What is a dynamic purchasing system?

The UK public sector spends over £434 billion annually on procurement, that's roughly one pound in every three of government spending. Yet for years, rigid framework agreements and closed supplier lists have locked out innovative businesses while slowing down the buying process. That's changing with Dynamic Purchasing Systems.

Dynamic Purchasing systems have become increasingly used by central government, the NHS, and local authorities after the introduction of the Public Contracts Regulations 2015.

With the Procurement Act 2023 transforming DPSs into "dynamic markets," understanding these systems is critical for suppliers targeting public sector contracts.

What Is a Dynamic Purchasing System (DPS)?

A Dynamic Purchasing System (DPS) is an electronic, always-open marketplace where public sector organisations buy commonly needed goods and services. Unlike traditional frameworks that close after supplier selection, DPSs remain open indefinitely, allowing new suppliers to join at any time throughout the system's lifetime. 

It's like a living framework that breathes fresh competition into public procurement, giving both buyers and sellers the flexibility traditional frameworks never could.

For public sector buyers, DPS provides continuous access to a refreshed pool of qualified suppliers eager to compete for contracts.

How It Works in Practice

The DPS operates through two stages:

1. Qualification Stage 

Suppliers demonstrate they meet entry criteria: relevant experience, financial stability, insurance, and technical capability. Unlike frameworks, there's no scoring against competitors. Once you meet the threshold, you're in.

2. Call-off Stage  

Approved suppliers compete for specific contracts through mini-competitions. In the public sector bidding process, buyers issue detailed requirements, qualified suppliers submit bids, and contracts are awarded based on the most advantageous tender, typically based on quality and price.

This model applies across all government levels: central departments, NHS trusts, and local authorities.

Benefits of a Dynamic Purchasing System

DPS procurement offers several benefits for both buyers and sellers in the public sector. Let's walk through them.

For Buyers

• Streamlined Procurement & Faster Timelines: Pre-qualified suppliers mean moving straight to competition, cutting weeks or months from timelines. The fully electronic process automates procurement tender documentation, communication, and evaluation.

• Reduced Administrative Burden: Standardised qualification handled upfront eliminates repetitive paperwork—no need to assess basic requirements for every purchase.

• Enhanced Competition & Transparency: Suppliers joining continuously creates an ever-expanding pool, driving innovation and value. The electronic audit trail enhances accountability.

For Suppliers

• Continuous Access & Lower Barriers: 

No more waiting years for framework windows. Apply whenever you're ready; the door stays open. This dramatically helps SMEs who previously couldn't break into locked frameworks.

• Level Playing Field: 

Every contract involves fresh competition. New entrants compete on equal terms with established contractors. Central government data shows higher SME success rates under DPS than under closed frameworks.

Pros and Cons of DPS at a Glance

Pros:

• Open entry throughout the DPS lifetime
• Lower barriers for new suppliers and SMEs
• Faster procurement for buyers
• Continuous market innovation and fresh competition
• Fully electronic and transparent process
• Flexibility to add new categories as needs evolve

Cons:

• Buyers must run mini-competitions rather than direct awards
• Suppliers still need to compete for each contract (no guaranteed work)
• May involve more administrative work than direct awards (though less than a traditional tender process)

DPS vs Framework Agreements

Understanding the difference between a Dynamic Purchasing System and a framework agreement is crucial for both buyers and suppliers. Here's how they stack up:

How to Join a Dynamic Purchasing System

In this section, we'll take you through the process for joining a Dynamic Purchasing System in the UK.

Step-by-Step Application

1. Locate the Relevant DPS

• Find Opportunities: Search public sector portals like the UK government's Find a Tender Service (FTS), Contracts Finder, or the Crown Commercial Service (CCS) DPS Marketplace for DPS agreements that match the goods, works, or services your business provides.
• Identify Categories: Many DPSs are divided into categories (or 'lots'). You must identify and apply for the specific categories that cover your capabilities and location.

