How dynamic markets work and their benefits for the public sector
What is a dynamic market?
The Procurement Act 2023 introduces a new way for the public sector to buy goods and services, called a dynamic market. Think of it as a live list of suppliers who have already passed basic checks on finances, insurance and technical ability. Unlike a traditional framework, where the list of suppliers is fixed for years, a dynamic market stays open. New entrants can join at any point and suppliers who no longer fit can step away. That constant refresh makes it well suited to fast-moving areas such as planning software, where new providers and features appear every few months.
How dynamic markets work in practice
When your authority needs to place an order, you would invite every supplier on the list to bid, then choose the best offer. Procurement colleagues call this a call off competition and they will run it under the new competitive flexible procedure. Dynamic markets replace the older Dynamic Purchasing Systems that some councils may have used, and, unlike those, they are not limited to routine, low value goods. They can cover anything from cloud platforms to consultancy, provided the contract value is above a minimum level set by the Cabinet Office.
Taking advantage of dynamic markets
For a planning team the real attraction is breadth and agility. Because there is no cap on numbers, small startups and niche specialists can sit alongside the larger vendors already known to you, giving a wider choice and encouraging innovative ideas. Greater competition should also help budgets stretch further. Deciding whether to use a dynamic market rests with your commercial team and with Crown Commercial Service: they will weigh up how stable the supplier base is and how quickly products are evolving. If you are scoping a new case management system or a data sharing tool, ask your procurement lead whether a CCS (or other provider’s) dynamic market exists for that category; it could shorten timescales and open the door to suppliers you have not yet met.