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Public sector procurement in the UK is changing quickly.
Demand is rising across healthcare, education, defence and emergency services. At the same time, regulation is tighter and scrutiny is stronger. As a result, procurement teams must deliver value while staying transparent and compliant.
However, many organisations are finding that traditional processes no longer offer enough flexibility. Therefore, they are reviewing their commercial strategies and asking an important question: what is a Dynamic Purchasing System (DPS)?
In simple terms, a DPS is a more flexible way to buy goods and services within public sector rules. Unlike some procurement framework agreements, it allows suppliers to join at different points in time.
This guide explains how a DPS works, why it matters now, and how it can help public sector organisations build a more resilient and efficient procurement approach.
Public procurement is not a small or secondary activity. Instead, it sits at the centre of government spending.
According to the UK Government’s Transforming Public Procurement Green Paper, public bodies spend around £300 billion 1 each year on procurement. As a result, even small improvements in efficiency can make a significant difference.
For NHS trusts, local authorities and education institutions, this scale of spending creates both opportunity and responsibility. Therefore, procurement must be managed carefully and strategically.
At the same time, organisations must balance compliance with flexibility. In other words, they need systems that protect governance while still delivering long-term value.
A Dynamic Purchasing System (DPS) is an electronic procurement process used by public sector organisations. It allows them to buy commonly used goods, works or services in a compliant way.
Unlike a traditional procurement framework, a DPS stays open to new suppliers. In other words, suppliers can apply to join at any time, as long as they meet the required criteria.
A DPS:
Under the Public Contracts Regulations 2015, DPS arrangements must follow clear and transparent rules. Therefore, contracting authorities must set clear qualification criteria and defined service categories from the start.
Once suppliers meet the criteria, they are admitted to the system. After that, they compete in mini-competitions when specific contracts are issued.
As a result, a DPS provides a compliant yet flexible route to market for public sector organisations.
Markets do not stand still. Instead, they shift constantly. Construction costs rise and fall. Meanwhile, digital services develop at speed. In healthcare, specialist services also change as patient demand increases.
Traditional procurement framework agreements can provide stability. However, once the supplier list is fixed, no new suppliers can join until the framework ends. As a result, organisations may miss out on new ideas or better pricing.
In fast-moving sectors, this lack of flexibility can limit innovation and reduce competitive pressure. Therefore, procurement teams need options that keep the market open while still maintaining compliance.
The UK Government has placed clear emphasis on widening supplier access and increasing SME participation in public procurement.
Official government data shows that around 26% of central government procurement 2 spend goes directly to SMEs. This demonstrates a continued commitment to broadening market access and supporting smaller businesses within public supply chains.
As a result, procurement approaches that encourage open competition are becoming more important. A Dynamic Purchasing System supports this objective. Because a DPS allows suppliers to join at any time, it reduces barriers for smaller and specialist providers who may have missed the initial window of a traditional framework.
Therefore, a DPS not only strengthens compliance, but also promotes greater supplier diversity and sustained competition.
This supports:
For public sector organisations measured on community impact as well as financial performance, this is increasingly important.
Procurement reform is reshaping the commercial landscape. As a result, public sector organisations must review how they buy goods and services.
The Procurement Act 2023, which came into force in 2025, aims to simplify procurement rules. At the same time, it strengthens transparency and competition across public contracts.
Under this new regime, contracting authorities must clearly demonstrate fairness, openness and value for money. In other words, processes must be easy to justify and easy to audit.
A Dynamic Purchasing System aligns well with these principles. This is because it:
Therefore, a DPS not only supports compliance but also reflects the wider direction of procurement reform.
Although more flexible than a traditional procurement framework, a DPS still operates within a structured process.
First, the contracting authority publishes a notice and clearly defines the service categories. It also sets out the selection criteria that suppliers must meet.
Next, suppliers submit their qualification information electronically. This ensures the process is transparent and consistent from the start.
Suppliers that meet the criteria are admitted to the DPS. Unlike fixed frameworks, this admission process remains open.
When a requirement arises, all relevant suppliers within the category are invited to bid.
Contracts are then awarded using clear, predefined evaluation criteria. As a result, the process remains transparent and compliant with public sector rules.
This structure reduces administrative duplication while maintaining competitive tension.
Public bodies must show that they use taxpayer funds wisely. Therefore, every procurement decision must deliver clear value.
Public procurement accounts for around £300 billion of annual government spending. As a result, even small savings can have a major impact. Strong commercial capability is essential to reduce risk and achieve sustainable outcomes.
A Dynamic Purchasing System can support cost control in several ways. For example, it helps by:
In addition, this flexibility helps organisations adapt to changing needs. For authorities managing procurement across multiple departments or regions, such adaptability can lead to stronger commercial results and better long-term value.
Both a DPS and traditional procurement framework agreements have their place. However, they serve different needs.
A procurement framework may be appropriate where:
In contrast, a DPS may be more suitable where:
Therefore, the most effective procurement strategies do not rely on one model alone. Instead, they combine structured frameworks with dynamic systems, depending on the category of spend and organisational goals.
Public sector procurement is evolving rapidly. As a result, organisations must rethink how they buy goods and services.
Annual procurement spending reaches around £300 billion. At the same time, the Procurement Act 2023 has raised expectations around transparency, competition and value. Therefore, commercial strategy cannot stand still.
Dynamic Purchasing Systems offer a practical and flexible solution. In particular, they help public bodies to:
For NHS organisations, local authorities, education providers and emergency services, procurement structures are critical. However, the real question is whether current systems align with policy changes, market conditions and long-term priorities.
Now is the time to review your procurement framework arrangements and agreements. Are they delivering the agility and transparency your organisation needs?
By taking a strategic approach to DPS implementation, organisations can build stronger supplier relationships and achieve better value for money. In turn, this supports long-term resilience.
Inprova works with public sector organisations to strengthen procurement capability, improve compliance and deliver measurable commercial outcomes.
