TOW 2 System Summary

The TOW 2 System line item in the Department of Defense (DoD) budget represents the Army's procurement and sustainment of the Tube-launched, Optically-tracked, Wireless-guided (TOW) missile system. The primary objective of this program is to provide heavy anti-armor and precision assault capabilities to the Army's Infantry Brigade Combat Teams (IBCT), Stryker Brigade Combat Teams (SBCT), and Armor Brigade Combat Teams (ABCT). The TOW system is also used by the U.S. Marine Corps (USMC) and over 43 allied nations, making it a key component of both national defense and allied interoperability.

The TOW Family of Missiles (BGM-71 Series) is the main procurement focus under this line item. The program's goal is to ensure that U.S. ground forces have a reliable, combat-proven munition for engaging armored vehicles, fortifications, and other high-value targets. The TOW missile system includes the missiles themselves, the Improved Target Acquisition System (ITAS) launcher, and associated training devices. The ITAS launcher is designed to enhance long-range targeting and precision engagement, supporting both active and reserve Army components, as well as the National Guard.

For FY 2026, the budget request under this line item shifts from missile procurement to supporting engineering services, acceptance testing, management, and fielding of missiles produced in prior years. This transition aligns with the Army Transformation Initiative (ATI), which calls for the cessation of new TOW missile procurement. The request for FY 2026 is specifically allocated for these support activities, ensuring that previously acquired missiles are properly integrated into operational units and that quality standards are maintained through acceptance testing and engineering oversight.

The Missile Contract component details the procurement of TOW missiles from Raytheon, the sole qualified and facilitized industry source. Recent contracts have focused on the 2B Aero and Bunker Buster variants, with unit costs increasing in recent years due to inflation, modernization, and reduced economies of scale as procurement winds down. The contract structure is a Sole Source/Fixed Price Incentive Firm (SS/FPIF) arrangement, managed by the Army's Aviation and Missile Command (AMCOM) at Redstone Arsenal, Alabama. This approach is intended to ensure predictable costs and timely delivery while maintaining technical standards.

Another key objective of the TOW 2 System program is to address obsolescence and maintain system viability. Non-recurring costs in recent years have included investments in Counter Active Protection System (CAPS) obsolescence and missile component updates. These efforts are designed to ensure that the TOW system remains effective against evolving threats and compatible with modern Army and Marine Corps platforms. Engineering and production support activities are also funded to manage these upgrades and ensure seamless integration with existing force structure.

The Program Management and Engineering Support elements of the budget provide for government oversight, system engineering, and production engineering. These activities are critical for managing the transition from active procurement to sustainment, ensuring that the TOW system continues to meet operational requirements and that any technical issues are promptly addressed. The program also supports training and fielding activities, enabling units to maintain proficiency with the system as it transitions to a sustainment phase.