Damen Wins $40.5 Million Navy Deal for Medium Landing Ship Royalties
Damen Shipbuilding & Cooperation B.V. secured a $40.5 million contract modification to set royalty fees for up to eight Medium Landing Ships, with work in the Netherlands due by September 2027.
Damen Shipbuilding & Cooperation B.V., a Dutch shipbuilder based in Gorinchem, won a $40.5 million Navy contract modification to establish royalty fees for up to eight Medium Landing Ships, as announced on war.gov.
The firm-fixed-price modification amends a previously awarded contract and covers royalty payments tied to the vessel design, according to war.gov. The award draws on fiscal 2026 shipbuilding and conversion funds, which will be obligated in full at the time of award and will not expire at the end of the current fiscal year.
The Portfolio Acquisition Executive Maritime, based in Washington, D.C., is the contracting activity, according to war.gov. Work will be performed in Gorinchem, and the Navy expects completion by September 2027.
Medium Landing Ships form part of the Navy’s plan to move Marines and equipment across contested coastlines. The vessels support naval logistics and amphibious operations, allowing forces to reach shallow shorelines that larger ships cannot approach. Royalty fees in the modification compensate the design owner as U.S. yards build ships based on Damen’s plans, according to war.gov.
The stakes reach beyond a single payment. Damen benefits by capturing licensing revenue on a program the Navy intends to scale, while the service gains a proven commercial hull design to speed a fleet it considers overdue. American shipyards that build under the license absorb the royalty cost, which the Navy folds into program budgets funded by taxpayers.
This award marks the first contract recorded for Damen Shipbuilding & Cooperation B.V.in 2026, bringing the company’s total contract value for the year to $40.5 million, according to firestore:contracts. It is also the eighth Department of Defense contract awarded in Washington during 2026. The figure sits between the 2026 Navy portfolio’s year-to-date minimum of $9 million and its maximum of $8 billion, according to firestore:contracts.
Measured against the broader Navy pipeline, the payment is modest. The service’s largest 2026 Navy award reached $8 billion, roughly 198 times the size of the Damen modification, according to firestore:contracts. The deal ranked among 13 Department of Defense contracts issued nationwide on July 31, 2026.
For the average U.S. reader, the contract signals how the Pentagon relies on foreign designs to fill gaps in domestic shipbuilding capacity. The choice affects how quickly the Navy can field vessels and how defense dollars flow to licensing arrangements rather than domestic construction alone.
Contracting with foreign shipbuilders has happened before. The Navy has repeatedly turned to allied designs to accelerate programs, and the Medium Landing Ship effort leaned on commercial hulls to shorten development. This modification extends that pattern by formalizing royalty terms for a design already selected.
The Portfolio Acquisition Executive Maritime will make the next decisions on obligations and follow-on ship orders under the program. A date for the next award has not been announced.
Foreign shipbuilders shaping American fleets is not new. Dutch naval architects influenced warship design for centuries, and the Netherlands built one of Europe’s dominant maritime powers in the 17th century, when its yards outproduced rivals across the North Sea. That legacy of Dutch shipbuilding endures in modern contracts, where a Gorinchem firm now licenses hulls to the world’s largest navy.
This contract represents the 1st contract awarded to Damen Shipbuilding & Cooperation B.V., Gorinchem, The Netherlands, in 2026, bringing the company’s total contract value for the year to $40,498,088. It is also the 8th Department of Defense contract awarded in Washington during 2026. Because this is the first award to Damen Shipbuilding & Cooperation B.V., Gorinchem, The Netherlands recorded in the database, it establishes the company’s initial benchmark within the Navy portfolio. Specifically, it falls between the 2026 Navy portfolio’s year-to-date minimum of $9,046,496 and maximum of $8,000,000,000. Overall, this award was announced among 13 Department of Defense contracts issued nationwide on July 31, 2026.
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