As procurement regulations change - the single most important change in a decade to the existing Public Contract Regulations 2015, there are a number of important changes - not least the creation of the Dynamic Marketplace….. So what is it…..?
Alongside frameworks and open frameworks, they are one of three mechanisms contracting authorities can use to create a pool of pre-approved suppliers before going out to tender for new work. They are a development of the principles established by DPS’s - which will remain - though have been severely under-utilised in recent years though have gained popularity recently to overcome restrictions in traditional frameworks.
So what’s the difference - well unlike DPS’s which are created to obviate issues with predicting innovation in Public Sector supply - given they have to be established years in advance, DPS’s were/are the mechanism to allow innovative suppliers to enter the market - the problem is - they are still ‘scripted’ - have closed boundaries and are specific - they are designed to facilitate the procurement of ‘specific goods & services’….. Dynamic Marketplaces on the other-hand move this along the path and can be created for ALL procurement types and are OPEN to all suppliers throughout their lifetime - and they can be created at ANY TIME!!
Once a Dynamic Market goes live: (Just like DPS’s!):
- Suppliers can apply to join the Dynamic Market at any point during its lifetime. The contracting authority must assess all applications and notify them of their status within a reasonable timeframe - Just like a DPS and typically within a month!!)
- There is no limit to the maximum number of suppliers who can join a Dynamic Market. (Just like a DPS)
- Note: as in all tenders - the contracting body may/will apply fees to be charged to suppliers after they're awarded a contract via the Dynamic Market.
Of note - there are subtle differences wrt the Utilities Directive:
- No public announcement of intended tenders - can be restricted to ‘incumbent suppliers.
- Fees work differently - can be charged when awarding a contract AND when obtaining or retaining market membership!!
