Dynamic Purchasing Systems - What are they?

We are grateful to Rhianna Best Procurement Advisor, and Claire Nurton Procurement Coordinator, at Jisc for providing us with this excellent introductory article on Dynamic Purchasing Systems.    

What is a DPS?

Similar to a Framework Agreement, a Dynamic Purchasing System (DPS) provides a shortlist of suppliers from which buyers can conduct a mini-competition for commonly purchased goods and services.  Unlike a framework agreement, suppliers can apply to join a DPS at any point during its lifetime.  There is no legal limit on the number of suppliers in a Dynamic Purchasing System and no restrictions on the length of term of the DPS.

Establishing the DPS

Dynamic Purchasing Systems work in two stages; during the first stage a contracting authority issues a call for competition in OJEU, expressing its intention to establish a DPS.

The notice should specify the quantities or values of the goods or services the authority anticipates being purchased through the DPS. If the scope is large authorities should consider breaking down its requirement into smaller lots, making it more accessible to SMEs.

The restricted procedure must be used when establishing a DPS. After the authority has submitted its notice, applicants have 30 days minimum to respond. Once applications are received the authority has another 10 days (or 15 in exceptional circumstances) to accept or decline them. An authority can allow for a longer evaluation period at the initial set up stage of a DPS providing this is made clear to suppliers within the Request to Participate document. This longer evaluation period can only apply to the initial application round. After this initial round, suppliers can apply to join the DPS at any point throughout its lifetime.

All suitable applicants, who meet the selection criteria and avoid exclusion, are mandatorily admitted onto the DPS.

Selection criteria may include adherence to certain terms that would apply to each call off under the DPS. Alternatively, authorities may choose to place orders based on the terms of the suppliers.

The formal government guidance referring to the Public Contracts Regulations can be found here

Purchasing via a DPS

Once the DPS has been established, the authority can use it to award specific contracts. This is done by inviting all suppliers in the relevant Lot to respond to a mini-competition. The usual timescale for return of tenders is a minimum of 10 days and the authority will select the winning bid or bids.

Electronic documents

All tender documents on a DPS must be made freely available electronically from the date of the advert. The procurement documents remain available electronically throughout the lifetime of the DPS. This means that all suppliers are on an even footing, no matter when they join the DPS.

Why a DPS is good for buyers

Under a Dynamic Purchasing System the minimum timescale for return of tenders is 10 days. This time limit can be reduced by mutual agreement between the contracting authority and all suppliers in the relevant DPS. There is no obligation to undertake a standstill period following the award of mini-competitions under the DPS.

Why a Dynamic Purchasing System is good for suppliers

Suppliers can both join and leave the DPS whenever they choose and revise its initial application at any time.

Jisc Dynamic Purchasing Systems

Jisc has established a number of dynamic purchasing systems, including Telephony Services, Learning Analytics Services and is currently on the process of establishing a DPS for Training Services and Dark Fibre.    For further information on these please contact Rhianna Best on 01235 822140