Dynamic Purchasing System: 6 SME Steps for 2026

By Aoba Works · Published October 22, 2026 · 16 min read

How this guide was made: drafted with AI assistance from the official sources linked below, then passed an automated editorial check before publishing. Our process

• Dynamic Markets
• Procurement Act 2023
• Find A Tender
• Vcse

A dynamic purchasing system (DPS) is an open list of qualified suppliers that a public buyer sets up so it can run quick mini-competitions for individual contracts. Unlike a framework, suppliers can apply to join at any point while it runs. Under the Procurement Act 2023 the new version is called a dynamic market. Older DPSs set up under the Public Contracts Regulations 2015 can still run, but they must end by 23 February 2029 at the latest. For an SME the process is short: find the notice, register, pass the membership conditions, stay eligible, then bid on each call-off you can win.

Which option is right for you?

Your first step depends on whether you're new to public tendering, already on a legacy DPS, or working with very little time or budget.

Why these picks: if you're a beginner, one market in your strongest trade keeps the admin manageable. If you missed a framework, a dynamic market is the main route back in before the framework is re-let. If you're on a legacy DPS, the 2029 deadline means your membership can't continue in its current form.

What Is a Dynamic Purchasing System (DPS)?

A DPS is an open, list-based procurement tool. Qualified suppliers can join at any time and then bid for individual call-off contracts as the buyer advertises them. The government's dynamic markets guidance describes a dynamic market as "a list of qualified suppliers" who are eligible for future procurements. It says the dynamic market replaces both the DPS and the utilities "qualification system", and that it must stay open to new suppliers at any time.

Most people still say "DPS", so here's how the two names relate:

• Legacy DPS: set up under regulation 34 of the Public Contracts Regulations 2015 (PCR 2015). It keeps running under the old rules, but its period of validity could not be changed after 23 February 2026, and it expires at the end of 23 February 2029 if it hasn't already ended.
• Dynamic market: set up under sections 34–40 of the Procurement Act 2023, which has applied to new procurements since 24 February 2025. Under the old rules a DPS was meant for "commonly used" purchases. That restriction has gone, according to Osborne Clarke's analysis.

For example, a real legacy DPS is the former Crown Commercial Service RM6124 Communications Marketplace. It was extended for 17 months to 23/02/29, which uses the full transitional allowance. Crown Commercial Service itself became the Government Commercial Agency (GCA) on 1 April 2026, so you'll now find its agreements on gca.gov.uk.

How Do Dynamic Purchasing Systems Work?

The buyer opens a list by category. Suppliers apply and are admitted if they meet the conditions. After that, only members compete for each contract the buyer advertises through the market.

Under the Procurement Act 2023, a dynamic market follows this sequence:

1. Intention notice (UK13). The buyer publishes a dynamic market intention notice "to notify suppliers that they can apply to join."
2. Membership applications. The buyer must accept applications at any time during the market's term and consider them within a reasonable period. It must admit every supplier that meets the conditions and isn't excluded or excludable (s.36). The buyer can't cap the number of members.
3. Establishment notice (UK14). This is published once the market is set up. It tells other contracting authorities they can use it and shows which suppliers are members.
4. Modification notices (UK15). Each time suppliers are added or removed, the buyer publishes a dynamic market modification notice. Busy markets publish these often.
5. Call-off competitions. For each contract, the buyer runs the competitive flexible procedure, and that is the only procedure allowed (guidance, para 10). It usually publishes a UK4 tender notice. Tenders from non-members must be disregarded (s.34).
6. Cessation notice (UK16). This is published when the market stops operating.

For example, Oak National Academy's "Digital Product Development and Support Services" dynamic market shows the whole lifecycle on its Find a Tender record. It had an intention notice in September 2025, was established in November 2025, had several modification notices, and a cessation notice followed on 20 October 2026.

On fees: in a non-utilities dynamic market, the buyer can only charge fees to suppliers that win a contract, and only as a fixed percentage of that contract's estimated value (s.38). Utilities dynamic markets can charge membership fees as well. Look for the percentage in the tender documents before you price.

