In this article:
• What a Dynamic Purchasing System (DPS) is and how it differs from a closed framework
• How a DPS works, step by step, from set-up to award
• When a DPS beats a traditional framework — and when it does not
• Real Dynamic Purchasing System examples across the public sector
• What the Procurement Act 2023 changes for a DPS, and how Delta eSourcing helps you run one compliantly
A Dynamic Purchasing System gives public sector buyers a flexible, fully compliant route to market that stays open to new suppliers throughout its life. If you have ever been locked into a closed framework — unable to bring in a better supplier until the whole arrangement is re-let — you already understand the problem a DPS solves. This guide explains what a DPS is, how it works, how it compares to frameworks, and what is changing under the Procurement Act 2023.
See how Delta eSourcing helps buyers set up and run a Dynamic Purchasing System — request a demo.
Why the Dynamic Purchasing System Matters for Buyers
Rigid, closed frameworks create a recurring headache: once the supplier list is fixed, fresh entrants are shut out until the next re-procurement, sometimes years away. That limits competition and leaves buyers with a static market.
A Dynamic Purchasing System removes that constraint. Because it stays open, capable new suppliers can join at any point, which increases competition by keeping your supplier pool current and open to new entrants. According to Delta eSourcing procurement data from Q1 2026 (February–April 2026), the public sector market is becoming more competitive, while the Procurement Act 2023 is driving buyers to publish clearer, more transparent contract information. In public sector procurement, a well-run DPS helps public sector organisations benefit from that shift and supports long term value rather than just short-term market movement.
What is a Dynamic Purchasing System?
A Dynamic Purchasing System (DPS) is an electronic system, using a two-stage procurement process, that public sector buyers use to create an open list of pre-qualified suppliers who then compete for individual contracts through mini-competitions.
Unlike a closed framework, a DPS never shuts its doors: suppliers can apply to join at any time, provided they meet the published selection criteria. First, suppliers pass qualification to enter the system. Then, whenever you have a specific requirement, you run a mini-competition among the qualified suppliers in the relevant category, and DPS arrangements must comply with the Public Contracts Regulations 2015. This combination of an open door and structured competition is what makes the model so useful when buyers need to buy commonly required goods, works, and services.
How a Dynamic Purchasing System Works
A DPS runs as a continuous, electronic process rather than a one-off tender, making it a natural component of broader eProcurement systems for public sector buyers. The four stages below show how buyers manage a dynamic purchasing system framework end to end.
Setting up the DPS and qualifying suppliers
You begin by defining the categories of goods or services the DPS will cover and publishing clear, proportionate selection criteria. Suppliers then submit applications, and any that meet the criteria are admitted to the open list. Qualification is objective: if a supplier qualifies, they are in.
Running mini-competitions
When a specific need arises, you invite all qualified suppliers in the relevant category to bid. Because they are pre-qualified, mini-competitions focus purely on the requirement at hand — price, quality, and delivery — which speeds up procurement without sacrificing compliance.
Adding new suppliers throughout the life of the DPS
New suppliers can apply and be admitted at any time, which also helps new businesses join over time. This keeps the market fresh and lowers barriers for smaller businesses, medium sized enterprises, and specialist providers, and can improve access for local suppliers and local businesses where relevant to the category — a priority for the uk government, given that around a quarter of central government procurement spend goes directly to SMEs.
Award and record-keeping
Each mini-competition ends with a transparent award decision and a full audit trail. Maintaining defensible records at every stage is essential for compliance and for defending a challenge.
Run mini-competitions and manage supplier applications in one compliant workspace with Delta eSourcing — request a demo.
DPS vs Frameworks: Which Should Buyers Use?
Choose a DPS when you need an open, evolving supplier list for repeat or commoditised purchases; choose a framework when you want a fixed set of pre-agreed suppliers and terms for a defined period.
Both are valid routes to market, and the right answer depends on how much market movement you expect.
Where a DPS beats a traditional framework
A DPS wins on openness and agility because dynamic purchasing systems offer a flexible approach with a supplier list that stays open. That gives buyers a broader range of pre approved suppliers over time, so you never miss a strong entrant, and mini-competitions keep pricing keen. For fast-moving or fragmented markets, a dynamic purchasing system framework keeps competition alive in a way a closed list cannot, bringing many benefits for buyers.
When a framework is the better fit
A framework can be simpler when the supplier base is stable, terms are settled, and you value pre-agreed rates over an open door; framework and other agreements can be useful when terms and rates are stable, and this can suit a more settled business need better than an open-ended DPS. If admitting new suppliers mid-term adds little value, a framework may carry less ongoing administration. Delta eSourcing supports buyers running either route.
How to Set Up a Dynamic Purchasing System: Practical Steps
Setting up a Dynamic Purchasing System for the first time is straightforward if you work through it in order:
- Define your categories — scope the goods, works, or services the DPS will cover.
- Publish the notice and selection criteria — set clear, proportionate qualification requirements and, where relevant to the buying authority, publish the contract notice on Public Contract Scotland.
