Framework agreements and Dynamic Purchasing Systems (DPSs) are both simple forms of procurement that speed up the procurement process and facilitate a streamlined procurement process. Both involve adding pre-approved suppliers to a pool, and are best suited for ‘off-the-shelf’ contracts.
However, there are some key differences which guide you when you decide which one is the best solution for your needs. In this post, we’re going to take a closer look at what each type of procurement entails and how you can use the differences to optimise your procurement strategy.
Why Procurement Route Selection Matters
Choosing the right supplier is not a coin toss. You must carefully consider your needs and what you expect to get out of the contract, using clear selection criteria. Base your decision on the following factors:
Supplier access
Do you want the simplicity of a limited pool of suitable suppliers or do you need fresh new suppliers to join the group?
Speed and efficiency
Frameworks can be quicker than DPSs because of the option for direct awards and they only have to go through onboarding once, reducing the administrative burden.
Compliance and auditability
This is something that Delta eSourcing’s platform automatically manages on your behalf.
Long-term cost savings
Both provide long-term cost savings due to their speed and simplicity.
What Is a Framework Agreement?
Frameworks under the Procurement Act 2023 differ from previous versions. The supplier list is still limited to those who gain entry before the close date. However, government buyers can ‘open’ the framework at least twice to admit new suppliers.
They can stay active for up to eight years, instead of the four years before the Procurement Act 2023. This opens frameworks to more suppliers, especially SMEs and businesses new to public sector procurement.
They are commonly used in construction, IT, and consultancy services.
Framework Pros
The (relatively) closed nature of frameworks helps buyers control who gets onto their supplier lists. There’s far less onboarding and onboarding admin than DPSs.
If a direct award isn’t possible, contracting authorities can hold mini-competitions (tenders), which are much faster than typical open contracts.
There’s also the comfort of predictable procurement lines, due to regularly recurring orders/procurements.
Framework Cons
Even though frameworks are more flexible under the new Act, they’re still a lot less flexible than DPSs in terms of achieving the best value.
There is a risk that the market will evolve before the framework expires. The last the government needs here is outdated products or services.
What Is a Dynamic Purchasing System (DPS)?
A DPS is an open digital procurement system that enables suppliers to join at any time, making it appealing to public sector buyers. It’s an option available to all government buyers, from local councils to central government entities. There are two stages, supplier selection followed by mini-competitions where suppliers bid for contracts. They’re typically used on social care, transport, and facilities management.
DPS Pros
Because a DPS remains open to suppliers, there are more opportunities for SMEs to gain entry and bid on achievable contracts.
Its open nature also ensures there’s healthy competition between suppliers to capture their share of the market. This helps to drive innovation, which is one of the government’s procurement priorities.
Being open has another benefit; it enables buyers to adjust contract terms according to evolving needs, which creates conditions for new suppliers to enter the DPS and win tenders, fostering innovative solutions.
DPS Cons
The burden of management is heavy because it’s always open.
Being constantly open to new suppliers has another downside – a significant time investment in thoroughly evaluating and onboarding suppliers as they come.
Side-by-Side Comparison
| Framework Agreement | Dynamic Purchasing System |
| Open for a limited period | Remains open for the duration |
| 4-year duration | 8-year duration |
| Direct contract awards | No direct awards |
| Limited number of suppliers | Potentially unlimited suppliers |
| Can be challenging for SMEs and new suppliers | Easy entry for SMEs |
| Common industries include construction, IT, and consultancy services. | Common industries include social care, transport, and facilities management.
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| Supported by Delta eSourcing | Supported by Delta eSourcing |
When to Use Each Procurement Model
Now you have a better understanding of what DPSs and framework agreements are, we’ll look at when is the best time to use them.
Use a Framework Agreement When
Frameworks are best suited to contracts that are predictable. So, off-the-shelf solutions rather than anything customised or tailored to unique needs. Predictability can also apply to suppliers, where a stable pool of pre-approved suppliers is preferred.
They’re also recommended when you’ve got long-term high-value or strategic contracts.
Use a DPS When
Dynamic Purchasing Systems are best suited to dynamic, evolving markets, as well as markets with a high volume of low-value or fast-moving purchases, especially within the dps marketplace when opportunities arise.
Perhaps most importantly from the government’s perspective is the inclusion of SMEs because it’s on a mission to increase the number of small and medium-sized businesses in public sector procurement.
How Delta eSourcing Supports Both Models
Delta eSourcing is one of the best eTendering platforms in the UK public sector, catering to various categories of procurement. Over the years, our range of tools of services has increased and now, among other things, we provide a single platform that supports framework agreements and DPSs.
This includes supplier onboarding, evaluation, and tools for fair mini-competitions, as well as built-in compliance with the Procurement Act 2023, so you don’t have to worry about those particular Is and Ts.
It’s thanks to our experience and expertise that we are constantly chosen by local authorities, NHS Trusts, education, and the central government.
Book a demo to see how Delta simplifies procurement route management.
FAQs – Common Questions About DPS and Frameworks
Let’s look at some FAQs that come our way.
- Can I run both on the same platform?
Yes. Delta eSourcing enables you to run frameworks and DPSs on the same platform.
- How do suppliers apply to a DPS?
Suppliers respond to ITTs or RFPs.
- Can frameworks include new suppliers during their term?
Yes. Under the Procurement Act 2023, frameworks are opened at least twice, giving new suppliers a chance to join the pool.
- What’s the easiest way to stay compliant?
Delta’s platform has built-in compliance, what could be easier than that?
DPS or Framework Agreement? Delta eSourcing Helps You Decide
Even though they share many similar characteristics, there are significant differences between Dynamic Purchasing Systems and framework agreements. It’s important to fully understand your needs before you choose the model that best suits your needs.
Delta eSourcing supports both models. Book a consultation and one of our specialists will go through your options with you.
