Dynamic Purchasing Systems

A dynamic purchasing system is an electronic process for making commonly used purchases having characteristics that meet the requirements of the contracting authority

A dynamic purchasing system is electronically operated. It is used for the purpose of commonly purchased products. They should be products which are generally available in the market and have standard specification.

The purchasing system should be of limited duration and open during its period, to any business which satisfies the selection criteria and has submitted an indicative tender complying with the specification. The cost of running the system are undertaken by the authority. In order to set up a dynamic purchasing system, the authority must follow the open procedure rules through the various phases to the award.

The contracting authorities must:

  • publish a contract notice with intention of setting up a dynamic purchasing system;
  • indicate the nature of the purchases envisaged as far as well as necessary information concerning the system, electronic equipment and technical connection arrangements;
  • offer by electronic means access to the specifications and any additional documents.

Electronic means must be used. Each business admitted to the purchasing system must be treated equally.

The conduct of the purchasing system is subject to certain rules. The time for receipt of tenders must be specified. Data access must be detectable. Access to data submitted must only be possible through simultaneous action by authorized persons. Access may only be given after the prescribed date.

Operation of System

The dynamic purchasing system must not last for more than 4 years other than where justified for exceptional reasons. Admission into the system is subject to requirements:

  • meeting and the satisfying selection and qualification criteria;
  • submitting indicative tender which complies with the specification or additional document.

Businesses that have met the selection and qualification requirements must be allowed to submit indicative tenders and be eligible to be admitted to the system.

A simplified contract notice must be issued inviting interested businesses, who have been admitted into the purchasing system to submit an indicative tender within 15 days of the date when the notice is served. The authority may not proceed with the tendering until it is has completed an evaluation of the indicative tenders received by the deadline.

The indicative tenders may be improved at any time provided they continue to comply, Authorities must complete the evaluation of indicative tenders within 15 days of submission. This may be extended.

Individual contracts awarded under the system must be the subject of an invitation to tender. After evaluating the indicative tenders and admitting businesses into the dynamic purchasing system, it must invite tenders from those admitted for each specific contract to be awarded.

The time limit for tenders is set by the contracting authority. The evaluation should be on the basis of the award criteria in the contract notice. The award must reflect the best tender on the basis of the criteria.

Electronic Auctions

Electronic auctions are repetitive processes involving prices or new value. After an initial full evaluation of tenders, enabling to be ranked using automatic evaluation methods. They are suitable only for certain types of purchases.

In an open, restricted or negotiated procedure, the awarding authority may decide the award should follow in the electronic auction. The specifications must be capable of being established precisely. The specifications must include certain details.

Prior to the electronic auction, the authority must evaluate tenders in accordance with the award criteria. Tenderers who are admitted or invited simultaneously by electronic means to submit new prices or value. They must, each must receive all relevant information. The auction may take place in a number of successive phases.

The invitation must set out the formula for use to determine rankings on the basis of new price or value. It must incorporate a weighting of criteria to determine the most economically advantages tender as indicated in the contract notice or specification.

During the phases of the auction, the authority must simultaneously communicate to all tenders at least sufficient information to enable them to ascertain their relative ranking.

They may also communicate information concerning other prices or value submitted provided that this is stated in the specification. They may announce the number of participants in that phase of the auction. They may not disclose the identity of other tenderers.

Closing the Auction

There are a number of ways in which an electronic auction may be closed. This may be defined as a particular date and time. It may be closed when participants do not furnish any more new prices or value meeting the requirements concerning minimum differences. In this latter event, the authority must state in the invitation, the time it will allow to lapse after receiving the last submission before it closes the auction.

Another alternative is the auction may be closed when the number of phases has been completed. The closure must be based on an indication in the timetable of each phase, which must also be stated in the invitation.

After closure, the award must be made on the basis of the result. The award must be on the basis of price or the most economically advantages tender based on the value of the features indicated in the specification.


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