Framework Agreements and Dynamic Purchasing Systems: What Suppliers Need to Know

When you first enter the public procurement market, you might start with standard tenders. But then, you suddenly run into an announcement for a framework agreement or a dynamic purchasing system (DPS). At first glance, it can leave you feeling a bit lost.

The Public Procurement Law provides a completely different, much more flexible approach here. It is the perfect solution when buyers deal with recurring purchases or simply cannot pinpoint the exact final scope of an order at that moment.

In this public procurement supplier guide, you will learn exactly how to prepare step-by-step for framework agreements and dynamic purchasing systems (DPS). You will also discover how to steer clear of tricky formal traps using Minerva and successfully win profitable public contracts.

How do these two mechanisms work in practice?

Both a dynamic purchasing system and a framework agreement procurement structure operate like an open invitation to a long-term partnership. Instead of organizing a separate, full-scale tender for every single minor item, the contracting authority sets up a framework to use over an extended period.

Imagine a sprawling infrastructure, like the Warsaw University of Technology, with dozens of buildings scattered across the city. A university like that needs to carry out routine maintenance and operations work on a regular basis.

After all, no one runs a separate tender for 15 bricks, a bag of floor adhesive, or a few liters of white paint. Based on historical data, the buyer knows they will spend, for example, 1.5 million euro on renovation materials over the next two years. Instead of wasting time on paperwork for every single paintbrush, they use a dynamic purchasing system.

If their own in-house maintenance crew paints one department this quarter and another the next, the buyer simply purchases the necessary off-the-shelf products on the go from suppliers who already qualified for the system. As a contractor, you go through the verification process once, and after that, you regularly respond to quick requests for quotes without having to navigate the entire heavy tendering machinery all over again.

What is a framework agreement – from a contractor's perspective?

So, what is a framework agreement? In short, it is an agreement between a contracting authority and one or more contractors that sets out the terms and conditions for future contracts. However, being awarded a framework agreement is not the same as receiving an actual order. It is only the first stage of cooperation – specific tasks are assigned later through what are known as call-off contracts.

Therefore, you need to keep one key rule in mind. A public procurement framework agreement gives you the opportunity to win contracts, but it does not guarantee their overall volume or value. Getting onto a framework simply means your company is "in the game." However, it is the subsequent mini-competitions or invitations to quote that will ultimately decide whether you actually get the job.

For companies just starting out in tendering, this is often an excellent way to begin working with a public sector buyer. The risk is significantly lower than with a classic contract for a single, specific project.

On one hand, you have no absolute guarantee that call-off orders will come your way. On the other hand, you do not commit yourself upfront to delivering a massive, fixed volume of work or supplies. If, after the first order, you realize the cooperation is not meeting your expectations, you are not locked into delivering further orders in the way you would be under a standard, rigid contract.

Framework agreement in practice – a real-life example

Let’s imagine a buyer who manages multiple properties, such as various public administration offices. Instead of organizing a brand-new tender every single time a room needs repainting, an electrical system needs fixing, or minor renovation work is required, they sign a framework agreement with selected contractors. This allows them to rely on pre-approved, reliable companies over a set period, assigning specific tasks through simplified call-off contracts.

This setup can be highly beneficial for you as a contractor, too. Once you get to know the specifics of the properties and the buyer’s requirements, you can put together quotes much faster and handle subsequent jobs more efficiently. Still, keep in mind that each call-off order requires its own separate arrangements, and the total number of jobs will depend entirely on the buyer's actual needs.

The best way to think of a framework agreement procurement setup is as a promising business partnership. When planning your business pipeline, it is best not to view a framework agreement as a guaranteed revenue stream, but rather as a highly valuable foot in the door for long-term cooperation with a public buyer.

How a dynamic purchasing system works – step by step

While many myths surround purchasing procedures, the reality of this particular setup is incredibly business-friendly. To understand how a dynamic purchasing system works, it helps to let go of traditional tendering mindsets. The entire process relies on a highly streamlined formal pathway that can be broken down into four simple steps:

1. Indicative tender. You submit an initial declaration of your interest in joining the system, along with documents proving you meet the participation criteria.
2. Qualification. The buyer verifies your documents and adds you to the list of approved contractors within the system.
3. Simplified notice. When a specific need arises (like the paint or floor adhesive mentioned earlier), the buyer sends out a quick invitation to all qualified companies.
4. Final bid. You submit your actual price and terms for that specific micro-order.

The single most important feature distinguishing a DPS procurement model from a classic framework agreement is its absolute openness. In a framework agreement, the list of contractors is locked in right at the start. If you miss that initial deadline, you are out of the game for years. A dynamic purchasing system works completely differently. It remains open throughout its entire duration. This means you can join at any point, even a year or two after it was launched.

