Supplier guide to Dynamic Markets: what they mean for you

If you deliver services to the public sector, you’ve probably heard the term “Dynamic Market” mentioned over the last year or so. It’s a new procurement route introduced by the Procurement Act 2023, and it’s genuinely worth understanding as it changes how contracting authorities can work with you. 

In this supplier guide to Dynamic Markets, we run through what a Dynamic Market (DM) actually is, what’s changed under the new procurement regulations, and how you can get involved in ours.

What is a Dynamic Market? 

A Dynamic Market is essentially a list of approved suppliers that housing associations, local authorities and other contracting authorities can draw on to award contracts through a further competition. It’s like a traditional framework, but with one big difference: how you join.  

Rather than bidding at a single point in time through a full tender process, you can apply to join a Dynamic Market any time. The contracting authority will check you against their set of conditions of membership. This includes things like technical ability and financial capability – if you meet them, then your application is accepted.  

The big difference is it doesn’t close to new applications 

Unlike a framework, a Dynamic Market stays open for the whole of its lifetime, right up until the contracting authority decides to end it. New suppliers can join at any point and aren’t locked out for four years until a framework is re-procured.  

If you’ve ever missed a framework tender window and had to wait years for the next one, this is the change that matters most to you. With a Dynamic Market, that door doesn’t shut. You can apply when you’re ready, and once you’re on, you’ll be notified of relevant opportunities when they come up.  

What’s changed under the Procurement Act 2023 

Dynamic Markets have replaced the old Dynamic Purchasing Systems (DPS’s) that existed under the previous regulations. Any DPS still running can only continue until February 2029.  

A few things are different that are worth knowing:  

• DMs have a wider scope: DPSs were limited to off-the-shelf, standardised goods and services. Dynamic Markets can cover a boarder range of goods, services and works – so there’s more opportunity to get involved.  
• A financial threshold applies: Contracts below the services threshold of £207,720 can’t go through a Dynamic Market. This means smaller projects will still go through traditional frameworks or one-off tenders or the ‘Request for Quotation’ (RFQ) approach.  
• Preliminary Market Engagement (PME) can help you understand the tender before you apply to join: If you take part in PME for a specific tender but aren’t yet on the Dynamic Market, you can apply to join and be considered alongside existing members. Getting involved early in PME is a genuine way to understand if the contract is one you’re interested in before applying.  
• There’s more visibility for suppliers: Contract award and contract notices now must be published in line with standard requirements, so there’s more transparency over what’s being awarded, and to which suppliers.  

Why joining a Dynamic Market is worth your time 

The open, ongoing nature of a Dynamic Market is the headline benefit for suppliers. You're not competing for a handful of slots that only come up once every four years. You can apply whenever you're ready, and opportunities advertised through the market are visible to the wider supply chain too...so it's a genuine, ongoing route to new work. 

SEC's Dynamic Markets are open now 

We've already launched two Dynamic Markets for our members: Facilities Management and Repairs & Maintenance. Both are open for new suppliers to apply. 

If you'd like to know more or want to understand whether you meet the conditions of membership, please get in touch - our team's happy to talk you through the process. 

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