On March 30, 2026, Vard Marine US, Inc. (a subsidiary of Vard Group AS, fully owned by Italy’s Fincantieri Group) secured a $4.5 million contract from the U.S. Navy to advance early-stage design work on the Next Generation Logistics Ship (NGLS), also known as the light replenishment oiler (T-AOL).
The Houston-based naval architecture and marine engineering firm will serve as the prime contractor. Its scope includes conducting a comprehensive foreign and domestic market survey (to be delivered within two months) and performing concept design and refinement for the new platform. The contract also includes options for functional design planning and special studies.
The NGLS program aims to deliver a smaller, more flexible logistics vessel capable of providing refueling, resupply, and rearmament support to combatant ships. It focuses on distributed maritime operations in contested environments, leveraging commercially available, non-developmental, and proven technologies to improve cost-effectiveness and operational efficiency compared to larger traditional replenishment oilers.
Vard Marine has partnered with Hanwha Defense USA and Hanwha Philly Shipyard as subcontractors to support market analysis, producibility assessments, and concept integration. Siemens is also involved in the team. This marks Hanwha’s first U.S. Navy contract since acquiring the Philly Shipyard, with over $200 million invested in upgrades.
A parallel contract was awarded to General Dynamics NASSCO ($3.9 million) for similar concept refinement work, creating a competitive design phase for the Navy.
Authority response from the U.S. Navy emphasizes the need for agile logistics platforms to sustain fleet operations in high-threat areas. Vard Marine stated it will work closely with the Navy to refine the baseline design through iterative requirements integration.
This development falls under new ships / fleet expansion and navy operations affecting shipping categories. The NGLS will enhance underway replenishment capabilities, supporting sustained naval presence and indirectly benefiting commercial shipping by maintaining secure sea lanes for global trade routes. Successful deployment of these lighter, more numerous logistics ships could reduce pressure on existing auxiliary fleets and improve overall maritime security in strategic chokepoints.
The contract award highlights growing international collaboration in U.S. naval ship design, with European (Fincantieri/Vard) and South Korean (Hanwha) expertise contributing to American fleet modernization amid evolving geopolitical demands.