What is a dynamic market?
A dynamic market is a list of qualified suppliers, established under the Procurement Act 2023, from which a contracting authority can award contracts, and which stays permanently open to new applicants for as long as it runs. It replaced the Dynamic Purchasing System when the Act came into force on 24 February 2025. Membership cannot be capped, and any supplier that meets the published conditions can apply at any time.
Dynamic market, explained
A dynamic market is a pool of suppliers that have shown they meet the conditions for membership of the market, or of a category within it. When the contracting authority has a requirement, it runs a competition and can limit participation to the members of the relevant part of the market. Because suppliers qualify on entry, each competition can concentrate on the requirement itself rather than repeating basic checks on the organisation.
The defining feature is openness. A dynamic market must remain open to new applicants throughout its life, membership cannot be capped, applications must be assessed within a reasonable time, and an application that is still pending has to be considered before a competition run under the market concludes. In practice that means a supplier which qualifies part way through a live competition should not be shut out of it purely because it applied late.
A dynamic market is not a framework. A framework fixes its contract terms when it is awarded, and buyers place call off contracts under those terms, either through a competitive selection process among the appointed suppliers or, where the framework sets out an objective mechanism for selecting the supplier and the core terms, without further competition. A closed framework fixes its supplier list too, and an open framework re opens only at set points, at least once in the first three years and then at least every five years. A dynamic market works the other way round: it must stay open to new applicants throughout its life, membership cannot be capped, and each contract is competed and awarded on its own terms, using the competitive flexible procedure. It replaced the Dynamic Purchasing System, and utilities qualification systems were replaced by utilities dynamic markets, on 24 February 2025.
Key things to know
Permanently open
A dynamic market must stay open to new applicants for as long as it operates, not just at launch.
Membership cannot be capped
The authority cannot limit the number of members, so a qualifying supplier cannot be turned away for lack of space.
Assessed in reasonable time
Applications to join must be assessed within a reasonable time rather than left open indefinitely.
Pending applications count
An application still being assessed must be considered before a competition run under the market concludes.
Not a framework
A framework fixes its contract terms, and a closed framework its supplier list, while an open framework re opens only at set points. A dynamic market must stay open throughout its life and cannot cap membership.
No membership fee for general authorities
General contracting authorities may not charge suppliers to join. Utilities may charge for a utilities dynamic market.
Explore: What is a utilities dynamic market?, What is a Dynamic Purchasing System?, What is a framework agreement?, Dynamic Markets service.
How eSourcingData helps
eSourcingData designs, launches and operates dynamic markets for UK buyers, so the market stays genuinely open without adding manual work.
Design the market
Set the categories, conditions for membership and competition rules so the market fits your repeat spend.
Handle rolling applications
Assess and admit new applicants continuously, including those pending while a competition is live.
Run member competitions
Invite the relevant members, evaluate against your published criteria and keep a defensible audit trail.
Built for PA23
Notices, conditions and records reflect the Procurement Act 2023 rather than legacy DPS processes.
FAQs
What is a dynamic market?
A dynamic market is a list of qualified suppliers, established under the Procurement Act 2023, from which a contracting authority can award contracts, and which stays permanently open to new applicants for as long as it runs. Membership cannot be capped, and any supplier meeting the published conditions can apply at any time. It replaced the Dynamic Purchasing System on 24 February 2025.
What is the difference between a dynamic market and a framework agreement?
A framework fixes the contract terms when it is awarded, and buyers then place call off contracts under those terms. A closed framework fixes its supplier list for its whole life, and an open framework re opens only at set points, at least once in the first three years and then at least every five years. A dynamic market must stay open to new applicants throughout its life, membership cannot be capped, and each contract is competed and awarded on its own terms.
Can a buyer close a dynamic market to new suppliers?
No. A dynamic market must remain open to new applicants throughout its life and membership cannot be capped. Applications have to be assessed within a reasonable time, and an application that is still pending must be considered before a competition run under the market concludes.
Did the dynamic market replace the DPS?
Yes. The Procurement Act 2023, in force from 24 February 2025, replaced the Dynamic Purchasing System with the dynamic market, and replaced utilities qualification systems with utilities dynamic markets. Arrangements established under the previous rules continue under those rules until they expire.
Can suppliers be charged to join a dynamic market?
It depends on the type. General contracting authorities may not charge suppliers a membership fee. Utilities, such as water, energy and transport bodies, may charge suppliers to join a utilities dynamic market and may also charge a fee in connection with contracts awarded under it.
Procurement Act 2023 · Dynamic Markets
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