Overview of Dynamic Purchasing Systems in Housing
Understanding DPS Setups
Dynamic Purchasing Systems (DPS) offer a flexible procurement approach for public sector organisations. These systems enable buyers to engage with pre-approved suppliers efficiently, whilst remaining open to new suppliers throughout their lifespan. Housing associations often find DPS useful for services like grounds maintenance, rubbish collection, cleaning and pest control.
DPS setups streamline the procurement process by pre-vetting suppliers, which saves time and resources. This makes them a practical choice for many public sector purchasing needs. Though some may view these systems as a last resort, they can provide good solutions with local suppliers when managed properly.
The True Value of DPS
DPS arrangements offer several key benefits:
- Reduced procurement costs
- Minimised compliance risks
- Streamlined processes
- More time for refining specifications
- Easier inclusion of local suppliers
These systems provide quicker routes for pre-market engagement, leading to better supplier relationships. They allow organisations to add new, qualified suppliers who meet quality and financial standards easily. This is particularly useful for including excellent local contractors who may not be part of existing frameworks.
DPS give organisations the flexibility to adapt to changing needs and market conditions. They create a dynamic environment where new suppliers can join at any time, ensuring access to the latest innovations and competitive pricing.
T&L Case Study: Effective Use of DPS for Grounds Maintenance
T&L guides clients on optimal procurement strategies, often recommending a DPS as an effective solution. Their approach includes:
- Comprehensive Audits
- Tailored Action Plans
- Contractor Engagement
- Detailed Options Appraisal
- Compliance and Support
T&L begins with a thorough audit to identify current issues. They then craft a detailed plan with short and long-term goals, updating specifications to meet client needs.
The team reaches out to existing and potential contractors to gauge market availability and costs. This informs a clear options appraisal for clients, outlining benefits and risks of different contractors, including DPS and framework options.
T&L ensures compliance through site visits, reference checks, and performance reviews. Their practical approach aims to attract the right contractors, boost competition, and secure the best service at competitive prices.
Benefits of T&L's Approach:
✓ Reduced procurement costs ✓ Lower risk ✓ Best-fit contractors ✓ Competitive pricing ✓ Tailored solutions
This method leads to lower procurement costs and reduced risks. It allows T&L and their social housing clients to focus on engaging top contractors that meet specific needs.
Future Outlook
DPS offer substantial benefits for procurement, especially for smaller contracts. These systems can help organisations achieve high-quality service levels and social value.
As new procurement regulations approach, it's important to recognise the potential of DPS agreements. They provide a flexible and efficient way to manage procurement needs, particularly in sectors like social housing where adaptability and local engagement are crucial.
DPS can play a key role in helping housing associations and public sector bodies meet their procurement goals while ensuring compliance and value for money. As the procurement landscape evolves, DPS are likely to become an increasingly important tool for organisations seeking efficient, compliant, and flexible purchasing solutions.
Prefer to discuss?
Contact us todayFrequently Asked Questions
How do DPS differ from traditional procurement frameworks for social housing?
Dynamic purchasing systems (DPS) are more flexible than traditional frameworks. They allow new suppliers to join at any time, unlike fixed-term frameworks. DPS also enable buyers to create custom specifications for each purchase. This gives social housing providers more choice and helps them adapt to changing needs.
What benefits do DPS offer housing associations for estate services?
DPS provide several advantages for housing associations:
- Increased competition amongst suppliers
- Ability to add new suppliers as needed
- More streamlined purchasing process
- Better value for money
- Easier compliance with procurement regulations
- Improved transparency in supplier selection
What is the supplier registration process for housing services DPS?
The typical steps for suppliers to register include:
- Complete online application form
- Submit required company documents
- Meet minimum criteria set by the housing association
- Undergo evaluation of technical/professional ability
- Receive approval to join DPS
- Maintain ongoing compliance with DPS terms
However, prior to this you need to understand what you need, generate interest with key local contractors, have discussions with relevant DPS organisations and find the right fit. Simply because the formal procurement is quicker, this does not mean best practice can be missed. You need to engage with contractors as part of your PME.
What are some DPS examples used by housing associations?
Common DPS used in social housing include:
- Repairs and maintenance services
- Construction works
- Professional services (e.g. surveyors, architects)
- Temporary accommodation provision
- Estate management services
- Cleaning services
- Grounds maintenance
- Energy efficiency upgrades
How does DPS Marketplace help with social housing estate services?
DPS Marketplace is an online platform that:
- Lists approved suppliers for various services
- Allows housing providers to run quick competitions
- Manages the end-to-end procurement process
- Provides templates for specifications and contracts
- Generates reports on spending and supplier performance
Social Housing Consultancy Support: Practical Steps to Improve
Thornton & Lowe offers a comprehensive range of services to housing associations, including support with estate services audits, procurement, and compliance. They help assess the effectiveness and efficiency of in-house and outsourced estate management functions through independent audits, identifying opportunities for improvement and cost savings. Their expertise includes managing grounds maintenance, communal cleaning, and pest control services, while also optimising service contracts. They assist in value-for-money assessments, procurement strategies, and compliance, ensuring housing associations meet industry standards and improve service delivery.
For more, visit Estate Services Audits.
