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Elements and Performance Criteria

1. Determine the requirements
   • Analyse the contracted requirements
   • Establish the contract outcome
   • Establish the contract scope of work
   • Prepare an initial requirements report
2. Establish an integrated project team
   • Define the team necessary to establish the PBC
   • Assess list of stakeholders required to establish the PBC
3. Draft a business case
   • Assess the net benefit
   • Assess the key enablers
   • Consult with stakeholders to determine the resource implications
   • Select the PBC approach with stakeholders
   • Prepare a business case report with recommendations

Range Statement

Range is restricted to essential operating conditions and any other variables essential to the work environment. Non-essential conditions may be found in the Companion Volume Implementation Guide.

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Performance Evidence

Evidence required to demonstrate competence in this unit must be relevant to and satisfy all of the requirements of the elements and performance criteria on at least one occasion and include: analysing the net cost/benefit ratio to determine the viability of a Performance Based Contract (PBC) defining the contract outcome and scope of work to define capability using PBC methodologies to define the procurement strategy within a business case using stakeholder negotiation to meet contract requirements and outcomes.

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Knowledge Evidence

Evidence required to demonstrate competence in this unit must be relevant to and satisfy all of the requirements of the elements and performance criteria and include knowledge of: analytical and operational skills to comprehend complex contractual provisions contract strategy and construction components and key elements communication techniques to effectively communicate decisions Defence business units and operational procedures government procurement processes and options relevant legislation and organisational policy.

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