Dynamic purchasing systems (DPS) — a guide
A dynamic purchasing system (DPS) is a fully electronic way to buy recurring goods and services — open to new suppliers throughout its lifetime. Here's how it works.
Quick overview
In short: A dynamic purchasing system (DPS) is a fully electronic method for public procurement of recurring, commonly available goods and services — open to new suppliers throughout its lifetime, unlike a framework agreement which closes after the procurement.
How to get started:
- Set up the system electronically and state the requirements — suppliers apply and qualify.
- Keep the system open for ongoing intake of new suppliers throughout its lifetime.
- For each concrete need: invite the qualified suppliers to a call-off (mini-competition).
Good to know: the rules are set out in the Swedish Public Procurement Act (LOU) and the EU procurement directives — this is an overview, not legal advice.
A dynamic purchasing system (DPS) is a fully electronic method for public procurement. It is used for recurring purchases of goods, services or works that are commonly available on the market — the kind of thing you buy often and where the supply changes over time.
How a DPS works
A DPS is open. Unlike a framework agreement, which closes once the procurement is complete, new suppliers can apply to join throughout the system's lifetime. It happens in two stages:
Set up the system
The contracting organisation sets up the DPS electronically and states the requirements. Suppliers apply and qualify.
Ongoing intake
The system is kept open — new suppliers can apply and be admitted throughout its lifetime.
Individual purchases
When a concrete need arises, the qualified suppliers are invited to submit bids (a call-off / mini-competition).
DPS compared with framework agreements
The most important difference is that a DPS stays open.
- Framework agreement: closes after the procurement — the same suppliers throughout the contract period (often up to four years).
- DPS: open to new suppliers the whole time, and has no equivalent fixed maximum length — the lifetime is stated when the system is set up.
- Competition: a DPS reflects the market better over time, because new players can join.
- Administration: a DPS requires an electronic system and for each purchase to be run as its own call-off.
Pros and cons
- + Flexibility — new suppliers and updated supply on an ongoing basis.
- + Broader competition — more can take part over time.
- + Faster individual purchases when the suppliers are already qualified.
- − Requires electronic infrastructure and ongoing administration.
- − Each purchase is its own call-off — that takes some time per purchase.
When is a DPS a good fit?
- Recurring needs for standardised goods or services.
- A supplier market that changes — new players emerge.
- Organisations that want to keep competition alive without locking themselves into a closed framework agreement.
What a good DPS platform requires technically
A dynamic purchasing system is essentially a platform. What makes it good is rarely visible from the outside:
- Electronic application and qualification of suppliers, with automatic checks.
- Supplier management — ongoing intake, updates and status.
- Bidding and evaluation flow for the individual purchases.
- Traceability — a full log and audit trail for every step.
- Integration with finance and contract systems.
- Security and operations — Swedish operations, access control and monitoring.
That's the kind of platform we build — dynamic purchasing systems in various forms, with automation, infrastructure and traceability at the foundation.
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