Raytheon Wants Talks With UK Govenment On E-Borders Contract

23rd Jul 2010 15:02

By Steve McGrath Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Raytheon Co. (RTN) Friday said it wants urgent talks with the U.K. government about a border control technology contract, a day after the U.K. said it was terminating the U.S. company's contract because critical parts of the program are running at least 12 months late. "We expect to review this matter with the Home Office at the earliest opportunity to address the path forward," Raytheon said in a statement. The U.K.'s Home Office was highly critical of Ratheon, saying 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 hit back, saying, "we appreciate the Home Office is operating under significant budget constraints but a default notice is not an appropriate way to achieve the important objectives of this program." The U.S.-based company said that since it started working on the project, the E-Borders technology "has significantly improved U.K. border security from threats of terrorism, illegal immigration and serious crime." 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). 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 23, 2010 10:02 ET (14:02 GMT)