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Dynamic Purchasing System (DPS)

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.

Dynamic Purchasing Systems are used exclusively by public sector organisations.

The rules relating to the usage and creation of a DPS come from PCR 2015. However, in brief:

  • 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.

There are 2 stages to a DPS process:

  1. The initial setup stage

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.

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 30,000 PAS 91:2013 aligned registered members or our one off assessment service.

  1. The second stage

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.

Contact your local account manager for more information

Case Study: The NHS London Procurement Partnership

In January 2016, NHS London Procurement Partnership (LPP) partnered with Constructionline to launch the first Dynamic Purchasing System (DPS) for the construction industry.

To simplify the process for suppliers, LPP accepts Constructionline membership in lieu of its full pre-qualification questionnaire and, for all suppliers joining a DPS who aren’t Constructionline registered, Constructionline assess them on behalf of LPP as a part of our One-Off Assessment Service.

Edward James, Workstream Lead at LPP explains, "Our Partnership exists to support the needs of our members and other public sector bodies on the procurement of any goods or services and enable an NHS trust or other public sector organisation to purchase goods, works or services through an ‘open market’ of potential suppliers."

To join NHS London Procurement Partnership’s Minor Building Works Dynamic Purchasing System please click here