A Dynamic Purchasing System (DPS) is an electronic procurement mechanism for commonly used purchases. Its defining feature: unlike a framework agreement, the DPS remains open to new participants throughout its entire duration. Any supplier meeting the selection criteria can apply to join at any point.
How it works
-
Setup phase: The authority publishes a Contract Notice establishing the DPS, defining the categories of goods/services, selection criteria, and duration. This uses the open procedure rules.
-
Admission: Any economic operator can request to join by submitting a Request to Participate. The authority must assess and admit (or reject) within 10 working days. Admission lasts for the full DPS duration.
-
Procurement phase: When the authority needs to buy something, it runs a mini-competition among all admitted participants in the relevant category. Standard Contract Notice rules apply for each call-off, but timelines are shorter (minimum 10 days for tenders).
-
Ongoing admission: New suppliers can join at any time, ensuring the DPS reflects market evolution.
DPS vs. Framework Agreement
| Feature | DPS | Framework Agreement |
|---|---|---|
| Open to new suppliers | Yes, throughout | No, closed after award |
| Duration limit | No fixed maximum | 4 years (general rule) |
| Maximum value cap | No (post-Simonsen & Weel applies to FA only) | Yes, must state max value |
| Fully electronic | Required | Not required |
| Procedure for call-offs | Mini-competition (mandatory) | Direct award or mini-competition |
When to use DPS over framework
A DPS is more appropriate when:
- The market is evolving and new entrants should be able to compete
- You want to maintain maximum competition over time
- The procurement is for standardised, commonly available goods or services
- You expect the supply base to change during the contract period
Categories
A DPS can be divided into categories of products, services, or works. Each category can have its own selection criteria and participant pool. This allows a single DPS to cover related but distinct procurement needs — for example, "IT hardware" and "IT consulting" as separate categories within one DPS.