Dynamic Purchasing Simplified: A Buyer’s Guide to Delta’s DPS Manager

Public sector procurement is opening up to encourage SMEs to play a more active role in the economy. Processes are being simplified and lower-value contracts are increasingly available. One of the ways the government has made it easier for SMEs to enter the public sector market is by providing easy-to-use frameworks that put suppliers right in front of buyers, garnering attention and showcasing their skills.

Two systems facilitate easy entry into the public procurement market:

1) Dynamic Purchasing System (DPS)

2) Frameworks

Each has its pros and cons, which we will explore below. We’ll pay particular attention to DPS as we lead up to Delta eSourcing’s DPS Manager.

What Is A Dynamic Purchasing System?

In short, dynamic purchasing systems are open electronic systems or procurement platforms that allow suppliers to join the competition at any point during the agreement. The number of suppliers who can join is unlimited, provided they meet the criteria preset by contracting authorities.

The DPS Marketplace in more detail

The unlimited suppliers who can join at any time provide public sector buyers with a diverse supplier pool, giving them more choice and more opportunities to source the supplier that is absolutely perfect for the contract. 

The fact that they are pre-approved suppliers shortens the tendering process, saving time and allowing buyers to forge ahead with their contracts far more quickly than if they used traditional procurement systems.

The shorter procurement cycle is great for new suppliers because it gives them greater exposure to diverse public procurement buyers. This strengthens skills and provides internal motivation to be more innovative, which stimulates further competition in the market.

External motivation to succeed in the DPS market comes from the highly competitive nature of the open DPS marketplace.

One of the best mutual benefits of a dynamic purchasing system is the ability for suppliers to apply for additional lots. This enables suppliers to ‘advertise’ their skills in different categories. Public bodies can then award the contract to the supplier that provides the most comprehensive services.

This shortens the awarding process because they don’t have to create several dynamic purchasing systems to complete one project. 

Dynamic Purchasing Systems vs. Frameworks

Let’s look at how a DPS compares to a framework agreement.

Both systems use pre-approved suppliers so contracting authorities can more easily and quickly award contracts for specific goods, services, and works. 

That’s about where the similarity ends and the comparison begins.

1) Dynamic purchasing systems are open – an unlimited number of suppliers can join the DPS at any stage during the agreement.

Framework agreements are closed – limited qualifying suppliers have a limited window to join the supplier pool.

2) Framework agreements have a four-year limit.

A Dynamic purchasing system doesn’t have set timeframes.

3) Framework agreements allow customers to directly award contracts without further competition or tendering. However, they can use mini-competitions and tendering processes to award more complex contracts.

DPS doesn’t allow direct awards, suppliers must engage in a mini-competition or tendering process to win contracts.

4) Framework agreements tend to use standardised contracts.

DPS gives public sector customers more leeway to set their own terms, conditions, and selection criteria.

Dynamic Purchasing System Pros And Cons 

Now let’s look at the pros and cons of a dynamic purchasing system.

18 Benefits

1. Suppliers only demonstrate their suitability and capability once and not for every procurement contract.
2. Contracting authorities can adapt selection criteria to suit their requirements.
3. Easy for new start-ups and medium-sized enterprises to enter the procurement marketplace.
4. Public bodies can ask incumbent suppliers to apply to the DPS marketplace to make the procurement process fair for new businesses.
5. Guidelines automatically ensure buyers comply with public contract regulations.
6. DPS categories (requirements, size, location) allow SME specialists to compete more easily with other suppliers.
7. Buyers can create mini-competitions to match SMEs’ services.
8. Suppliers can apply to multiple categories, increasing their exposure to contracting authorities.
9. No limit on suppliers on the DPS (provided they meet the selection criteria).
10. Localisation enables local SMEs to compete for public sector contracts or tenders.
11. Dynamic purchasing systems are flexible and can adapt to sudden changes in the marketplace, including changes in the prevailing market conditions.
12. Contracting authorities can award contracts quickly (virtually real-time awards).
13. Suppliers’ response to tender awards is immediate (virtually real-time).
14. High competition drives competitive pricing for buyers in the procurement process.
15. High competition drives innovation so public sector buyers always get the best solutions possible from their suppliers.
16. More procurement opportunities for suppliers drive further competition in the public sector.
17. DPS is a completely electronic process that is both scalable and transparent.
18. The open DPS is best for high-value and other complex contracts and business agreements in the public sector.

5 Challenges

1. Set up and qualification take time due to the thoroughness of the application process, including the evaluation of suppliers’ capabilities and contract administration.
2. DPS requires management, including electronic system monitoring and supplier re-evaluation.
3. Short-term contracts make it difficult to build business relationships and join suitable partnerships.
4. Buyers might have to deal with sudden price adjustments by suppliers during the ongoing procurement process.
5. High competition for suppliers in the application process.

How To Create Dynamic Purchasing Systems

Crown Commercial Service (CCS) provides public sector buyers access to Dynamic Purchasing System agreements on its DPS Marketplace. Contracting authorities must be authorised and registered to use the procurement service to purchase goods, services, or works. All buyers have to do is “Access as a Buyer” and follow the instructions. 

In fact, each DPS has a guidance document that buyers must read and have a complete understanding of before they officially publish their contracts.

Delta eSourcing’s DPS Manager

Delta eSourcing provides a Dynamic Purchasing System for public sector buyers and suppliers.

Delta’s DPS provides a range of services, including opportunity notice creation, Request for Quotes (RFP), mini-competitions, and end-to-end DPS exercises. 

We have an automated evaluation system that significantly speeds up and simplifies set-up and contract publication. Efficient support services ensure each buyer gets the guidance and assistance necessary to successfully navigate DPS contracts and other procedures.

Delta DPS packages are customisable so public bodies can be absolutely specific about their requirements. Each buyer can then access suppliers that are most suitable for their needs.

Furthermore, Delta DPS Manager packages ensure you comply fully with EU regulations.

Enjoy all of the benefits of Dynamic Purchasing Systems and then some, as you can top up your DPS package with other services, including tender management, eProcurement, and supplier management. 

Book a free demo and discover all that Delta eSourcing can do for you.