PSPPCM026 - Establish the strategic procurement context
Assessor Resource
PSPPCM026 Establish the strategic procurement context
Assessment tool
Version 1.0 Issue Date: March 2024
This unit describes the skills required to establish the broad context in which strategic procurement takes place. It includes undertaking environmental analysis; analysing, developing and monitoring procurement capability; influencing and developing strategic industries; and establishing and managing risk exposure. It also includes understanding the government and political context for strategic procurement.
This unit applies to those working in roles involved in procurement.
The skills and knowledge described in this unit must be applied within the legislative, regulatory and policy environment in which they are carried out. Organisational policies and procedures must be consulted and adhered to.
Those undertaking this unit would work autonomously consulting others as required, performing sophisticated tasks in a range of familiar contexts.
No licensing, legislative or certification requirements apply to unit at the time of publication.
You may want to include more information here about the target group and the purpose of the assessments (eg formative, summative, recognition)
Evidence Required
List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.
ELEMENTS
PERFORMANCE CRITERIA
Elements describe the essential outcomes
Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the range of conditions section.
1. Analyse the procurement environment
1.1 Apply knowledge of the legal, political and financial environment to establish strategic context.
1.2 Define the relationship between the organisation and its procurement environment.
1.3 Identify existing and potential stakeholders and their strengths and weaknesses.
1.4 Identify strengths, weaknesses, opportunities and threats using information that is up to date, reflects emerging and predicted trends, and takes account of the possible future procurement interests and activities of the organisation and government directions.
1.5 Adjust the organisation’s procurement strategies and plans with respect to information gathered, and identify comparative targets.
1.6 Support any case for possible collaboration with other organisations with evidence, analysed for risks, and consistent with organisational plans and future directions.
2. Analyse procurement capability
2.1 Consider organisation’s strengths, weaknesses, opportunities and threats in light of internal and/or external factors and organisation’s strategic procurement goals.
2.2 Analyse organisational capability taking into account possible future procurement interests and activities of the organisation, its strategic industries, collaborators, requirements of government and other organisations.
2.3 Make suggestions for improvements to existing organisational structures and procurement systems that are realistic and achievable and will aid achievement of the procurement mission statement and strategies drawn from both internal and external stakeholders.
2.4 Consult on proposed improvements with those affected, in time for their views to be taken into account.
2.5 Justify proposed improvements on the basis of known internal and external factors, and take into account stakeholder needs and expectations.
3. Develop and monitor procurement capability
3.1 Implement improvements to develop procurement capability to meet new circumstances.
3.2 Define practical requirements for implementing improvements.
3.3 Identify difficulties associated with implementing improvements as early as possible in order to minimise their effect.
3.4 Monitor, review and modify implemented improvements to organisational structures and procurement systems as required to assist achievement of procurement outcomes.
4. Influence and develop strategic industries
4.1 Monitor strategic industries and take opportunities to influence key opinion formers and decision makers to change, encourage and nurture industry capability.
4.2 Identify problems, limitations and new opportunities in strategic industries in response to internal and external factors, based on quantitative and qualitative data.
4.3 Influence strategic industries remaining sensitive to procurement policies and the values and practices of key opinion formers and decision makers.
5. Establish and manage risk exposure
5.1 Define and monitor total organisational risk to minimise loss and maximise opportunity.
5.2 Establish and implement a risk management system.
5.3 Monitor performance of risk management system, and modify to reflect procurement opportunities and current and emerging trends.
Evidence required to demonstrate competence must satisfy all of the requirements of the elements and performance criteria. If not otherwise specified the candidate must demonstrate evidence of performance of the following on at least one occasion.
networking, consulting and negotiating with stakeholders at the highest levels of organisations and the community
conveying complex ideas to a wide range of audiences
persuading and influencing, within probity boundaries, stakeholders and decision makers
reading, writing and approving business cases, plans, reports, submissions and other high level complex documents
providing leadership within the organisation
managing strategic relationships
managing teams of expert negotiators in different functions
referring issues to the correct person
applying decision-making processes or methodologies
identifying and resolving strategic procurement issues
applying understanding of supplier issues and supply chain management in the context of strategic procurement
managing procurement performance and identify, assess and implement opportunities for performance improvement
undertaking research and business analysis relating to strategic procurement and high level business issues
managing financial and other resources
managing strategic procurement systems, processes and policies
maintaining currency of best practice examples in strategic procurement and relevant procurement legislation, policies and procedures
operating organisational IT systems
Evidence required to demonstrate competence must satisfy all of the requirements of the elements and performance criteria. If not otherwise specified the depth of knowledge demonstrated must be appropriate to the job context of the candidate.
