Dynamic Market

A flexible procurement procedure where suppliers can join throughout the contract period, allowing buyers to access new providers and innovations without running fresh competitions.

How it works

A Dynamic Market operates as an electronic procurement system where suppliers can apply to join at any point during its validity period, rather than only during an initial application window. Unlike traditional frameworks, the supplier base remains open and flexible throughout the arrangement's lifecycle.

The process begins with buyers establishing qualification criteria and publishing a Prior Information Notice. Suppliers meeting the requirements can submit applications continuously. Once accepted, they gain access to compete for call-off contracts alongside existing suppliers. This creates an evolving marketplace that adapts to changing market conditions.

Dynamic Markets typically run for four years maximum under the Public Contracts Regulations 2015, with possible extensions. They're particularly suited to rapidly evolving sectors like technology, where new suppliers frequently enter the market with innovative solutions.

Why it matters

This procedure addresses the limitations of static procurement arrangements that can become outdated quickly. By maintaining an open door policy for qualified suppliers, Dynamic Markets encourage innovation and competition whilst reducing barriers for new entrants, including SMEs and start-ups.

For public bodies, Dynamic Markets provide access to the latest market developments without needing to run costly new procurement exercises. They also support government policy objectives around promoting competition and supporting smaller businesses in public procurement.

The flexibility benefits both buyers and suppliers: buyers can access emerging technologies and services, whilst suppliers avoid missing opportunities due to rigid application deadlines in traditional frameworks.