Dynamic Purchasing Systems (DPS): Complete Guide
How DPS works, how to join one, how call-offs are awarded, and why DPS is a better route than open tendering in certain sectors.
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What is a Dynamic Purchasing System?
A Dynamic Purchasing System (DPS) is an electronic procurement arrangement that a contracting authority establishes for routine purchases. Its defining characteristic is that it remains permanently open to new suppliers — any business that meets the qualification criteria can join at any point during the DPS's lifetime.
This openness distinguishes DPS from framework agreements, which are closed to new entrants after establishment. DPS is particularly well-suited to sectors where the supplier market is fragmented, growing, or frequently changing — like social care, construction, and transport.
Once a buyer establishes a DPS and you're admitted, you compete in individual call-off competitions for specific contracts. Call-offs are mini-competitions among DPS members — the buyer sets out requirements, invited members bid, and the contract is awarded to the Most Advantageous Tender.
The Procurement Act 2023 introduced a related concept called a 'Dynamic Market', which builds on the DPS model with some additional flexibility. Many buyers continue to use DPS terminology, but Dynamic Markets are increasingly common for newer arrangements.
DPS vs framework agreements
| Dynamic Purchasing System | Framework Agreement | |
|---|---|---|
| Open to new suppliers | Yes — throughout the lifetime | No — only at establishment |
| Maximum duration | No fixed limit | Typically 4 years |
| Supplier numbers | Unlimited | Fixed at establishment |
| Call-off route | Mini-competition among DPS members | Mini-competition or direct award |
| Application process | Ongoing — apply any time | Single competitive window |
| SQ/selection stage | Yes — pass/fail criteria | Yes — can be scored |
| Common sectors | Social care, health, construction | IT, professional services, commodities |
Which is better for suppliers?
Neither is universally better. Frameworks can include direct award routes and offer more predictable revenue. DPS is better if you're a newer entrant or missed the framework establishment window — you can join at any time. Being on both, where possible, gives you the widest coverage.
How to join a DPS
Find relevant DPS notices
DPS establishment notices are published on Find a Tender Service (FTS). Search for 'Dynamic Purchasing System' or 'Dynamic Market' notices, filtered by your CPV codes. Check contracting authority websites directly if you know which buyers use DPS in your sector.
Read the qualification criteria
Each DPS has its own entry criteria — minimum financial standing, relevant experience, accreditations, and insurance levels. These are pass/fail: meet them all and you're admitted; miss one and you're excluded. Read the criteria carefully before investing time in an application.
Submit your application
Applications are submitted through the buyer's e-procurement portal. You'll complete a selection questionnaire covering the standard areas: exclusion grounds, financial standing, technical and professional ability. Attach certificates, accounts, and references as required.
Pass evaluation
The buyer evaluates your application against the qualification criteria. DPS applications are pass/fail — there's no ranking or competition between applicants. If you meet all criteria, you're admitted. Most buyers aim to confirm admission within a few weeks.
Participate in call-off competitions
Once admitted, you're notified of individual call-off competitions relevant to your lot or category. Call-offs are mini-competitions among admitted suppliers. You bid against the specific requirements, priced and scoped for that contract.
Maintain your standing
Buyers can periodically re-evaluate DPS membership — checking that suppliers still meet the original entry criteria. Keep accreditations, insurance, and financial standing up to date. If your circumstances change materially, notify the buyer.
Sectors that commonly use DPS
DPS is most common in sectors with large, fragmented supplier markets or where the supplier base changes frequently.
Health and social care
NHS and local authority social care services are frequently procured via DPS. The open nature suits a fragmented market of registered care providers. Common examples include domiciliary care, residential care, and supported living.
Construction and repairs
Many councils and housing associations use DPS for repair and maintenance work, allowing them to add new approved contractors as they enter the market. Particularly common for responsive repairs and planned maintenance programmes.
Transport
Passenger transport, school transport, and specialist transport services are regularly procured through DPS — enabling buyers to add new providers (e.g. new wheelchair-accessible vehicle operators) without restriction.
Professional services
Some buyers use DPS for consultancy, legal, and advisory services — particularly where the scope of individual call-offs varies significantly and a fixed panel would be too rigid.
Frequently asked questions
What is a Dynamic Purchasing System?▼
How is a DPS different from a framework agreement?▼
What replaced the old DPS under the Procurement Act 2023?▼
Can I join a DPS at any time?▼
Is there a limit on how many suppliers can be on a DPS?▼
How are call-off contracts awarded from a DPS?▼
What does it cost to join a DPS?▼
RevnIQ
Find DPS opportunities and open tenders — all in one place.
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