Assessor Resource

PSPPROC604B
Plan for strategic procurement

Assessment tool

Version 1.0
Issue Date: March 2024


This unit applies to those in specialist procurement and contracting.

This unit covers the ability to plan for highly complex, innovative, sophisticated and often long-term strategic procurement within established guidelines, policies and procedures. This may involve high-level capability development for government.

Strategic procurement is high risk, often involving political elements. The unit includes conducting a procurement business analysis, defining procurement requirements, and justifying procurement expenditure.

In practice, planning for strategic procurement may occur in the context of other generalist and specialist work activities, such as maintaining and enhancing confidence in public service or local government, establishing and maintaining strategic networks, managing compliance with legislation in the public service or local government, managing risk, developing a business case, coordinating strategic procurement, negotiating strategic procurement and managing strategic contracts.

No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.

You may want to include more information here about the target group and the purpose of the assessments (eg formative, summative, recognition)

Prerequisites

Not applicable.


Employability Skills

This unit contains employability skills.




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.

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Competency must be demonstrated in the ability to plan for strategic procurement consistently in accordance with legislative and organisational requirements.

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Assessment must confirm the ability to:

prepare procurement profiles and supplier profiles

conduct procurement analysis of own organisation's buying requirements

consult with procurement stakeholders to inform the development of procurement requirements

use results of procurement analysis to develop procurement requirements

define strategic procurement requirements

prepare complex business cases or other documents to justify procurement decisions and expenditure.

Consistency in performance

Competency should be demonstrated by providing evidence of undertaking a range of relevant work tasks in an actual or simulated procurement environment on at least two separate occasions.

Context of and specific resources for assessment

The unit of competency is to be assessed in the workplace or a simulated workplace environment.

Access may be required to:

legislation, policy, procedures and protocols relating to planning for strategic procurement

codes of conduct and codes of practice

long-term government policy papers, such as White Papers

strategic procurement plans and direction statements

workplace scenarios and case studies relating to a range of strategic procurement and disposal activities.

Method of assessment

The following assessment methods are suggested:

questions to assess understanding of relevant legislation and procedures

review of strategies and approaches adopted for planning for strategic procurement

review of strategic procurement plans, business cases, procurement justifications, budgets, supplier analysis, market analysis, risk assessment, tender documentation, formal sign-offs and approvals, and other documentation prepared or reviewed by the candidate in a range of contexts

review of stakeholder engagement approaches adopted by the candidate.

In all cases, practical assessment should be supported by questions to assess underpinning knowledge and those aspects of competency which are difficult to assess directly. Candidates for this qualification must demonstrate a high level of understanding and practical workplace application of underpinning knowledge. Questioning techniques should suit the language and literacy levels of the candidate.

Guidance information for assessment

Evidence must be gathered over time in a range of contexts to ensure the person can achieve the unit outcome and apply the competency in different situations or environments.

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:

PSPETHC601B Maintain and enhance confidence in public service

PSPLEGN601B Manage compliance with legislation in the public sector

PSPMNGT607B Develop a business case

PSPMNGT608B Manage risk

PSPMNGT609B Formulate business strategies

PSPPM601B Direct complex project activities

PSPPROC605B Coordinate strategic procurement

PSPPROC606B Negotiate strategic procurement

PSPPROC607A Manage strategic contracts.


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.

Required skills

communication skills to:

consult and negotiate with stakeholders

network, within probity boundaries, with stakeholders

build and manage effective working relationships

write business cases, plans, reports, submissions and other complex documents

read complex documents, such as contracts, legislation and guidelines

provide feedback

teamwork skills to:

manage strategic relationships

model effective management and leadership approaches

respond to diversity

refer issues to the correct person

problem-solving skills to:

apply decision-making processes or methodologies

apply understanding of supplier issues and supply chain management in the context of strategic procurement

initiative and enterprise skills to:

identify and assess strategic procurement options and alternatives

apply OHS, environmental, sustainability and corporate social responsibility practices in the context of strategic procurement

planning and organising skills to:

undertake research and business analysis

manage financial and other resources

learning skills to keep up-to-date with:

best practice examples in strategic procurement

relevant procurement legislation, policies and procedures

technology skills to:

operate organisational IT systems

use electronic procurement templates

Required knowledge

commonwealth, state or territory, and local government legislation, policies, practices and guidelines:

relating to strategic procurement

such as OHS and equity and diversity

organisational procurement policies, practices and approval processes

aspects of law of contract, trade practices law, and commercial law relating to strategic procurement

probity principles and issues

codes of conduct, codes of practice and standards of individual behaviour relating to procurement decisions

government procurement environment

legal requirements of government procurement

implications of particular procurement arrangements

whole-of-life considerations

cultural issues relating to strategic procurement and industry development in certain industry sectors

relationship management at all personnel levels

environmental, sustainability and corporate social responsibility principles relevant to strategic procurement

