Procurement Act 2023 explained
What is a Dynamic Market? A plain-English guide for SMEs
Dynamic Markets replace the DPS under the Procurement Act 2023 with an open supplier list any SME can join at any time. How they work, and how to get on one.
Skim · Built on Skim's live UK procurement database24 June 202611 min read
Contract examples drawn from UK public award notices on Contracts Finder and the Find a Tender Service. SME spend figures from the British Chambers of Commerce SME Procurement Tracker, 2025.
What is a Dynamic Market?
A Dynamic Market is a government-maintained list of pre-approved suppliers that any qualifying SME can join at any time: no missed windows, no closed doors. Under the Procurement Act 2023, which came into force on 24 February 2025, Dynamic Markets replace the old Dynamic Purchasing System (DPS) and are now the default open-access route into UK public sector contracts for businesses of all sizes. GOV.UK, Procurement Act 2023 e-learning, Module 5
If you are an SME trying to win government work, this matters more than almost anything else in the new Act.
24 Feb 2025
GOV.UK
The 30-second definition
A Dynamic Market is an online register of suppliers who have passed a one-time qualification check. Once you are on it, buyers can run mini-competitions exclusively among members and award you contracts, without re-running a full procurement from scratch each time.
Key rules under the Procurement Act 2023:
- Open to new suppliers joining at any time during its lifetime
- No cap on the number of members
- Can cover any goods, services or works, not just the routine items the old DPS was limited to
- Contracts are awarded through the Competitive Flexible Procedure
- Buyers must publish a Dynamic Market intention notice before establishing one, and an establishment notice once it is live
Dynamic Market vs DPS vs framework: what is the difference?
This is the most common source of confusion. Here is the definitive comparison.
| Feature | Dynamic Market (PA 2023) | Dynamic Purchasing System (PCR 2015) | Framework agreement |
|---|---|---|---|
| Legal basis | Procurement Act 2023 | Public Contracts Regulations 2015 | Both regimes |
| Procurement scope | All goods, services and works | Commonly purchased goods and services only | All types |
| Open to new suppliers? | Yes, always | Yes, always | No, closed after award |
| Supplier cap | None | None | Fixed at establishment |
| Award method | Competitive Flexible Procedure | Mini-competition | Mini-competition or direct |
| SME-friendly? | Yes, by design | Yes | Varies, often excludes late entrants |
| Duration limit | Must be specified, no statutory maximum | 4-year maximum | 4 years standard, 8 years for an open framework |
| Notice types on Find a Tender | UK13 to UK16 | Legacy system | UK4 and UK6 |
Why were Dynamic Markets introduced?
The old DPS was popular, but it was restricted to routine, commonly purchased goods and services. Dynamic Markets remove that ceiling: they can cover any goods, services or works.
Three forces drove the change:
- Market pace. Technology and service markets change faster than traditional frameworks can refresh.
- SME exclusion. Frameworks with fixed supplier lists locked out businesses that did not exist, or were not ready, when the framework was first established.
- Value. Wider competition means better prices and more innovation for buyers.
The Procurement Act explicitly requires contracting authorities to "have regard to" SME participation. Procurement Act 2023 e-learning, Module 1, GOV.UK
How a Dynamic Market actually works, step by step
There is no flowchart you need to memorise. The sequence is always the same:
- UK13, Dynamic Market intention notice. The buyer signals a market is being planned and sets out proportionate qualifying criteria.
- Membership applications. Suppliers apply against those criteria, at any time.
- Assessment. The buyer assesses applications within a reasonable timeframe.
- UK14, Dynamic Market establishment notice. The market goes live and lists all current members.
- Competition. The buyer issues a tender to members, with a minimum 10-day tender period where timescales are not pre-agreed.
- Award. The buyer assesses bids, issues assessment summaries, and publishes a UK6 contract award notice.
- Standstill and signature. An optional 8 working-day standstill can apply before the contract is signed and published.
