TOTE Awards Hanwha $269 Million First Medium Landing Ship Contract

In October 2026, TOTE Services selected Hanwha Defense USA to build the first U.S. Navy and Marine Corps Medium Landing Ship (LSM) at Hanwha Philly Shipyard in Philadelphia. The $269 million award covers one vessel and includes options for three more. Those options represent potential follow-on work, not confirmed orders, so suppliers should distinguish the funded first ship from the possible expansion when evaluating demand. Construction is planned to begin in the fourth quarter of 2027, with delivery expected in 2030.

The award is being placed through the Navy’s vessel construction manager (VCM) model. It falls within TOTE’s broader $2.2 billion LSM vessel construction manager contract supporting a planned 35-ship fleet. TOTE Services President Jeff Dixon said, “This award shows the speed at which the VCM model can move from RFP to contract. 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.” For contractors, the award illustrates how a VCM arrangement can connect a fleet-level construction effort to an individual shipbuilding award, while the larger fleet plan provides context—not a guarantee—of future work.

The shipyard’s corporate structure and business strategy are also changing. Hanwha Defense USA announced plans to consolidate control of the Philadelphia facility as Hanwha aligns its U.S. shipbuilding operations and prepares the yard to pursue both government and commercial work. Under the restructuring plan described in the source reporting, Hanwha Systems is to sell its 60 percent stake to Hanwha Defense USA Shipbuilding, a joint venture involving Hanwha Defense USA and Hanwha FutureProof, while Hanwha Ocean retains a 40 percent stake. Hanwha Defense USA President and CEO Michael Coulter said bringing the shipyard under the company would further align its “government and commercial shipbuilding efforts.” Retired U.S. Navy Rear Adm. Tom Anderson, president of U.S. shipbuilding at Hanwha Defense USA, is to oversee U.S. shipbuilding operations.

For the GovCon market, the award offers a defined planning horizon for shipbuilding suppliers, subcontractors, and firms considering work at the Philadelphia yard. The Q4 2027 start date gives prospective participants time to monitor supplier engagement and prepare capabilities, while the 2030 delivery target frames the anticipated build period. Hanwha’s stated dual-use direction may also shape yard capacity and competition for labor, facilities, and suppliers across military and commercial work. The available reporting does not identify supplier-registration procedures, a solicitation number, or a contracting contact; firms should therefore verify any engagement route directly through official procurement channels rather than assume an open solicitation exists.

• Award: TOTE Services selected Hanwha Defense USA for a $269 million contract to build one Medium Landing Ship.
• Options: The award includes options for three additional ships; these are not confirmed orders.
• Schedule: Construction is planned to begin in Q4 2027, with delivery expected in 2030.
• Program context: The award sits within TOTE’s $2.2 billion LSM vessel construction manager contract supporting a planned 35-ship fleet.
• Procurement model: The Navy’s vessel construction manager approach is being used to place shipbuilding work; TOTE cited the model’s speed from RFP to contract.
• Shipyard: The first vessel is planned for construction at Hanwha Philly Shipyard in Philadelphia.
• Ownership changes: Hanwha Defense USA plans to consolidate control; the reported restructuring transfers Hanwha Systems’ 60 percent stake to a Hanwha Defense USA Shipbuilding joint venture, while Hanwha Ocean retains 40 percent.
• Market positioning: Hanwha is preparing the yard for both U.S. government and commercial shipbuilding, a strategy that may affect future capacity and supplier priorities.
• Supplier action: Shipbuilding suppliers and subcontractors can assess potential requirements, but should treat follow-on options as uncertain and seek official engagement details; no supplier-registration information, solicitation number, or contracting contact was provided.