Procurement procedures
Dynamic purchasing system(DPS)
Written by Justin Cesman, CEO of Skim. Last reviewed:
- Definition
- A dynamic purchasing system (DPS) is an electronic procurement tool under the Public Contracts Regulations 2015 that, unlike a closed framework, stays open to new suppliers throughout its life — any provider meeting the published criteria can join at any point and then bid for individual call-offs.
Key takeaways
- A dynamic purchasing system (DPS) is an always-open list of qualified suppliers — any provider meeting the published criteria can join at any time, not just during an initial competition.
- Once admitted, you bid for individual requirements as they arise through a mini-competition among qualifying DPS members; admission is not a guarantee of work.
- Under the Public Contracts Regulations 2015, a DPS is restricted to commonly used, off-the-shelf purchases such as IT hardware, temporary staff, and training.
- The Procurement Act 2023 replaces dynamic purchasing systems with dynamic markets, which cover a wider range of goods, services, and works.
- Existing PCR 2015 dynamic purchasing systems can keep running, but all must close by 23 February 2029 under the transitional rules.
How it works
A dynamic purchasing system works in two stages. First, the buyer publishes the qualification criteria and any supplier that meets them is admitted to the system — and, crucially, can apply to join at any point during its lifetime rather than only at launch. Second, as specific requirements arise, the buyer runs a mini-competition among the qualifying members for that need. Admission gets you into the pool; it does not award any work on its own.
Because the supplier list never locks, a DPS suits categories with fluctuating demand and a steady flow of new entrants — commonly IT hardware, temporary staff, and training services. Under the Public Contracts Regulations 2015, this use is restricted to commonly used purchases generally available on the market, which is the main practical limit that distinguishes a DPS from the broader framework agreement.
From a bidder's perspective the low barrier to entry cuts both ways: it is easier to get onto a DPS than onto a framework, but call-off competition can be fiercer because more suppliers sit in the pool, and new ones keep arriving. The signal that matters is not getting admitted — it is who actually wins the call-offs, which is readable from published award notices.
Note the naming change. For any procurement that started on or after 24 February 2025, the equivalent tool is a dynamic market under the Procurement Act 2023, not a DPS. Existing PCR 2015 systems continue under the old rules but must expire by 23 February 2029.
Dynamic purchasing system / dynamic market vs framework agreement
| Feature | DPS (PCR 2015) / Dynamic market (PA 2023) | Framework agreement |
|---|---|---|
| New suppliers can join after launch? | Yes — at any time, if criteria are met | Closed: no. Open (PA 2023): only at set intervals |
| Scope of purchases | DPS: commonly used purchases only. Dynamic market: any goods, services, or works | Any goods, services, or works |
| How work is awarded | Mini-competition among qualifying members | Direct award or further competition |
| Maximum duration | No fixed maximum (PCR 2015 DPSs must close by 23 Feb 2029) | 4 years (8 for defence/utilities and open frameworks) |
| Barrier to entry | Lowest — but call-off competition can be fiercer | Higher — one chance to get on a closed framework |
| Best suited to | Fluctuating demand, frequent new entrants | Defined, stable requirements over a fixed term |
Under the Procurement Act 2023
Reviewed
The rules depend on when the procurement started. The Public Contracts Regulations 2015 (PCR 2015) govern dynamic purchasing systems set up before 24 February 2025, and a DPS under that regime is restricted to commonly used purchases generally available on the market. From 24 February 2025, the Procurement Act 2023 replaces dynamic purchasing systems and qualification systems with a single new commercial tool, the dynamic market, which can be set up for a wider range of goods, services, and works. Like a DPS, a dynamic market must stay open for suppliers to join at any time, and the contracting authority must consider applications within a reasonable period. Existing PCR 2015 dynamic purchasing systems can continue under the old rules but, under the transitional and saving arrangements, must expire by 23 February 2029.
