Northrop Grumman [NOC] prevailed in the Navy’s competition Thursday to produce the third block upgrade of the AN/SLQ-32(V) electronic warfare system for detecting and jamming threats at sea under the Surface Electronic Warfare Improvement Program (SEWIP).

Northrop Grumman out-dueled a teaming arrangement between Lockheed Martin [LMT] and Raytheon [RTN] to win the contract that could reach a total value of $267 million. Lockheed Martin is the incumbent on the SEWIP block 2 upgrade program, which is in low-rate initial production.

The cost-plus incentive fee contract awarded to Northrop Grumman covers the preliminary design for the AN/SLQ-32(V)Y. The AN/SLQ-32 system was originally produced by Raytheon.

Cmdr. Thurraya Kent, a Navy spokeswoman, said the SEWIP upgrades are meant to employ open architecture approaches to allow for more rapid technology insertion. She said the focus of the block 3 upgrade is increase electronic attack capabilities.

“SEWIP Block 3 will provide a common electronic attack capability to U.S. Navy cruisers, destroyers, aircraft carriers and amphibious assault ships,” Kent said.

The Lockheed Martin-Raytheon team will review the Navy’s decision, a Lockheed Martin spokesman said, without indicating whether a protest with the Government Accountability Office will be pursued. Typically company’s request a briefing on the decision before determining whether to lodge a protest.

“The Lockheed Martin-Raytheon team will meet with the U.S. Navy to better understand their selection decision, …” the spokesman said. “Together, our team has more than 80 years of combined, proven experience in developing electronic systems. We stand behind our affordable and innovative solution and remain fully committed to increasing the U.S. Navy’s Surface Ship Electronic Attack capabilities.”