US Navy Seeks Vessel Construction Manager for LSM Acquisition

We all want Navy construction projects going forward to succeed. As one who has been an investor/owner of dozens of ships of many types (including some MSC vessels) constructed in international and US yards, I have some practical familiarity with the process of using, and value of, Vessel Construction Management both for new construction and heavy maintenance. From my read of the RFP and NAVSEA press release, this is not really a Vessel Construction Managment contract in the commercial sense of that role. This is making the "VCM" the prime contractor, placing them directly in the risk chain for performance. When you place all of the delivery/price risk on an intermediary {"VCM") between the "Owner" (US Navy) and the shipyard, the VCM will have to be paid a tremendous amount to assume that risk. This is over and above the profit margins of the shipyard and suppliers. Given the costs of shipbuilding in the US, these will be very big numbers, as will the amount required for the VCM. In a commercial scenario, the shipowner retains that risk as they also get the lifetime reward of the ownership/operation of the vessel. An experienced commercial VCM is hired to be the owner's representative and "sheriff in town", to hold the shipyard's feet to the fire on cost, quality and schedule. A cautionary sidebar comment: There are many "pretenders to the throne" of VCM. A highly qualified team with a proven track record is reasonably priced relative to their high value-add vs. the cost of the vessel. That said, most are not worth the money they are paid. I have three suggestions for consideration: - The Navy should use the commercial version of VCM. The Navy is not really pushing the risks off to the VCM because in the end, if the shipyard/VCM fail, the Navy will not get the ships and will have made progress payments along the way, which will be a lose-lose-lose for everyone. The "owner" must always be in the direct control position backing up the VCM. - The Navy should integrate EDOs into the VCM team to rebuild the knowlege/experience foundation that was strong in prior Navy generations. You will get more "bang for the buck" from your use/costs of VCMs. - Create a cadre of prior generation EDO's, whom have delivered the successful projects of the past, to supplement the VCM's efforts on an "on call" basis. Experience and judgement in building warships is a valuable commodity in short supply. Getting decisions right the first time, across all aspects of shipbuilding projects, will save a tremendous amount of time and money.

Classic government thinking: Why insert another layer? That fee structure will tell everything about the decision process. Who writes the build specs, when, and who gets to change or enforce them? Not just the requirements - the detailed specs necessary to design and build. How about having the shipyard build to known specifications, delivering to a Board of Inspection and Survey graded standard with a pre-arranged quality outcome fee structure? Why can’t a fully-capable shipyard deliver a high quality product on its own like any other production line? Yes, it’s complex. It’s all about incentives. There are massive opportunities to unblock the totally constipated existing system of mutual mistrust and constant negotiation. Adding another layer without removing 10x of the no-sayers within the government and the constant motivation to cut corners in the yard is unlikely to fix much. LCS vaguely attempted this approach with ABS in its earliest days via the Naval Vessel Rules - that lasted months, because the Navy was incapable of making up its mind and making it stick. Dozens if not hundreds of people had the power to ignore, say no and hold up progress. LCS 1 built three actual steel ships bow modules before deciding on what went to production, and then the anchor didn’t even fit. First hand. I totally agree with the sentiment - give the project to people who can deliver. But they also have to be incentivized, pressurized, and motivated to succeed. My hope is that we haven’t heard the rest of the story yet on how this will work. Our Navy needs a shipbuilding win. #dreambigger

The RFP release for the LSM Vessel Construction Manager (VCM) is a positive step forward as we reform our acquisition processes and support the maritime industrial base.   The RFP implements a strategy involving both directed and competed shipyards. The VCM will be directed to contract with Bollinger Shipyards for one ship and Fincantieri Marine Group (Marinette) for four ships. The VCM will then have the ability to decide the best strategy for awarding the remaining three ships authorized under the base contract.   This RFP release puts us another step closer to delivering the littoral capability the United States Marine Corps needs. #navy #shipbuilding #warfightingacquisitionsystem #lsm #usmc #forcedesign #expeditionary

