Cap Gemini Drops Bid for France's Scorpion Program
PARIS - Information technology services firm Cap Gemini has dropped its independent bid for the French Army's Scorpion land vehicle modernization program. Instead, "We're in discussions to join the consortiums" bidding for the program, said Frédéric Dumas, sales director for the firm's defense and security sector.
The Scorpion program has a heavy requirement in vectronics, or onboard electronics, Dumas said. Companies can join as subcontractors on a non-exclusive basis with bidding groups.
Bids for the program architect's post were due to close Nov. 30, a deadline that had been twice delayed at industry's request to allow time to reform bidding groups.
Leaders of the 10 billion euro ($15 billion) Scorpion program are expected to have a large say in recasting the land systems sector for the next decade.
An issue closely related to Scorpion is whether systems group Thales and land armaments maker Nexter Systems will merge, defense executives said. The government is keen for Thales to take over the smaller Nexter.
But Dassault Aviation, shareholder and industrial partner of Thales, is unlikely to approve such a move, as that would extend the perimeter of the systems group, they said.
Thales Chief Executive Luc Vigneron is expected to inform the board of his strategic reorganization plan Dec. 10 and brief senior executives the next day.
Cap Gemini is a specialist in information systems, an important area of expertise as the Direction Générale pour l'Armement procurement office and the Army seek to bring coherence and interoperability to the command and control networks through the Scorpion project.
The IT specialist thinks it can bring skills given the program's search for interoperability with NATO and use of commercial off-the-shelf gear.
Cap Gemini is looking to re-enter the defense market through the Scorpion program after years of absence following the sale of a subsidiary and the signature of a no-compete agreement.
Communications & Systèmes (CS) is making a joint bid with Ineo, a division of energy group Suez-GDF. CS Chief Executive Eric Blan Garin believes their joint bid will avoid a monopsony of single buyer and supplier.
Nexter, Thales and Sagem are mounting a joint bid.
EADS believes the Scorpion joint venture agreement signed in May 2008 with Nexter is binding, even though the French land systems company has since teamed up with Thales.
Boeing was left stranded after its partner Safran's Sagem unit dropped an independent bid and joined forces with Thales and Nexter. That left the U.S. aerospace giant on the sidelines when Scorpion looked like an open door into the French defense market.
Panhard, Renault Trucks Defense and MBDA are among subcontractors in the bidding groups.
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