Does entering the game later put you at a disadvantage?

When a system is first launched, early contractors do have a slight edge because they can ask questions and actively shape the initial rules of play. When you join later, you simply have to accept the rules that are already in place.

However, considering how digitized the market is and how strict the transparency standards are, no one is dealt a worse hand. Qualification criteria are clearly defined, and the system's design completely eliminates arbitrary decision-making. You submit your subsequent micro-bids 100% electronically, often through quick reverse auctions where you simply click and enter your prices in the system. The playing field is level for everyone, keeping things completely transparent for new players from start to finish.

Framework agreement vs. DPS – differences that influence the "to bid or not to bid" decision

Both a public procurement framework agreement and a dynamic purchasing system share one major trait: simply qualifying for the system does not guarantee that actual orders will come your way. However, that is largely where the similarities end.

The biggest difference lies in who you will be competing against for subsequent call-off contracts. In a framework agreement, the group of contractors is locked in once the initial procedure wraps up. If the buyer signs an agreement with a few select companies, they will choose the contractor for all future delivery orders exclusively from this pre-approved pool. This means no new competitors can enter the arena while the agreement is active.

For a contractor in a dynamic purchasing system, the scenario looks quite different. Because the system remains open throughout its entire lifespan, new companies can join at virtually any moment, provided they meet the participation criteria. Consequently, your competition is never static. The contractor delivering goods or services today might face a larger pool of rivals when the next order comes around.

Framework agreement vs. DPS – key differences

Which option pays off more for you as a contractor?

There is no single answer to this. As a contractor, you do not get to decide whether a buyer uses a framework agreement, a dynamic purchasing system, or any other procurement procedure. That decision rests entirely with the contracting authority, guided by their specific purchasing needs and the provisions of the Public Procurement Law. Your role is simply to evaluate whether participating in a given procedure makes solid business sense for you.

However, it is worth keeping in mind that both framework agreements and DPS setups offer you far greater flexibility than a classic contract signed after a standard tender. If, after completing the first call-off order, you realize that costs have gone up, something was underestimated, or your company's situation has shifted, you can simply choose not to bid on subsequent orders. Doing so does not carry the harsh consequences typical of classic public procurement contracts, where you are legally bound to deliver the entire scope of the project.

That said, if we compare the two directly, a framework agreement offers much more predictability regarding your competition. Once you qualify and make it into the approved pool of contractors, you know exactly who you will be competing against for the entire duration of the agreement. A DPS does not give you this advantage. With every new order, new contractors can join the system and potentially submit a more competitive offer.

Ultimately, both solutions should be viewed as great opportunities to get your foot in the door with a client and build long-term business relationships. They are best treated as efficient pathways to bid for projects rather than a guaranteed, steady contract portfolio from day one.

Being a contractor in a dynamic purchasing system – opportunities and real traps

Trap #1: You are in the system, but the orders are missing

Your first reality check can be quite painful. You go through the entire procedure, gather all the paperwork, and receive the official confirmation: "Congratulations, you have qualified." Naturally, you think: "Great, let's pop the champagne, the orders will start rolling in on their own." Unfortunately, that is not how it works. The mere fact that you are active as a verified contractor in a dynamic purchasing system simply means you have earned the right to compete for specific contracts.

The buyer gives you absolutely no guarantee that they will buy anything from you specifically. They only guarantee that they will invite you to submit actual bids. If other competitors within the system drastically slash their prices, you might end up sitting on the bench for the entire duration of the DPS procurement process.

Trap #2: A race against time – the pressure of tight deadlines

In a classic tender, you have plenty of time to plan your strategy and calculate your costs. Here, once the system is up and running and the buyer submits a specific request, the clock starts ticking fast. The deadlines for submitting your final bid can be incredibly tight. If your company does not have streamlined, lightning-fast pricing procedures in place, you simply will not make it in time to submit the form in the system.

Trap #3: The digital leash and constant readiness

Forget about checking the procurement platform once every two weeks. A DPS requires you to be fully and constantly ready online.

First of all, a valid, working qualified electronic signature is an absolute must. Wanting to submit a bid on Friday at 3:00 PM only to realize your certificate just expired is the most common, mundane mistake, and it will instantly eliminate you from the game.

Secondly, you have to keep your finger on the pulse and constantly monitor system notifications. Missing a single email or platform alert means a lucrative micro-order will pass you by.

Trap #4: The indicative tender that becomes an anchor

This is probably the biggest and most deceptive legal and business trap. When submitting your indicative tender at the very beginning, you declare certain frameworks, parameters, or product ranges. Many business owners treat this step half-heartedly, thinking: "It’s just an initial declaration, we’ll figure it out later." This is a massive mistake.

