Navy Unveils New Approach to Shipbuilding
The U.S. Navy has announced a significant shift in its shipbuilding strategy by issuing a Request for Proposal for a Vessel Construction Manager (VCM) to oversee the production of the Medium Landing Ship (LSM). This innovative approach aims to expedite delivery timelines and manage costs more effectively amid ongoing delays in fleet modernization. Instead of contracting directly with shipyards, the Navy plans to engage a commercial prime contractor to streamline oversight and enhance production efficiency.
Transforming Shipbuilding Contracts
The Navy’s new strategy involves appointing a Vessel Construction Manager who will act as an intermediary between the Navy and shipbuilders. This contractor will hold the prime contract and directly subcontract with shipyards, taking charge of schedules, quality control, and overall yard performance. Navy officials assert that this structure is designed to minimize risks, improve oversight, and accelerate the delivery of ships.
For the initial production run, the VCM will oversee construction at Bollinger Shipyards and Fincantieri Marinette Marine. Bollinger has already secured a contract for long-lead materials and lead ship design work, while Marinette Marine is set to construct four vessels. The VCM will also determine the allocation of contracts for the remaining three ships authorized under the base contract.
Rear Adm. Brian Metcalf, program executive officer for ships, emphasized the benefits of this approach, stating, “The VCM method not only accelerates construction timelines but also strengthens our industrial base by engaging multiple shipyards.” By utilizing a mature, “build-to-print” design, the Navy aims to streamline oversight and enhance production management.
Addressing Challenges in Navy Shipbuilding
This new contracting model comes at a critical juncture for Navy shipbuilding, which has faced significant delays. Recently, Secretary of the Navy John Phelan canceled four Constellation-class frigates at Marinette Marine due to construction delays that pushed the lead ship’s delivery date from April 2026 to April 2029. The VCM strategy reflects a broader initiative to incorporate commercial shipbuilding practices into naval programs, allowing for tighter cost control and reduced government oversight.
The Navy’s approach draws inspiration from the successful delivery of the National Security Multi-Mission Vessels (NSMVs) by the U.S. Maritime Administration, which utilized a similar model. TOTE Services was hired as the Vessel Construction Manager while Philly Shipyard handled construction, resulting in timely deliveries and adherence to budget constraints. However, whether the Navy can replicate this success on a larger scale, particularly for combat ship construction, remains uncertain.
A contract award for the VCM in the LSM program is anticipated by mid-2026. This marks a pivotal moment for the Navy as it seeks to reshape its shipbuilding processes while addressing the growing disparity in shipbuilding capacity compared to China’s expanding industrial base.
