If you are relatively new to the UK’s public sector procurement, you may be coming across many new terms and acronyms such as framework agreement, Dynamic Purchasing System, and dynamic market.
They are often discussed together as they are all used to help public sector buyers purchase goods, works, or services from approved or qualified suppliers. Framework agreements and Dynamic Purchasing Systems (often referred to as DPS), have historically fundamental cornerstones of public sector work, helping suppliers access repeat opportunities and become visible to public bodies looking for trusted providers. They are also a key stepping stone used to prove your ability in the public sector which can then be leveraged to gain larger sole supplier contracts.
However, under the new Procurement Act 2023 the terminology we use is changing, with DPS being officially replaced by dynamic markets for new procurements under the newly implemented procurement regime. Official guidance explains that the Act replaces dynamic purchasing systems and qualification systems with a new commercial tool called a dynamic market. Understanding both the old and new terminology matters, especially while existing DPS arrangements may still be visible in the market.
What is DPS?
A Dynamic Purchasing System, or DPS, was an electronic procurement tool used under the older Public Contracts Regulations 2015 widely used by NHS Trusts, local councils and central government alike. Some of the larger DPSs in the UK were responsible for up to a quarter of a billion pounds of UK spend. Unlike a traditional framework, a DPS remained open to new suppliers throughout its lifetime (often opening for as long as 10+ years). Suppliers who met the required criteria could apply to join at any time, rather than waiting for the whole arrangement to be re-procured.
Older official guidance described a DPS as an electronic system for commonly used purchases, with the system open to new suppliers throughout its term. DPS arrangements could also be divided into categories, making it easier for suppliers to apply for the parts most relevant to their services. DPS routes were often used for goods and services that were commonly available in the market. For suppliers, one of the main advantages was flexibility. If you missed the initial opening, you may still have had the chance to apply later.
Some DPS arrangements established before the Procurement Act 2023 regime are still open and may continue to be used under transitional arrangements. The Government Commercial Agency notes that many DPS agreements established before 2025 are still open for buying through and continue to be governed by the Public Contracts Regulations 2015 rather than the new Procurement Act 2023.
What Is a Dynamic Market?
A dynamic market is the new commercial tool introduced under the Procurement Act 2023. Official Procurement Act guidance states that dynamic markets replace dynamic purchasing systems and qualification systems with a single new commercial tool. Dynamic markets share features with older DPS arrangements but have been developed to better meet the needs of contracting authorities and utilities.
A dynamic market is essentially a list of qualified suppliers who are eligible to participate in future procurements. Government e-learning guidance describes dynamic markets as lists of qualified suppliers eligible to participate in future procurements, similar to DPS and qualification systems for utilities (for example).
Dynamic markets can be divided into parts or categories, allowing suppliers to qualify for the areas most relevant to their offer. They must also remain open to new suppliers, which means businesses can apply during the life of the arrangement rather than only at the start.
Compared with the old DPS model, dynamic markets are intended to be broader and more flexible. For suppliers, they are likely to become an important route to monitor as the new procurement regime becomes embedded.
Framework vs DPS vs Dynamic Market: What’s the Difference?
Although frameworks, DPS arrangements, and dynamic markets are all routes into public sector opportunities, they work differently.
The first difference is the entry point. Frameworks usually close once they have been awarded. If your organisation does not secure a place at that stage, you normally need to wait until the next procurement (which could be 4+ years later, for example). DPS arrangements and dynamic markets are different because they stay open to new suppliers during their lifetime.
The second difference is flexibility. DPS and dynamic market routes are generally more flexible for suppliers entering later. This can be useful for growing businesses, new providers, or organisations that become bid ready after the original opportunity was launched.
The third difference is procurement type. The old DPS model was generally used for commonly available goods and services. Dynamic markets have a broader scope under the Procurement Act 2023 and are now the new commercial tool replacing DPS for new procurements under the Act.
The fourth difference is competition. Framework suppliers compete to win a place on the framework and may then compete again through call-off contracts or mini-competitions. Dynamic market suppliers usually qualify first, then compete for specific opportunities within the market.
Finally, there is a supplier strategy difference as frameworks can provide prestige, visibility, and access to a defined commercial vehicle, whereas dynamic markets may provide more ongoing access, especially for suppliers that want to enter a market and gain a foothold over time.
In practice, both routes can be valuable, and the right choice depends on your services, readiness, timing, evidence, and target buyers.
Why These Routes Matter for Suppliers
All of these different procurement routes matter distinctly as they all shape how you can access different public sector work. For suppliers, these routes can provide invaluable access to repeat opportunities and ongoing public sector work often used as the foundation for ongoing organisational development.
The also give suppliers the opportunity to enter specific sectors and buyer groups, for example you may target frameworks used by the NHS, Local Authorities, central government departments, housing providers, or education bodies. Once a company properly understands which routes their target buyers use, they can plan more effectively.
