A dynamic purchasing system (DPS) is a fully electronic procurement arrangement that a public sector buyer sets up to purchase commonly used goods, works or services. Its defining feature is that it stays open: any supplier that meets the entry criteria can apply to join at any point in its life, not just during an initial window. That openness is why many SMEs find a DPS more accessible than a traditional framework agreement.
This guide explains how a DPS works, how it differs from a framework, how to join one, and what is replacing it under the Procurement Act 2023.
How a DPS works
A DPS runs in two stages.
Stage one: admission. The buyer publishes a notice setting out the categories (usually called lots) the DPS covers and the criteria suppliers must meet. Any supplier can then apply. If you meet the criteria, the buyer must admit you, normally within 10 working days, extendable to 15 when applications are heavy. There is no fixed roster: the buyer has to keep accepting new entrants for as long as the DPS runs.
Stage two: call-off competitions. When the buyer needs something, it invites every admitted supplier in the relevant lot to bid. You do not win work simply by being on a DPS; you compete for each contract separately. Because every admitted supplier receives the invitation, the process is transparent and the playing field is level.
Being admitted is not revenue in itself, but it puts you in the room every time that buyer goes to market in your category.
DPS vs framework agreement
The two are often confused, but they behave very differently for suppliers.
| Dynamic purchasing system | Framework agreement | |
|---|---|---|
| Open to new suppliers? | Yes, throughout its life | No, closed once awarded |
| Duration (old rules) | No fixed maximum; many run four to eight years | Capped at four years |
| How contracts are awarded | Competition among all admitted suppliers in the lot | Direct award or mini-competition among the fixed panel |
| Barrier to entry | Lower: apply whenever it is live | Higher: you must be selected in the original window |
| Typical use | Markets where needs vary and new providers appear | Stable, well-defined goods and services |
The practical difference is access. Miss the application window for a framework and you may be locked out for up to four years. A DPS has no such barrier, so a business that was not trading, not ready or simply unaware when it launched can still join. For more on frameworks, see our guide to framework agreements.
Where DPS arrangements are used in the UK
Buyers favour a DPS where requirements vary from one contract to the next, where prices move with the market, or where locking out newer suppliers for years would be unfair. Common areas include:
- Social care and home-to-school transport. Councils use a DPS extensively for domiciliary care, supported living placements and transport for children with special educational needs, where new providers need to join at short notice.
- Construction and works. Housing associations, councils and NHS trusts use them for planned maintenance, responsive repairs and capital projects, so smaller regional contractors are not shut out.
- Technology. Hardware, software licences, managed services and digital delivery, including arrangements run by the Government Commercial Agency (formerly the Crown Commercial Service).
- Temporary and interim staffing. Agency workers, interim managers and specialist contractors across the NHS and local government.
- Professional services. Legal, consultancy, research and marketing, where market capacity changes quickly.
How to join a DPS
- Find the right DPS. Above-threshold notices are published on Find a Tender and lower-value ones on Contracts Finder, with Scottish opportunities on Public Contracts Scotland. Search by the CPV codes that match your work alongside the terms "dynamic purchasing system", "DPS" and "dynamic market".
- Check the entry criteria. Most use the standard Selection Questionnaire. Review the financial thresholds, insurance levels and any sector accreditations before you start.
- Prepare your supplier pack. You will typically need recent accounts or a turnover declaration, evidence of employers liability, public liability and professional indemnity insurance, relevant experience or references, and policies covering health and safety, equality and data protection. Many buyers ask for the same core documents, so a maintained pack saves time across applications.
- Apply to every lot you genuinely qualify for. Applications go through the buyer's e-procurement portal. Most arrangements are split by service type, geography or contract value.
- Keep your details current and respond to invitations. Some buyers ask you to reconfirm insurance or accounts each year. Once admitted, respond to every relevant competition: the volume of opportunities is the main benefit of being on a DPS.
There is no charge to apply for or join a public sector DPS.
Pros and cons for suppliers
Advantages
- No missed window. You can join at any point rather than waiting years for a framework to be re-let.
- Guaranteed invitation. Every admitted supplier in the lot must be invited to each competition.
- SME-friendly. Open access and mandatory competition level the field against larger incumbents.
- Low entry cost. One successful application gives you access to every call-off for the rest of the DPS's life.
Disadvantages
- An open-ended field. New suppliers can join at any time, so a DPS you joined as one of ten may have thirty members by the time a large contract appears.
- Scattered portals. Each buyer tends to use its own system, so tracking several arrangements takes time.
- Uneven volume. Some produce dozens of competitions a year; others go quiet for long stretches. Admission is not a guarantee of work.
Winning work once you are on a DPS
Admission gets you the invitations; winning them takes a slightly different approach from an open tender.
- Be ready to respond quickly. Response windows for DPS competitions are often short, so keep a library of case studies, method statements and pricing you can adapt.
- Expect sharper price competition. The pool of admitted suppliers is larger than a framework panel, and buyers compare them directly.
- Take social value seriously. In social care in particular, it often carries significant weight.
Most successful SMEs use both routes: a DPS for recurring volume in their core categories, and open tenders for larger contracts where there is more room to differentiate on quality.
What replaces the DPS: dynamic markets
The Procurement Act 2023 came into force on 24 February 2025 and replaced the Public Contracts Regulations 2015 for most buyers in England, Wales and Northern Ireland. Under the Act, the DPS is replaced by a dynamic market. The core principle is unchanged: the arrangement stays open to new suppliers and buyers run competitions among those admitted. The rules are more flexible for buyers and the application process is standardised.
What this means in practice:
- Existing DPS arrangements continue. Those set up under the 2015 rules keep running under those rules until they end, so you will still see DPS opportunities for some time.
- New arrangements in England, Wales and Northern Ireland are dynamic markets.
- Scotland is different. Scottish public bodies are not covered by the Act and still set up DPS arrangements under Scotland's own regulations.
- Joining and competing feel much the same under both.
When searching, use both terms. Our guide to dynamic markets under the Procurement Act 2023 covers the new rules in detail, and our Procurement Act 2023 explainer covers the wider changes.
Finding DPS and dynamic market opportunities
The hard part is timing. A DPS stays open, but the notice is easy to miss if you are not watching the right portals, and so are the competitions it runs once you are admitted. TenderSignal watches Find a Tender, Contracts Finder, Public Contracts Scotland and 600+ buyer portals, and labels dynamic purchasing systems on each tender page. Save a search for "dynamic purchasing system" or "dynamic market" with your categories and regions, and you will get a digest of new notices as they are published.
Create a free TenderSignal account and set up your first DPS search today.