How to Set Up a Dynamic Purchasing System (Buyer Side, Briefly)

A contracting authority sets up a dynamic market by publishing notices on Find a Tender and setting proportionate membership conditions. It then keeps the market open for its whole term. This section is short because the rest of this guide is about the supplier side. Knowing the buyer's rules still helps, because it tells you what you're entitled to.

The buyer's main obligations are:

1. Publish a UK13 intention notice before the market is established (s.39).
2. Set conditions for membership that only check legal and financial capacity and technical ability. Section 36 stops buyers requiring audited accounts unless the law already requires the supplier to have them. It also bans insurance requirements before award and any requirement to have held a particular previous contract.
3. Fix the conditions for the market's life. Conditions "cannot be modified during the life of the dynamic market" (guidance, para 23).
4. Publish UK14, UK15 and UK16 notices at establishment, each modification and cessation.
5. Choose a duration. The Act sets no maximum term for a dynamic market. Legacy DPSs, by contrast, are capped at 23 February 2029.

Points 2 and 3 matter most to SMEs. If a membership questionnaire asks for three years of audited accounts from a micro-business that isn't legally required to have them, you can raise it with the buyer and cite section 36.

How to Join and Stay Qualified in an Open DPS (SME Steps)

You can apply whenever the notice is live. Once you pass the membership conditions you're in, and you stay in as long as you keep meeting them and don't become an excluded supplier. These six steps cover both new dynamic markets and legacy DPSs.

Step 1: Find the right market

Open Find a Tender and search for "dynamic market" plus your trade (for example, "dynamic market grounds maintenance"). Legacy DPSs often show up under "dynamic purchasing system" on both Find a Tender and Contracts Finder. If you're not sure which service lists what, see /contracts-finder-vs-find-a-tender-2026-table-and-steps/.

Before you apply, check three things on the notice: the end date, the lots or categories, and the portal link. A market that has a UK16 cessation notice is closed, even if the old pages still come up in search.

Step 2: Register on the Central Digital Platform

Under the Act, buyers expect your core supplier information to come from Find a Tender. The government's three-step guide uses these labels:

1. Create a GOV.UK One Login, then choose Register an organisation and select Supplier. Have your Companies House number (or equivalent) and registered address ready.
2. Open your organisation and select Complete supplier information. Fill in basic information, connected persons, qualifications, trade assurances, exclusions and financial information.
3. Select Share my information, confirm the declaration, then select Confirm and get share code.

Registration is free. Charities and sole traders without a Companies House number can register using an equivalent identifier.

Step 3: Register on the buyer's eSourcing portal

Most markets take applications through a separate portal. For example, Embark Multi Academy Trust's "Estates Works and Capital Projects Dynamic Market" takes applications through Delta eSourcing. You paste your share code into the portal or upload the supplier information file, whichever the buyer asks for.

Step 4: Answer the membership conditions

This works like a selection questionnaire: the buyer checks capacity and ability, not price or quality. Answer only the categories you can actually deliver. The Embark market says suppliers can apply for one or more categories and aren't required to provide every service within a category. For how to answer capability and exclusion questions, see /selection-questionnaire-procurement-act-2023-7-sme-steps/.

Step 5: Confirm admission

The Act requires the buyer to consider your application "within a reasonable period" (s.36). It doesn't set a fixed number of days, so read the buyer's documents for its own target. If you're admitted, your name should appear in the next UK15 modification notice. If you're rejected, ask which condition you failed. You can reapply at any time once you've fixed the gap.

Step 6: Stay qualified

There's no statutory annual renewal for dynamic market members. Removal happens when your circumstances change:

• The buyer must remove you if you become an excluded supplier, for example by being added to the debarment list. It may remove you if you stop meeting the membership conditions, or if you became excludable after joining or already were when admitted (s.37 and guidance paras 24–26). The buyer has to tell you the reasons.
• If your details change (new director, new address, lapsed accreditation), update Complete supplier information and generate a new share code. The registration guide says changes need a new code and file.
• Legacy DPS terms often add their own re-verification checks, such as yearly insurance or accreditation evidence. These come from the contract, not the Act, so read your DPS terms for any deadlines.

