DSGi Business has failed to make the second round of the tender stage for the £6bn public sector framework agreement due to kick off in the spring, sources close to the situation have confirmed.
Framework organiser Buying Solutions has told resellers if they passed the stringent qualification criteria, and DSGi brand Equanet - the third largest supplier on the current 3 year agreement - has not made the grade for the next round.
"Equanet is off the list," said one insider involved with Buying Solutions, "it did not score highly enough on the marking and weighting scheme."
This system is split into three components; General capability, Lot Specific Capability and Previous Experience accounting for 20%, 50% and 30% of the scores respectively.
It is understood that DSGi fell down on a couple of areas including the growth of its business over the last three years.
Ironically, in the existing agreement due to end in February 2010, DSGi Business was one of only six firms in the Reseller Lot which allowed it to bid for each piece of business in the 10 separate Lots including client devices, peripherals and software.
The number of Lots in the new framework has been consolidated to three - desktop hardware, IT infrastructure hardware and specialist channel partners for software - and the amount of suppliers is also expected to be dramatically reduced.
Around 170 suppliers were involved in the second tender stage for the previous Catalist framework around three year ago but this time only 45 resellers have made it through.
"Buying Solutions has definitely made it tougher, it was too easy for resellers to join the Lots without offering value, you need to be able to drive demand when on the programme," said one supplier.
A spokesman at Buying Solutions told MicroScope it had cut the number of Lots to 3 and removed the overarching Reseller segment "to provide a framework agreement that is easier to access for our customers and easier to service by our suppliers."
Around 29 suppliers supplied public sector departments under the current Catalist agreement but that number could fall.
"We intend to appoint up to 10 suppliers in each of the 3 Lots. It is possible that some suppliers may be awarded multiple Lots," the Buying Solutions spokesman added.
The new framework is due to be launched on 1 March 2010 and it has an estimated value of £6bn excluding VAT.
"This is a pan Government Collaborative framework agreement for use by UK public sector bodies including but not limited to Central Government Departments and their Agencies; Non Departmental Public Bodies; NHS Bodies and Local Authorities," said the Buying Solutions spokesman.
Buying Solutions refused to comment specifically on DSGi Business "as it is commercially sensitive information".
DSGi Business declined to comment on commercial relationships.