- UK15, modification notice. New suppliers keep joining throughout the market's life, and each addition is recorded.
Real contracts won through these routes
Membership is not theoretical. Here is a sample of recent DPS call-offs from public award data, every one marked SME-suitable by the buyer.
| Buyer | Contract | Value | Winner | Notice |
|---|---|---|---|---|
| Ministry of Justice | Prison education DPS, reading specialist support, HMP The Mount | £38,773 | Shannon Trust | View |
| Ministry of Justice | Prison education DPS, CSCS and CITB courses, HMP The Mount | £28,800 | GreenSkills Partnership CIC | View |
| Ministry of Justice | Prison education DPS, labouring courses, HMP The Mount | £42,000 | GLA Group | View |
| Ministry of Justice | Prison education DPS, literacy and numeracy, HMP Featherstone | £33,025 | Shannon Trust | View |
| West Suffolk Council | Zero-carbon DPS, consult, design and install | £231,766 | Roofsoleil, Green Way Solar, U Energy | View |
| Warwickshire County Council | DPS for employability and skills | £684,530 | Various | View |
Award data sourced from UK Contracts Finder and the Find a Tender Service. Every contract above was marked SME-suitable by the publishing authority.
A live Dynamic Market in the wild
Centre for Digital Public Services, Dynamic Market for digital training providers. Published June 2025, running five years to July 2030, worth up to £4m. See FTS notice 028966-2025. It explicitly prioritises micro, small and medium-sized enterprises, committing to "identify barriers to participation, particularly for Micro and SMEs and new entrants".
National Grid, Dynamic Market for outsourced functional services. Established October 2025. See FTS notice 067449-2025. It is a Qualifying Utilities Dynamic Market under sections 34 to 40 of the Act, letting all National Grid group entities select suppliers across functional services.
£4m
Find a Tender, notice 028966-2025
What are the conditions for membership?
Buyers set the membership conditions, but the Procurement Act constrains them deliberately to protect SMEs.
Permitted checks:
- Legal and financial standing
- Technical ability to perform contracts under the market
Prohibited requirements:
- Audited annual accounts from companies that are not legally required to have them, which covers most small companies under the Companies Act 2006
- Insurance in place before joining; you only need to commit to having it by the time a contract is awarded
This is a significant win for SMEs. Under the old PCR 2015 DPS rules, overzealous buyers often demanded three years of audited accounts, automatically excluding start-ups and growing businesses. Section 36, Procurement Act 2023
“Membership is access, not a contract. Getting on the list is step one; winning the call-off is the job.”
How Dynamic Markets can be structured
Buyers can divide a Dynamic Market into parts, so suppliers compete only where they fit.
| Structure | Example |
|---|---|
| By contract value | Low (up to £500k), medium (£500k to £1m), high (£1m and above) |
| By geography | London, Midlands, North, Scotland |
| By service type | Maintenance, installation, inspection |
| By supplier size | A micro and SME stream, separate from a large-supplier stream |
This means an SME can enter the part most relevant to them, without competing head-to-head with a FTSE 250 on every call-off. GOV.UK Module 5
Dynamic Market notice types on Find a Tender
Under the Act, every Dynamic Market leaves a trail of standard notices on Find a Tender.
| Notice | Code | What it means for you |
|---|---|---|
| Dynamic Market intention notice | UK13 | A market is being planned. Engage now, before the criteria are locked. |
| Dynamic Market establishment notice | UK14 | The market is live and lists all current members. |
| Dynamic Market modification notice | UK15 | A new supplier has joined. Watch for your own confirmation. |
| Dynamic Market cessation notice | UK16 | The market has ended. |
Tip for SMEs. Set up a saved search for UK13 notices in your category on Find a Tender. That is your earliest warning that a new Dynamic Market is coming, before the membership criteria are fixed.
The SME opportunity, in numbers
Direct public sector spend with UK SMEs reached £45.4 billion in 2024, around a fifth of all public procurement spend. Dynamic Markets are one of the mechanisms in the Act designed to push that figure higher, by removing the timing barriers that shut SMEs out of traditional frameworks.
