Dynamic Purchasing System (DPS)

A Dynamic Purchasing System combines the administrative convenience of a pre-qualified supplier panel with the market openness that a fixed-membership framework cannot provide. Because a DPS remains permanently open to new applicants, it reflects current market conditions throughout its life and avoids locking buyers into a supplier set that may become uncompetitive or incomplete over time.

What is a Dynamic Purchasing System?

Article 34 of Directive 2014/24/EU establishes the DPS as a fully electronic procurement method for purchases of commonly used goods, works, or services available on the market. Unlike a framework agreement, which closes to new suppliers after award, a DPS must remain open to any supplier who meets the qualification criteria at any point during the system's operation.

To establish a DPS, the contracting authority publishes a contract notice and sets the qualification requirements (selection criteria). Suppliers submit selection questionnaire responses electronically and, if they meet the criteria, are admitted to the DPS. There is no limit on the number of suppliers admitted. Once admitted, suppliers are eligible to receive call-off invitations for all relevant requirements.

When a specific need arises, the authority issues an invitation to all admitted suppliers and runs a DPS mini-competition. Before issuing the invitation, the authority must check whether any new applications have been received and admit qualifying new entrants, so they can participate in the mini-competition. This obligation to admit new suppliers before each call-off is what distinguishes a DPS from a framework.

Why it matters for bidders

A DPS offers an important advantage over frameworks: you can join after the initial establishment, including during an active call-off cycle. If a framework was established before you entered the market, or before your company existed, you are excluded until the next framework competition. With a DPS, you can apply at any time and, once admitted, compete for the next call-off.

The trade-off is that DPS mini-competitions are competitive. Every admitted supplier is invited to every call-off, so the pool of competitors can be large. Success depends on calibrating your offers to the specific requirements of each call-off, not just on achieving admission.

Example

A group of municipalities establishes a DPS for catering services. Twenty suppliers are admitted at launch. Over the following eighteen months, a further nine suppliers join as they discover the DPS and submit successful applications. When a school catering contract arises, all twenty-nine admitted suppliers are invited to the mini-competition. A supplier who joined the DPS six months after its launch competes on equal terms with those admitted at the start.

Frequently Asked Questions

How is a DPS different from a framework agreement?

The key differences are openness and competition mechanism. A DPS is always open to new suppliers; a framework is closed after award. A DPS uses mini-competition for every call-off; a framework may use direct award for some or all call-offs. A DPS has no maximum duration under the directives; a framework is generally limited to four years under Directive 2014/24/EU.

Is there a maximum number of suppliers admitted to a DPS?

No. A DPS must admit all suppliers who meet the qualification criteria. The authority cannot cap the number of admitted suppliers. This distinguishes the DPS from a framework, where the buyer may choose to limit the number of admitted operators.

Does the UK have an equivalent to the DPS?

The UK retained the DPS concept after leaving the EU. The Procurement Act 2023 also introduced the Dynamic Market, a broader and more flexible variant of the DPS model. Both instruments are available in UK public procurement.