Established in 1974
Owned by 13 Local Authorities in North of England
Wholesale and Framework Central Purchasing Body
Wholesale Business is largest supplier to UK Education
£750m of spend (€850m / ₺4,200m)
Funded through margin (wholesale) and rebate (frameworks)
Key Spend Categories
• IT and Software
• Temporary Labour
• Food and Catering
• Business Travel
• School supplies
• Cleaning products
• Office and Classroom
• Sports Equipment
YPO and Dynamic Purchasing Systems
• Extensive DPS experience
• First DPS under PCR2015 regulations in UK
• Largest user of DPS by UK CPBs
YPO DPS Categories
• Fixed Price Gas and Electricity
• Low Carbon Heat and CHP
• Low Carbon Electrical Micro-Generation
• Aggregates, Asphalt, Ready-Mix Concrete and Topsoil
• Courier Services
• Solid Fuels
• Low Energy Lighting Systems
YPO DPS Categories
• Vehicle Telematics and Journey Recorders
• Enforcement Agency Services
• Road Marking and Surfacing
• Early Years Furniture
• Building in Use Support Services
• Building Envelope
• Ground Maintenance Services
• Buildings Internal Fitout and Maintenance
DPS - Background
A dynamic purchasing system (DPS) is a
procurement procedure that a contracting authority
(CA) may use to purchase certain goods, works or
The procedure is set out in Article 34 of the Public
Procurement Directive 2014 and is implemented by
Regulation 34 of the Public Contracts Regulations
DPS - Background
A DPS is a completely electronic process comprises two distinct phases:
• A request to participate phase (admission phase) where suppliers
apply to be admitted to the DPS by submitting a response to the
specified "selection criteria/SQ"; and
• A tender phase where the Contracting Authority invites suppliers on
the DPS to submit tenders for a specific contract.
It is essentially set up using the “restricted” procedure.
Contracting Authorities choosing to conduct a DPS procedure has
increased following the simplification of the process with the PCR 2015.
2006 vs 2015 Regulations
• When the regulations were amended from the
2006 version to the 2015 version the rules
around a DPS were updated and simplified;
2006 Regulations 2015 Regulations
Open Procedure Modified Restricted Procedure
Maximum duration – 4 years No maximum duration
Simplified OJEU notice to advertise a
No Simplified OJEU notice required
General features of a DPS
• Contracting authorities may use a DPS for
commonly used purchases the characteristics
of which, as generally available on the market,
meet their requirements.
• The DPS shall be operated as a completely
electronic process, and shall be open
throughout the period of validity of the
purchasing system to any economic operator
that satisfies the selection criteria
General features of a DPS
• The DPS may be divided into categories of
products, works or services (similar to “lots”)
• In order to procure under a dynamic purchasing
system, contracting authorities shall follow the
rules of the restricted procedure.
• All the candidates satisfying the selection criteria
shall be admitted to the system, and the number
of candidates to be admitted to the system shall
not be limited
DPS vs Framework agreements
- The Differences
• Unlike framework agreements, there can be no limit on the number of
suppliers admitted to the DPS: all suppliers who meet the stated criteria must
be admitted and be invited to tender.
• Unlike framework agreements, a DPS is an "open system": suppliers can
apply for admission to the DPS at any time during the validity of the system
and the contracting authority must evaluate the application against the same
criteria as established. This means a supplier that is initially unsuccessful can
re-apply if it later meets the criteria.
• There is no time restriction on the length of a DPS unlike a framework
Benefits of a DPS
• A DPS supports small businesses to compete for work. Suppliers may join it at
any time during its period of validity. This allows smaller organisations to
compete where they may not otherwise have sufficient resource to submit a
full tender within a deadline.
• It offers a buying organisation maximum flexibility to pursue competitive
tendering exercises - ensuring bidders are not disqualified from competing on
mere technicalities leading to disqualification.
• DPS can run for as long as the contracting authority wishes, whereas
frameworks are restricted to 4 years, reducing the associated administration
associated with repeat tendering
• Advantages for a CPB of opening up a supply base in new geographies
Benefits of a DPS
• Increased competition due to an ever increasing supply base to
enable cost savings to be made.
• There is no requirement to submit any form of award notice to
OJEU following the setting up of the DPS, or when new
suppliers are added to the DPS – only after an award has been
made- again reducing the level of required administration.
