2nd UPDATE:UK Govt Ends Border Control Contract With Raytheon

22nd Jul 2010 12:36

(Adds detail.) By Steve McGrath Of DOW JONES NEWSWIRES LONDON (Dow Jones)--The U.K. government Thursday said it was terminating a contract to supply border control technology with U.S. firm Raytheon Co. (RTN) because critical parts of the program are running at least 12 months late. The U.K.'s Home Office said in a statement that the Home Secretary "has no confidence in the prime supplier of the e-borders contract, Raytheon, which since July 2009 has been in breach of contract." "The government is determined to get value for money from its major contracts and requires the highest standard of performance from its suppliers. We will now be seeking alternative providers to continue to deliver this project as a matter of urgency," it added. Raytheon Systems Limited, the U.K. Raytheon unit handling the contract, wasn't immediately available for comment. Raytheon was leading a consortium of companies working on the project, which is to provide technology allowing U.K. border control officials to collect and analyze passenger and crew data, provided by all air, rail and sea carriers, of journeys to and from the U.K. in advance of travel. The U.K. government said the project is important for helping border and police officers stop criminals or other people with no right to enter the U.K. Raytheon's role in the contract was systems integration, travel services and overall project management. Others in the consortium were Serco Group PLC (SRP.LN), Accenture PLC (ACN), Detica Group PLC, QinetiQ Group PLC (QQ.LN), Capgemini (CAP.FR) and Groupe Steria SCA (RIA.FR). A spokesman for the consortium, known as Trusted Borders, said he wasn't in a position to comment, but hoped to have a statement ready later after it had clarified some details. The U.K. government said it has paid suppliers on the contract GBP188 million since it was awarded in 2007, out of a total contract cost of GBP750 million. -By Steve McGrath, Dow Jones Newswires; 44-20-7842-9284; [email protected] (END) Dow Jones Newswires July 22, 2010 07:36 ET (11:36 GMT)