Dynamic Purchasing System (DPS)

Dynamic Purchasing Systems are used exclusively by public sector organisations

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What is a Dynamic Purchasing System?

A Dynamic Purchasing System (DPS) is similar to an electronic framework agreement, with two exceptions, new suppliers can join at any time and it is to be run as a completely electronic process.

The rules relating to the usage and creation of a DPS come from Public Contracts Regulations (PCR) 2015. A summary of the rules set out by the PCR are:

  • A DPS can be set up by contracting authorities, including central purchasing bodies.
  • A DPS should be set up for identified types of requirement, which may be divided into categories of products, works or services. Suppliers must be able to apply to join a DPS for free.

3 stage DPS process

1. Initial setup

All suppliers who meet the selection criteria and are not excluded must be admitted to a DPS. Contracting authorities must not impose any limit on the number of suppliers that may join a DPS.

2. Select a supplier

The supplier must be assessed by the contracting authority within 10 working days of their application. Constructionline can be used to select the suppliers, through our database of over 40,000 PAS 91:2013 aligned registered members or our one off assessment service.

3. Award contract

Individual contracts are awarded during the second stage. In this stage, the authority invites all suppliers on a DPS (or the relevant category within a DPS) to bid for the specific contract.

How does a DPS benefit you?

A DPS streamlines procurement for both suppliers and authorities; suppliers don’t have to demonstrate suitability and capability every time they wish to compete for a public sector contract and the award of individual tenders can be quicker than under some other procedures.

A DPS is more flexible than a framework, particularly as suppliers may join it at any time during its period of validity, meaning that suppliers are not locked out for the duration as they are with traditional frameworks.

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