The verdict was revealed in a letter from Home Secretary Theresa May.
The Home Office interior ministry must pay 224 million pounds (USD 375 million 280 million euros) to Raytheon Systems Limited (RSL).
Of that sum, 126 million pounds is for assets such as computer systems the company delivered prior to the contract being terminated, while 50 million pounds is in damages.
The eBorders programme was devised in 2003 to count everyone in and out of Britain by collecting advance passenger information on all scheduled inbound and outbound journeys.
"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 programme."
May said major milestones had been missed by Raytheon in 2010 and parts of the programme were running at least a year behind schedule.
The situation was "a mess with no attractive options", she said.
A new version of the electronic borders system is still being developed.
In a statement, Raytheon said the tribunal ruling confirmed that RSL delivered "substantial capabilities" to the Home Office under the eBorders programme.
"Raytheon remains committed to partnering with the UK government on key defence, national security and commercial pursuits," it added.
Vaz called the situation a "catastrophic result".
"It is now clear that the UKBA (the now-defunct United Kingdom Border Agency) didn't know what they wanted from the eBorders programme," he said.
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