£45.4bn
British Chambers of Commerce SME Procurement Tracker, 2025
~20%
British Chambers of Commerce SME Procurement Tracker, 2025
Dynamic Market or open framework: which fits an SME?
Both are new under the Act. Each suits a different situation.
| Your situation | Better route |
|---|---|
| A fast-moving market such as tech, training or sustainability | Dynamic Market |
| You missed the framework application window | Dynamic Market, because you can join at any time |
| A stable market with a fixed supplier pool | Framework |
| You want an award without further competition | Framework, which Dynamic Markets do not offer |
| The buyer wants maximum innovation and price competition | Dynamic Market |
| A long-term, stable contract with complex terms | Framework |
Can buyers charge a fee to join?
For a standard Dynamic Market, a buyer can charge a fee, but only as a fixed percentage of the value of a contract awarded, never as a flat membership or access fee. For a Utilities Dynamic Market, a fee can be charged to obtain and maintain membership, but not on the value of contracts awarded. In practice, most public sector Dynamic Markets so far have charged nothing to join. Section 38, Procurement Act 2023
What SMEs should do right now
- Register on Find a Tender and set keyword and CPV alerts for UK13 intention notices in your sector.
- Check existing DPS lists. Many buyers run a PCR 2015 DPS in parallel with new Dynamic Markets until legacy contracts expire, so you may already be eligible to join both.
- Prepare your qualification pack once. Membership conditions are proportionate and fixed at publication, so you can often reuse the same evidence across markets.
- Engage at the UK13 stage. The intention notice is your window to shape the criteria before they are locked. Respond to any preliminary market engagement.
- Apply as soon as a UK14 notice lands. Once a market is live, there is no advantage to waiting.
- Win the call-off, not just the membership. Getting on the list is step one. You still compete on each contract, on price, social value and methodology.
FAQ
Can I join a Dynamic Market after it has launched?
Yes, and that is the whole point. Unlike a framework, a Dynamic Market must stay open to new applicants throughout its lifetime. Procurement Act 2023, Section 36
Do Dynamic Markets replace all DPS arrangements?
Not immediately. Existing DPS arrangements set up under PCR 2015 continue under their original rules until the last call-off under them expires. New open-access lists established after 24 February 2025 must follow the Dynamic Market rules. GOV.UK Module 1
Is there a minimum tender period for call-offs?
The minimum is 10 working days where there is no prior agreement on timescales. If all members agree, there is no minimum. GOV.UK Module 5
Can a buyer limit how many suppliers join?
No. The Act explicitly prohibits buyers from capping membership numbers. Procurement Act 2023, Section 36
Can Dynamic Markets be used for below-threshold contracts?
Generally no. They cannot be used for goods and services below the financial thresholds, currently £139,688 for most central government, because suppliers have already been assessed on suitability, and below-threshold contracts cannot be restricted by suitability criteria. GOV.UK Module 1
What is a Qualifying Utilities Dynamic Market?
It is a variant only utilities organisations can establish. The main difference is that tender notices for call-offs can be sent privately to members rather than published openly, as in the National Grid example above. Procurement Act 2023, Sections 34 to 40
Where do I find live Dynamic Markets to join?
Search Find a Tender and filter by "Dynamic market" under the commercial tool filter. Look for UK14 establishment notices, which are live markets you can apply to join today.
Will being on a Dynamic Market guarantee me contracts?
No. Membership is access, not a contract. Every call-off involves a mini-competition among members, so you still need to write a winning bid.
Sources
- Procurement Act 2023, legislation.gov.uk
- Procurement Act 2023 e-learning, Module 5: frameworks and Dynamic Markets, GOV.UK
- Procurement Act 2023 e-learning, Module 1: scope, definitions and general principles, GOV.UK
- Government Commercial Agency: what is a Dynamic Market
- Contract award data from UK Contracts Finder and the Find a Tender Service
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