The contract would ultimately be worth 6.1 billion dollars for the 23 helicopters that the government wants to acquire for the presidential fleet, Navy officials said.

"This decision truly reflects the best value and capability for the American taxpayer who is funding it, and the Marines who will operate it and the future presidents who will fly in it," said John Young, the Navy assistant secretary for research, development and acquisitions.

The decision culminated an intense competition between Lockheed Martin's European-designed US-101 helicopter and Sikorsky Aircraft Corp's all-American entry, the S-92.

Appeals to patriotism and worries about loss of US jobs to Europe were set against personal lobbying by leaders of Italy and Britain, the United States's most steadfast allies in Iraq.

But Young said both teams met the requirements of "buy American" provisions under US law, and beyond that the degree of US content in the aircraft was not a factor in the decision.

About two thirds of the Lockheed Martin helicopter would be built in the United States, and a third in Britain and Italy, the officials said.

The primary fuselage and the main rotor blade would be built in Britain and gear boxes and other dynamic components in Italy, they said.

Friday's contract commits 1.7 billion dollars to the development and demonstration of the helicopter.

But Young estimated that it will cost a total of 6.1 billion dollars to develop and procure 23 helicopters. Plans call for the delivery of three test helicopters and five initial helicopters by 2009 at a cost of 3.5 billion dollars, including research and development.

The US-101 is an Americanized version of the EH-101 designed by Augusta Westland, a British-Italian aerospace unit of Finmeccanica SpA of Italy, which teamed up with Lockheed Martin and Bell Helicopters for the Marine One bid.

The S-92 is based on Sikorsky's's US-60 Black Hawk and SeaHawk helicopters, which are already in wide use in the US military.

But both teams had make major changes in design to meet the demanding requirements of a presidential aircraft -- higher speeds, greater range, the most advanced communications and special security requirements.

Young said the three-engine US-101 would have an initial range of 250 miles, compared to 100 miles for the current Marine One, the Sikorsky-built VH3D. It will fly at 145 knots versus 114 knots today, and carry 14 passengers and four crewmembers instead of about 10 passengers today.

The decision was a blow to Sikorsky, a unit of United Technologies Corp., which has been making the presidential helicopter since the Eisenhower administration.

"Sikorsky and our All-American supplier team are disappointed with this outcome," said Stephen Finger, the company's president. "We're honored to have flown US presidents for nearly half a century and believe we put forward an exceptionally strong proposal to continue this tradition."

The prestige of making the president's helicopters is a valuable selling point that could give the winner a leg up in an upcoming six billion dollar contract to provide the air force with 132 top-of-the-line search and rescue helicopters.

Senator Joe Lieberman, who represents Sikorsky's home state of Connecticut, denounced the decision as "not just disappointing: it is outrageously wrong."

"It insults Sikorskys workers and management, who earned the right to build the presidents helicopter," he said.

US Defense Secretary Donald Rumsfeld met earlier in the day with Italian Defense Minsiter Antonio Martino, but it was not known whether they discussed the Marine One contract.

Italian Prime Minister Silvio Berlusconi and British Prime Minister Tony Blair have reportedly plugged the Lockheed proposal with President George W Bush.

But Young said Bush did not weigh in on the decision.

"And I got no other vectors from the White House to do anything other than pick the best value choice for the mission. And that's what we did," he said.

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