What is a Dynamic Purchasing System?
Dynamic Purchasing Systems – all you need to know A Dynamic Purchasing System (DPS) is unlike a traditional framework for the supply of goods, works or services. A DPS 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 manged by NHS LPP are available for use by the entire public sector. A DPS can be divided into categories of works, services or goods, known as Lots, suppliers can apply to be listed on single or multiple lots 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 Dynamic Purchasing System offers many benefits for both suppliers and buyers.
A Dynamic Purchasing System (DPS) is unlike a traditional framework for the supply of goods, works or services. A DPS 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 manged by NHS LPP are available for use by the entire public sector.
A DPS can be divided into categories of works, services or goods, known as Lots, suppliers can apply to be listed on single or multiple lots 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 Dynamic Purchasing System offers many benefits for both suppliers and buyers.
Benefits for Suppliers of being on a DPS include:
- Suppliers don't have to demonstrate 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 should their business expand into new areas
Benefits for Buyers of purchasing through a DPS include:
- The DPS offers a faster and easier process than a full Official Journal of the European Union (OJEU) tender with simple tenders able to be completed within a minimum of 10 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 EU 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 Dynamic Purchasing System works
Inclusion on the Dynamic Purchasing System is a 2 stage process
Stage 1: Suppliers complete a standard Pre-Qualification Questionnaire (PQQ.) 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 re-apply should they wish to at a later date
Stage Two: 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.
Dynamic Purchasing Systems supports Small and Medium Sized Enterprises (SMEs)
The open market nature of a DPS supports SMEs and businesses which 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 compete 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.
The DPS supports 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.
Dynamic Purchasing Systems currently managed by NHS LPP:
1. Languages Services DPS - ends 27 August 2021
The Language Services DPS includes face to face interpretation - both spoken and non-spoken, telephone and video interpretation, written transcription and translation and the option of a managed service. It is available to all public sector organisations throughout England.
Suppliers: how to apply to join the Language Services DPS:
Suppliers apply by registering on www.lppsourcing.org. search for DN225407 Provision of Language Services and follow the link to access the PQQ
Buyers: how to use the Language Services DPS:
Full guidance for users of the Language Services CPS can be found here:
For further information please contact: Laura.Whitworth@lpp.nhs.uk
2. Minor Works and Maintenance
The Minor Works and Maintenance DPS covers a range of building and construction-related works up to the value of £500k
Suppliers: how to apply to join the Minor Building Works DPS:
Suppliers should click on the supplier registration and application link and search for opportunity reference DN475535
Buyers: how to use the Minor Building Works DPS:
Public sector bodies who wish to access the will be provided with templates, guidance and advice by NHS LPP. Please contact: Edward.James@lpp.nhs.uk
3. Non-emergency Transport and Other Transport
The DPS for transport enables the NHS and wider Public Sector organisations to award contracts for a range of Non-Emergency Transport services. The DPS includes a Taxi and Passenger Service Category to the DPS.
Suppliers: Suppliers wishing to apply need to register through the DPS Landing page that is hosted by 365 Response Ltd to complete their application https://eprocure.365smartplatform.net/SignUp/Supplier
Buyers: Full guidance for users, including an NHS LPP contact for queries can be found here
4. Health & Social Care Apps
The Health & Social Care Apps DPS provides the public sector within the UK with a compliant route to market for the procurement of condition specific applications to meet health and social care needs, supporting patients, clinicians and non-clinical staff.
The adoption of apps has already been proven to reduce GP visits, prevent costly trips to A&E, lower usage of prescription drugs and to help close the population health inequalities, delivering both direct and indirect savings and benefits.
Suppliers may apply by registering on www.lppsourcing.org.
To view a full list of suppliers awarded under each sub-category of the DPS please visit - www.healthappsdps.orcha.co.uk/
5. Apprenticeship Training Providers DPS
The Apprenticeship Training Providers DPS is structured so that potential providers can select the training categories and regions they wish to be considered for, allowing buyers a choice of how best to approach the market.
For more information please contact Laura.Whitworth@lpp.nhs.uk