Dynamic Purchasing System (DPS)

A Dynamic Purchasing System (DPS) is a fully electronic procurement mechanism established under Article 34 of Directive 2014/24/EU. It functions as an open-market arrangement where any supplier that meets the published selection criteria can join at any point during the system's lifetime — unlike a framework agreement, which is closed to new entrants after the initial competition. A DPS is set up using the restricted procedure rules and can run for any duration, with no time limit imposed by the Directives.

The DPS operates in two stages. First, the contracting authority publishes a contract notice on TED establishing the DPS, specifying the categories of goods, services, or works covered and the selection criteria that suppliers must meet. Any economic operator can submit a request to participate at any time during the life of the DPS. Second, when the authority has a specific purchasing need, it invites all admitted participants (or those in the relevant category if the DPS is divided into categories) to submit tenders for the individual contract, using shortened timescales.

DPS has become increasingly popular in recent years, particularly for categories with rapidly evolving supplier markets, such as IT services, temporary staffing, consultancy, and construction. Its openness to new entrants addresses one of the key criticisms of framework agreements — that they lock out suppliers who were not ready or eligible when the original competition took place. For SMEs in particular, DPS arrangements provide an ongoing entry point to public sector markets.