What is a Dynamic Purchasing System (DPS)?
A DPS is a procedure available for contracts for works, services and goods commonly available on the market. As a procurement tool, it has some aspects that are similar to an electronic framework agreement, but where new Suppliers can join at any time. It has its own specific set of requirements as set out in Regulation 34 of the Public Contracts Regulations 2015.
A DPS is a two-stage process. First, in the initial setup stage, all Suppliers who meet the selection criteria and are not excluded must be admitted to the DPS. Unlike framework agreements, Suppliers can also apply to join the DPS at any point during its lifetime. Individual Call-Off Contracts are awarded during the second stage. In this stage, the LCP Member invites all Suppliers within a specific Service Category under the DPS to bid for a specific contract.
It is emphasised that admission to the DPS only requires Suppliers to demonstrate their suitability, ability, and capability to deliver the type of requirements for the applicable Service Category. There is no requirement to submit any type of tender as part of the application for admission. Therefore, the decision on the best value-for-money offering can only be decided at the Tender stage for each individual requirement, and equal treatment requires that all Suppliers enrolled to the LCP DPS have the opportunity to bid.
Benefits for Suppliers of being on a DPS:
- Suppliers don’t have to demonstrate suitability and capability every time they wish to compete for a public sector contract.
- A DPS is more accessible for SMEs.
- Award of individual tenders can be quicker than under some other procedures.
- A DPS remains open to new Suppliers throughout the period of the agreement. This enables Suppliers who may not be able to meet the selection criteria at the time a DPS is first established to review their processes, finances and capabilities and apply for acceptance onto the DPS at a later stage.
- A Supplier who fails the exclusion or selection stage can re-apply later if circumstances have changed (for example if it had newly available skills or experience).
- A Supplier may apply for as many Service Categories for which it is suitable.
- Any Supplier who meets the selection criteria must be admitted to the DPS.
Benefits for LCP Members of using a DPS:
- Faster and less onerous than a full OJEU tender process – the OJEU and PQQ stages have already been undertaken and no further advertisement is necessary;
- After the DPS has been established, LCP members can run a competitive tendering exercise using DPS approved Suppliers and award local contracts;
- By using the DPS there is no need for an LCP member to separately advertise its procurement requirement;
- Encourages competition – it is easier for local Suppliers used by LCP members to get on to the DPS and join at any time during its period of validity;
- LCP members can undertake a further competition with all pre-qualified bidders; all qualification documentation is held on the DPS Supplier database.
The new DPS will be available for use by LCP members in March 2019. The new DPS for Minor Works is in the pipeline. It is anticipated that it will be available for use by Summer 2019.
DPS for Construction, Estates and Property Professional Services
- Please visit the Professional Services page for further information.
DPS for Minor Works
- Please visit the Minor Works page for further information.