DSGi Business, part of the group that owns Currys and PCWorld, has failed to make the second round of the tender stage for a £6bn public sector framework agreement due to kick off in the spring.
The framework, due to be launched on 1 March 2010 with an estimated value of £6bn will be used across government for supplying PCs, peripherals and software.
Framework organiser Buying Solutions has told bidders whether they have passed the qualification criteria.
DSGi brand Equanet - the third largest supplier on the current three-year agreement - has not made the grade for the next round, according to people close to the deal.
"Equanet is off the list," said one insider involved with Buying Solutions. "It did not score highly enough on the marking and weighting scheme." It is understood that one of the areas DSGi fell down was the growth of its business over the last three years.
Around 170 suppliers were involved in the second tender stage for the previous framework, known as Catalist, three years ago, but this time only 45 resellers have made it through. Twenty-nine suppliers supply public sector departments under the current Catalist agreement, but that number could fall.
"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.
Buying Solutions refused to comment specifically on DSGi Business "as it is commercially sensitive information". DSGi Business declined to comment on commercial relationships.
A version of this story appeared on MicroScope.co.uk