What Are Dynamic Markets?
A dynamic market is a new procurement tool introduced as part of the Procurement Act 2023 that creates a list of qualified suppliers eligible to participate in future procurements. In simple terms, it's a pre-approved list of suppliers that remains permanently open to new applications and can be used for purchasing goods, services or works (except for non-utilities concession contracts).
Dynamic Markets were officially implemented in February 2025 when the Procurement Act came into full effect.
Understanding Dynamic Purchasing Systems and Their Evolution
Before exploring Dynamic Markets, it's important to understand what they're replacing. A Dynamic Purchasing System (DPS) is an electronic procurement method for commonly used purchases that functions similarly to a framework agreement but allows suppliers to join at any time. Suppliers must complete pre-qualification questionnaires, which helps streamline the procurement process for buyers while providing easier access to opportunities, especially for new market entrants.
The Procurement Act 2023 replaces DPS with Dynamic Markets, bringing several important improvements. Unlike DPS, which was limited to specific goods and services commonly available on the market, Dynamic Markets can be used for any procurement type, including bespoke or complex requirements. They allow more flexible conditions for supplier participation, enabling buyers to better target suppliers that meet specific needs, provided these criteria remain reasonable and proportionate.
Transparency is improved through the requirement to publish a Dynamic Market Notice for every market created. The Procurement Act also provides greater certainty around Dynamic Markets compared to the previous ambiguities surrounding DPS. An important distinction is that Dynamic Markets cannot be used for procurements below the UK's thresholds – they're only for higher-value procurements.
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Contact us todayImpact on Main Contractors and Subcontractors
For main contractors looking to win public sector work, Dynamic Markets offer substantial advantages. The expanded procurement types allow contractors to bid for a greater variety of work, while specific supplier selection criteria enable them to showcase specialised skills. Contractors can apply to join at any time, eliminating the frustration of missing application windows that plagued traditional frameworks. No membership fees apply for joining standard Dynamic Markets.
One of the most practical benefits is the late application provision. If a contractor isn't already on the Dynamic Market when a tender is published, they can still apply to join and participate in that specific procurement, unless exceptional time constraints apply. This removes a significant barrier that previously locked out perfectly capable suppliers from bidding opportunities.
Subcontractors and SMEs stand to gain substantially from this new system. Being part of a Dynamic Market makes it easier for decision-makers to find specialised subcontractors at precisely the time they need them. The increased transparency allows smaller businesses to learn from both successful and unsuccessful tender bids, while the open structure makes these markets more accessible to organisations with limited time and resources.
For smaller businesses, the protections are particularly valuable. Conditions for membership must be proportionate to the contracts being awarded, with specific safeguards for SMEs. This stands in stark contrast to some procurement routes that can inadvertently exclude smaller players through onerous qualification requirements.
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How Public Sector Buyers Can Maximise Dynamic Markets
Dynamic Markets offer specific advantages for public sector procurement teams, but require thoughtful implementation. Buyers can set flexible conditions to identify suppliers that meet specific requirements, but should carefully consider the internal capacity needed to process applications throughout the market's lifetime.
There's no limit on supplier numbers, ensuring ongoing competition – a clear benefit for the public purse. However, since membership conditions cannot be changed once established, thorough initial planning is essential. This means buyers must think carefully about their needs not just for immediate procurements but for the entire lifespan of the Dynamic Market.
The procedural elements are streamlined compared to traditional procurement. Notices must be published at key stages: establishment, modification, and closure. The minimum tendering period is just 10 days, substantially accelerating the procurement process compared to other routes.
Utilities operators have their own variation – Utilities Dynamic Markets can charge membership fees and have more limited publication requirements. Additionally, no mandatory standstill period applies when awarding contracts under any Dynamic Market, further speeding up the process for time-sensitive projects.
Preparing for Implementation in 2025
With Dynamic Markets launching in February 2025, forward-thinking organisations on both sides of the procurement equation should prepare now. For buyers, this means assessing how Dynamic Markets could complement or replace existing procurement routes. Planning category structures ("parts") that serve specific procurement needs will help organise suppliers effectively and make future buying more efficient.
Since membership criteria cannot be changed once established, buyers must plan proportionate requirements with particular care. Public bodies should allocate sufficient resources to manage the ongoing application process, as this represents a continuing commitment rather than a one-off task.
Suppliers who stay alert for early Dynamic Market notices will gain a competitive advantage. The most successful will be those who understand how to position their offerings within this new framework and adapt their bidding strategies accordingly.
