If you've come across the term "DPS" and want to know what it means — and whether it still exists under the new rules — this guide explains it. The short version: the idea lives on, but the name has changed.
At a glance
- A Dynamic Purchasing System (DPS) is a list of pre-qualified suppliers that buyers can call off from, open for new suppliers to join at any time.
- Under the Procurement Act 2023, DPS were replaced by dynamic markets (and "utilities dynamic markets" for utilities).
- The key difference from a framework: a dynamic market stays open for suppliers to join, whereas a closed framework is a fixed list.
- Existing DPS set up under the old rules continue to run during the transition, but can't be extended beyond 23 February 2029.
What a DPS is
A Dynamic Purchasing System is an electronic list of suppliers who have met set qualification criteria for a category of goods, works or services. When a buyer has a specific need, they run a quick competition among the suppliers on the list rather than starting a full procurement from scratch.
The defining feature — the "dynamic" part — is that the list stays open. New suppliers who meet the criteria can apply to join at any point during its life. That makes it friendlier to newcomers than a closed arrangement.
The new name: dynamic markets
The Procurement Act 2023, live from 24 February 2025, renamed and refined this concept. The Act calls them dynamic markets — defined as "a list of qualified suppliers who are eligible to participate in future procurements." There's also a variant, the utilities dynamic market, used specifically for utility contracts.
The Act is explicit that dynamic markets "must remain open to new suppliers to join at any time." So the core advantage of the old DPS — continuous openness — is carried over and reinforced.
Dynamic market vs framework
This is the comparison suppliers most want clarified. Both are ways for buyers to call off work from pre-approved suppliers, but they differ on who can join, and when:
- Dynamic market: open continuously — suppliers can apply to join at any time throughout its life.
- Closed framework: a fixed list. Once it's awarded and live, no new suppliers can join until it's re-procured.
- Open framework (a newer option under the Act): can let suppliers join at set points and must reopen at least once in its first three years — but it isn't continuously open like a dynamic market.
So if you missed the boat on a closed framework, a dynamic market is the route that still lets you in. (For more on frameworks, see what is a framework agreement and Crown Commercial Service and CCS frameworks.)
What happens to existing DPS?
DPS set up under the Public Contracts Regulations 2015 don't vanish overnight. The transitional rules let them continue to run for their period of validity. However, they can only be extended within the first 12 months after the Act came into force, and cannot be extended beyond 23 February 2029. After that, the dynamic-market model takes over fully.
So in practice, for a while you will see both legacy DPS and new dynamic markets running side by side. Both are worth applying to if they match what you offer — and unlike a closed framework, you can join at any point rather than waiting years for a re-procurement.
Frequently asked questions
What is a Dynamic Purchasing System?
An electronic list of pre-qualified suppliers, open for new suppliers to join at any time, that buyers run quick call-off competitions from instead of full procurements.
Are DPS still used under the Procurement Act 2023?
The concept continues but under a new name: dynamic markets. Existing DPS established under the old rules keep running during the transition, but can't be extended beyond 23 February 2029.
What's the difference between a DPS and a framework?
A dynamic market (the new DPS) stays open for suppliers to join at any time. A closed framework is a fixed list that newcomers can't join once it's live.
What is a utilities dynamic market?
A dynamic market established specifically for awarding utility contracts by utilities, with some procedural differences from a standard dynamic market.
Sources
- GOV.UK — Guidance: dynamic markets
- GOV.UK — Guidance: transitional and saving arrangements
- Legislation.gov.uk — Procurement Act 2023, contents (ss.35–40)