pacific

Artist's rendering of the U.S. Navy's future Medium Landing Ship (LSM), a new class of amphibious vessel designed to provide the U.S. Marine Corps with distributed littoral mobility and expeditionary logistics support as part of the Force Design 2030 modernization strategy. (Picture source: U.S. Navy)

Announced by the U.S. Navy, the contract marks a significant departure from the traditional approach to naval shipbuilding. Rather than awarding separate prime contracts directly to shipbuilders, the Navy has selected TOTE Services as the prime contractor responsible for managing construction across multiple shipyards. The company will oversee subcontract execution, monitor industrial performance, and ensure vessels are delivered on schedule and within budget, while the Navy retains oversight of program requirements and capability.

For the initial production phase of up to eight Medium Landing Ships, TOTE Services will manage subcontracts with Bollinger Shipyards for the construction of one vessel and Fincantieri Marinette Marine for four additional ships. The company will also have the flexibility to determine the most effective award strategy for up to three additional vessels, allowing production to adapt to shipyard capacity and industrial performance.

According to U.S. Navy officials, the new acquisition strategy has already demonstrated measurable benefits. Only five months elapsed between the release of the request for proposals and contract award, representing nearly a 50 percent reduction compared with traditional naval contracting timelines. The U.S. Navy expects that applying commercial ship management practices to a proven vessel design will reduce technical risk, accelerate production, and improve cost control.

The program is managed by the U.S. Navy's Portfolio Acquisition Executive for Maritime, a recently established organization responsible for delivering surface ships through a more centralized acquisition structure. By consolidating responsibility for shipbuilding programs, the Navy aims to streamline decision-making and align procurement more closely with operational requirements.

Step aboard the U.S. Marine Corps' latest innovation in amphibious warfare. In this exclusive report, we explore the U.S. Navy's new Medium Landing Ship (LSM), designed to support distributed operations and rapid troop deployment across contested coastlines.

Beyond the acquisition reform, the Medium Landing Ship fills an important operational requirement within the U.S. Marine Corps' Force Design 2030 modernization strategy. The vessel is intended to bridge the gap between small landing craft and large amphibious warfare ships by providing an affordable, dedicated connector capable of transporting Marines, vehicles, supplies, and equipment between dispersed coastal locations.

This capability has become increasingly important as the U.S. Marine Corps shifts from concentrating forces aboard large amphibious ships toward distributed operations across island chains and contested coastlines. Future Marine units are expected to operate from numerous temporary expeditionary positions, requiring frequent movement of personnel, ammunition, fuel, engineering equipment, and tactical vehicles without relying on established ports or major logistics hubs.

The Medium Landing Ship is specifically designed to provide that mobility. Previous U.S. Navy planning documents describe a vessel with approximately 4,000 tons of displacement and roughly 120 meters in length, capable of transporting around 75 Marines, along with tactical vehicles and mission cargo. A shallow draft and beaching capability will enable the ship to unload directly onto suitable shorelines, allowing Marine forces to sustain operations from austere locations where conventional port facilities may be unavailable or destroyed.

The LSM is expected to become one of the principal enablers of Expeditionary Advanced Base Operations (EABO), the U.S. Marine Corps' concept for establishing temporary, highly mobile positions across strategically important islands and coastal regions. From these dispersed locations, U.S. Marines can employ anti-ship missiles, air-defense systems, sensors, unmanned systems, and reconnaissance assets while remaining difficult for an adversary to locate and target.

Without a dedicated logistics connector such as the Medium Landing Ship, maintaining these dispersed forces would become significantly more difficult. Existing amphibious warships, including the San Antonio-class amphibious transport dock and America-class amphibious assault ship, remain essential for major expeditionary operations but are considerably larger, more expensive, and optimized for different missions. Employing those ships for routine logistics movement between austere coastal sites would expose high-value naval assets to unnecessary operational risk.

In December 2025, the U.S. Navy approved a design for the McClung-class Medium Landing Ship, a transport vessel solely dedicated to moving Marines and their equipment to better allow the sea service to support and protect joint fleet and air movements. (Video source: U.S. Marine Corps)

The planned fleet of 35 Medium Landing Ships is intended to provide the persistent mobility required to sustain U.S. Marine units throughout extended operations. Rather than relying on a handful of large amphibious ships, commanders will be able to distribute logistics across numerous smaller vessels, increasing operational flexibility while complicating an adversary's surveillance and targeting efforts.

The program also carries important implications for the U.S. defense industrial base. By dividing initial production between Bollinger Shipyards and Fincantieri Marinette Marine under the supervision of TOTE Services, the U.S. Navy is expanding participation among multiple American shipyards rather than concentrating work at a single facility. This approach supports workforce development, strengthens supplier networks, and increases national shipbuilding capacity at a time when the Navy is simultaneously pursuing several major construction programs.

Both shipyards already possess significant experience supporting Navy programs. Bollinger Shipyards has built numerous patrol vessels and auxiliary ships, while Fincantieri Marinette Marine is constructing the Constellation-class guided-missile frigate. Their participation in the Medium Landing Ship program broadens the industrial base available for future fleet expansion while reducing dependence on any single production yard.

The Vessel Construction Management concept could also influence future Navy procurement programs if it demonstrates improved schedule performance and cost control. Recent U.S. shipbuilding efforts have experienced delays, rising costs, and industrial capacity challenges, prompting the Navy to explore alternative acquisition methods that better leverage commercial expertise without compromising military requirements.

From an operational perspective, the Medium Landing Ship represents far more than another amphibious vessel. It provides the logistical foundation required to transform the U.S. Marine Corps' distributed operations concept from doctrine into an executable battlefield capability. Long-range precision missiles, reconnaissance systems, and expeditionary forces can remain effective only if they are continuously supplied, repositioned, and sustained under combat conditions.

In the Indo-Pacific, where thousands of islands and vast maritime distances define the operational environment, this requirement becomes even more significant. The ability to move small Marine formations rapidly between islands while avoiding predictable logistics routes will directly enhance survivability and operational flexibility during any future high-intensity conflict.

If delivered on schedule beginning in 2029, the Medium Landing Ship fleet will strengthen the U.S. Navy and U.S. Marine Corps team's ability to conduct distributed littoral operations while simultaneously demonstrating a new acquisition model focused on commercial efficiency, industrial resilience, and accelerated delivery of critical naval capability. The success of both the ships themselves and the innovative Vessel Construction Management approach could shape future U.S. naval procurement as the service seeks to modernize its fleet amid increasingly contested maritime environments.

Explore More Defense News

• Land Defense News
• Naval Defense News
• Defense Aerospace News

Written by Alain Servaes – Chief Editor, Army Recognition Group
Alain Servaes is a former infantry non-commissioned officer and the founder of Army Recognition. With over 20 years in defense journalism, he provides expert analysis on military equipment, NATO operations, and the global defense industry.