Dynamic Market (UK)

The dynamic purchasing system (DPS) was one of the most flexible tools available under the EU public procurement directives, allowing buyers to maintain an open pool of pre-qualified suppliers and award contracts through mini-competitions at any point during the system's life. The Procurement Act 2023 replaced the DPS with the dynamic market, a UK-specific mechanism that retains the open-access model while adapting it to the Act's new framework.

What is a dynamic market?

A dynamic market is a continuously open arrangement established by a covered buyer into which any supplier that meets the published selection criteria may apply to join at any time. There is no fixed membership and no closing date for applications. Suppliers who meet the criteria must be admitted promptly, and buyers cannot impose additional barriers to entry beyond the published requirements.

Once a supplier is admitted to the dynamic market, the buyer can use the market to run competitions for specific contracts. These competitions are open only to the admitted suppliers (not the wider market), but because admission is continuously open, the pool remains current and competitive. There is no maximum duration for a dynamic market under the Procurement Act 2023, unlike the closed framework which is capped at four years.

Dynamic markets may be divided into categories or lots, allowing buyers to manage complex procurement programmes where different types of supplier are needed for different sub-categories of requirement. A buyer may establish a dynamic market for construction works with separate categories for groundworks, mechanical and electrical, fit-out, and specialist substructures.

Why it matters for bidders

The dynamic market is one of the most accessible routes into a buyer's supply chain. Because applications are accepted on a rolling basis, there is no "window" to miss. A supplier that develops the required capability in year two of a dynamic market can apply and, if successful, start winning call-off contracts in year three.

For small and medium-sized suppliers in particular, the dynamic market lowers the barrier to entry: there is no complex tender submission required at the outset, only a selection-stage application demonstrating the relevant capability and compliance. Once admitted, you compete for individual call-offs on an equal footing with larger incumbents.

Example

A county council establishes a dynamic market for highways maintenance services, divided into three categories: routine maintenance, emergency response, and capital improvement works. Any contractor meeting the relevant financial standing and technical capacity criteria may apply to join at any time. When the council needs to procure a specific road resurfacing project, it runs a mini-competition among admitted suppliers in the relevant category, issuing specifications and inviting priced bids.

Frequently Asked Questions

How is a dynamic market different from an open framework?

Both allow ongoing access to a pre-qualified supplier pool, but they operate differently. An open framework has a fixed admission schedule (at least every three years) and a defined duration (up to eight years). A dynamic market accepts applications continuously and has no maximum duration. Dynamic markets are generally better suited to high-volume, repeat purchasing in categories where the supplier market changes frequently.

Can a buyer exclude an admitted supplier from a dynamic market?

Yes, but only on defined grounds, such as where the supplier later fails to meet the selection criteria, provides false information, or becomes subject to a mandatory exclusion ground under the Act. The buyer must follow a fair process before removal.

Is a dynamic market suitable for complex, bespoke contracts?

Dynamic markets work best for standardised or recurring purchases where requirements can be clearly specified for each call-off competition. For highly complex, bespoke contracts requiring dialogue with suppliers, the competitive flexible procedure is generally more appropriate.