Common mistakes and fixes

Bidding inside the market

Every call-off is a full competition among members, judged on the award criteria in that tender. Above threshold, the normal minimum tendering period for a UK4 notice is 25 days when electronic submission is allowed and all documents are published with the notice. Buyers often score social value too, so keep reusable evidence ready (see /social-value-in-tenders-ppn-002-steps-and-answer-examples/).

Threshold specifics

From 1 January 2026, the Act's thresholds (including VAT) are £135,018 for central government goods and services, £207,720 for sub-central bodies such as councils and NHS trusts, £5,193,000 for works and £663,540 for light-touch services (as of October 2026; check the official notice).

This matters for dynamic markets. The government's guidance says setting membership conditions is a suitability assessment, and section 85(1) prohibits that for regulated below-threshold contracts. So a dynamic market can't be used to award below-threshold contracts. If your typical job is a £40,000 council repair, it will probably come through an open tender or a quote, not a dynamic market.

Dynamic Purchasing System vs Framework Agreement

The main difference is entry. A framework fixes its supplier list when it's awarded, while a DPS or dynamic market stays open to new suppliers for its whole term. That's why a dynamic market matters if you missed a framework deadline.

Open frameworks sit in between. They must be reopened at least once in the first three years and then at least every five years, and the scheme ends after eight years at most (s.49). Between reopenings, though, they're still closed.

For example, a cleaning firm that missed a council's facilities framework would otherwise wait up to four years for the re-let. If the same council runs a cleaning dynamic market, the firm could apply this week. Framework call-offs can also be awarded directly without a competition, which can't happen inside a dynamic market. For the framework route, see /framework-agreement-how-to-get-on-6-sme-steps-2026/.

Dynamic Purchasing System Examples

Live UK examples range from school estates works to digital services and marketing. You can check any of them on Find a Tender or the GCA site.

The Embark example is a useful model for trades businesses. One academy trust set up the market, four other trusts were named as early adopters, and other contracting authorities can use it. Joining once can therefore get you invited to call-offs from several buyers.

The Oak example is a warning: a dynamic market can close well before you expect it to. Check for a UK16 notice before you spend time on an application.

Dynamic Purchasing System Pros and Cons

For SMEs, the main advantage is that you can join at any time and the entry test is light. The cost is ongoing admin and a fresh competition for every contract.

Pitfall and fix: the biggest risk is staying a passive member. If invitations arrive and you never bid, nothing happens. Set yourself a rule, such as reviewing every invitation within two working days and either bidding or declining. Pick the lots where your price and delivery record are strongest.

What Is a Pseudo Dynamic Purchasing System?

"Pseudo-DPS" is informal shorthand, not a legal term in the Procurement Act 2023 or PCR 2015. It describes an arrangement that works like a DPS but isn't set up under the formal DPS or dynamic market rules. The Act's definitions cover frameworks, open frameworks and dynamic markets, and Find a Tender's notice types have no "pseudo" category.

In practice the label has been used for approved supplier lists, often for lower-value work, and for framework-style arrangements that let new suppliers in from time to time. Under PCR 2015, a real DPS could be used for below-threshold contracts, so the line between them was blurred. Under the Act that changes: suitability-based membership is banned for regulated below-threshold contracts (section 85(1)). An approved list that checks suppliers before letting them quote for those contracts is on shaky legal ground.

For example, if a council emails you about joining its "pseudo-DPS for minor works", check what sits behind it:

1. Search Find a Tender for the buyer's name and look for a UK13 or UK14 notice (a dynamic market), a UK4 notice that establishes a framework or open framework, or an old DPS notice.
2. If none exists, treat it as an informal list. It won't give you the statutory rights covered above, such as acceptance at any time and written reasons for removal.
3. Ask the buyer in writing which procedure it was set up under.

Go by the notice type, not by what the buyer calls the arrangement.

Next steps

Pick one market, get registered and apply before the end of the week.