• DPS offers the potential to reduce tender timeframes allowing
for quick responses to changing procurement requirements
• Supportive of innovation by allowing new market players access
to tender opportunities.
Downsides of a DPS
• The DPS can be admin heavy dependant on the amount of suppliers that wish to join.
Each submission requires evaluation meaning the DPS may be burdensome in
markets with an oversaturation of suppliers.
• The authority is required to evaluate suppliers requests to join within 10 working
days of receipt (can be extended to 15 where justified) which increases the risk of
non-compliance where evaluation extends beyond these time frames.
• All opportunities under the DPS must be competed i.e. Direct Award cannot be
made to individual suppliers.
Publish request to
*30 days with contract notice
Evaluate submissions –
no initial set timescales
Admit suppliers onto
Voluntary 10 day
DPS Process Flow Chart – STAGE 1
Request to participate/admission
stage stays permanently open until
expiry of DPS
Evaluation of submissions following
the initial publication stage must be
evaluated within 10 working days of
the individual submission. This period
may be prolonged to 15 working days
in individual cases where justified.
Publish specific CA requirements and invite all
suppliers admitted to the DPS at that point to submit a
*10 days minimum
Evaluate against specific award
*no set timescales
Award Call-off Contract
Voluntary 10 day standstill
Contract Award Notice
*Published 30 days from notification of award or
can batch quarterly if high volume of call-off’s
DPS Process Flow Chart
– STAGE 2
Market Characteristics Suitable for
• Difficult to bulk buy / achieve economies of scale
• Local bespoke offering / local businesses
• High levels of innovation and new market entrants
• Price sensitive markets
• Large volume of suppliers
• Large volume of transactions
• Capacity issues / market shaping opportunities
• Low barriers to entry for supply markets
• Difficult to bulk buy / achieve economies of scale – due to the length of time a DPS
remains available and the potential for re-submission in the event of a rejection, the
ease of inclusion (measured in required resource to submit bids) encourages variety of
suppliers (from large providers to small businesses) to submit a request to participate.
Organisations who will require only small call-offs of goods can take advantage of
smaller suppliers, who are more likely to be willing to tender for such a requirement as
opposed to global suppliers who would be interested in bulk selling opportunities.
• Local bespoke offering / local businesses – DPS is likely to support the engagement
with small businesses, who have facility to offer tailored solutions to bespoke
organisational needs. Suitable, also if organisations want to support local business and
• High levels of innovation and new market entrants – a traditional framework would
not be suitable for markets where there is a high level of innovation or new market
entrants during the term of the framework. A DPS allows for these developments.
• Price sensitive market – meaning that the demand for goods or services moves
significantly up or down in response to lower or higher price, e.g. if price for box of
cereal goes up, less people will be buying it. DPS embraces large number of suppliers,
therefore there is a better chance of achieving lower price.
• Large volume of suppliers – meaning that organisation can take advantage of the
competitive nature of the supplier market without limiting the scope of competition.
Possibility to choose from potentially many options available and achieve best possible
Value for Money.
• Large volume of transactions – A large volume of transactions may imply that the
items affected by the procurement process are for every day use. The DPS unifies large
volumes of transactions down into a single, manageable process to allow the
transactions to be approached in bulk.
• Capacity issues / market shaping opportunity – where there are capacity issues, DPS
will help to ensure that there are a sufficient supply of different / alternative types or
options of goods or services. A DPS opens opportunities to a wide rage of providers
therefore similar products or close substitutes become available to meet such capacity
• Low barriers to entry for supply markets – when new suppliers constantly enter the
market e.g. due to nature of goods being homogenous and goods are substitutes for
each other. DPS enables gathering all potential providers on one platform for the
achievement best value for money.
Additional points to consider
• DPS can only be used by organisations which can facilitate e-tendering system
– it enables suppliers to join DPS swiftly and cycles are much shorter in terms
• DPS should be used when there is a room to drive the price down
• DPS should be used for “commonly used purchases […] generally available on
the market” - The rules do not specify how this should be interpreted. It is
likely to depend on the specific type of goods, works or services covered by
the DPS. The DPS will normally be suitable for largely “off-the-shelf”
requirements which can be closely specified in advance. One-off, or heavily
bespoke and / or highly complex requirements are unlikely to be suitable.
• DPS can be a useful tool in achieving good
procurement outcomes in certain markets.
• They offer more flexibility than a traditional
framework but with more on-going
• The PCR 2015 regulations have seen them
broadly adopted in the UK