Dynamic Purchasing Systems Demystified

Dynamic Purchasing System Now Available in Delta

Continuing in its role as a leader in e-procurement, Delta eSourcing has introduced a Dynamic Purchasing System (DPS) module in Delta. This development makes it easier than ever for buyers to deal in commonly available goods and services, via e-tendering.

What is a DPS?

Similar to an Electronic Framework Agreement, a Dynamic Purchasing System provides a shortlist of suppliers from which buyers can conduct an e-competition for tenders. Unlike a framework agreement, suppliers can apply to join the DPS at any point during its cycle.

The first stage

Dynamic Purchasing Systems work in two stages; the first stage sees a contracting authority issue a call for competition in OJEU, expressing their intention to establish a DPS. Sub-central bodies may use a Prior Information Notice to express this intention.

This initial notice should specify the quantities or values of the goods or services the authority anticipates the Dynamic Purchasing System will cover. When dealing with a large scope of goods or services, authorities are obliged to break them down into smaller lots, making them more accessible to SMEs.

After the authority has submitted its notice/ call for competition, applicants have 30 days minimum to respond. Once applications are received the authority has another 10 days (or 15 in exceptional circumstances) to accept or decline them.

All suitable applicants, who meet the selection criteria and avoid exclusion, are mandatorily admitted onto the Dynamic Purchasing System. Depending on the size and structure of the DPS, it may be divided into categories (eg of different goods to be supplied); in such cases, suppliers are admitted to a relevant category or categories. There is no legal limit on the number of suppliers in a Dynamic Purchasing System.

The second stage

Once the Dynamic Purchasing System has been set up, the authority can use it to award specific contracts. This is done by inviting all suppliers in the relevant category to tender. The usual timescale for return of tenders is 10 days and the authority will select the winning bid or bids.

Electronic documents

All tender documents on a Dynamic Purchasing System must be made freely available electronically from the date of the advert. These procurement documents must remain available electronically throughout the lifecycle of the Dynamic Purchasing System. This means that all suppliers are on an even footing, no matter when they join the DPS.

Why a DPS is good for buyers

Buyers also benefit from the PCR 2015 DPS updates, as they no longer have to publish further simplified advertisements in the OJEU each time they wish to award a contract under a Dynamic Purchasing System. This means they have less admin work, saving time and money in the tender process.

Under a Dynamic Purchasing System the minimum timescale for return of tenders is 10 days. Where the contracting authority is a sub-central body, this time limit can be reduced by mutual agreement between the contracting authority and all suppliers in the relevant Dynamic Purchasing System. There is no obligation to undertake a standstill period.

Why a Dynamic Purchasing System is good for suppliers

Suppliers can both join and leave Dynamic Purchasing System arrangements whenever they choose, meaning they can tailor membership to suit their budget. This opportunity to compete has been further extended by the UK Public Contract Regulations 2015 updates, which withdrew the  four year maximum lifecycle of a Dynamic Purchasing System, leaving the timeframe open to interpretation.

Doors have also been opened to smaller suppliers on DPS, as a PCR 2015 update has ruled applicants no longer need to submit indicative tenders (proposing working terms and pricing) with their request to join. This stops bigger firms undercutting SMEs on Dynamic Purchasing Systems and reduces the red tape that might deter smaller firms’ applications.

If you would like to find out more about Delta’s Dynamic Purchasing System or would like a demo of the Delta service, please click here.