Procurement is an essential part of any project. The resources you invest in can directly impact everything from budgets and time frames to the quality and longevity of the work carried out. For this reason, the public sector uses procurement tools such as Crown Commercial Service (CCS) frameworks to help them find suitable suppliers. These frameworks can simplify the tender processes, saving organisations time and money and providing peace of mind that all suppliers have passed pre-arranged checks and comply with pre-agreed terms and conditions.
The Dynamic Purchasing System (DPS) is one type of framework available through CCS, and it’s particularly popular due to the number of suppliers available. DPSs are straightforward to use and can significantly reduce procurement times, enabling procurement to be initiated in days rather than months. However, there are upcoming changes to procurement frameworks which organisations need to be aware of. From October 2024, DPSs will be replaced with Dynamic Markets, offering additional benefits to those undergoing the procurement process.
In October 2023, the landmark Procurement Act became law, and in the next few months, it will impact the way procurement is done. The new Procurement Act will come into force in October 2024 and replace existing rules, reforming how organisations tender suppliers for work. It’s intended to benefit both organisations planning projects and suppliers competing for contracts, particularly start-ups and small businesses.
The Procurement Act 2023 looks to modernise procurement processes, making it easier for the public sector to get the services they need. It will level the playing field for businesses competing for contracts, removing bureaucratic obstacles and allowing for a more diverse and competitive marketplace to benefit everyone. By using a centralised digital platform, it will be much simpler for organisations in the public sector and suppliers to work in partnership.
A dynamic market is a new tool that is set to replace DPS frameworks. In short, a dynamic market is a list of suppliers that meet predetermined conditions and are eligible to take part in future contracts. Dynamic markets are available for goods, services and works, and suppliers of all sizes can register their details to be used during the bidding process. The flexible nature of dynamic markets will allow suppliers to join at any time and there is no limit to the number of suppliers who can join. This new form of public sector procurement will open doors to smaller businesses in different industries that may have missed out with the previous framework.
Dynamic markets offer an ideal solution for public sector contracts, removing the limitations associated with the outdated framework. They provide an array of benefits for procurement, such as efficiency, inclusivity and increased flexibility.
While the DPS framework offers some flexibility, it has its inefficiencies, such as fixed registration windows and predefined categories, which can be limiting. In comparison, dynamic markets are more open and adaptable, enabling organisations to meet the real-time demands of their projects. They cover all procurement types and allow prospective suppliers to register their information at any time. This accessibility is vital for providing project managers with a broad range of options and giving all suppliers the chance to win contracts.
Dynamic markets also aim to provide a more streamlined and transparent procurement process, particularly when awarding contracts. This is essential to ensure fair opportunities for suppliers with varying levels of experience. The project requirements are clearer with dynamic markets too, allowing businesses to get a better understanding of what a contract entails and encouraging first-time bidders. By enabling smaller businesses to compete for contracts, new suppliers can start working in the public sector and building relationships for future work.
Replacing DPS frameworks with dynamic markets is also a great way to encourage innovation. With more suppliers able to compete for contracts, it opens the door for businesses to dig deep and find cutting-edge solutions. This type of innovation is not only beneficial for suppliers to win contracts but also for the public sector and upcoming projects.
At Barker, our skilled team is here to help you with the procurement process. We provide an end-to-end project delivery service, meeting the highest standards every step of the way.
Using our wealth of knowledge and experience, we can put together tender documents, outlining the needs of your project clearly and concisely. We can then help you get the best value for money when choosing a contract. We take great care to deliver a smooth and efficient procurement process, and you can trust our team to work in accordance with your time, budget and scope constraints. Barker is also appointed on several procurement frameworks such as ESPO, WME and Consultancy+, so you can rest assured you are in good hands when you turn to us for assistance with project procurement.
With our project delivery service, it’s not just procurement we can help with but the project planning, designing and building aspects too. To learn more about how we can assist you, get in touch with our team today.