Guernsey and Jersey went out for expressions of interest in the Autumn to which the company responded.
It was willing to take on the trial if it was offered on the same terms as last year's, which collapsed after Guernsey's States pulled out, by no later than 30 November.
It had lined up two boats.
The full tender was issued by both States on 15 December and closed on 19 January.
'The four months taken during the procurement phase has meant that we have been unable to commit to these two ships and are aware that they are in the process of being deployed elsewhere,' said Condor CEO Paul Luxon.
'Furthermore, the terms of the tender have also changed as the original one-year trial has become five years and we remain concerned that there is only a very short timeframe available to prepare and launch the new service.'
Nine companies initially expressed an interest.
You need to be logged in to comment. If you had an account on our previous site, you can migrate your old account and comment profile to this site by visiting this page and entering the email address for your old account. We'll then send you an email with a link to follow to complete the process.