What is a dynamic purchasing system (DPS)?
A dynamic purchasing system (DPS) is a fully electronic procurement arrangement used by UK public sector buyers to purchase commonly used goods, works or services. Unlike a framework agreement, a DPS remains open throughout its entire lifetime, meaning any supplier that meets the qualification criteria can apply to join at any point, not just during an initial window. This openness is its defining feature and the reason many SMEs find DPS opportunities more accessible than traditional frameworks.
How a DPS works
A contracting authority sets up a DPS by publishing a contract notice in the usual way. The notice defines the categories of supply the DPS covers and the qualification criteria suppliers must meet. Any supplier can then submit a request to participate. Provided the supplier satisfies the selection criteria, the authority must admit them within 10 working days (or 15 working days during the first period if the volume of applications is high).
Once admitted, a supplier stays on the system for its full duration. When the authority wants to buy something, it runs a mini-competition among all admitted suppliers in the relevant category, and every one of them must be invited to bid. There is no limit on how many call-offs can run, and new suppliers can be joining while live mini-competitions are already under way. DPS arrangements can last up to four years under the Public Contracts Regulations 2015, though the Procurement Act 2023 (in force from February 2025) replaces the DPS with a successor concept called a dynamic market, carrying forward the same open-access principle with streamlined rules.
DPS vs framework: what is the difference?
The two arrangements look similar from the outside but behave very differently for suppliers.
| Feature | Dynamic purchasing system | Framework agreement |
|---|---|---|
| Open to new entrants? | Yes, throughout its lifetime | No, closed after initial award |
| Maximum duration | 4 years (no hard limit if justified); replaced by dynamic markets under PA 2023 | 4 years (strictly enforced) |
| Call-off process | Mini-competition among all admitted suppliers in the category; every supplier invited | Direct award (single-supplier) or mini-competition (multi-supplier), only among existing members |
| Typical use | Goods and services where requirements vary and market evolves (social care, transport, construction, professional services) | Commodity goods or services with stable, well-defined specifications (office supplies, temporary staffing) |
| Barrier to entry for SMEs | Lower; join at any time once the DPS is live | Higher; must be selected during the original tender window |
| Transparency of membership | All admitted suppliers visible to the authority; number can be unlimited | Fixed list of suppliers, publicly named in award notice |
Where DPS arrangements are commonly used in the UK
Dynamic purchasing systems are particularly popular where service requirements vary significantly between individual call-offs, where prices fluctuate with the market, or where it would be unfair to lock out newer or smaller suppliers for four years at a time.
Social care and home-to-school transport. Local councils use DPS arrangements extensively to commission domiciliary care, supported living placements and transport for children with special educational needs. The variable nature of individual placements and the need to bring new providers onto a panel at short notice makes the open-access DPS a natural fit. Many councils publish a single DPS covering all categories of adult or children's social care, then run mini-competitions or direct call-offs within it depending on the value.
Construction and civil engineering. Authorities including NHS trusts, housing associations and local councils have established DPS arrangements for construction works. Frameworks would lock out smaller regional contractors; a DPS allows a new firm that has recently built up the relevant experience to join and compete for upcoming projects without waiting years for the next procurement cycle.
Professional and consultancy services. Marketing, research, legal and management consultancy are all areas where market capacity changes quickly. A DPS lets authorities tap into new firms as they emerge rather than being tied to a panel that was selected years earlier.
Crown Commercial Service and NHS. The Crown Commercial Service (CCS) has used DPS-style arrangements for technology products and digital outcomes, while NHS Supply Chain uses the structure to allow new clinical and non-clinical goods suppliers to qualify without waiting for a framework renewal.
How to join a dynamic purchasing system
The process is straightforward, though it does require care with the documentation.
- Find the DPS. Open DPS arrangements are published on Find a Tender (for contracts above the relevant threshold) and on Contracts Finder (for lower-value opportunities). TenderSignal monitors both sources daily and flags DPS notices where suppliers can still apply to join.
- Check the selection criteria. Each DPS has a pre-qualification questionnaire (PQQ) or selection questionnaire (SQ). Review the financial thresholds, insurance requirements and any sector-specific accreditations before you start.
- Submit your application. Applications go through the buyer's e-procurement portal (often Jaggaer, Proactis, Delta eSourcing or a bespoke system). The authority must assess your application within 10 working days.
- Receive confirmation. If accepted, you will receive a notice confirming your admission. Keep your documents current; some DPS arrangements require annual re-confirmation of insurance certificates or accounts.
- Respond to mini-competitions. Once on the system, you will receive invitations to tender for individual call-offs. Respond to every relevant one, as volume of mini-competitions is often the main benefit of being on a DPS.
Pros and cons for suppliers
Advantages:
- No locked-out window. You can apply to join at any point during the DPS lifetime, rather than missing a four-year framework and having to wait for the next cycle.
- Guaranteed invitation. Unlike a multi-supplier framework where a buyer may direct-award to a preferred supplier, a DPS requires every admitted supplier in the category to be invited to each mini-competition.
- SME-friendly. The open-access model and the requirement to run mini-competitions level the playing field against larger incumbents.
- Relatively low entry cost. A single PQQ or SQ gives you access to all call-offs under that DPS for its remaining life.
Disadvantages:
- Competition is open-ended. Because new suppliers can join at any time, the pool of competitors is not fixed. A DPS you joined as one of ten suppliers may have thirty by the time a large call-off is issued.
- Mini-competition workload. Every call-off requires a fresh bid. Unlike a framework direct-award, there is no mechanism for the authority to select you without a competition.
- Portal proliferation. Each buyer typically uses its own e-procurement system. Monitoring multiple DPS arrangements across different portals is time-consuming without a tool to aggregate them.
- Variable call-off frequency. Some DPS arrangements produce dozens of mini-competitions per year; others are quiet for long stretches. Joining a DPS is not a guarantee of work.
The Procurement Act 2023 and dynamic markets
The Procurement Act 2023 came into force on 24 February 2025 and replaced the Public Contracts Regulations 2015 for most public sector buyers in England, Wales and Northern Ireland. Under the new legislation, the DPS is replaced by a dynamic market. The core principle is unchanged: the arrangement must remain open to new suppliers at all times. The main practical changes are that dynamic markets can be subdivided into lots more flexibly and the assessment timeframe is standardised. Suppliers should look for notices described as both DPS and dynamic market, depending on when the arrangement was established.
How TenderSignal helps you find and track DPS opportunities
TenderSignal monitors Find a Tender, Contracts Finder and over 140 additional procurement portals every night. When a new DPS or dynamic market notice is published, or when an existing arrangement issues a mini-competition, TenderSignal surfaces it in your personalised feed based on your CPV categories, region and buyer type preferences. It also flags which DPS arrangements are still open for new entrants, so you are not reading notices for systems that have already closed.
You can save a search for DPS opportunities in your sector and receive a daily or weekly digest as new notices and mini-competitions appear. Create a free TenderSignal account and set up your first DPS search today.