2. Register and Access the Procurement Platform

• Register your organisation on the electronic tendering platform being used by the buying authority (e.g., the CCS Supplier Registration Service or a specific local authority's e-tendering portal).

3. Complete the Selection Questionnaire (SQ)

• Submission: You will complete a standard Selection Questionnaire (SQ) (formerly known as a Pre-Qualification Questionnaire or PQQ) electronically.
• Self-Certification: The SQ requires you to self-certify that you meet the exclusion criteria (e.g., no criminal convictions) and the minimum selection criteria (e.g., economic/financial standing and technical/professional ability).
• No Indicative Tender: Unlike old rules or some frameworks, you are generally not required to submit an indicative tender at this stage, only evidence of capability and compliance.

4. Evaluation and Admission

• Assessment: The public body reviews your submission to ensure you meet all the mandatory and minimum selection requirements.
• Timeframe: They are typically required to evaluate your request to participate and inform you of the decision within 10 working days (extendable to 15 days if justified).
• Admission: If you satisfy all the criteria and are not an excluded supplier, you must be admitted to the DPS. There is no limit on the number of admitted suppliers.
• Reapplication: If your application is rejected, you will receive feedback and can reapply later once you address the areas where you fell short.

Stage 2: Bidding for Specific Contracts (Call-Off)

Once you are an admitted supplier on the DPS, you can compete for individual contracts.

5. Receive Mini-Competition Invitations

• Notification: When a public body needs to purchase something under the DPS, they will run a mini-competition (often called a 'Call-Off').
• Invitation: You (and all other admitted suppliers in the relevant category) will be automatically invited to tender for the specific contract opportunity.

6. Submit a Tender

• Review: Carefully review the Invitation to Tender (ITT) documents, which detail the specific requirements, scope of work, and award criteria for the individual contract.
• Submission: You submit your tender documents (which may include pricing, methodology, and any required evidence) by the specified deadline. At this point a supplier is labeled as a tenderer, rather than as a bidder.

7. Contract Award

• The public body evaluates the tenders based on the defined award criteria (e.g., Most Economically Advantageous Tender, usually based on price and quality).
• The successful supplier is awarded the contract for that specific piece of work.

Essential Tips for DPS Success

• Use CPV codes to identify relevant DPS procurement categories. Common Procurement Vocabulary (CPV) codes are the classification system used across public procurement. Understanding which CPV codes match your services helps you find the right DPS opportunities and apply to relevant categories.
• Prepare compliance documentation early. Don't wait until you find the perfect DPS to get your policies, certifications, and case studies in order. These take time to develop, and having them ready means you can move quickly when opportunities arise.
• Consider multiple DPS memberships. Being on several relevant systems increases your exposure to opportunities. Just ensure you perform efficient bid management for each DPS.
• Monitor for call-off competitions regularly. Being approved is just the first step; you need to actively watch for contract opportunities and respond promptly to invitations to tender.

Examples of Dynamic Purchasing Systems in the UK

DPS usage has grown significantly across the UK public sector. Today, DPSs span virtually every category of public sector spending. Here are some examples.

Artificial Intelligence DPS (RM6200) 

Valued at £200 million, this AI DPS provides access to AI discovery services, consultancy, implementation support, licensing, and end-to-end partnerships. It remains open to suppliers, allowing public sector organisations to tap into rapidly evolving AI technologies.

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Research and Insights DPS (RM6126) 

This system provides all public sector organisations with access to social, economic, and market research services for projects of all sizes and values. It includes behavioural insights services, evidence-based public service design, and a full range of research methodologies.

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Open Banking DPS (RM6301) 

Worth £800 million over eight years, this Open Banking DPS launched in 2024 to give public sector organisations access to open banking services, including Payment Initiation Service Providers and Account Information Service Providers. It enables cheaper, faster payment methods compared to traditional card payments.

