UK Government Terminates Border Control Contract With Raytheon

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 was leading a consortium of companies working on the project, which was to provide technology allowing U.K. border control officials to carry out checks on travelers before they begin their journey against police, security and immigration watch lists.

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 Steria.

-By Steve McGrath, Dow Jones Newswires; 44-20-7842-9284; [e-mail]