For those new to Dynamic Purchasing Systems – we know that they can seem a little confusing. Here we’ve answered your most common questions on the model and how it works.
What is a Dynamic Purchasing System (DPS)?
A DPS is an arrangement where an organisation (in our case SEC) identifies a list of suppliers who are able to deliver certain works or services. Our DPS has been designed to cover responsive repairs, voids and planned maintenance works.
When we set up a DPS, we set a selection criteria the suppliers must adhere to in order to join. The selection criteria is focussed on the suppliers economic stability, insurance levels and any exclusion grounds stated in the selection questionnaire. We have not evaluated their value for money and so all call-offs from the DPS are via further competition – this means that you’ll be able to assess a suppliers quality and value compared to your specific requirements. You will need to provide the specification, cost model, evaluation criteria and contract as part of the tender process. If you need any help with these, our technical team are on hand to help you get “procurement ready”.
Our DPS is live for five years. Suppliers can join, or leave the DPS, at anytime during this five years. Whilst live, customers are able to “call-off” individual contracts from the model.
Any publicly funded body can use our DPS – this includes housing associations, local authorities, universities and NHS bodies.
What's the difference between a DPS and a traditional framework agreement?
A Dynamic Purchasing System is similar to a framework but the important difference is that suppliers can join (or leave) at any time. This makes it easier for you to include local, or known contractors in your procurements.
We’ve produced some guidance for contractors looking to join the DPS – How to join our Dynamic Purchasing System (DPS) – South East Consortium.
Do I need to invite all contractors on the DPS to tender for my project?
In short the answer is yes – you must invite all current DPS contractors from the Lot you are choosing to tender from. However, our average number of tender returns for a project through the model is 6 bids. This is because the DPS includes specialist contractors and SMEs across the South East. Not all the contractors on the list will be able to deliver your project. Whilst we cannot guarantee the number of bids we’ll receive, responses will differ based on your requirements, supplier capacity and how attractive your tender is to prospective bidders.
Skills Matrix – we’ve developed a skills matrix for our Planned Maintenance DPS. This will show you how many contractors on the DPS can carry out the works you’re looking for. This will give you a better understanding about the likely number of tender returns. Please contact us today if you’d like to see the current list.
What is a Further Competition?
A ‘Further Competition’ from a DPS is the same as a “mini-tender” from a traditional framework. In a ‘Further Competition’ you’ll be able to use your own specification and cost model. You can also choose your own cost / quality split and quality questions.
How long will this take me? Approximately 6-8 weeks depending on your internal approval processes.
Is the DPS free to access?
There is no access fee to use our DPS.
For projects over £150,000 a levy % dependant on whether you are a guest or member is collected directly from the contractor once a call off contract is awarded. The levy operates on a cascade system – with the % charge decreasing in line with contract spend.
For projects £150,000 or less we will charge a fixed levy to the successful contractor. This is £500 + VAT for support with a price only evaluation and £2,250 + VAT for price and quality evaluation support. No money is charged to you as the customer. And, the contractor has to take account of the cost when putting their bid together.
How can a DPS help with Section 20 Consultation?
If your project requires consultation with leaseholders, using our DPS provides a convenient solution and a compliant route to market.
Once you have served your Notice of Intention, you may receive nominations for contractors that your leaseholders want to bid for the opportunity. Once you have verified they are suitable to bid, you can advise them to join the DPS. We’ve made it very easy and simple for a contractor to join. We will run through our processes and conduct simple checks and then formalise the contractor joining the DPS, which can be carried out in as little as 2-3 weeks. Then you can procure your project through the DPS as we will advertise it on the relevant lot, where the previously nominated contractors can see the opportunity and provide a bid, along with other contractors on that lot.
As the DPS is open to receive new contractors throughout it’s life, you can ask suppliers to join for any number of projects that you are intending to procure and this will provide a compliant route to market that also follows the requirements of leaseholder consultation