Dynamic Markets represent a significant enhancement to UK procurement, providing greater flexibility while maintaining fair competition and transparency. When properly implemented, they offer a genuine opportunity to improve public sector buying for all involved – but the key to success will be thorough preparation by both buyers and suppliers in the months leading up to implementation
How Thornton & Lowe Can Help With Dynamic Markets and Frameworks
Finding the Right Dynamic Markets and Frameworks
At Thornton & Lowe, we know that getting onto the right Dynamic Markets and frameworks matters for your public sector business growth. Our team helps you find and secure spots on procurement routes that match what your business does best.
We start by looking at your organisation's strengths and target sectors to spot the most suitable opportunities. Instead of chasing every framework, we focus on those that will actually bring you business. This focused approach has helped our clients win places on important frameworks like Crown Commercial Service, NHS SBS, ESPO, and various regional purchasing bodies.
With Dynamic Purchasing Systems changing to Dynamic Markets in February 2025, our advisors are already helping clients prepare. We'll explain the new qualification rules and what you'll need to submit before these changes happen.
Bid Writing for Framework Applications
Getting onto valuable frameworks needs more than just finding opportunities – you need strong, compliant applications that show what you can do. Our bid writing services include:
- Creating a framework plan that focuses on the most worthwhile opportunities
- Preparing pre-qualification submissions with solid evidence of your abilities
- Writing persuasive responses that meet the scoring criteria
- Improving your policies, procedures and supporting documents
- Managing your submission to ensure it meets all requirements and deadlines
Our bid writers know what different buying authorities look for and can tailor your application to meet their expectations. We've helped businesses in construction, professional services, healthcare, IT, and facilities management get onto profitable frameworks.
Getting Your Business Ready for Dynamic Markets
The shift to Dynamic Markets under the Procurement Act 2023 brings new challenges and chances for growth. Our advisors offer practical help to get your business ready.
We'll help you:
- Check and improve your company policies, accreditations and track record to meet entry requirements
- Write strong answers to common selection questions that you can adapt for different applications
- Build a collection of evidence that shows what your business can do
- Set up a calendar so you don't miss application deadlines
- Train your team on how the new Dynamic Markets will work
Support Throughout Your Time on the Framework
Our work doesn't stop once you get onto a framework. We keep supporting you to make the most of your position through:
- Updates about new contract opportunities
- Bid writing help for competitions within frameworks
- Reviews of your performance and feedback to strengthen future bids
- Information about framework renewals and new opportunities
With Thornton & Lowe as your bid partner, you'll benefit from our knowledge of public procurement and our history of helping businesses grow their public sector work. Contact our team today to discuss how we can help with your framework applications and get your business ready for Dynamic Markets.
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Contact us todayDynamic Markets FAQs: Essential Information for Buyers and Suppliers
General Questions About Dynamic Markets
What is a Dynamic Market under the Procurement Act 2023? A Dynamic Market is a list of qualified suppliers who have met specific "conditions for membership" and are eligible to participate in future procurements. It replaces the previous Dynamic Purchasing Systems (DPS) and qualification systems. Dynamic Markets must remain open to new suppliers at all times and can be used for all types of purchases except non-utilities concession contracts.
When will Dynamic Markets come into effect? Dynamic Markets will be officially implemented in February 2025 when the Procurement Act 2023 comes into full effect.
How do Dynamic Markets differ from the previous Dynamic Purchasing Systems? Dynamic Markets offer wider scope than DPS, which were limited to commonly used purchases. Dynamic Markets can be used for any type of goods, services or works procurement. They also provide greater clarity around how they operate and offer more flexibility in setting conditions for supplier participation.
Can Dynamic Markets be split into categories? Yes, Dynamic Markets can be divided into categories or "parts" as the Act refers to them. Suppliers can be qualified for specific parts of the market rather than the entire market. Categories might be defined by value ranges, geographic areas, or specific types of works, services or supplies.
Questions from Public Sector Buyers
How do I set up a Dynamic Market? To establish a Dynamic Market, you must:
- Publish a Dynamic Market Intention Notice with conditions for membership
- Process supplier applications
- Conduct conflict assessments for applicants
- Accept suppliers who meet conditions and aren't excluded
- Inform suppliers of application outcomes
- Publish a Dynamic Market Establishment Notice
Can I limit the number of suppliers on a Dynamic Market? No, you cannot limit the number of suppliers that can join a Dynamic Market. All suppliers that meet the conditions for membership and are not excluded must be admitted.
