When a housing provider needs a contractor quickly, a lengthy procurement exercise can put pressure on already stretched teams. A Dynamic Purchasing System can offer a flexible route, giving organisations access to qualified suppliers and ongoing competition. However, using one effectively requires more than finding an available route and inviting suppliers to bid. Teams need to understand how the system works, whether it suits their requirement and what happens at each stage. For social landlords managing repairs, construction, compliance and other services, knowing how to use this route properly can improve efficiency and supplier choice.

What Is a DPS?

A DPS (Dynamic Purchasing System) is an electronic procurement tool that keeps its supplier pool open throughout its term. Suppliers that meet the relevant qualification requirements can apply to join during that period. This differs from a traditional framework, where the supplier list is generally established for a defined period.

PfH offers DPS routes across areas including capital works, decarbonisation, compliance, energy and construction. These routes are designed around the needs of housing and public sector organisations.

It is also important to understand the current legal position. Under the Procurement Act 2023, dynamic markets replaced DPS arrangements for new procurements under the Act. Existing arrangements can continue where they were established under previous legislation.

When Could a DPS Be Useful?

A DPS can be useful where supplier availability and flexibility are important. The ability for new suppliers to join during its lifetime can help maintain competition and broaden access to the market.

For social landlords, potential applications can include:

• Building and capital works

• Compliance services

• Decarbonisation and retrofit

• Construction services

• Energy-related requirements

• Specialist professional services

The most suitable procurement route will depend on the requirement, value, scope and applicable procurement rules.

How to Use a DPS Effectively

Once you have identified a suitable route, the process should begin with a clear specification. Define what you need, the required outcomes, delivery timescales and any technical or compliance requirements.

Next, check the relevant documentation carefully. Understand which suppliers are eligible, what categories apply and how the competition must be conducted. Do not assume that every system uses identical procedures.

A typical process involves:

1. Define the requirement: Establish the scope, outcomes and evaluation criteria.

2. Select the appropriate route: Confirm that it covers the goods, works or services required.

3. Identify eligible suppliers: Check which suppliers qualify for the relevant category.

4. Run the competition: Invite eligible suppliers to submit responses according to the system's rules.

5. Evaluate submissions: Assess responses against the published criteria.

6. Award and manage the contract: Complete the required steps and monitor supplier performance.

Under the current Procurement Act, dynamic markets use the competitive flexible procedure for awards made by reference to the market.

What Should Landlords Consider Before Starting?

Using this procurement route does not remove the need for careful planning. Before starting, teams should consider whether it fits the requirement and whether they have the resources to run the competition effectively.

A useful checklist includes:

• Is the requirement clearly defined?

• Does the route cover the required scope?

• Are the relevant suppliers eligible?

• Are the evaluation criteria appropriate?

• Are delivery and compliance requirements clear?

• How will contract performance be measured?

• What social value outcomes should be considered?

These questions can help teams avoid selecting a route simply because it appears faster.

Making Supplier Choice Work Harder

One advantage of an open supplier model is the opportunity to maintain competition and encourage broader market participation. PfH notes that its routes can provide access to a broad supplier base, including SMEs and VCSEs.

However, more supplier choice does not automatically mean better procurement. Landlords still need clear requirements, consistent evaluation and effective contract management. The goal should be to create genuine competition while selecting suppliers that can deliver the required outcomes.

Do Not Forget Contract Management

The procurement process does not end when a supplier is appointed. Landlords should establish appropriate KPIs and review arrangements before the contract begins.

Depending on the service, these could cover quality, response times, completion rates, costs, resident satisfaction, compliance and social value. Regular performance reviews can help identify issues early and protect the value achieved through procurement.

Good contract management also creates useful information for future procurement decisions. Performance data can help teams understand what worked, where problems occurred and what should change next time.

Get More From Your Procurement Route

A DPS can provide flexibility and access to a continually refreshed supplier base, but its success depends on how well the procurement is planned and managed. Social landlords should start with a clearly defined requirement, understand the rules of the chosen route and maintain oversight throughout the contract lifecycle.

If you need a flexible procurement route for your housing requirements, Procurement for Housing (PfH) provides DPS solutions across areas including construction, capital works, compliance and decarbonisation. Their team can help members identify suitable routes and run competitions efficiently. Contact PfH to explore the solution that fits your organisation's requirements.