Your indicative tender can easily become a binding anchor for future call-off orders. If you initially declare the availability of a specific equipment model or material specifications, and a year later market prices skyrocket or that product is discontinued, the buyer can still legally hold you to your original declaration. Every single mistake made during the "indicative" stage will follow you around for the entire lifespan of the system.

Practical recommendations for supplier preparation

If we had to reduce the entire preparation process to a single piece of advice, it would be this: don't make assumptions. Review every document from the outset and ask questions whenever something is unclear.

Framework agreements and Dynamic Purchasing Systems are often seen as "flexible" procurement procedures where the finer details can be sorted out later. In reality, that's one of the quickest ways to run into problems. While these mechanisms are more agile than traditional tenders, public procurement rules leave very little room for costly assumptions or oversights.

The recommendations below can serve as a practical supplier guide public procurement teams can follow to prepare effectively, make the most of these opportunities, and protect their business.

Analyse the documentation with Minerva – then apply your own business context

Manually working through hundreds of pages of procurement documents every time a new DPS opportunity appears is no longer an efficient use of time. Tools built specifically for public procurement, such as Minerva, can help you review documentation much faster and identify details that are easy to overlook:

• Upload the full set of documents and let AI highlight hidden requirements, inconsistencies, or clauses that deserve closer attention
• Use Minerva's AI chat to quickly verify eligibility criteria, contract conditions, or specific provisions.

That said, AI should support your analysis, and not replace your judgement. The same opportunity that represents a profitable contract for one supplier may be commercially risky for another, depending on available resources, operational capacity, or pricing strategy.

Real-life example: imagine you supply construction materials. A framework agreement refers simply to deliveries "within the city". Minerva identifies an attachment specifying that deliveries must be made to 15 different university locations, many of them in restricted access areas or paid parking zones.

If you overlook this detail and price transport based on your standard delivery costs, while operating with only a single vehicle, receiving three simultaneous call-off orders across different parts of the city could quickly turn a profitable contract into a logistical and financial burden.

Keep key documents ready and organise your team

Because response deadlines under a Dynamic Purchasing System are often extremely short, your team cannot afford to start preparing documentation from scratch every time an opportunity appears.

Maintain an up-to-date library of standard documents, including references, company registration extracts, tax and social security certificates, quality certifications, and any other documentation that is regularly required. Keep everything organised, current, and ready for submission.

It's equally important to establish a rapid response process.

Assign one person to monitor procurement platforms and alerts daily, while ensuring that another team member (or a designated decision-maker) can approve pricing and commercial decisions within hours rather than days. In a DPS, speed is often just as important as price.

Close information gaps by asking questions early

What should you do if a framework agreement does not clearly define all the conditions that will apply to future call-off contracts?

Many suppliers hesitate to ask questions because they worry it may appear unprofessional or discourage the contracting authority. In practice, seeking clarification is both expected and encouraged.

If you identify unclear provisions or potential commercial risks – such as undefined delivery timeframes for future orders or ambiguous contractual penalties – raise them before submitting your application or tender. The clarification stage exists precisely to ensure that suppliers understand the rules before committing to them.

A simplified procurement process should never mean accepting uncertainty. The better you understand your obligations from the outset, the more accurately you can price your offer, assess commercial risk, and deliver the contract profitably.

Framework agreements and Dynamic Purchasing Systems as an effective way to secure public contracts

Both a public procurement framework agreement and a dynamic purchasing system can make it significantly easier for suppliers to participate in the public procurement market. In both cases, there is no need to go through a full tender procedure from scratch for every new contract. Instead, contracting authorities award call-off contracts under a mechanism that has already been established.

A framework agreement offers greater predictability in terms of competition, as the pool of suppliers is fixed once the agreement is in place. Meanwhile, a dynamic purchasing system provides greater flexibility and remains open to new suppliers throughout its lifetime.

However, this also means that existing participants must be prepared to compete with new entrants whenever contracts are awarded. Before deciding to participate, it is worth assessing not only the potential benefits but also whether a particular model aligns with your organisation's capabilities and long-term business strategy.

Whether you are reviewing documentation for a framework agreement or contracts awarded through a dynamic purchasing system, understanding the participation requirements and the rules governing call-off contracts is essential. This is where Minerva can help.

In addition to supporting the analysis of public procurement opportunities, Minerva can also assist with reviewing documentation related to framework agreements and dynamic purchasing systems. This makes it easier to identify the key requirements, assess eligibility, and quickly determine whether pursuing a particular opportunity is worth your while.