#ICYMI: The U.S. Navy has issued a Request for Proposal (RFP) for a Vessel Construction Manager (VCM) to oversee the acquisition of the new Medium Landing Ship (LSM). This strategy is designed to maximize commercial practices to accelerate delivery, improve cost discipline, and expand the U.S. shipbuilding industrial base, with a contract award anticipated for mid-2026. The LSM will fill the capability gap between smaller, short-range landing craft and the Navy’s long-duration, multi-purpose amphibious warfare ships. READ: https://lnkd.in/eczxAW_Y

Tomorrow, SSI's Director of Business Development Eddy Howard will be in Ottawa for the Naval Association of Canada's Shiptech 2026, joining industry and government leaders focused on the future of Canada’s naval programs. As sustainment demands grow more complex, initiatives like the Halifax-class Frigate Working Docking Period (HWDP) for the Royal Canadian Navy | Marine royale canadienne highlight the importance of connected engineering, configuration control and long-term digital continuity across a vessel’s lifecycle. With Canada’s new Defence Industrial Strategy setting the tone for what comes next, we’re looking forward to the discussions around how industry can better support readiness, modernization and decades-long fleet performance. Looking forward to seeing you at the conference! https://lnkd.in/gWbDJrz4 #Shiptech #RoyalCanadianNavy #Shipbuilding #Sustainment

🇰🇷🚢 South Korean shipbuilder Hanwha Ocean has signed five industry teaming agreements and three memoranda of understanding with Canadian companies and universities in support of the Canadian Patrol Submarine Project (CPSP). The CPSP was conceptualized in 2021 to replace the Royal Canadian Navy | Marine royale canadienne’s Victoria-class diesel-electric submarines, commissioned in the 1990s and scheduled for retirement in the 2030s, with up to 12 new platforms starting in 2035. The deals are designed to bolster innovation, manufacturing capacity, and workforce development.

Calspan has secured a five-year contract with the U.S. Naval Test Pilot School at Naval Air Station Patuxent River—extending a 60+ year partnership supporting elite developmental test pilot training. For more than four decades, our variable-stability Learjets and instructor pilots have remained integral to the USNTPS curriculum, advancing modern flight test techniques and strengthening national defense. #Calspan #FlightTest #USNTPS #NavalAviation #Aerospace #NationalDefense Learn more >> https://lnkd.in/ezJ7gpXx

Exciting milestone for the first U.S.-built LCU as it begins sea trials! 🚢 The Landing Craft Utility (LCU) is a critical platform supporting ship-to-shore operations, built by Austal USA for the U.S. Navy. ⚓ Seeing this vessel enter sea trials marks a significant step forward in delivering enhanced capability, reliability, and performance for future missions. ⚙️ Proud to support programs that strengthen naval operations with dependable marine solutions. 🔱 Our wiper systems are onboard supplied by our agent in the USA Inmar Systems. 🕹️ #maritimeindustry #navalengineering #shipbuilding #defence

https://lnkd.in/d-pYxD_5 In First Since WWII, Navy to Hire Company to Oversee Shipbuilding Project The government typically handles the job, but delays and cost overruns prompted a search for new approaches By Marcus Weisgerber Feb. 18, 2026 6:33 pm ET The U.S. Navy plans to hire a private company to manage the construction of new Marine Corps landing ships, marking a shift in an oversight role exclusively performed by government officials since World War II. The move is the latest attempt by the Trump administration and Navy to speed up the often slow and overbudget shipbuilding process by adopting practices more commonly used in the commercial sector, according to Navy officials.

The FOUNDRY took center stage in an interview with the Chief of Naval Operations, Adm. Daryl Caudle, on Fed Gov Today. During this segment on the release of the U.S. Navy Fighting Instructions, the CNO emphasized strengthening our warfighting readiness, building a more capable fleet, and preparing Sailors to meet evolving global challenges. Caudle also highlighted the importance of maintaining a strong maritime advantage and ensuring the Navy remains ready to fight and win at sea.