Border Security Program Termination Leaves UK with Fine

The UK will be required to pay a US defence company £224 million after a London tribunal found that a border security program contract termination was unlawful.

Raytheon Systems were awarded the contract for the provision of electronic borders, through a program devised in 2003 for the collection of Advance Passenger Information. The Home Office claim that Raytheon missed milestones in 2010 and parts of the program were running at least a year behind.

In spite of this, the damages award consists of £126 million for assets in the form of computer systems that the company had delivered prior to termination of the contract and a further £50 million has been awarded in damages to Raytheon. The decision was described as a ‘catastrophic result’ by Keith Vaz, following receipt of a letter from Home Secretary Theresa May.

“The government stands by the decision to end the eBorders contract with Raytheon. This decision was, and remains, the most appropriate action to address the well-documented issues with the delivery and management of the program,” she said.

A new border security program is being developed.