What Is a Dynamic Purchasing System (DPS)?

What is a Dynamic Purchasing System?

A Dynamic Purchasing System (DPS) is a procurement tool used by UK public sector buyers to maintain a pre-approved pool of suppliers for a particular category of goods or services. Unlike a framework agreement, a DPS is always open: any supplier that meets the qualification criteria can apply to join at any time during the DPS's lifetime.

Once on the DPS, suppliers are invited to bid for specific contracts when a buyer runs a mini-competition from the pool.

How a DPS works in practice

1. The DPS is established. A contracting authority publishes a DPS notice on Find a Tender or Contracts Finder. It sets out the categories covered and the qualification criteria.
2. Suppliers apply to join. Any supplier meeting the criteria can submit a Selection Questionnaire (SQ) to be admitted. Applications are accepted throughout the DPS's lifetime.
3. The buyer runs mini-competitions. When a specific contract need arises, the buyer invites all (or a relevant sub-set of) DPS members to bid. They submit priced proposals and the buyer selects the best one.
4. The contract is awarded. The successful supplier delivers the contract. Other DPS members remain on the system and are eligible for future competitions.

DPS vs framework agreements: key differences

DPS	Framework Agreement
Open to new suppliers at any time	Closed once established (typically 4 years)
No maximum supplier numbers	Usually limited to a set number of suppliers
Better suited to fast-moving markets	Better suited to stable categories
All suppliers compete for each contract	Direct award or mini-competition depending on lot rules

Benefits of joining a DPS

For suppliers, a DPS offers several advantages:

• You can apply at any time, unlike frameworks which have fixed application windows
• You receive regular invitations to bid without having to monitor notice boards constantly
• Competition is limited to pre-qualified suppliers, improving your odds compared to open competition
• The process is faster than a full open tender procedure

Common DPS categories in the UK

DPS arrangements are used across a wide range of categories, including:

• Temporary and permanent staff (public sector recruitment)
• IT hardware, software and managed services
• Professional services (consultancy, legal, financial)
• Construction and facilities management
• Learning and development

How to find DPS opportunities

DPS establishment notices and contract awards appear on Find a Tender and Contracts Finder. TenderSignal monitors these feeds and can alert you when a new DPS is established in your sector or when a buyer runs a mini-competition. Set up a saved search to start receiving DPS alerts.

Frequently asked questions

How long does a DPS last?

A DPS can run for any length of time, though most are set up for 4 to 8 years. Unlike framework agreements, the duration of a DPS is not capped by procurement regulations.

Can I join a DPS after it has been established?

Yes. This is one of the key features of a DPS: it remains open to new applicants throughout its lifetime. Applications are assessed on a rolling basis.

Is there a cost to join a DPS?

No. There is no charge to apply for or join a public sector DPS. The process involves completing a selection questionnaire and demonstrating that you meet the specified criteria.

What is the difference between a DPS and a framework agreement?

A framework restricts membership to a fixed number of suppliers chosen at the outset. A DPS is always open to new applicants. Frameworks suit stable, mature categories; DPS arrangements work better in fast-moving markets.

Do I need to be on a DPS to win public contracts?

No. Many contracts are procured via open competition or other routes. However, being on relevant DPS arrangements gives you access to contracts that are only advertised to DPS members.

How do I find DPS opportunities?

DPS establishment notices are published on Find a Tender. TenderSignal monitors these notices and can alert you when a new DPS is set up in your sector or when a buyer launches a mini-competition from one.

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