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Framework agreements and DPS: What SMEs need to know

Framework agreements and DPS: What SMEs need to know

SMEs often ignore frameworks and DPS — but they’re key to winning repeat public contracts. Learn how they work and why they matter more than you think
4
min read

Not all tenders lead to a single contract.

Some lead to years of work, if you understand how they work.

Framework agreements and dynamic purchasing systems (DPS) are two of the most common (and most misunderstood) public procurement tools. Many SMEs skip them because they seem vague or too complex. But in reality, they’re one of the best ways to get repeat work without rebidding every time.

These aren’t traditional tenders. You don’t win the job. You win the chance to be invited again and again.

In this guide, we’ll explain what frameworks and DPS really are, how they work, and why they’re a strategic opportunity for SMEs who want to grow inside the public sector, without chasing every new contract from scratch.

Let’s start with frameworks, the long game done right.

What is a framework agreement?

A framework agreement isn’t a single contract. It’s a system.

Public buyers use it to pre-approve one or more suppliers for future work, often over 2 to 4 years. Once you’re on the framework, you can be invited to bid in smaller, faster mini-competitions or even receive direct awards (depending on the structure).

Think of it like joining a buyer’s preferred supplier list. You still need to compete, but only with others on the framework.

Key points:

  • Fixed entry point: you must apply during the tender window
  • No guaranteed work: but you need to be in to be considered
  • Can be single or multi-supplier: common in IT, consulting, maintenance, and office supplies

Frameworks reduce admin for buyers and open doors for suppliers who want repeat opportunities without constant paperwork.

Next, we’ll look at a more flexible version of this model: the Dynamic Purchasing System.

What is a Dynamic Purchasing System (DPS)?

A Dynamic Purchasing System (DPS) works a lot like a framework but with one key difference: it stays open.

You can join a DPS at any time, as long as you meet the entry criteria. Once approved, you’ll be invited to take part in mini-competitions for ongoing contracts, often in high-volume, recurring categories.

Unlike frameworks, a DPS:

  • Allows new suppliers to join continuously
  • Is fully electronic, everything happens via e-portals
  • Is used for repeatable needs, like cleaning, catering, translations, or software licences

DPS models are buyer-friendly because they keep competition fresh — but they’re also SME-friendly because they lower the barrier to entry.

If frameworks are about early access, DPS is about flexibility.

Let’s compare both side by side so you can decide which one fits your business best.

Framework vs DPS: What’s the difference?

These two models are similar in purpose but very different in structure. Here’s how they compare:

FeatureFramework AgreementDynamic Purchasing System (DPS)
Entry deadline One-time entry only Open to new supplier anytime
Contract duration Fixed (up to 4 years) Ongoing, no fixed end date
Supplier list Closed once awarded Grows as new suppliers are approved
Contract type Mini-competitions or direct award Always mini-competitions
Good for Project-based or strategic work Ongoing, high-volume purchases

If you’re an SME with a niche or specialist offer, frameworks might be a better fit.

If you’re in a high-frequency category, DPS can help you win work again and again.

Next: let’s talk about why both models are such powerful opportunities for SMEs.

Why are framework agreement and DPS good for SMEs?

Frameworks and DPS aren’t just for big suppliers. In fact, many public buyers now prefer these models because they make it easier to include SMEs.

Here’s why they work in your favour:

  • Repeat opportunities: once you’re approved, you can compete for multiple contracts without starting from scratch
  • Lower admin burden: one qualification = many chances
  • More targeted bidding: you’re only invited to relevant mini-competitions
  • Better odds: you’re competing within a smaller, pre-approved group

Instead of chasing dozens of new tenders each month, these models let you focus on buyers who already know you’re qualified.

And for SMEs looking to grow in the public sector, consistency beats volume every time.

Let’s move to the final step: how to actually find frameworks and DPS you can apply to.

How to find framework agreements and DPS you can join?

Frameworks and DPS are often hiding in plain sight, but they don’t always look like “standard” tenders.

Here’s how to spot them:

  • Look for tender titles like:
    • “Establishment of a Framework Agreement”
    • “Creation of a Dynamic Purchasing System (DPS)”
  • Check TED (Tenders Electronic Daily) and your national portals: they’re usually published just like any other contract notice
  • Watch the deadlines: frameworks have a fixed entry window, while DPS can be joined anytime

Let’s wrap it up.

Think beyond one-off contracts

For SMEs, public procurement often feels like chasing individual tenders. Win or lose, the process starts over each time.

But frameworks and DPS offer something different: long-term access.

They don’t guarantee work, but they give you a seat at the table for months or even years.

Once you’re in, you spend less time searching and more time responding to real opportunities, with buyers who already know you’re qualified.

If you’re serious about growing in the public sector, these models aren’t optional. They’re essential.

Want to find frameworks and DPS that fit your business?
Tendify helps SMEs track and join long-term opportunities — without missing deadlines or chasing scattered portals.
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