Procurement procedures
Dynamic purchasing system(DPS)
Definition
An electronic procurement system that remains open to new suppliers throughout its lifetime, allowing qualified providers to join at any point rather than only during an initial competition.
A dynamic purchasing system (DPS) works like an always-open framework. Unlike a traditional framework agreement that closes after the initial round, a DPS accepts new applications continuously. Any supplier that meets the qualification criteria can join at any time during the DPS's lifetime.
Once on the DPS, you receive invitations to bid on individual requirements as they arise. The buyer runs mini-competitions among all qualifying DPS members for each specific need. This makes DPS particularly common for categories with fluctuating demand — temporary staff, IT hardware, training services.
From a bidder's perspective, the lower barrier to entry is a double-edged sword. It is easier to get onto a DPS than a framework, but competition for individual call-offs can be fiercer because more suppliers are in the pool.
Why it matters for bidders
DPS opportunities are easy to miss because they operate differently from standard tenders. Since new suppliers can join at any time, there is no single high-profile procurement notice — the initial DPS setup notice may have been published months or years ago, and individual call-offs move quickly.
How Skim helps
Skim monitors active DPS opportunities across portals and alerts you when new call-offs are published on systems you are already qualified for — or flags DPS setups you should be applying to join.
Related terms
Framework agreement
A long-term agreement between one or more buyers and one or more suppliers that establishes the terms for contracts awarded during its lifetime, typically lasting two to four years.
Mini-competition
A competition run among suppliers already appointed to a framework agreement or dynamic purchasing system to award a specific contract or call-off, using the terms established in the overarching agreement.
Contracts Finder
The UK government's free online portal where public sector buyers must advertise contract opportunities and publish award notices for contracts valued above £12,000 (central government) or £30,000 (sub-central authorities).