These routes can also form part of a longer-term growth strategy as getting onto the right framework or qualifying for the right dynamic market can help position a business for future opportunities, build public sector credibility, and create a more structured pipeline. IT is important to remember however that acceptance onto these frameworks and markets does not automatically guarantee any level work. Instead, they create access, where approved suppliers still need to compete against each other via call-offs and mini-competitions.
Which Route Is Better for Your Business?
Unfortunately, there is no hard and fast ‘fit all’ answer to this question as it very much depends on the where in your public sector journey your organisation currently sits.
A framework may suit organisations with stronger credentials, documented relevant experience, robust policies, and the resource to compete for a defined place on a commercial vehicle. Frameworks can be particularly attractive where your target buyers regularly purchase through that route and where the framework aligns closely with your services.
DPS or dynamic market-style routes may suit suppliers looking for more flexible access over time who are looking to gain experience in the public sector. Because these routes stay open to new suppliers, they can be useful for businesses that are still building evidence, expanding into new markets, or have too small a revenue to be able to compete for larger packages of work (public sector bodies are risk-averse and wont typically award you a contract worth more than 30% of your turnover).
The right route depends on several factors:
- whether the opportunity matches your core services and/or geography
- whether your target buyers actually use the route, with some DPS previously having been established to many an overflow of demand that never came to fruition.
- whether you have the right evidence and accreditations
- whether you have the resources to properly meet the service demands of the contract
- whether the likely future opportunities justify the effort
A supplier with strong experience, relevant case studies, and a clear target market may prioritise a major framework. A growing supplier that is still building credentials may benefit from monitoring dynamic market-style opportunities that remain open over time.
Common Mistakes Suppliers Make
One of the most common mistakes we see with our clients is that there is an assumption that a DPS or Framework Award will automatically mean that work will be awarded to them and revenue will therefore increase. This is often not the case at all, and being awarded a place onto these frameworks and markets is simply Stage 1, and to generate further work you will then need to be successful in call-offs and further competitions. A top tip is to carefully appraise your tender documentation for guidance on how further work will be awarded, looking out for those that use direct award to top ranking providers.
Another mistake is to take the same approach to these competitions as you have previously in the private sector. We have written an entire article on the differences between proposals and bids. ITTs are legislatively bound procurement activities which require careful consideration with clear answers, evidence, documentation, pricing, and alignment to the evaluation criteria.
Some suppliers miss that DPSs and Dynamic Markets often remain open for many years, meaning that they may rush to submit a substandard submission between the first window closes or they may overlook an opportunity entirely which is actively promoting new entrants.
Another mistake is failing to understand the nature of the call of competition and how important they are to win further work. These are essentially mini-tenders and should be given the same credence and resource needed to produce a high-quality submission to stand a chance of being successfully awarded further work.
Finally, many organisations wait too long to prepare. Policies, accreditations, case studies, financial information, insurance documents, and evidence libraries should be ready before a major opportunity appears. It is also worthwhile pipeline planning so you know which opportunities are on the horizon so you can begin your capture work early and start to curate bespoke evidence packs you can use once the opportunity goes live.
How to Improve Your Chances of Success
To improve your chances, start by tracking relevant commercial vehicles early by identifying which frameworks, DPS arrangements, and dynamic markets are used by your target buyers and when they are likely to open, refresh, or re-procure. You should keep your compliance documentation current, including policies, insurance certificates, accreditations, case studies, quality procedures, environmental policies, social value examples, and data protection information.
Build a reusable library of evidence and differentiators. Strong case studies, contract examples, performance data, mobilisation examples, added-value, innovation and social values examples can make future applications much easier to develop.
Tailor every submission to the specific route, buyer requirements and their detailed specification. A framework application, DPS application, and dynamic market qualification may all require different levels of evidence, structure, and detail and you should take as much time is needed as soon as it is published to ensure you properly understand the requirements and what needs to be collated to facilitate a high-quality evidence-based submission.
You should also plan for what happens after qualification as if you secure a place on a framework or dynamic market, you need a strategy for monitoring call-offs, responding quickly, maintaining buyer visibility, and competing for future work.
How External Bid Support Can Help
External bid support can help suppliers understand which opportunities are worth pursuing and how to approach them effectively.
The Evolve Network Group has significant experience supporting organisations with both DPS and framework agreement opportunities, including routes connected to major public sector buying organisations such as Crown Commercial Service. To date we have successfully secured over £7billion of contract/framework awards across 260 submissions since our formation in 2023. Frameworks and DPS-style routes can be complex, and each one may have different rules, documentation requirements, scoring criteria, and future competition processes.
Evolve can support with opportunity qualification, bid readiness, framework applications, DPS applications, dynamic market preparation, submission planning, bid writing, review, quality assurance and even training your internal teams to better prepare them to do their own high-quality submissions.
