A $269 million shipbuilding award adds Hanwha Defense USA to a U.S. Navy landing-ship program, with TOTE and the Navy giving different forecasts for the first vessel’s delivery.
TOTE Services said Oct. 30 it selected Hanwha Defense USA to build one Medium Landing Ship (LSM) at Hanwha Philly Shipyard. TOTE valued the award at $269 million and said it may order three more ships under options; the company did not give those options a separate value.
TOTE said it invited qualified U.S. shipyards to bid in July and chose Hanwha based on its price and acceptance of TOTE’s subcontract conditions. TOTE Services President Jeff Dixon said the process secured “strong terms that benefit the government.” The company said construction could begin in the fourth quarter of 2027.
TOTE expects the first vessel in 2030. The Navy’s July announcement forecast delivery in fall 2029, and neither announcement explained the difference.
TOTE said its base contract covers as many as eight vessels. The Navy’s July account placed one ship at Bollinger Shipyards and four at Fincantieri Marinette Marine under TOTE’s oversight, while giving TOTE flexibility on an award strategy for up to three more. TOTE said discussions with both shipyards are continuing. Its Oct. 30 announcement does not explain how the Hanwha award and options fit with the Navy’s earlier plan.
The Navy awarded TOTE a $2.2 billion vessel-construction-management contract in July. TOTE holds the prime contract and manages shipyard subcontracts for a planned fleet of 35 vessels. The Navy says LSMs would support Marine movement and resupply in contested coastal zones, filling a role between small landing craft with limited range and larger amphibious vessels. It argues that TOTE’s contracting approach, commercial procurement methods and an established design can help contain spending and limit schedule problems.
TOTE says it plans to standardize ship configurations and group purchases to seek better pricing. It cited its National Security Multi-Mission Vessel program, reporting four ships delivered and a fifth expected in 2027. TOTE has not set a date for further LSM shipyard decisions; discussions with Bollinger and Fincantieri continue.
