Procurement term
Dynamic Purchasing System (DPS)
An electronic procurement instrument open throughout its duration to any qualified supplier, used for commonly purchased goods or services.
What is Dynamic Purchasing System?
A Dynamic Purchasing System operates like an open framework agreement: it is established for a category of commonly available goods or services, and any supplier meeting the selection criteria may join at any point during its lifetime — unlike a closed framework agreement. The system must be run entirely electronically, and the joining process (typically an ESPD and selection questionnaire) must be straightforward enough for SMEs to complete without specialist help.
Once admitted to a DPS, suppliers are invited to bid on individual call-off contracts published through the system. Each call-off is a mini-competition, with only DPS members eligible to bid. The contracting authority cannot restrict entries mid-term or impose additional admission criteria beyond those set at the outset.
For vendors, DPS presents a lower barrier to entry than a traditional framework because there is no quota on admitted suppliers and no fixed closing date for applications. This makes it particularly attractive for newer companies or those entering a market mid-cycle. The downside is that DPS call-offs often have tight deadlines, since the pre-qualification step is already done. Vendors must maintain valid admission status — if selection criteria change or the DPS is re-established, previous members may need to reapply.
Example
A new cloud security startup joins a government DPS six months after it opened, qualifying immediately and bidding on three call-offs within the first quarter.
Related terms
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