Dynamic Purchasing System
A dynamic purchasing system (DPS) is an electronic procurement tool that allows contracting authorities to make commonly used purchases efficiently. Unlike a framework agreement, a DPS remains open to new suppliers throughout its entire duration, making it a flexible option for both buyers and sellers.
Definition
A dynamic purchasing system is an entirely electronic procurement process for commonly used purchases. It operates in two phases: first, a contracting authority admits all qualified suppliers who submit a valid request to participate. Then, for each specific purchase, the authority invites all admitted suppliers to submit tenders. New suppliers can apply to join at any time during the DPS's validity. Individual contracts are awarded based on the criteria defined in the contract notice. It is governed by Sections 49-52 of the Public Procurement Act (1397/2016).
Practical Example
A regional council sets up a DPS for temporary staffing services. Throughout its validity, any staffing agency meeting the qualification criteria can join. When the council needs temporary staff, it runs a mini-competition among all admitted suppliers for each specific assignment.
Common Mistake
Suppliers sometimes miss the opportunity to join a DPS because they assume it is closed like a framework agreement. Since a DPS is always open to new entrants, suppliers should regularly monitor Hilma for active DPS notices in their field.
Frequently Asked Questions
How does a DPS differ from a framework agreement?
The key difference is that a DPS remains open to new suppliers throughout its duration, while a framework agreement is closed once established. A DPS must be run entirely electronically and always involves mini-competitions, while framework agreements may allow direct ordering.
How quickly must a contracting authority evaluate new DPS applications?
The contracting authority must evaluate requests to participate within 10 working days of receipt. This period may be extended to 15 working days in justified cases, particularly for the first application or when the qualification criteria are complex.
Related Terms
Open Procedure
Learn how the open procedure works in Finnish public procurement. Any supplier can submit a tender without pre-qualification under hankintalaki 1397/2016.
Framework Agreement
Understand framework agreements in Finnish public procurement. How multi-year agreements with one or more suppliers work under hankintalaki 1397/2016.
Contract Notice
Learn about contract notices in Finnish public procurement. The official announcement published on Hilma and TED to invite tenders from suppliers.
Hilma Platform
Learn about Hilma, Finland's official public procurement notice platform. How to find and respond to procurement opportunities on hankintailmoitukset.fi.
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