What is the difference between a framework and a Dynamic Market?
Both framework agreements and Dynamic Markets are procurement tools used by public sector organisations to streamline the buying process but there are underlying differences in terms of supplier access, flexibility, and the manner in which contracts are awarded. Here’s a simple breakdown:
Framework Agreement
A ‘framework agreement’ is a set contract between a buyer and one or more suppliers, typically lasting up to 4 years. Once the framework has been established, no new suppliers can join until it has been retendered. There are also pre-set terms in relation to pricing, service levels and other framework conditions. If buyers want specific contracts, they can start a mini-competition that involves running mini-tenders among approved suppliers. Although framework agreements offer stability and predictability, they may not be ideal if new suppliers or innovations arise in the process.
Dynamic Markets
Under the Public Procurement Act 2023 (PA23), the Dynamic Purchasing System (DPS) used under the previous Public Contracts Regulations 2015 has been replaced by a new tool called ‘Dynamic Markets’. Dynamic Markets are introduced as the successor to DPS under PA23. They function similarly to DPS in that they maintain a list of qualified suppliers who can join at any time, but they offer greater flexibility and can be used for a wider range of goods, services, and works than DPS allowed.
Dynamic Markets also come with enhanced transparency requirements, such as publishing a Dynamic Market Notice for every market created. Unlike DPS, Dynamic Markets cannot be used for below-threshold contracts, they are intended for higher-value procurements.