WASHINGTON (CNN) - Lockheed Martin received a multibillion-dollar contract to build the next fleet of presidential helicopters -- new three-engined craft that will be larger than the current Marine One and have a new array of security measures aboard, officials said Friday.

It marks the first time in nearly a half century that United Technologies Corp.'s Sikorsky Aircraft unit has not been selected to build the craft for U.S. presidents.

John Young, assistant secretary of the Navy, said the decision was reached after a lengthy and complex process that began in December 2003 with Lockheed and Sikorsky battling it out.

He said both companies came up with "high quality proposals," but the government ultimately sided with Lockheed's US 101 helicopter design. The helicopter will be built at Lockheed's Owego plant in south central New York and should bring hundreds of jobs to the facility.

"Today we are announcing the selection of Lockheed Martin," Young told reporters at the Pentagon. "This effort will deliver a new helicopter that provides essential improvement in the range, speed, communications capability and survivability necessary to efficiently and securely transport the president of the United States."

He said the Pentagon is providing Lockheed with an initial $1.7 billion and the total contract is valued at $6.1 billion, much of the cost going toward research and development.

The contract calls for 23 new helicopters, the first of which are to be ready for the president by 2009. Each helicopter is estimated to cost about $110 million, he said.

"This decision is a testament to the business leadership of Lockheed Martin, but more importantly to the great labor force we have in upstate New York," Sen. Charles Schumer, D-N.Y., said in a written statement. "I hope this is the first of many contract victories for New York."

Schumer's office said the senator had lobbied Defense Secretary Donald Rumsfeld and former Secretary of State Colin Powell personally to try to secure the contract for Lockheed.

The current Marine One helicopters were built by Sikorsky, a Connecticut-based company that specializes in helicopters. The specific

helicopter primarily used as Marine One is the Sikorsky VH-3D.

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

Sen. Hillary Clinton, D-N.Y., called Friday's decision "a great day for Owego, the Southern Tier and all of New York."

Lockheed began competing for the new contract in late 2003, and developed the US 101 helicopter after various modifications. Clinton said the craft is complete with an "Oval Office in the sky."

"I had the opportunity to fly in one of the US 101 helicopters last year and can attest that it will serve the president well," she said. "With partners in over 41 states, the US 101 truly represents the best that New York and America have to offer."

Schumer said the new contract could result in as many as 700 jobs for the Owego plant.

Marine One is used to fly the president to and from the White House lawn, providing quick flights to local destinations or to Air Force One for longer trips.

Lockheed (Research) shares rose more than 2 percent in after-hours electronic trading from their closing price at $56.38 on the New York Stock Exchange.