Dynamic Purchasing System (DPS)
A fully electronic procurement open to new suppliers throughout its lifetime; new entrants can join at any time during the term.
Definition
A Dynamic Purchasing System (DPS) is a fully electronic procurement process open throughout its duration to any supplier that meets the selection criteria. Unlike framework agreements, where the supplier panel is fixed at award and locked until the next refresh, new suppliers can apply to join a DPS at any time throughout its lifetime. DPS arrangements are common in temporary staffing, training services, consumables, professional services, and other categories where the buyer expects new supplier capability to emerge during the term.
How it works in practice
A DPS works in two phases. First the buyer runs an open competition and awards DPS status to all suppliers meeting the published selection criteria (financial standing, relevant experience, exclusion grounds). There is no cap on supplier count and no scoring at the award stage. Second, individual contracts are let through Mini-Competition among the suppliers in the relevant category or lot. Suppliers who did not join at the original publication can apply at any time during the DPS lifetime; once admitted they participate in subsequent mini-competitions on equal terms. This makes a DPS particularly attractive in fast-moving markets and for niche specialists who may not have existed when the DPS was first published. The downside for suppliers is that DPS opportunities are often higher-velocity, smaller-value call-offs rather than large strategic contracts. The downside for buyers is the ongoing administrative cost of vetting new entrants and running frequent mini-competitions. DPS arrangements typically run for four years (often extended to seven or longer under the Procurement Act 2023 flexibilities), much longer than the typical framework. Suppliers should treat DPS membership as an ongoing relationship rather than a one-off win.
Common questions
How is a DPS different from a framework agreement?
A framework has a fixed supplier list set at the award stage; new suppliers cannot join until the framework is retendered. A DPS is open: suppliers can apply at any point during its lifetime and join immediately on meeting the selection criteria. DPS arrangements typically run longer than frameworks (often seven years versus four) precisely because they remain open.
Can I join a DPS after the initial publication?
Yes. The whole point of a DPS is that admission is rolling. Submit an application via the DPS portal; the buyer reviews against the published selection criteria and either admits you or explains the failing in writing. Once admitted you receive mini-competition invitations from the next call-off onwards.
How are contracts awarded under a DPS?
Almost always by Mini-Competition. The buyer publishes the specific requirement to all eligible suppliers in the relevant category or lot, suppliers respond with price and method, and the buyer awards based on the published evaluation criteria. Some DPS arrangements allow direct award for very low value or urgent requirements; the DPS rules will state when this is permitted.