DPS Duration

The absence of a statutory duration cap is one of the defining advantages of a Dynamic Purchasing System over a framework agreement. Buyers who use a DPS can build and maintain a supplier panel over many years, continuously refreshing it with new entrants, without needing to run a full re-competition to renew the arrangement.

What is DPS Duration?

Article 34 of Directive 2014/24/EU makes no reference to a maximum duration for a Dynamic Purchasing System. This is a deliberate policy choice: because a DPS is permanently open to new applicants and runs every call-off as a mini-competition, the concerns that motivate the four-year cap on framework agreements (market foreclosure, price stagnation, entrenchment of incumbents) do not arise in the same way. New suppliers can enter at any time, and every call-off is subject to genuine competition.

In practice, contracting authorities set a planned duration when they establish the DPS and publish it in the contract notice. Typical durations range from three to ten years, though some have been established with no specified end date. The authority may close the DPS at any time by publishing a notice, at which point no further call-offs may be placed and no new applications are accepted. Pending call-off contracts placed before closure remain valid.

Under the UK Procurement Act 2023, the Dynamic Market similarly has no statutory duration cap, confirming that the UK has retained this flexibility from the EU model.

Why it matters for bidders

A long-running DPS can provide a sustained pipeline of call-off opportunities. For suppliers in categories such as ICT, professional services, and construction, large DPS arrangements operated by central purchasing bodies may run for five or more years and generate significant cumulative call-off volume.

The absence of a duration cap also means that a DPS may outlast several rounds of framework agreements in the same category. Suppliers who invest in admission to a well-run DPS can benefit from a stable pipeline without the cliff-edge risk of a framework that expires and re-competes on a four-year cycle.

Example

A pan-European purchasing consortia establishes a DPS for facilities management services with a planned duration of eight years. During the first three years, forty suppliers are admitted. A specialist cleaning company applies in year four, is admitted within ten working days, and immediately begins receiving DPS mini-competition invitations. The DPS continues to generate call-offs throughout its eight-year life, with the supplier pool expanding to sixty admitted firms by year six.

Frequently Asked Questions

Can the contracting authority extend a DPS beyond its planned duration?

Yes. If the authority published an indicative duration but wishes to extend, it should publish a notice informing suppliers and applicants of the extension. Because the DPS remains open throughout, extending it does not prejudice any suppliers.

Does a DPS running for many years risk becoming stale or anti-competitive?

This is the main theoretical concern with long-running DPS arrangements. However, the open-access principle mitigates this: new suppliers can enter at any point, and every call-off is competed. Where buyers observe that call-off prices are rising or quality is declining, they may use the mini-competition mechanism to sharpen competition.

What happens to existing call-off contracts when a DPS closes?

Existing call-off contracts that were placed before the DPS closed remain valid and should be performed to completion. The closure of the DPS prevents new call-offs from being issued but does not affect contracts already in force.