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Procurement may include:

public private partnerships (PPP)

leasing or buying

short-term or long-term arrangements

sole or multiple suppliers

maintenance and support arrangements

incentive contracting

firm or variable pricing regimes

franchising

research and development

pre-qualification of suppliers

standing orders

standard form agreements

common use contracts

facilities management

prime contractor and subcontractor

gain sharing/open book

alliancing

coordinated procurement

whole of government procurement

cooperative procurement

Procurement expenditure may include:

products purchased

quantities

suppliers

locations

types, values and volumes of transactions

Risk may include:

goods and services critical to the organisation

product-related risk

organisation-related risk

supplier-related risk

market-related risk

national security risk

political risk

corruption risk

probity risk

Supply positioning results in four categories:

easy to secure supply and low relative expenditure

easy to secure supply and high relative expenditure

difficult to secure supply and low relative expenditure

difficult to secure supply and high relative expenditure

Supplier preferencing may categorise clients as:

nuisance account

development potential

exploitable

core business

Suppliers may include:

commercial companies

international companies

other public sector organisations

other governments, including commonwealth, state or territory, local and international

non-profit organisations

in-house

Other factors likely to affect strategic procurement may include:

value of business involved

complexity of marketplace

capacity of market

strategic and tactical issues

political influence

political imperatives and strategies

budgetary constraints

collaborative arrangements

Australian industry involvement requirements

environmental issues

extent of competition

protection of both parties

value for money considerations

degree of dependency of organisation programs on the procurement

where and why the need arises and for which unit or location

level of risk, complexity and sensitivity of the procurement

whether the need is for the replacement or enhancement of existing resources, or to meet an entirely new capability

joint ventures with the private sector to fund portions of the project in exchange for financial returns or intellectual property rights

alternatives, such as change in policy/process, equipment or equipment life extensions

use of in-house resources

leasing instead of up-front capital investment

consideration of supply chain issues

environmental, sustainability and corporate social responsibility principles

Stakeholders may include:

end users, customers or clients, and sponsors

current or potential providers or suppliers

technical or functional experts or advisers

commonwealth, state or territory, and local government

international governments

the organisation

other public sector organisations

employees, unions and staff associations

industry bodies

local communities

lobby groups and special user groups

Organisational needs may include:

political directives

commonwealth, and state or territory, and local government needs

responses to government White Papers, for example on long-term capability of the public sector to deliver government policy objectives

Appropriations may require:

delegates

ministerial authorisation

compliance with instructions or finance circulars

confirmation by chief financial officer

special consideration if they concern:

long-term travel deals

long-term computer deals

long-term lease deals

issuing indemnities

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
Organisation's corporate procurement plan, procurement-related expenditure, associated levels of risk and supply markets are analysed. 
Procurement profile is prepared that identifies past and projected procurement expenditure and associated levels of risk. 
Supply positioning is undertaken, categorising goods and services by their relative expenditure and difficulty of securing supply, to assist in the development of procurement objectives. 
Supplier preferencing is used to identify how suppliers view the organisation as a client. 
Other factors likely to affect strategic procurement are identified and documented according to organisational requirements. 
Due diligence is undertaken to investigate existing relationships with suppliers, notably coordinated procurement contracts (CPCs) or coordinated procurement opportunities. 
Procurement requirements are determined through consultation and negotiation with stakeholders and experts and defined to reflect organisational needs. 
Accountability measures are identified and incorporated into procurement plans according to organisational policy and guidelines. 
Appropriations to fund strategic procurement are obtained in accordance with legislative and organisational policy and procedures. 
Approvals to address procurement requirements are obtained according to organisational policy and procedures. 
Business case is developed with stakeholders to determine viability of proposed procurement expenditure. 
Reasons for procurement requirement, timeframes and expected whole-of-life costs and benefits are established in the business case. 
Output specification is developed with stakeholders to assist in achieving procurement outcomes. 

Forms

Assessment Cover Sheet

PSPPROC604B - Plan for strategic procurement
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Assessment Record Sheet

PSPPROC604B - Plan for strategic procurement

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