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A fully electronic procurement procedure that allows contracting authorities to purchase commonly used goods, works or services through pre-qualified suppliers over an extended period.
A Dynamic Purchasing System (DPS) operates as an entirely electronic procurement tool that remains open throughout its duration for new suppliers to join. Contracting authorities establish the system by publishing a contract notice and procurement documents that set out the categories of purchases and qualification criteria.
Suppliers can submit applications at any time during the system's lifetime. The contracting authority must evaluate applications within four months and admit all suppliers meeting the qualification criteria. When a specific requirement arises, the authority runs a mini-competition among relevant qualified suppliers.
DPS procedures are governed by the Public Contracts Regulations 2015 (regulations 34 and 82-85) and retained EU procurement law. The system can operate for up to four years, though authorities may extend this period in exceptional circumstances.
Unlike framework agreements, there are no limits on the number of suppliers that can join a DPS, promoting genuine competition and SME participation. The system suits repetitive purchases of similar goods or services where requirements vary in specification, quantity, or timing.
DPS offers administrative efficiency for both buyers and suppliers. Contracting authorities benefit from reduced procurement timescales for individual purchases while maintaining competitive pricing. Suppliers gain ongoing market access without repeated pre-qualification processes.
The system particularly benefits smaller suppliers who can join established systems without competing against larger organisations in framework tender processes. This promotes market diversity and innovation while ensuring compliance with procurement regulations.
DPS works well for office supplies, ICT equipment, maintenance services, and consultancy where authorities have regular but unpredictable requirements across multiple categories or specifications.