Contract Awarded for Copter Fleet

The Navy on Friday gave a transatlantic team led by Lockheed Martin Corp. a $1.7-billion contract to build a fleet of 23 U.S. presidential helicopters, a deal valued at up to $6.1 billion.

The decision was a setback for Connecticut-based United Technologies Corp.’s Sikorsky Aircraft unit, which for nearly 50 years has built and maintained the Marine One helicopters that fly the president.

Sikorsky had wrapped itself in the American flag to pitch its twin-engined VH-92, based on the Black Hawk helicopter.

But lower cost, a larger cabin and a faster delivery schedule allowed No. 1 Pentagon supplier Lockheed to prevail with its US101, based on the three-engined EH101 made by Agusta-Westland Inc., a unit of Italy’s Finmeccanica.

The deal attracted international attention, with Prime Ministers Tony Blair of Britain and Silvio Berlusconi of Italy pressing President Bush on behalf of Lockheed’s British-Italian design.

Assistant Navy Secretary John Young said the decision came after an “exhaustive and deliberative” search and would ensure a high level of quality and safety for future presidents.

“This decision truly reflects the best value and capability for the American taxpayer who is funding it, the Marines who will operate it and future presidents who will fly in it,” Young said.

He said he received no guidance or pressure from the White House except to “pick the best-value choice for the mission.”

Texas-based Textron Inc.’s Bell Helicopter is the other big partner, and Century City-based Northrop Grumman Corp. will provide electronics.

Lockheed Vice President Stephen Ramsey said 65% of the US101 would be built in the U.S., with the remaining 35% to be split between Britain and Italy.