Commonwealth, state or territory, and local government legislation, policies, practices and guidelines relating to strategic procurement, including environmental purchasing guidance
organisational procurement policies, practices and approval processes
government procurement environment
codes of conduct, codes of practice and standards of individual behaviour relating to strategic procurement
risk management systems
financial rules and regulations relating to strategic procurement
legal requirements of government procurement and contracting
competition theory as it relates to strategic procurement
strategic procurement planning processes
delegation authorities
organisational procurement performance
This unit contains no specific industry-mandated assessment conditions. Guidance on suggested and recommended conditions and methods can be found in the Implementation Guide.
Assessors must satisfy the NVR/AQTF mandatory competency requirements for assessors.
Submission Requirements
List each assessment task's title, type (eg project, observation/demonstration, essay, assingnment, checklist) and due date here
Assessment task 1: [title] Due date:
(add new lines for each of the assessment tasks)
Assessment Tasks
Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.
ELEMENTS
PERFORMANCE CRITERIA
Elements describe the essential outcomes
Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the range of conditions section.
1. Analyse the procurement environment
1.1 Apply knowledge of the legal, political and financial environment to establish strategic context.
1.2 Define the relationship between the organisation and its procurement environment.
1.3 Identify existing and potential stakeholders and their strengths and weaknesses.
1.4 Identify strengths, weaknesses, opportunities and threats using information that is up to date, reflects emerging and predicted trends, and takes account of the possible future procurement interests and activities of the organisation and government directions.
1.5 Adjust the organisation’s procurement strategies and plans with respect to information gathered, and identify comparative targets.
1.6 Support any case for possible collaboration with other organisations with evidence, analysed for risks, and consistent with organisational plans and future directions.
2. Analyse procurement capability
2.1 Consider organisation’s strengths, weaknesses, opportunities and threats in light of internal and/or external factors and organisation’s strategic procurement goals.
2.2 Analyse organisational capability taking into account possible future procurement interests and activities of the organisation, its strategic industries, collaborators, requirements of government and other organisations.
2.3 Make suggestions for improvements to existing organisational structures and procurement systems that are realistic and achievable and will aid achievement of the procurement mission statement and strategies drawn from both internal and external stakeholders.
2.4 Consult on proposed improvements with those affected, in time for their views to be taken into account.
2.5 Justify proposed improvements on the basis of known internal and external factors, and take into account stakeholder needs and expectations.
3. Develop and monitor procurement capability
3.1 Implement improvements to develop procurement capability to meet new circumstances.
3.2 Define practical requirements for implementing improvements.
3.3 Identify difficulties associated with implementing improvements as early as possible in order to minimise their effect.
3.4 Monitor, review and modify implemented improvements to organisational structures and procurement systems as required to assist achievement of procurement outcomes.
4. Influence and develop strategic industries
4.1 Monitor strategic industries and take opportunities to influence key opinion formers and decision makers to change, encourage and nurture industry capability.
4.2 Identify problems, limitations and new opportunities in strategic industries in response to internal and external factors, based on quantitative and qualitative data.
4.3 Influence strategic industries remaining sensitive to procurement policies and the values and practices of key opinion formers and decision makers.
5. Establish and manage risk exposure
5.1 Define and monitor total organisational risk to minimise loss and maximise opportunity.
5.2 Establish and implement a risk management system.
5.3 Monitor performance of risk management system, and modify to reflect procurement opportunities and current and emerging trends.
Evidence required to demonstrate competence must satisfy all of the requirements of the elements and performance criteria. If not otherwise specified the candidate must demonstrate evidence of performance of the following on at least one occasion.
networking, consulting and negotiating with stakeholders at the highest levels of organisations and the community
conveying complex ideas to a wide range of audiences
persuading and influencing, within probity boundaries, stakeholders and decision makers
reading, writing and approving business cases, plans, reports, submissions and other high level complex documents
providing leadership within the organisation
managing strategic relationships
managing teams of expert negotiators in different functions
referring issues to the correct person
applying decision-making processes or methodologies
identifying and resolving strategic procurement issues
applying understanding of supplier issues and supply chain management in the context of strategic procurement
managing procurement performance and identify, assess and implement opportunities for performance improvement
undertaking research and business analysis relating to strategic procurement and high level business issues
managing financial and other resources
managing strategic procurement systems, processes and policies
maintaining currency of best practice examples in strategic procurement and relevant procurement legislation, policies and procedures
operating organisational IT systems
Evidence required to demonstrate competence must satisfy all of the requirements of the elements and performance criteria. If not otherwise specified the depth of knowledge demonstrated must be appropriate to the job context of the candidate.