NHS Shared Business Services and NHS Supply Chain

The NHS has enthusiastically adopted DPSs for both clinical and non-clinical procurement:

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Non-Clinical Systems DPS  

Covering everything from finance and HR systems to project management and CRM platforms, this broad-scope non-clinical DPS provides NHS trusts and other public bodies with a compliant route to market for digital systems.

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Medical Technology Innovation DPS 

Unlike traditional frameworks, this seven-year DPS simplifies the process for small and medium-sized enterprises to bring innovative medical technologies to the NHS. It covers a broad, expanding range of medical technologies, from diagnostic equipment to surgical innovations.

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Food to Go DPS 

Launched in September 2023, this DPS has already delivered extensive savings across over 100 NHS trusts in England. It's expanded the retail food offering in hospitals to include street food, pizza, ice cream, and artisan products from SMEs. In 2023, thirteen contracts were awarded, with five going to new suppliers who wouldn't have been accessible through traditional frameworks.

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Minor Works, Trades and Associated Services DPS 

This system provides NHS trusts and other public sector bodies with a quick, flexible route to market for projects valued at up to £5 million. Its online search functionality allows buyers to filter by works categories, geographical locations, and specific accreditations.

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Local Authority DPS Innovations

Local councils across England have developed their own DPS solutions to address specific regional needs:

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Oxford City Council EV Infrastructure DPS 

Perhaps the most innovative local authority DPS in the UK, Oxford's Electric Vehicle charging infrastructure system is now available to other councils nationwide. It covers nine separate lots, including turnkey services, design and consultancy, charging hardware, installation, operation and maintenance, and more. This modular approach means councils can replace individual services without restarting entire procurements.

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WREN Housing Solutions DPS (Waltham Forest, Redbridge, Enfield, Newham)

This collective of four London boroughs worked with technology providers to establish a DPS for temporary accommodation services. Since 2015, their system has helped place over 6,000 households into safer, more compliant housing. 

The DPS automatically checks safety certificates issued by providers and prevents non-compliant landlords from bidding until their documentation is updated. This has dramatically improved placement confidence while streamlining invoicing and payment processes.

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London Councils EV Infrastructure DPS 

Launched to make it easier for London boroughs to manage their purchasing needs for electric vehicle infrastructure and maintenance, this DPS helps them provide the charge points residents, businesses, and visitors need.

These examples illustrate how DPSs are being used for everything from high-tech artificial intelligence services to essential temporary housing, demonstrating the flexibility and reach of this procurement tool.

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Dynamic Markets and the Procurement Act 2023

Public procurement in the UK is undergoing its most significant transformation in over 30 years. The Procurement Act 2023, which came into force in February 2025, fundamentally reshapes how public sector organisations buy goods, services, and works. At the heart of this reform is the evolution of Dynamic Purchasing Systems into "dynamic markets." For now, DPS contracts can run as usual; however, existing DPS systems must be converted over to dynamic markets by February of 2029.

What Are Dynamic Markets?

Dynamic markets will replace DPSs under the new legislation, building on what made DPSs successful while removing their few remaining limitations.

The core concept stays the same: an electronic, always-open marketplace for commonly purchased items, but with significant enhancements. Key changes under the new system include:

No Time Limits

Unlike DPSs, which technically require periodic renewal even if they could run for extended periods, dynamic markets can operate indefinitely. This removes administrative burdens for both buyers and suppliers, who no longer need to worry about re-establishing systems or reapplying to new iterations.

Centralised Digital Supplier Registration

The Procurement Act 2023 introduces a Central Digital Platform, where suppliers register once and share core information across all their public-sector bids. This dramatically reduces the repetitive form-filling that has plagued procurement for years. Rather than proving the same basic credentials for every opportunity, suppliers maintain a single profile that contracting authorities can access.

Greater Transparency and Open Access

The new system mandates extensive transparency throughout the entire contract lifecycle. Contracting authorities must publish numerous notices, from pipeline notices announcing upcoming procurements to contract performance assessments. This creates unprecedented visibility into public spending, allowing both suppliers and taxpayers to see how contracts are awarded and delivered.

