Dynamic Purchasing Systems in detail
A Dynamic Purchasing System (DPS) is unlike a traditional framework for the supply of goods, works or services. It is an electronic system which suppliers can join at any time. An 'open market' solution, a DPS is designed to give buyers access to a pool of pre-qualified suppliers. DPSs managed by NHS LPP are available for use by the public sector.
A DPS can be divided into categories of works, services or goods and suppliers can apply to be listed on single or multiple categories within a DPS. Suppliers can also be categorised further by criteria such as location and contract value to allow purchasing organisations to create a shortlist of appropriate suppliers A DPS offers many benefits for both suppliers and
Benefits for Suppliers
- Suppliers don't have to demonstrate basic suitability and capability every time they wish to compete for a public sector contract
- The approval process is often quicker and simpler than a framework
- Improved accessibility for small to medium enterprises (SMEs)
- Award of individual tenders can be quicker
- A DPS remains open to new suppliers throughout the period of the agreement
- Suppliers can apply for additional lots throughout the life of the DPS if their business expands into new areas
Benefits for Buyers when purchasing through a DPS
- The DPS offers a fast and easy procurement process with simple tenders able to be completed within a minimum of ten days
- The DPS is based on generic service specifications which buyers can adapt to meet their specific requirements
- The DPS encourages competition making it is easier for local suppliers to join the DPS at any time during its lifetime
- The DPS also allows buyers to include their incumbent providers by asking them to apply for the DPS prior to starting their competition
- By following the guidelines buyers can be confident they are adhering to current procurement legislation
- Ongoing spot checks occur throughout the life of the DPS so buyers can be assured that the suppliers are appropriate for their needs
How the NHS LPP DPS works
Inclusion on the Dynamic Purchasing System is a 2 stage process.
Stage 1: Suppliers complete a standard Selection Questionnaire (SQ). From there all suppliers who meet and pass the exclusion and section criteria in the PQQ must be admitted to the DPS to the relevant categories. Rejected suppliers are given useful feedback to help them reapply if they wish to at a later date.
Stage 2: Approved buyers, or contracting authorities, award individual contracts through the DPS. The buyer invites all suppliers on the DPS (or for a particular DPS category) to compete and bid for a specific contract. Suppliers are not obliged to bid.
Where do I apply to join an NHS LPP DPS?
To apply to join a DPS:
- Register on the Atamis Health Family portal by navigating to - https://health-family.force.com/s/Welcome - and select Register Here.
- Once registered you will be able to view the relevant opportunity including all supporting documentation, by searching in View our Live Opportunities.
- You will then need to register an interest in the project and complete and submit the electronic questionnaire.
DPSs support Small and Medium Sized Enterprises (SMEs)
The open market nature of a DPS supports SMEs and businesses that have little or no experience in tendering for work with the public sector.
It does this in the following ways:
- The selection stage is easier as the supplier only has to complete this stage on entry to the DPS instead of having to re-submit their information for each procurement opportunity
- The DPS is open to suppliers all through its duration. This means that new start-ups or businesses that wish to move into new public sector markets are encouraged and not frozen out for what can be a lengthy period of time
- The division of DPS into category by type of requirement, size of contract, or geographical place of delivery, can be arranged to ensure that specialist suppliers have maximum opportunity to compete
- The flexibility of the mini-competition process allows buyers to structure their competition in such a way as to make it attractive to SMEs.
If a DPS is divided into categories, a supplier can apply to become a supplier for as many suitable categories as it wishes.
The number of suppliers on a DPS is not limited. Any supplier who meets the selection criteria must be admitted to the DPS.
DPSs support buyers to meet the 'buy local' agenda
The flexibility of keeping a DPS agreement open to new suppliers enables public bodies to promote potential 'calls for competition' under the DPS in their geographical region. This provides the opportunity to engage with local potential suppliers and supports wider government aims of working with local businesses for economic growth.
DPSs currently managed by NHS LPP
To find out more about the current DPSs we have in our portfolio, simply visit the relevant category webpages listed below and click on the live contracts option which can be found under 'More information' towards the bottom of each page.