Commonwealth, state or territory, and local government legislation, policies, practices and guidelines relating to strategic procurement, including environmental purchasing guidance
organisational procurement policies, practices and approval processes
government procurement environment
codes of conduct, codes of practice and standards of individual behaviour relating to strategic procurement
risk management systems
financial rules and regulations relating to strategic procurement
legal requirements of government procurement and contracting
competition theory as it relates to strategic procurement
strategic procurement planning processes
delegation authorities
organisational procurement performance
This unit contains no specific industry-mandated assessment conditions. Guidance on suggested and recommended conditions and methods can be found in the Implementation Guide.
Assessors must satisfy the NVR/AQTF mandatory competency requirements for assessors.
Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.
Observation Checklist
Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice
Yes
No
Comments/feedback
Apply knowledge of the legal, political and financial environment to establish strategic context.
Define the relationship between the organisation and its procurement environment.
Identify existing and potential stakeholders and their strengths and weaknesses.
Identify strengths, weaknesses, opportunities and threats using information that is up to date, reflects emerging and predicted trends, and takes account of the possible future procurement interests and activities of the organisation and government directions.
Adjust the organisation’s procurement strategies and plans with respect to information gathered, and identify comparative targets.
Support any case for possible collaboration with other organisations with evidence, analysed for risks, and consistent with organisational plans and future directions.
Consider organisation’s strengths, weaknesses, opportunities and threats in light of internal and/or external factors and organisation’s strategic procurement goals.
Analyse organisational capability taking into account possible future procurement interests and activities of the organisation, its strategic industries, collaborators, requirements of government and other organisations.
Make suggestions for improvements to existing organisational structures and procurement systems that are realistic and achievable and will aid achievement of the procurement mission statement and strategies drawn from both internal and external stakeholders.
Consult on proposed improvements with those affected, in time for their views to be taken into account.
Justify proposed improvements on the basis of known internal and external factors, and take into account stakeholder needs and expectations.
Implement improvements to develop procurement capability to meet new circumstances.
Define practical requirements for implementing improvements.
Identify difficulties associated with implementing improvements as early as possible in order to minimise their effect.
Monitor, review and modify implemented improvements to organisational structures and procurement systems as required to assist achievement of procurement outcomes.
Monitor strategic industries and take opportunities to influence key opinion formers and decision makers to change, encourage and nurture industry capability.
Identify problems, limitations and new opportunities in strategic industries in response to internal and external factors, based on quantitative and qualitative data.
Influence strategic industries remaining sensitive to procurement policies and the values and practices of key opinion formers and decision makers.
Define and monitor total organisational risk to minimise loss and maximise opportunity.
Establish and implement a risk management system.
Monitor performance of risk management system, and modify to reflect procurement opportunities and current and emerging trends.
Apply knowledge of the legal, political and financial environment to establish strategic context.
Define the relationship between the organisation and its procurement environment.
Identify existing and potential stakeholders and their strengths and weaknesses.
Identify strengths, weaknesses, opportunities and threats using information that is up to date, reflects emerging and predicted trends, and takes account of the possible future procurement interests and activities of the organisation and government directions.
Adjust the organisation’s procurement strategies and plans with respect to information gathered, and identify comparative targets.
Support any case for possible collaboration with other organisations with evidence, analysed for risks, and consistent with organisational plans and future directions.
Consider organisation’s strengths, weaknesses, opportunities and threats in light of internal and/or external factors and organisation’s strategic procurement goals.
Analyse organisational capability taking into account possible future procurement interests and activities of the organisation, its strategic industries, collaborators, requirements of government and other organisations.
Make suggestions for improvements to existing organisational structures and procurement systems that are realistic and achievable and will aid achievement of the procurement mission statement and strategies drawn from both internal and external stakeholders.
Consult on proposed improvements with those affected, in time for their views to be taken into account.
Justify proposed improvements on the basis of known internal and external factors, and take into account stakeholder needs and expectations.
Implement improvements to develop procurement capability to meet new circumstances.
Define practical requirements for implementing improvements.
Identify difficulties associated with implementing improvements as early as possible in order to minimise their effect.
Monitor, review and modify implemented improvements to organisational structures and procurement systems as required to assist achievement of procurement outcomes.
Monitor strategic industries and take opportunities to influence key opinion formers and decision makers to change, encourage and nurture industry capability.
Identify problems, limitations and new opportunities in strategic industries in response to internal and external factors, based on quantitative and qualitative data.
Influence strategic industries remaining sensitive to procurement policies and the values and practices of key opinion formers and decision makers.
Define and monitor total organisational risk to minimise loss and maximise opportunity.
Establish and implement a risk management system.
Monitor performance of risk management system, and modify to reflect procurement opportunities and current and emerging trends.
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PSPPCM026 - Establish the strategic procurement context
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