Today, on your own:

1. Search Find a Tender for "dynamic market" plus your trade, and list up to three live markets with their end dates. Skip any with a UK16 notice.
2. Create your GOV.UK One Login and complete Complete supplier information to get a share code (guide).
3. If you're already on a legacy DPS, put 23 February 2029 in your calendar along with the DPS's own end date, if that comes sooner.

If you'd rather not do it yourself: you can hire a freelance bid writer or a tender consultancy to handle registration, membership answers and call-off bids. There's no official price list. Fees depend on the provider and scope, so ask for a fixed written quote per application or per bid (as of October 2026; check each provider's own terms). This suits businesses that expect regular call-off invitations but have no one in-house to write bids. It's a poor fit if you're testing one small market, because joining is mostly factual data entry you can do for free. Its main limitation is that a consultant can't create delivery evidence or accreditations you don't have, and you remain responsible for the declarations you submit. Find a Tender registration and applying to a dynamic market cost nothing.

Related guides on this site:

• /how-to-win-government-contracts-uk-7-steps-for-smes-2026/
• /selection-questionnaire-procurement-act-2023-7-sme-steps/
• /framework-agreement-how-to-get-on-6-sme-steps-2026/
• /social-value-in-tenders-ppn-002-steps-and-answer-examples/
• /contracts-finder-vs-find-a-tender-2026-table-and-steps/

FAQ

What does dynamic purchasing system mean?

It means a buyer keeps an open list of qualified suppliers that anyone can apply to join during its term, then runs a separate competition among members for each contract. Under the Procurement Act 2023 the same idea is called a dynamic market. Legacy DPSs under PCR 2015 can continue until 23 February 2029 at the latest.

What is a dynamic purchasing system in procurement?

It's a way to award public contracts that sits between a single open tender and a closed framework. Suppliers are checked once for capacity and ability, then compete for each call-off using the competitive flexible procedure. Only members can win, and tenders from non-members must be disregarded (s.34).

How to set up a dynamic purchasing system?

Only a contracting authority can set one up. It publishes a UK13 intention notice on Find a Tender, sets proportionate membership conditions under section 36, and publishes UK14, UK15 and UK16 notices at establishment, modification and closure. New DPSs under the old 2015 rules can't be created for new procurements, so new arrangements are dynamic markets.

What are some dynamic purchasing system examples?

Recent examples include Embark Multi Academy Trust's Estates Works and Capital Projects Dynamic Market (established March 2026, 47+ trade categories). Oak National Academy's digital services dynamic market is another; it ceased in October 2026. Legacy examples include the former CCS RM6124 Communications Marketplace, extended to 23 February 2029.

Sources

• The Procurement Act 2023 (Commencement No. 3 and Transitional and Saving Provisions) Regulations 2024, regulation 5
• Procurement Act 2023, sections 34–40: awarding contracts by reference to dynamic markets
• Procurement Act 2023, section 47
• Procurement Act 2023, section 49 (open frameworks)
• GOV.UK: Guidance: Dynamic Markets (HTML)
• GOV.UK: Guidance on Dynamic Markets (PDF, May 2026)
• Find a Tender: Notice types and sequences
• GOV.UK: Suppliers – how to register your organisation on Find a Tender in three easy steps
• GOV.UK: Find a Tender and the Central Digital Platform factsheet
• Find a Tender: Estates Works and Capital Projects Dynamic Market
• Find a Tender: Digital Product Development and Support Services
• Find a Tender: OneLondon Local Health and Care Record Exemplar DPS
• Contracts Finder: RM6124 Communications Marketplace
• GCA: RM6126 Research & Insights
• GCA: Introducing Government Commercial Agency
• Bevan Brittan: Procurement – updated thresholds for January 2026 published
• Bevan Brittan: Can Dynamic Purchasing Systems be used for below threshold contracts?
• Osborne Clarke: The UK Procurement Act 2023 brings new rules for frameworks and dynamic markets

Spotted something out of date or wrong? Tell us at shigoto.ai.note@gmail.com. Guides are re-checked against official sources on a rolling schedule.