Under the option, Northrop will complete development work on the Joint Counter Radio-Controlled Improvised Explosive Device Electronic Warfare Increment 1, Block 1 System of Systems.
JCREW would protect dismounted troops and be used to protect watercraft and permanent structures from remote-controlled IEDs.
"Northrop Grumman is pleased the government selected our JCREW I1B1 next-generation CREW system," said Mike Twyman, sector vice president and general manager of the Defense Systems division for Northrop Grumman Information Systems.
"Our investment in innovation for affordability has produced a platform that defeats current and future threats for all services.
"Our open software-defined architecture supports immediate needs and ensures rapid and low-cost system evolution."
Northrop Grumman received a NAVSEA contract for JCREW in late 2009.
The company said work under the option would primarily be conducted in California.