What is a Dynamic Purchasing System?
A Dynamic Purchasing System (DPS) was an open, fully electronic list of pre-qualified suppliers that a buyer used for repeat or common purchases, and which suppliers could apply to join at any point during its life. The DPS belonged to the procurement rules that applied before the Procurement Act 2023 came into force on 24 February 2025. Under the Act, the DPS has been replaced by the dynamic market, so new arrangements are established as dynamic markets rather than as a DPS.
Dynamic Purchasing System, explained
A Dynamic Purchasing System was a wholly electronic arrangement that maintained a list of suppliers who had met the buyer's selection or qualification requirements for a defined category of goods, services or works. Any supplier meeting those requirements could request admission at any time during the life of the DPS, which was the key difference from a closed framework agreement, where the supplier list is fixed at the point it is awarded. When the buyer had a requirement, it ran a competition among the suppliers admitted to the relevant category.
That mechanism sat in the rules that applied before 24 February 2025, the date the Procurement Act 2023 came into force. The Act replaced the Dynamic Purchasing System with the dynamic market, and replaced utilities qualification systems with utilities dynamic markets. Buyers setting up a new open supplier arrangement today establish a dynamic market. You will still see live DPS arrangements advertised, because arrangements established under the previous rules continue to run under those rules until they expire.
The dynamic market keeps the open, rolling admission idea and puts firmer rules around it. A dynamic market must stay permanently open to new applicants, 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. Fees also differ by type: general contracting authorities cannot charge suppliers for membership, while utilities may charge for membership of a utilities dynamic market and may charge a fee on contracts awarded.
Key things to know
A pre-2025 mechanism
The DPS belonged to the rules that applied before the Procurement Act 2023 came into force on 24 February 2025.
Replaced by the dynamic market
The Act replaced the DPS with the dynamic market, so new open supplier arrangements are set up as dynamic markets.
Existing arrangements continue
A DPS established under the previous rules keeps running under those rules until it expires, so live DPS arrangements still exist.
Was always open to join
Suppliers could apply for admission at any time while the DPS was live, not just at launch, so the pool could grow throughout its life.
Not the same as a framework
A closed framework fixes its supplier list when it is awarded and an open framework re opens only at set points, while a DPS admitted new suppliers on a rolling basis.
Firmer rules now apply
Under a dynamic market, membership cannot be capped, applications must be assessed within a reasonable time, and pending applications count.
Explore: What is a dynamic market?, What is a utilities dynamic market?, What is a framework agreement?, Dynamic Markets service.
How eSourcingData helps
eSourcingData is a UK source-to-contract platform built for the Procurement Act 2023, so buyers can move from a legacy DPS to a compliant dynamic market with confidence.
Move from DPS to dynamic market
Plan the transition from an expiring DPS to a dynamic market without losing your qualified supplier base.
Run compliant competitions
Manage applications and competitions electronically with a clear, auditable record for each stage.
Built for PA23
Structures and templates reflect the dynamic market rules rather than legacy processes.
Keep the market open
Handle rolling supplier applications, including those still pending, without adding manual overhead.
FAQs
What is a Dynamic Purchasing System?
A Dynamic Purchasing System (DPS) was an open, fully electronic list of pre-qualified suppliers used for repeat or common purchases, which suppliers could apply to join at any time during its life. It belonged to the rules that applied before the Procurement Act 2023 came into force on 24 February 2025. The Act replaced the DPS with the dynamic market.
Can you still set up a DPS in the UK?
No. Under the Procurement Act 2023, in force from 24 February 2025, a new open supplier arrangement is established as a dynamic market rather than a Dynamic Purchasing System. Arrangements set up under the previous rules continue to run under those rules until they expire, which is why live DPS arrangements are still advertised.
What replaced the Dynamic Purchasing System?
The dynamic market replaced it. The Procurement Act 2023 also replaced utilities qualification systems with utilities dynamic markets. The dynamic market keeps the open, rolling admission idea and adds firmer rules, including that membership cannot be capped and that applications must be assessed within a reasonable time.
What is the difference between a DPS and a dynamic market?
They share the same open list idea, but the dynamic market is the current legal mechanism and its rules are more explicit. A dynamic market must stay permanently open, membership cannot be capped, applications must be assessed within a reasonable time, and pending applications must be considered before a competition concludes. A DPS operated under the earlier rules.
Can suppliers already on a DPS stay on it?
Yes, for as long as that arrangement runs. A DPS established before 24 February 2025 continues under the previous rules until it expires, so existing members keep their place. When it ends, the buyer will need to establish a dynamic market if it wants an equivalent open supplier arrangement.
Procurement Act 2023 · Dynamic Markets
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