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Elements and Performance Criteria

  1. Develop a procurement profile of the buying organisation
  2. Conduct strategic assessment of the supply market.
  3. Develop strategies to source goods or services from the market
  4. Secure, monitor and review strategic market sources

Required Skills

Required skills

communication skills to

consult and negotiate with the supply market existing contractors and stakeholders

network within probity boundaries with the supply market contractors and stakeholders

write a business case

conduct market analysis

conduct buying organisation analysis

prepare plans

read complex documents such as contracts legislation and policy guidelines

provide feedback

research skills to

gather and analyse organisational information to build procurement profile

gather and analyse market information

gather and analyse stakeholder requirements

review and apply legislative regulatory and policy requirements

gather and analyse information on restricted products appropriate to the industry such as Dangerous Goods and chemicals

identify analyse and predict trends

teamwork skills to

model effective team management approaches

respond to diversity

deal with issues and refer as appropriate

initiative and enterprise skills to

apply the content of complex documents such as contracts legislation and guidelines

ensure compliance with legislative and mandated policy requirements including OHampS and environmental obligations sustainability and corporate social responsibility CSRpractices and principles in the context of planning procurement and sourcing outcomes

apply complex government policy and intergovernmental agreements

interrogating corporate systems such as Financial Management Information System FMIS or asset management system to obtain data

analyse complex supply chains to identify risk vulnerability and opportunity

anticipate and interpret market reaction

planning and organising skills to

undertake research and business analysis

plan procurement processes in alignment with business and organisational goals

document procurement planning decisions and expected outcomes

manage and update procurement plans and subplans in line with strategic plans and budgets

apply complex strategies to development of strategic plans including corporate budget and procurement plans and sub plans

contribute to strategic and risk planning

learning and development skills to

stay abreast of best practice models relevant to procurement contracting logistics and enterprise market management

remain current with legislation regulation policy government agreements and recent legal determinations

technological skills to

exploit organisational sources of data and information

develop and manage electronic commerce

exploit market opportunities and initiatives in electronic commerce

Required knowledge

Commonwealth state andor territory or local government legislation regulation policies practices procedures and guidelines in relation to

procurement

financial management

public sector obligations eg Codes of Conduct

consumer law

OHampS

social policy

other relevant topics

international treaties relevant to trade and procurement practices

government and intergovernmental policy and agreements in relation to procurement practices

principles and practices associated with Corporate Social Responsibility CSR principles sustainability and environmental issues as applicable to procurement and market behaviours

complex and strategic planning for a range of outcomes

research and analysis as applied to complex outcomes trends and predictions of markets and procurement changes

decision making processes and methodologies

probity principles and issues

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

government procurement environment

micro and macro economic issues applicable to market behaviours and the impact of procurement

legal issues and determinations impacting on procurement

implications for the organisation and market suppliers of key procurement strategies andor arrangements

whole of life costing considerations and value for money

financial costing and accounting issues relevant to procurement and contracts

cultural issues relevant to strategic procurement and industry development in specific markets or market sectors

relationship management

change management

Evidence Required

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 through an ability to predict future procurement needs based on the analysis of past and current organisational and market data Current planning emerging legislative regulatory social business and market trends must also be assessed in order to predict future market activities Strategies must be developed against those predictions and appropriate arrangements for the sourcing of strategic goods and services implemented

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

Assessment must confirm an ability to

gather and analyse complex financial business and market information and develop procurement market and supplier profiles

identify and apply the people skills relevant to planning and implementing strategic sourcing

identify and interpret complex legislation regulation policy including international treaties principles of CSR OHampS sustainability environmental and social trends

contribute to complex procurement planning documents which support core business and organisational and government outcomes

assess local and international markets identify trends and develop strategies to ensure organisational market placement necessary to meet future needs

identify and secure future market sources of supply to meet organisational core business

contribute to and implement strategic sourcing strategies and processes within an organisation based on analysis of demand and spend patterns

consider both qualitative and quantitative factors in reaching decisions or recommendations

