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A Dynamic Purchasing System (DPS) is an entirely electronic procurement system established by a contracting authority to streamline the purchase of commonly used goods, services, or works. Under EU law (Article 34 of Directive 2014/24/EU), a DPS functions like an open framework agreement, but with an important distinction—new suppliers may join at any time during the DPS’s lifetime, as long as they meet the pre-established qualification criteria. The DPS operates in two clear stages: first, suppliers are admitted to the system; second, the contracting authority launches mini‑competitions, inviting all admitted suppliers (or those in relevant categories) to submit competitive bids for specific procurements.
The system’s structure allows flexibility and sustained competition. Unlike traditional frameworks, where the supplier list is fixed and entries are limited to initial setup, a DPS remains open throughout its duration. This open approach not only accommodates evolving market conditions and encourages innovation, but also enhances accessibility for small and medium‑sized enterprises (SMEs) by reducing entry barriers and offering new opportunities even after the DPS is established.
In practice, using a DPS delivers significant benefits. For contracting authorities, it speeds procurement and reduces administrative burden—especially for routine or high-volume purchases. For suppliers, particularly newer or smaller ones, it provides a continuous route into public procurement. Overall, a DPS fosters a dynamic, transparent, and efficient marketplace, ensuring that authorities consistently access a competitive and capable supply base.
