Dynamic Purchasing System
A dynamic purchasing system (DPS) is an electronic procurement tool that allows contracting authorities to make commonly used purchases efficiently while keeping the market permanently open to new suppliers. Unlike a framework agreement, which is closed once established, a DPS accepts new qualified suppliers throughout its entire duration. The DPS has grown significantly in popularity in Finland since the 2017 procurement reform, particularly for categories with many potential suppliers or rapidly evolving markets — temporary staffing, training services, consulting, transport, and certain goods categories. Finnish municipalities and central purchasing bodies increasingly favor the DPS over framework agreements because it promotes competition and market access, especially for SMEs and startups that may not have been ready when the original procurement was launched. For suppliers, the DPS offers a second chance: if you missed the original deadline or only recently entered the market, you can still apply to join and compete for future contracts.
Definition
A dynamic purchasing system is an entirely electronic procurement process for commonly used purchases, governed by Sections 49-52 of the Finnish Public Procurement Act (1397/2016), implementing Article 34 of EU Directive 2014/24/EU. The DPS operates in two phases. In the establishment phase, the contracting authority publishes a contract notice on Hilma (and TED for EU-level procurements) describing the categories of purchases, qualification criteria, and terms of the system. All economic operators that meet the qualification criteria and submit a valid request to participate are admitted to the DPS — there is no limit on the number of admitted suppliers, and no shortlisting or competitive ranking at this stage. In the ordering phase, for each specific purchase, the authority invites all suppliers admitted to the relevant DPS category to submit tenders in a mini-competition. The authority evaluates these tenders against criteria defined in the contract notice and awards the individual contract. New suppliers may apply to join the DPS at any time during its validity. The authority must evaluate new applications within 10 working days (extendable to 15 in justified cases). The DPS must operate entirely electronically — from application to ordering to contract award. There is no maximum duration prescribed by law, unlike framework agreements, though most Finnish DPS systems are established for four to eight years. The DPS may be divided into categories (e.g., by geography, specialty, or product type) to allow targeted mini-competitions. The authority may not charge suppliers for participating in the DPS.
Practical Example
A consortium of 15 Finnish municipalities establishes a DPS for temporary healthcare staffing services (CPV 79624000), divided into three categories: nurses, doctors, and physiotherapists. The DPS has a validity of six years. The contract notice on Hilma and TED specifies qualification criteria: valid healthcare professional registration in Finland, professional liability insurance of at least EUR 1 million, and compliance with the Posted Workers Act for non-Finnish staff agencies. Initially, 25 staffing agencies apply and are admitted. Over the following years, 12 additional agencies join as they enter the market or expand their service offerings. When a municipality needs temporary nurses for a four-week period, it runs a mini-competition among all admitted suppliers in the nurses category — currently 22 agencies. Each agency has five working days to submit pricing and staff CVs. The municipality selects the best offer based on criteria weighted 50% price and 50% staff qualifications. Individual contract values range from EUR 5,000 to EUR 200,000 depending on the assignment duration and number of staff.
Common Mistake
Suppliers sometimes miss the opportunity to join a DPS because they assume — incorrectly — that it is closed like a framework agreement. A DPS is permanently open to new entrants throughout its entire validity period. If you discover a relevant DPS that has been running for two years, you can still apply to join and participate in all future mini-competitions. The practical mistake is not monitoring Hilma regularly for active DPS notices in your field. Set up keyword alerts on Hilma for your CPV codes and check at least monthly. Another common error is submitting an incomplete participation request: ensure you provide all required qualification documents, as the authority must reject applications that do not meet the published criteria, and you will need to reapply with a complete submission.
Frequently Asked Questions
How does a DPS differ from a framework agreement?
The differences are significant in practice. A DPS remains permanently open to new suppliers throughout its duration, while a framework agreement is closed once established — no new suppliers can join. A DPS has no legal maximum duration, while framework agreements are generally limited to four years. A DPS must operate entirely electronically, while framework agreements may use traditional communication methods. A DPS always uses mini-competitions for individual purchases, while framework agreements may allow direct ordering from a single supplier or ranked list. A DPS admits all qualified applicants without limit, while a framework agreement can restrict the number of suppliers. From a supplier perspective, the DPS is more accessible — you can join at any time — but competition may be broader since more suppliers are typically admitted. From a buyer perspective, the DPS provides more flexibility and better market coverage but requires more active management of mini-competitions.
How quickly must a contracting authority evaluate new DPS applications?
Under Section 51 of the Procurement Act, the contracting authority must evaluate requests to participate within 10 working days of receipt. This period may be extended to 15 working days in justified cases — for example, when the qualification criteria are complex, when the authority needs to verify foreign certificates, or when an unusually large number of applications are received simultaneously. The evaluation deadline applies to each individual application from the date that specific application is received, not from a batch deadline. If the authority fails to evaluate within the deadline, the applicant should contact the authority to request a decision. Persistent failure to evaluate applications within the prescribed timeframe could constitute a procedural violation challengeable at the Market Court, though this situation is rare in practice.
Can a DPS be divided into categories?
Yes. Section 49 of the Procurement Act explicitly allows the DPS to be divided into categories of products, services, or works. This is a practical feature that improves efficiency for both the authority and suppliers. For example, a DPS for training services might be divided into categories like leadership training, IT training, language training, and safety training. Suppliers apply only to the categories relevant to their expertise. When the authority needs a specific training service, it runs a mini-competition only among suppliers admitted to that category, rather than inviting all DPS suppliers. Categories must be objectively defined and described in the contract notice. Each category may have its own specific qualification criteria in addition to general DPS-wide requirements. A supplier may apply to one or more categories at any time during the DPS validity.
Related Terms
Open Procedure
Learn how the open procedure works in Finnish public procurement. Any supplier can submit a tender without pre-qualification under hankintalaki 1397/2016.
Framework Agreement
Understand framework agreements in Finnish public procurement. How multi-year agreements with one or more suppliers work under hankintalaki 1397/2016.
Contract Notice
Learn about contract notices in Finnish public procurement. The official announcement published on Hilma and TED to invite tenders from suppliers.
Hilma Platform
Learn about Hilma, Finland's official public procurement notice platform. How to find and respond to procurement opportunities on hankintailmoitukset.fi.
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