BAE Systems and Accenture, two of the eight initial IT suppliers that were shortlisted to bid on the National Identity Scheme (NIS) framework procurement programme, have bailed out citing financial reasons.
This leaves Computer Sciences Corporation, EDS, Fujitsu, IBM, Steria, and Thales to battle out for the estimated £5.3 billion contract.
Although they did lose out, their shares didn't tank with BAE Systems and Accenture's shares actually going up since.
BAE chose to quit because "at this stage of the competition our assessment is that our bid would not contain every element necessary to deliver to the customer's requirement. We continue to monitor the programme with interest".
Consultancy Firm Accenture gave no reason specific for its withdrawal but said: "We remain committed to our work in UK government".
The ID Card project has been viewed with increasing suspicion by the media and the public
The UK government proved to be unreliable at handling its own citizens' information, following the loss of laptops, CDROMs, hard drives and packages containing details of millions.
Furthermore, the ID card plan has been criticised because of its ever bulging cost and concerns about the personal privacy.
Earlier last week, the Guardian reported that the full deployment of the ID Card for British citizens was going to be postponed till 2012, after the UK General election.