Can I change the conditions for membership once the Dynamic Market is established? No, the conditions for membership cannot be changed during the life of a Dynamic Market. This ensures fairness to all suppliers regardless of when they join. However, you can modify other aspects such as how the market operates, the goods/services it covers, and which contracting authorities can use it.
Can I charge fees to suppliers on a Dynamic Market? Yes, but only to suppliers who win contracts through the Dynamic Market. Fees must be set as a fixed percentage of the estimated value of awarded contracts and must be clearly stated in the documents establishing the Dynamic Market.
Can I use a Dynamic Market for below-threshold contracts? No, Dynamic Markets can only be used for above-threshold contracts. This is because suppliers have already been assessed based on suitability to become members of the market, and below-threshold contracts cannot be restricted by reference to a supplier's suitability.
How do I award contracts under a Dynamic Market? You must use the competitive flexible procedure and publish a tender notice. The notice must state that the contract will be awarded by reference to suppliers' membership of the Dynamic Market. Direct awards are not permitted under Dynamic Markets.
What's the minimum time limit for suppliers to respond to opportunities under a Dynamic Market? The minimum period for submission of tenders is 10 days, though you should consider allowing longer to enable new suppliers to apply to join the Dynamic Market.
Do I need to observe a standstill period when awarding contracts under a Dynamic Market? There is no mandatory standstill period when awarding contracts under a Dynamic Market, though you may choose to apply a voluntary standstill.
Questions from Suppliers
How do I join a Dynamic Market? You can apply to join a Dynamic Market at any time during its life by submitting an application demonstrating that you meet the conditions for membership. The contracting authority must consider your application within a reasonable time and inform you of the outcome.
If I'm not already on a Dynamic Market, can I still bid for contracts advertised through it? Yes. If you see a tender notice for a contract being awarded through a Dynamic Market that you're not currently on, you can still apply to join the Dynamic Market. If your application is successful, your tender for the contract can be considered. This allows new suppliers to participate in ongoing procurements.
Will I be charged fees to join a Dynamic Market? For standard Dynamic Markets, you cannot be charged simply for membership. Fees can only be charged if you are awarded a contract, and these must be a fixed percentage of the contract value. However, utilities Dynamic Markets can charge fees for obtaining or maintaining membership.
What happens if I no longer meet the conditions for membership? A contracting authority may remove you from a Dynamic Market if you no longer meet the conditions for membership or if you become an excluded or excludable supplier. Before removing you, they must inform you of the decision and the reasons. You can reapply if your circumstances change.
How will I know about contract opportunities under a Dynamic Market? All contract opportunities under a Dynamic Market must be openly advertised through a published tender notice. This ensures that both existing members and potential new suppliers can see these opportunities.
Can I be on multiple Dynamic Markets at the same time? Yes, there's no limit to the number of Dynamic Markets you can join, provided you meet the conditions for membership of each.
What information will I need to supply when applying to join a Dynamic Market? You'll need to demonstrate that you meet the conditions for membership, which may include evidence of your legal and financial capacity and technical ability to perform contracts. However, contracting authorities cannot require:
- Audited annual accounts if you're not legally required to have them
- Insurance related to contract performance to be in place before joining the market
Utilities-Specific Questions
How do Utilities Dynamic Markets differ from standard Dynamic Markets? Utilities Dynamic Markets have some key differences:
- They can be used for concession contracts that are also utilities contracts
- They can charge fees for obtaining or maintaining membership
- When established under section 40, tender notices are only provided to suppliers on the market, not published publicly
Can non-utility contracting authorities use a Utilities Dynamic Market? No, a Utilities Dynamic Market can only be used for awarding utility contracts by utilities. A public authority cannot set up a Utilities Dynamic Market for its own use unless the goods/services/works are primarily for a utility activity.
Framework vs Dynamic Market Questions
What are the main differences between Dynamic Markets and Frameworks? Unlike frameworks, Dynamic Markets:
- Must remain open to new suppliers throughout their lifetime
- Do not result in the award of a public contract when established
- Cannot be used for direct awards
- Require a competitive flexible procedure for all call-offs
- Cannot be used for below-threshold contracts
Can I directly award contracts under a Dynamic Market like I can with some frameworks? No, direct awards are not permitted under Dynamic Markets. All contracts must be awarded following a competitive flexible procedure.
