For suppliers looking to expand their reach into public sector contracts, Dynamic Purchasing Systems (DPS) offer a modern, flexible way to access a continuous stream of opportunities. But what exactly is a DPS, and how can it help suppliers gain a competitive edge in the procurement market? In this post, we’ll explore what Dynamic Purchasing Systems are, how they work, and why they could be the key to unlocking new business with the public sector.
What is a Dynamic Purchasing System?
A Dynamic Purchasing System is an electronic procurement system that public sector buyers use to purchase goods, services, or works. Unlike traditional framework agreements, which are limited to a fixed group of suppliers, a DPS allows suppliers to join at any time during its operation, provided they meet the selection criteria.
For suppliers, this means the door is always open to apply and bid on relevant contracts – no more waiting for the next opportunity to arise. DPS offers a dynamic, open marketplace where new suppliers can join, and those already in the system can keep bidding on new contracts.
Key benefits of Dynamic Purchasing Systems for suppliers
- Continuous opportunities: Once you’re part of the DPS, you’ll have ongoing access to new public sector tenders. You can keep bidding as new opportunities arise.
- Open to new suppliers: Suppliers can join at any point, offering greater flexibility and reducing the risk of missing out.
- Electronic and streamlined: All processes, from applying to winning contracts, are managed digitally, saving time and reducing the administrative burden.
- Increased competitiveness: Since the DPS remains open, there’s a constant opportunity to compete, ensuring that buyers always get the best offers.
How does a Dynamic Purchasing System work?
For suppliers, getting involved in a DPS is straightforward. It operates in two stages. First, the public sector buyer establishes the system by setting out the categories of goods, services, or works they need. Suppliers can then apply by submitting documents to prove they meet the selection criteria.
Once accepted, the second stage begins. This is where the real opportunity lies: public sector buyers will issue specific tenders, and you, as an approved supplier, can submit your bids. This ongoing competition ensures that you don’t just get one shot at winning a contract – you have multiple chances as new tenders are posted.
Steps for suppliers to join and compete in a DPS:
- Apply to the system: Submit your documents and demonstrate that your business meets the buyer’s requirements.
- Get approved: Once accepted, you’ll be eligible to participate in tenders issued under the DPS.
- Submit bids: When a tender is issued, you can submit bids, competing with other approved suppliers for contracts.
- Win contracts: If your bid offers the best value for money, you win the contract – and you can keep competing as more tenders are issued.
DPS vs. regular tenders: what’s the difference for suppliers?
As a supplier, you might be used to participating in RFPs, where you submit your bid by a deadline, and once the tender is closed, that’s the end of the opportunity. Dynamic Purchasing Systems are quite different and offer several advantages compared to regular tenders:
- Always open: With a DPS, you can apply and be considered for new contracts at any time. In contrast, regular tenders are closed once the competition is over, meaning if you miss the deadline or aren’t selected, you have to wait for the next tender to be issued.
- Ongoing opportunities: Once approved on a DPS, you have continuous access to bid on new contracts as they are published. Regular tenders are one-off events, where you either win or wait for the next chance.
- Flexible process: DPS is more flexible, allowing public sector buyers to issue mini-competitions at any time based on their needs. This gives suppliers more frequent chances to bid, unlike the more rigid structure of regular tenders.
- Streamlined administration: The entire DPS process is electronic, from supplier registration to contract award, reducing paperwork and making it easier for suppliers to manage multiple bids. Regular tenders can often be more time-consuming, with more stringent documentation requirements.
- Increased competition: DPS fosters ongoing competition among suppliers, keeping the marketplace dynamic and open, whereas regular tenders have a fixed number of competitors once bids are submitted.
Key differences for suppliers:
| Feature | Dynamic Purchasing System (DPS) | Regular tender, RFP |
|---|---|---|
| Supplier entry | Always open to new suppliers | Closed after initial tender process |
| Opportunities | Ongoing access to new tenders | One-time opportunity |
| Administration | Fully electronic, streamlined | More paperwork, stricter requirements |
| Competition | Continuous, as new suppliers can join | Fixed number of bidders once submitted |
Why suppliers should consider Dynamic Purchasing Systems
Dynamic Purchasing Systems offer suppliers more than just access to public sector contracts – they provide a pathway to ongoing business development, with lower barriers to entry and less administrative burden. For SMEs, this is especially beneficial, as it levels the playing field and offers frequent opportunities to compete with larger suppliers.
- Continuous competition: You aren’t locked out if you miss one tender – you can keep bidding as new opportunities arise.
- Greater flexibility: You can join a DPS at any time and tailor your bids to the specific needs of each mini-competition.
- Efficiency: The electronic nature of a DPS means less paperwork, making it easier to manage multiple bids without excessive admin.
- Increased chances of winning: With more frequent opportunities and less restrictive entry requirements, DPS increases your chances of winning public sector contracts.
Start winning more tenders
Are you looking to expand your business into the public sector, whether through Dynamic Purchasing System or other tender opportunities?
Tendium helps you find public tenders faster and streamline your bidding process. Book a demo today to find out more.
