'Innovative shift': Navy bets $2.2 billion on new vessel construction manager strategy for LSM - Breaking Defense

Image of a medium landing ship, from a Congressional Budget Office report. (CBO)

WASHINGTON — The Navy has tapped maritime company TOTE Services to serve as the vessel construction manager (VCM) for the Landing Ship Medium (LSM) program.

The Navy announced the $2.2 billion contract award on Monday, and said it aims to “maximize commercial practices to accelerate delivery, improve cost discipline, and expand the U.S. shipbuilding industrial base,” according to a service news release.

While the VCM model is common in commercial shipbuilding, it is a departure from the Navy’s status quo, with TOTE serving as the service’s first VCM. The VCM has the prime contract, and as a result, has direct contractual oversight of construction and delivery for the LSM, the Navy said Monday.

“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, who is performing the duties of assistant secretary of the Navy for research, development and acquisition, said in a statement on Monday.