What is a dynamic market?
A dynamic market is an open, ongoing list of pre-qualified suppliers that public sector buyers draw from when they need to award contracts. It was introduced by the Procurement Act 2023, which came into force on 24 February 2025, and it replaces the older mechanism known as the older Dynamic Purchasing System (DPS) for all new procurements started after that date.
The core idea is the same as a DPS: a buyer establishes the market, sets conditions of participation, and then runs call-off competitions among the admitted suppliers rather than running a full open competition each time. What changes is the legal framework, the notice regime, and the scope of what the mechanism can cover.
Once a buyer has established a dynamic market, any supplier that meets the conditions of participation can apply to join at any time during the market's lifetime. There is no fixed window. This is one of the most commercially important features of the mechanism, because it means SMEs are never locked out simply because they were not trading at the right moment.
How a dynamic market works in practice
A dynamic market operates in two stages.
Stage one: establishment and admission
The buyer publishes a dynamic market notice on Find a Tender (for above-threshold contracts) or Contracts Finder (for lower-value work). The notice sets out what the market covers, the conditions of participation, and how long the market will run. Suppliers submit an application demonstrating they meet those conditions. Successful applicants are admitted and can then receive call-off opportunities.
Because the market stays open throughout its life, a supplier that did not exist when the market was set up, or that simply missed the original notice, can still apply and be admitted at any point. Buyers must assess new applications within a reasonable timeframe and cannot impose arbitrary limits on the number of admitted suppliers.
Stage two: call-off competitions
When the buyer has a specific requirement, it invites all admitted suppliers in the relevant category or lot to bid. This is called a call-off competition. Suppliers submit priced proposals. The buyer evaluates them and awards the contract. Admitted suppliers who are not selected remain in the market and receive future invitations.
Admission to the market does not guarantee revenue. You must still submit a competitive bid for each individual contract. The advantage is that you are guaranteed an invitation every time the buyer goes to market in your category, rather than relying on finding and responding to a fresh open competition.
Dynamic markets vs Dynamic Purchasing Systems: the key differences
If you are familiar with how DPS arrangements worked under the Public Contracts Regulations 2015 (PCR 2015), the dynamic market will feel recognisable. The underlying logic is similar. However, there are meaningful differences worth understanding.
- Scope: DPS under PCR 2015 was limited to commonly-used goods and services. Dynamic markets under the Procurement Act 2023 can cover a wider range of goods, services and works, including more complex or specialist categories that were not a good fit for the old DPS.
- Notice regime: The Procurement Act introduces a new, more structured transparency framework. Buyers must publish a dynamic market notice to advertise the establishment of the market, and they must publish notices when awarding call-off contracts from it. This makes it easier for suppliers to discover active markets and track award activity.
- Terminology: The Act replaces "dynamic purchasing system" with "dynamic market" throughout. Notices published after 24 February 2025 will use the new language. Existing DPS arrangements set up under PCR 2015 continue under the old rules for the remainder of their life.
- Procedural simplification: The Act reduces some of the administrative complexity buyers faced when running DPS arrangements, making it more likely that buyers will use the mechanism for a broader range of categories.
- Open throughout: Both the old DPS and the new dynamic market remain open to new supplier applications at any time. This feature is preserved and reinforced in the new legislation.
In short: if you already understood how DPS worked, dynamic markets follow the same commercial logic with a wider scope, better transparency, and a cleaner legal framework.
How dynamic markets differ from framework agreements
Dynamic markets and framework agreements are both used to pre-qualify suppliers and simplify repeat buying, but they work very differently.
A framework agreement is closed once it has been established. The buyer runs a competition, selects a fixed panel of suppliers, and the framework is then locked to new entrants for its entire term, typically up to four years. If you miss the original application window, you are excluded until the framework is re-competed.
A dynamic market has no such restriction. It stays open to new applications throughout its life. This is the single most important practical difference for an SME supplier: you can apply to join a dynamic market at any point, regardless of when it was set up. You are never locked out because of timing alone.
The other key difference is competition structure. Framework agreements sometimes allow direct award to a single supplier without a further competition, depending on the lot rules. Dynamic markets require a call-off competition for every individual contract: all admitted suppliers in the relevant category are invited to bid. This keeps competition active and gives every supplier in the market a fair chance on each contract.
What this means for SME suppliers
The introduction of dynamic markets under the Procurement Act 2023 is, on balance, positive for SME suppliers. The wider scope of the mechanism means more categories of public sector buying can be run through an open, rolling market rather than a closed framework. The improved notice regime means dynamic markets are easier to discover. And the core open-at-all-times feature gives SMEs a genuine route into public contracts they might otherwise miss.
The practical implication is straightforward: being admitted to relevant dynamic markets in your category should be treated as part of your business development activity, not as a one-off task. Markets run for several years. Getting admitted early means you receive call-off invitations across the full remaining life of the market.
Keep an eye on the conditions of participation when applying. These set the minimum standards you must meet: financial standing, insurance levels, technical experience, and relevant policies. Preparing a standard supplier pack covering these requirements in advance will save significant time when multiple markets are open for applications simultaneously.
How to find and join a dynamic market
Finding active markets
Dynamic market notices are published on Find a Tender for above-threshold contracts and on Contracts Finder for lower-value arrangements. Search using the term "dynamic market" alongside your relevant CPV codes or sector keywords. For markets established before 24 February 2025, you will also find relevant opportunities listed under the older "dynamic purchasing system" label, as existing DPS arrangements continue until their natural end.
TenderSignal monitors Find a Tender, Contracts Finder, and over 140 other UK procurement portals daily. You can browse current opportunities or set up keyword and sector alerts to be notified when a new dynamic market is established in your category.
Applying for admission
Once you have identified a relevant dynamic market, the application process involves submitting a response demonstrating you meet the conditions of participation. This typically follows the structure of a Selection Questionnaire (SQ): financial accounts or turnover declaration, insurance evidence, relevant case studies or references, and policies such as health and safety and data protection.
Buyers are required to assess your application and respond within a reasonable period. If you are admitted, you will begin receiving call-off invitations. If you do not meet the conditions at the time of application, you can reapply once your circumstances change: the market remains open.
What to do now
If you supply goods, services or works to UK public sector buyers, dynamic markets are likely to become an increasingly important procurement route as the Procurement Act 2023 embeds itself across central government and the wider public sector.
Three practical steps to take now:
- Search Find a Tender and Contracts Finder for dynamic market notices in your sector. Note which ones are active and check whether you meet the conditions of participation.
- Prepare or update your standard supplier pack: accounts, insurance certificates, case studies, and key policies. You will need these for any dynamic market application.
- Set up free tender alerts on TenderSignal to be notified when new dynamic markets are established in your categories, and when call-off competitions open from markets you are already admitted to.
Dynamic markets are designed to keep public procurement open and competitive. As a supplier, your job is to be in the room when call-off opportunities arise. Getting admitted early, and staying admitted, is the most direct way to ensure that.