- Evaluate supplier applications — admit every supplier that meets the criteria to the open list, with procurement teams assessing applications against the published criteria.
- Go live and run mini-competitions — invite qualified suppliers to bid as requirements arise.
- Keep the DPS open and documented — admit new applicants throughout, keep records up to date, and maintain a full audit trail.
Getting the categories and criteria right at the outset saves considerable rework.
Dynamic Purchasing System Examples in the Public Sector
Dynamic purchasing system examples are common wherever buyers make repeat purchases from a changing supplier base, and a dedicated dynamic purchasing simplified buyer’s guide can help teams understand where the model fits best.
Common use cases and categories
Typical DPS categories include professional services, temporary and agency staffing, care and support services, and construction and maintenance works. These share a pattern: frequent purchases, many potential suppliers, and a market that changes over time.
Sectors that benefit most
Local authorities, the NHS, education bodies, and central government departments all use a DPS to manage these categories, often through a dedicated Dynamic Purchasing System (DPS) solution. Any organisation buying similar goods or services repeatedly — and wanting to keep welcoming new suppliers — benefits most from the model.
Dynamic Purchasing Systems Under the Procurement Act 2023
Under the Procurement Act 2023, which came into force on 24 February 2025, dynamic purchasing systems are replaced for new arrangements by a broader tool called a “dynamic market.”
The dynamic purchasing system Procurement Act 2023 transition is one of the most important changes for buyers to understand, and many organisations are looking for support to navigate the UK’s procurement overhaul. The pre-Act DPS regime developed after the UK left the EU on 31 December 2020. A dynamic market keeps the core features of a DPS — an open list of qualified suppliers that must remain open to new entrants — but widens the scope: authorities can now run almost any procurement through a dynamic market, not just commonly available purchases, and may charge suppliers a fee on award (GOV.UK guidance).
Crucially, existing arrangements do not vanish overnight. Older dps arrangements set up under the previous rules remain live, but a DPS set up under the previous rules expires automatically on 23 February 2029 unless ended sooner, so buyers have a clear window to plan the move to dynamic markets.
How Delta eSourcing Helps Buyers Run a Dynamic Purchasing System
Running a DPS well is mostly an administration and compliance challenge: managing a stream of supplier applications, running mini-competitions, keeping the list open, and holding a defensible audit trail throughout. Delta eSourcing brings those tasks into a single compliant workspace, supporting buyer access to a dps marketplace through one compliant workspace, backed by an easy-to-use, trusted eTendering platform.
With Delta eSourcing, buyers can publish and manage a Dynamic Purchasing System (or dynamic market), qualify supplier applications against published criteria, run mini-competitions, and maintain a transparent record of every decision in one place. The platform also helps engage suppliers while keeping further information and records together, supported by market analytics for smarter procurement decisions. That directly addresses the transparency expectations Delta eSourcing procurement data from Q1 2026 identifies under the Procurement Act 2023 — helping you stay open, competitive, and audit-ready without the manual overhead.
Dynamic Purchasing System FAQs for Buyers
What is a Dynamic Purchasing System?
It is an electronic, open procurement tool, and the DPS remains open to supplier applications throughout its life. Suppliers who meet the published criteria join a qualified list and then compete for individual contracts through mini-competitions.
How is a DPS different from a framework?
A DPS stays open to new suppliers for its entire life, whereas a framework fixes its supplier list for a set period. That openness is the key practical difference, and it highlights how eSourcing differs from traditional procurement methods more broadly.
Can suppliers join a DPS at any time?
Yes. Any supplier meeting the selection criteria can apply and be admitted at any point during the life of the DPS, as suppliers submit their application electronically and can update it when needed during the life of the DPS, though suppliers should also understand how the Procurement Act and Delta changes affect registration under the new regime.
What are common Dynamic Purchasing System examples?
Professional services, temporary staffing, care services, and maintenance works are common — categories with frequent purchases and a changing supplier base, where following four key steps to enhance the procurement process can make these repeat purchases more efficient.
How does the Procurement Act 2023 affect a DPS?
New arrangements use “dynamic markets” instead of a DPS, with these new DPS-style arrangements now sitting within wider public procurement reforms under the Procurement Act 2023. Existing systems remain valid but expire automatically by 23 February 2029, and many buyers are considering how to integrate eSourcing with wider procurement technologies as part of that transition.
Key Takeaways for Buyers
A Dynamic Purchasing System offers many benefits to public sector buyers through an open supplier list and continued competition: suppliers qualify onto a list, compete through mini-competitions, and new entrants can join at any time. Compared with a closed framework, a DPS keeps competition alive in changing markets, which can have a major impact on value over time, especially for repeat purchasing. Under the Procurement Act 2023, new DPS-style arrangements become dynamic markets, while existing systems run until they expire by February 2029.
Ready to set up a compliant Dynamic Purchasing System? Explore Delta eSourcing today — request a demo.