A Dynamic Purchasing System, more commonly known as a DPS, is a procurement method for works, services and goods. A DPS is similar to an electronic framework agreement, but suppliers can apply to join the DPS at any time. Dynamic Purchasing Systems must be run as an entirely electronic process and using the restricted OJEU procedure when they are initially set up. All contracting authorities, including central government purchasing bodies, can set up a DPS.
A DPS is run using a two-stage process. Firstly, during the initial setup stage all suppliers who meet the set criteria will be admitted to the DPS and there is no limit on how many suppliers may apply to it. The second stage of a DPS is where contracts are awarded. The contracting authority invites all suppliers on the DPS or within the relevant category within the DPS to bid for the contract.
Using a DPS can help speed up and streamline procurement for suppliers and buyers and the award of tenders can be quicker than some other procurement procedures, such as direct tenders, or procuring through a framework agreement.