5 Key Differences Between a DPS and a Framework Agreement

In public procurement, both Framework Agreements and Dynamic Purchasing Systems (DPS) help public sector buyers access vetted suppliers in a structured way. 

But while they share some similarities, the differences between them are critical - especially for suppliers looking to navigate the public sector effectively.

Understanding how each system works can help you prepare smarter bids, manage your time better, and unlock more consistent public business.

Here are the five key differences you need to know.

1. Openness: Fixed vs. Flexible Entry

Framework Agreements are closed systems. Once the framework is awarded, no new suppliers can join until it’s re-tendered - which usually happens every 2 to 4 years. 

The list of suppliers is locked from the start, making the initial bidding process highly competitive and strategically important.

Dynamic Purchasing Systems (DPS), on the other hand, are open throughout their lifecycle. Suppliers can apply at any time - as long as they meet the minimum criteria set by the buyer. 

This open-door approach is particularly beneficial for SMEs and new market entrants who may have missed the initial launch.

Why it matters:

Frameworks require long-term planning and a strong bid upfront. With DPS, there’s more flexibility to enter later, test the waters, or target niche opportunities. 

For suppliers that are still scaling or refining their offer, DPS provides more chances to break into public contracts without waiting years for the next window.

2. Selection Process: One-Time vs. Continuous

Frameworks require suppliers to submit full technical and pricing proposals during the tender phase. Buyers assess and score submissions based on a weighted evaluation - typically combining price, quality, sustainability, and added value. Once awarded, only those suppliers are eligible for contracts during the framework’s term.

In contrast, DPS uses a two-stage process. First, suppliers pass a simplified qualification check - usually covering financial standing, compliance, and basic eligibility. Then, each time a buyer has a requirement, a mini-competition is run where qualified suppliers bid based on scope, timing, and pricing.

Why it matters:

Frameworks front-load the work. Suppliers must invest heavily in their initial bid to be considered at all. With DPS, you only need to qualify once - but you'll need to stay alert and actively respond to each mini-competition to secure contracts. 

For agile teams with bid capacity, DPS can offer more consistent bidding opportunities.

3. Awarding Contracts: Complexity vs. Agility

Under a Framework Agreement, contracts can be awarded in two ways: through a direct award (if conditions allow) or via a mini-competition between suppliers on the framework. 

In some frameworks, pricing and service levels are pre-negotiated, which allows buyers to act quickly when needs arise.

With DPS, every contract must go through a mini-competition - no exceptions. Buyers cannot make direct awards. This ensures ongoing competition, better pricing, and higher transparency, but it also adds more effort and time on both sides.

Why it matters:

Frameworks offer faster turnaround once you're on the list, making them ideal for strategic partnerships or repeat needs. DPS ensures a level playing field with each new requirement but demands more continuous effort from suppliers. 

Businesses should assess whether they’re set up to respond quickly and consistently to mini-competitions.

4. Use Case: Specialized vs. Standardized Needs

Frameworks are best suited to more complex, strategic, or high-value procurement where buyer needs are clearly defined in advance. 

Think of IT infrastructure, consultancy frameworks, or construction partnerships. Buyers often need detailed pricing models, SLA commitments, and long-term delivery plans.

DPS is typically used for commoditized, frequently purchased, or short-notice services - like temporary staffing, cleaning, security, or repair services. These needs may arise with less predictability, so the buyer benefits from having a flexible, ready-made pool of suppliers who can respond quickly.

Why it matters:

For suppliers, this distinction is key. If your service is highly specialized, time-consuming to scope, or relationship-driven, a framework is often a better fit.

If you offer repeatable services or products that are regularly needed across departments, a DPS may offer more accessible and frequent opportunities to win business.

5. Technology Requirements: Static vs. Digital by Design

Frameworks can be managed through a mix of digital and manual processes. 

While many buyers now use eProcurement tools to manage frameworks, the law doesn’t require a fully electronic system. As a result, some frameworks still involve email-based submissions or limited automation.

DPS, however, is legally required to be fully electronic under EU procurement directives. The entire process - from supplier application to mini-competition and contract award - must be conducted through a digital platform. This promotes transparency, speed, and traceability.

Why it matters:

Suppliers entering a DPS must be ready to operate in a digital-first environment. 

That means managing tenders through portals, staying on top of alerts, and having quick access to documents and decision-makers. Tools like Mercell help streamline this, especially when the pace of mini-competitions can be demanding.

Conclusion

While frameworks and DPS share the goal of making public procurement more efficient, they operate in fundamentally different ways. Frameworks are competitive at the start and stable over time. DPS offers open access, flexibility, and ongoing competition. 

Each model has its strengths - and choosing the right one depends on your business model, service type, and internal capacity to bid.

If you're a buyer, understanding when to use a framework versus a DPS can impact not just compliance, but also supplier diversity, value for money, and speed to contract. If you're a supplier, choosing the right entry point - then executing with discipline - can be the difference between passive participation and active growth.

At Mercell, we help both sides navigate the complexity. From discovery and qualification to bid management and compliance, our platform supports your success whether you're working within a framework or a DPS. Because in public procurement, knowledge isn’t just power - it’s profit.

Need help choosing the right procurement path?

Get in touch or book a demo to see how Mercell supports both frameworks and DPS bidding.