Dynamic Market (UK Procurement Act)

The Dynamic Market is one of the most significant structural innovations in the Procurement Act 2023. It retains the open-access logic of the EU-derived Dynamic Purchasing System but removes several procedural constraints, giving contracting authorities greater flexibility in how they design and operate supplier panels.

What is a Dynamic Market under the UK Procurement Act?

The Procurement Act 2023 (which came into force in February 2025) replaced EU-derived procurement rules in Great Britain with a domestic framework. Among the new instruments is the Dynamic Market, established under sections 34 to 43 of the Act. A Dynamic Market is a standing arrangement under which any supplier who meets the membership conditions may apply to join at any time. Unlike a fixed framework agreement, membership is not capped and the market does not close.

The contracting authority sets the conditions for admission to the Dynamic Market, which are evaluated on an ongoing basis. Admitted suppliers are then eligible to compete in procurement processes run through the market. The Act gives authorities discretion in how those competitive processes are structured, including the ability to use a range of evaluation approaches and to tailor invitation criteria for specific call-offs.

A Dynamic Market may run for any duration; there is no statutory cap equivalent to the four-year limit on framework agreements. Authorities must publish a notice when they establish a Dynamic Market and must maintain an accessible, electronic system through which suppliers can apply.

Why it matters for bidders

For UK-based suppliers, Dynamic Markets are an important route to market with public sector buyers. The open-access principle means that a supplier who was not in the market when the Dynamic Market was established can still join and compete. This reduces the risk of being locked out of a buyer's spend for extended periods.

The absence of a duration cap means that some Dynamic Markets may run for many years, accumulating a large and diverse panel. Monitoring dynamic market membership conditions and ensuring your company remains eligible and up to date is an ongoing obligation, not a one-time exercise.

Example

A central government department establishes a Dynamic Market for data analytics services under the Procurement Act 2023. At launch, fifteen suppliers are admitted. Over the following three years, a further thirty suppliers join as they become aware of the market and meet the admission criteria. Each specific analytics project is procured by inviting all admitted suppliers to submit offers, with the department evaluating on quality and price. A start-up that was founded two years after the Dynamic Market was established can join and compete immediately upon meeting the admission criteria.

Frequently Asked Questions

How does a Dynamic Market differ from the DPS it replaced?

The Dynamic Market is broader and more flexible than the EU-derived DPS. Key differences include the removal of the restriction to "commonly used" goods, works, and services; greater flexibility in how competitive processes within the market are structured; and a simplified legal framework under domestic UK law rather than implemented EU directives.

Can a Dynamic Market cover all types of procurement?

Yes. Unlike the DPS, which was limited to purchases of commonly used goods, works, and services available on the market, the Dynamic Market under the Procurement Act 2023 is not restricted by category. This makes it usable for a wider range of requirements, including complex or specialist services.

Is the Dynamic Market available in Scotland?

Procurement legislation in Scotland is largely devolved. Scotland retained the EU-derived DPS rules and is developing its own domestic procurement reforms separately from the Procurement Act 2023, which applies to England, Wales, and Northern Ireland.