Dynamic markets are a public procurement tool introduced by the Procurement Act 2023 that let buyers build an open, ongoing list of pre-qualified suppliers to draw on for future contracts. They replaced Dynamic Purchasing Systems, and they are especially good news for smaller suppliers — because unlike a traditional framework, a dynamic market stays open for new suppliers to join at any time. This guide explains what dynamic markets are and how to use them to win work.
Dynamic markets are one of several purchasing routes under the Procurement Act 2023, alongside frameworks and open frameworks.
What are dynamic markets?
A dynamic market is a list of qualified suppliers who have met the buyer’s “conditions for membership” and are eligible to bid for future contracts. It can be divided into categories, called “parts”, so suppliers only compete in the areas they qualify for. Once you are a member, buyers can award you contracts by reference to the market.
The defining feature is in the name: dynamic markets must stay open. New suppliers can apply to join at any point during the market’s life, and there is no cap on the number of members. That openness is what sets them apart from fixed-membership frameworks.
Dynamic markets vs the old Dynamic Purchasing Systems
Dynamic markets evolved from Dynamic Purchasing Systems (DPS), but with important upgrades. The table shows the key differences.
| Feature | Old DPS | Dynamic market |
|---|---|---|
| What can be bought | Common, off-the-shelf goods and services | Any goods, services or works |
| Open to new suppliers | Yes | Yes, at any time |
| Award procedure | Restricted-style process | Competitive flexible procedure |
| Cap on members | No | No |
The biggest change is scope. The old Dynamic Purchasing System was limited to commonly used, off-the-shelf purchases. A dynamic market can cover any type of procurement, which makes it useful across far more sectors.
How dynamic markets work
The process is straightforward for suppliers. First, the buyer publishes a dynamic market notice setting out the scope, the conditions for membership, and any fees. Then suppliers apply, and the buyer admits those who meet the conditions and are not excluded. When the buyer needs to award a contract, it runs a competition among members using the competitive flexible procedure — the only procedure permitted for dynamic markets.
Membership works like a standing pre-qualification. Because members are already vetted, tenders from non-members are disregarded. However, buyers must still publish a tender notice to the whole market, so suppliers who are not yet members can apply to join in time to bid. Fees, where they apply, are usually charged only after you win a contract.
Why dynamic markets suit SMEs
Dynamic markets were designed to widen access, and that favours smaller firms. Because you can join at any time, you are never locked out for years waiting for a framework to reopen. Because there is no cap on members, niche specialists sit alongside larger vendors. And because the scope is broad, more of your services can be bought this way.
For an SME, the practical takeaway is simple: find the dynamic markets relevant to your sector and apply to join them. Membership puts you in the room for every future opportunity. Our tendering help for SMEs explains how to make the most of routes like this.
How to win through a dynamic market
Getting onto a dynamic market is only the start. To win the call-off competitions that follow, treat each one as a full bid. Read the conditions for membership carefully, keep your supplier information current, and prepare strong, evidence-led responses for the competitive flexible procedure. If you are new to public sector work, learn how to become a government supplier first. A professional bid writer can help you both join the right markets and win the contracts awarded through them.
Frequently asked questions
What is the difference between a dynamic market and a framework?
A framework has fixed membership for a set period. A dynamic market stays open, letting new suppliers join at any time with no cap on numbers. Dynamic markets also cover any type of purchase, whereas frameworks are established for defined requirements.
Are dynamic markets the same as Dynamic Purchasing Systems?
Dynamic markets replaced Dynamic Purchasing Systems under the Procurement Act 2023. They work similarly but cover any goods, services or works, not just off-the-shelf purchases, and contracts are awarded using the competitive flexible procedure.
Can I join a dynamic market at any time?
Yes. Dynamic markets must remain open to new suppliers throughout their life. You can apply to join whenever you meet the conditions for membership, and there is no limit on the number of members.
Do suppliers pay to be on a dynamic market?
Sometimes. Buyers may charge a fee, but for standard dynamic markets this is usually charged only after you are awarded a contract. The dynamic market notice sets out any fees in advance.
Get on the markets that win you work
Dynamic markets are one of the most accessible routes into public sector contracts. If you would like help identifying the right markets and winning the contracts awarded through them, our team can support you. Get in touch with Together: The Hudson Collective to start winning more, faster.
Source: GOV.UK — Dynamic Markets guidance. This article is for general guidance and does not constitute legal advice.