What is a Dynamic Purchasing System?
A Dynamic Purchasing System (DPS) is an open, fully electronic list of pre-qualified suppliers that a buyer uses to award repeat or common purchases. Unlike a closed framework, suppliers can apply to join a DPS at any point during its life. Under the Procurement Act 2023 the successor concept is called a "dynamic market".
Dynamic Purchasing System, explained
A Dynamic Purchasing System is a wholly electronic arrangement that maintains a list of suppliers who have met the buyer's selection or qualification requirements for a defined category of goods, services or works. Any supplier that meets those requirements can request admission at any time during the life of the DPS, which is a key difference from a traditional framework agreement, where the supplier list is fixed at the point it is set up.
When the buyer has a specific requirement, it runs a competition among the suppliers admitted to the relevant category of the DPS, inviting them to submit offers against the published specification. Because the shortlisting or selection stage has already been passed on entry, these call-off competitions can be quicker to run than a full tender from scratch, while still keeping the market open to new entrants.
A DPS is well suited to categories of repeat or standardised spend, for example agency staff, professional services, or commonly bought goods, where demand recurs and the supply market changes over time. Under the Procurement Act 2023, which came into force on 24 February 2025, the equivalent mechanism is the "dynamic market", which extends similar open, rolling-admission principles across the public procurement regime.
Key things to know
Always open to join
Suppliers can apply for admission at any time while the DPS is live, not just at launch, so the supplier pool can grow throughout its life.
Fully electronic
A DPS must be operated entirely by electronic means, from admission requests to running the call-off competitions.
Selection happens on entry
Suppliers pass the qualification or selection requirements to be admitted, so later call-offs focus on the specific requirement.
Best for repeat spend
It suits recurring or common purchases such as temporary staffing, professional services or standard goods.
Not the same as a framework
A framework has a closed supplier list fixed at set-up, while a DPS admits new suppliers on a rolling basis.
Dynamic markets under PA23
The Procurement Act 2023 replaces the DPS with the broader "dynamic market" concept for procurements under the new regime.
Explore: What is a framework agreement?, What is the competitive flexible procedure?, eSourcing software, For buyers.
How eSourcingData helps
eSourcingData is a UK source-to-contract platform built for the Procurement Act 2023, so buyers can set up and run dynamic markets and call-off competitions with confidence.
Run compliant competitions
Manage admissions and call-off tenders electronically with a clear, auditable record for each stage.
Built for PA23
Structures and templates reflect the new dynamic market rules rather than legacy processes.
Hands-on support
Our procurement team helps you decide whether a dynamic market or framework fits your category best.
Keep the market open
Handle rolling supplier admissions without adding manual overhead to your team.
FAQs
What is a Dynamic Purchasing System?
A Dynamic Purchasing System (DPS) is an open, fully electronic list of pre-qualified suppliers that a buyer uses to award repeat or common purchases, and which suppliers can apply to join at any time during its life. Under the Procurement Act 2023 the equivalent is a "dynamic market".
How is a DPS different from a framework?
A framework has a closed list of suppliers fixed when it is established, whereas a DPS keeps admission open so new suppliers can join throughout its life. Both then support call-off competitions or direct awards, but the DPS stays open to the market.
Can new suppliers join a DPS at any time?
Yes. Any supplier that meets the qualification or selection requirements can request admission at any point while the DPS is live, which is one of its defining features.
What is a DPS used for?
A DPS suits recurring or standardised spend such as temporary staffing, professional services and commonly bought goods, where demand repeats and the supply market changes over time.
What replaces the DPS under the Procurement Act 2023?
The Procurement Act 2023, in force from 24 February 2025, introduces the "dynamic market" as the successor concept, applying similar open, rolling-admission principles across the new regime.
Set up a compliant dynamic market
See how eSourcingData helps UK buyers run dynamic markets and call-off competitions under PA23. Book a demo or request a pilot.