US Navy awards Medium Landing Ship vessel construction manager contract

A VCM contract was awarded for the acquisition of the Landing Ship Medium, shown here in an illustration. (US Navy)

The US Navy (USN) awarded a USD2.2 billion contract to TOTE Services of Jacksonville, Florida, for Vessel Construction Management (VCM) to oversee the acquisition of the new Medium Landing Ships (LSMs) for US Marine Corps operations, the USN confirmed in a 13 July statement.

The contract, which is meant to “maximise commercial practices to accelerate delivery, improve cost discipline, and expand the U.S. shipbuilding industrial base”, was awarded about two weeks after an official protest that challenged the VCM structure was denied.

For the initial production of up to eight LSMs, the navy will direct the VCM to execute and manage subcontracts with Bollinger Shipyards for the construction of one LSM and Fincantieri Marinette Marine (FMM) for the construction of four LSMs, the USN noted in the statement.

“The VCM will have the flexibility to determine the best award strategy for up to three additional vessels,” the USN said.

In the statement Will Mahan, performing the duties of assistant secretary of the navy for Research, Development and Acquisition, referred to the VCM strategy as an “innovative shift in navy shipbuilding”, adding, “We are leveraging commercial best practices to improve cost, schedule, and performance.”

The VCM will hold the prime contract with the navy and then will be contractually responsible for issuing and managing shipbuilder subcontracts to construct and deliver LSM vessels, the USN said.

“This prime contract places the VCM in direct contractual control of shipyard performance and leverages commercial practices and flexibilities that, together with a proven design, are expected to reduce cost and schedule risks,” the USN said.