Sources: GOV.UK — Guidance: Dynamic Markets · GOV.UK — Guidance: transitional and saving arrangements · Procurement Act 2023 (legislation.gov.uk)
Why it matters for bidders
Dynamic purchasing systems are easy to miss because they do not behave like standard tenders. New suppliers can join at any time, so there is no single high-profile notice to chase — the system may have been set up months or years ago, and individual call-offs move quickly through mini-competitions. The mistake most SMEs make is treating admission as the win. It is not: the pool keeps growing, and the real question is who is actually winning the call-offs. From published award notices you can model how many call-offs a given DPS or dynamic market has generated, their average value, and which incumbents are taking them — so you decide whether to qualify on the commercial reality, not the headline. That award-data discipline, drawn from teams who have won £3bn+ in UK and EU public contracts, is what turns DPS membership into revenue rather than a dormant listing.
How Skim helps
Skim's Opportunity Discovery agent tracks active dynamic purchasing systems and dynamic markets across every UK and EU portal, flagging new call-offs on systems you are already qualified for and surfacing systems you should be applying to join. Its Competitor Analysis agent models call-off patterns from published award data, so you can judge whether a given DPS or dynamic market is worth qualifying for before you commit the effort.
Frequently asked questions
- What is a dynamic purchasing system (DPS)?
- A dynamic purchasing system is an electronic procurement tool that stays open to new suppliers throughout its life. Any supplier meeting the published criteria can join at any time and then bid for individual requirements through mini-competitions among qualifying members. It is used for commonly purchased goods and services under the Public Contracts Regulations 2015.
- What is the difference between a DPS and a framework agreement?
- A framework agreement appoints a fixed pool of suppliers, closed after the initial round, or under the Procurement Act 2023 reopens only at set intervals. A dynamic purchasing system stays open continuously, letting any qualifying supplier join at any time. Frameworks also allow direct award, whereas a DPS awards work through competition among members.
- Has the dynamic purchasing system been replaced under the Procurement Act 2023?
- Yes. For procurements started on or after 24 February 2025, the Procurement Act 2023 replaces dynamic purchasing systems and qualification systems with a single tool called a dynamic market. A dynamic market works similarly but can be used for a wider range of goods, services, and works, not just commonly used purchases.
- Can suppliers join a dynamic market at any time?
- Yes. A dynamic market under the Procurement Act 2023 must remain open for suppliers to join throughout its life, and the contracting authority must consider applications within a reasonable period and admit any supplier that meets the conditions for membership. This mirrors the always-open nature of the dynamic purchasing system it replaces.
- What happens to existing dynamic purchasing systems after February 2025?
- Existing dynamic purchasing systems set up before 24 February 2025 continue to be governed by the Public Contracts Regulations 2015 and can keep running. Under the transitional and saving arrangements, however, all PCR 2015 dynamic purchasing systems must close by 23 February 2029 regardless of their original term.
- What can a dynamic purchasing system be used to buy?
- Under the Public Contracts Regulations 2015, a dynamic purchasing system is restricted to commonly used purchases generally available on the market — typically IT hardware, temporary staff, and training services. The dynamic market that replaces it under the Procurement Act 2023 removes this restriction and can cover any goods, services, or works.
Sources
Related terms
Framework agreement
A framework agreement is a multi-year arrangement between one or more public sector buyers and one or more suppliers that sets the terms — pricing, quality, delivery — for contracts awarded during its life. A framework is not itself a contract for work; the individual call-off contracts placed under it are.
Mini-competition
A mini-competition is a focused tender run among the suppliers already appointed to a multi-supplier framework agreement or dynamic market, inviting all eligible members of the relevant lot to bid for a specific call-off contract using the evaluation criteria and rules pre-set by the framework.
Call-off contract
A call-off contract is the individual, legally binding contract a public sector buyer places with a supplier under a framework agreement or dynamic market. The framework sets the rules; the call-off is the actual order, with its own scope, value, duration, and deliverables.