Broader Use Cases

While DPSs were primarily used for "off the shelf" procurement, dynamic markets enable broader, more flexible applications. They can accommodate more complex requirements while maintaining the benefits of continuous supplier entry and regular competition.

What This Means for Suppliers

• Lower barriers through streamlined registration
• Better visibility into what's coming and how competitors perform
• Mandatory 30-day payment terms flowing down supply chains
• Performance-based differentiation with published KPIs for contracts over £5 million

Preparing for the Transition to Dynamic Markets

• Current DPS memberships transition to dynamic markets, but suppliers should:
• Register on the Central Digital Platform with complete, current information
• Review contract management systems; transparency requirements expose both excellence and underperformance
• Understand how the Procurement bill and dynamic markets open opportunities previously locked in closed frameworks

Track the impact on tender volume as the system potentially opens more accessible competitions

How Stotles Helps You Navigate DPS Procurement Opportunities

Finding the right Dynamic Purchasing Systems and winning call-off contracts demands market intelligence, strategic timing, and collaborative capability.

Discover Opportunities & Qualify Strategically

Stotles uses advanced filters and AI-powered matching to surface relevant opportunities from thousands published weekly. Our pipeline view shows planned DPSs before formal advertising, giving you time to prepare documentation, identify capability gaps, and understand the competitive landscape.

We help you evaluate which DPS align with your business strategy by providing:

• Historical data on contract values awarded through each DPS
• Insights into which supplier types win work
• Upcoming call-off competitions and typical values
• Buyer behaviour and preference analysis

Adapt to Procurement Act 2023

As DPSs evolve into dynamic markets under the new legislation, staying ahead of the curve is essential. Stotles has developed specialised resources and tools to help you adapt to the Procurement Act 2023. Our platform incorporates the new terminology, notice types, and procedures introduced by the Act, ensuring you're always working with current information.

We track how contracting authorities are implementing the new system, identify early adopters of dynamic markets, and help you understand how reforms are affecting tender volumes and opportunity types. This positions you to capitalise on the increased accessibility and transparency that the new system promises.

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The Future of Procurement Efficiency

Dynamic Purchasing Systems have transformed UK public procurement, and their evolution into dynamic markets under the Procurement Act 2023 will amplify these benefits. The old world of closed frameworks and limited access is giving way to a more open, competitive, and transparent marketplace.

With increased UK public sector spending and the central government increasingly using DPS and framework arrangements over traditional tenders, this is clearly the market direction. For suppliers, opportunities have never been more accessible. For buyers, DPS and dynamic markets balance efficiency with competition and compliance with innovation. 

Ready to explore the latest Dynamic Purchasing System UK and find your next opportunity? Create your free Stotles account today and get instant access to thousands of Dynamic Purchasing Systems and call-off competitions across the UK public sector.

Frequently Asked Questions

Is a dynamic purchasing system a framework?

A DPS is framework-like in that it's a pre-agreed arrangement that allows for repeat purchasing without running a full tender each time. However, it's fundamentally different from traditional frameworks. The key distinction includes its always-open system and accessibility.

How many suppliers can join a dynamic purchasing system?

There's no official limit on the number of suppliers that can join a DPS. The system is designed to accommodate continuous entry, so an unlimited number of qualified suppliers can be members. The more suppliers join, the stronger the competition and the greater the value for public sector buyers, a key benefit of the DPS model.

What happens if a DPS expires?

When a DPS reaches its end date, no new call-off competitions can be issued, though existing contracts continue to their completion. Buyers typically either establish a new DPS to replace the expired one or transition to a new dynamic market under the Procurement Act 2023 framework. Suppliers aren't automatically transferred to replacement systems; they must reapply if a new DPS is established.

How much does it cost to join a DPS?

There are no direct fees to join a DPS; applying and maintaining membership is free for suppliers. However, you'll need to invest time and resources in preparing compliance documentation (insurance certificates, accreditations, case studies, policies) when applying.

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