Consistency in performance

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

Context of and specific resources for assessment

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

Participants may need to access

sample data on finance procurement and markets to analyse and then to build recommendations

corporate planning documents including strategic procurement finance technology logistics and human capital planning

relevant legislation

current information relevant to CSR sustainability environment and social legislation trends and expectations

relevant market information

workplace scenarios and case studies relating to organisational expectations for future and strategic development of core business

emerging market trends such as PPP strategic alliance e commerce holistic service solution engaging the corporate sector to deliver on behalf of or instead of government

case studies that incorporate challenges from which to develop strategies to deal with future sourcing of goods andor services and the methods that may need to be employed to secure future requirements

Method of assessment

Suggested assessment methods include

questioning to assess understanding of key subject matter areas such as research analysis markets legislation planning decision making communication and mechanisms to secure market sources

preparing written reports and reviews of strategies market information market dynamics procurement plans and approaches to secure future market sources

completing reviews of market information best practice guides planning documents and strategies business models and budgets lobby group predictions political philosophies and policies community expectations technological advancements and other relevant material prepared by the candidate in a range of contexts

preparing a range of tendering and contractual strategy documentation suited to the particular goods and services and supply market

preparing strategic sourcing plans market profiles or other similar documents for strategic sourcing activities

contributing to and implementing sound strategic sourcing strategies based on analysis and reviews

demonstrating research communication consultation and negotiation skills

In all cases practical assessment should be supported by questioning to assess underpinning knowledge and those aspects of competency which are difficult to assess directly Questioning techniques should suit the language and literacy levels of the candidate but not compromise the integrity of the assessment

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

PSPETHCB Promote the values and ethos of public service

PSPETHC501B Promote the values and ethos of public service

PSPGOVA Undertake negotiations

PSPGOV507A Undertake negotiations

PSPLEGNB Promote compliance with legislation in the public sector

PSPLEGN501B Promote compliance with legislation in the public sector

PSPOHSA Monitor and maintain workplace safety

PSPOHS501A Monitor and maintain workplace safety

PSPPROCB Manage contract performance

PSPPROC503B Manage contract performance

PSPPROCB Finalise contracts

PSPPROC504B Finalise contracts

PSPPROCA Manage procurement risk

PSPPROC505A Manage procurement risk

PSPPROCA Plan to manage a contract

PSPPROC506A Plan to manage a contract

PSPPROCA Plan for procurement outcomes

PSPPROC507A Plan for procurement outcomes

PSPPROCA Make procurement decisions

PSPPROC508A Make procurement decisions

PSPPROCA Participate in budget and procurement review processes

PSPPROC509A Participate in budget and procurement review processes


Range Statement

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.

Strategic implications may include:

results which directly impact on the buying organisation’s ability to deliver its core business including criticality of supply

non delivery, late delivery or poor quality products and services being received

reputational risk including:

the government losing confidence in the organisation’s ability to perform

the public losing confidence in the organisation

public embarrassment

breach of legislation, treaty or government policy

procurement that costs more than planned for

timelines not met

The buying organisation may include:

a controlling and reporting entity

administrative departments

Government corporations or business enterprises

Statutory Authorities

a local government

an entity of convenience (eg a division/branch/section)

some other entity which makes a purchase using taxpayer funding

Level of spend may include:

all resources, direct and indirect, consumed in:

acquiring goods and services

managing the procurement process including managing contracts

value, volume and breakdown of spend

Supplier’s capability and capacity may include:

financial viability/capacity

past performance

skills and expertise

quality accreditations

compliance with national and/or international standards

technological position

staff loyalty, development and succession planning

compliance with Corporate Social Responsibility (CSR), sustainability and environmental requirements and emerging trends

continuous improvement practices

Corporate Social Responsibility (CSR) principles may include:

triple bottom line reporting

managing up and down stream in the business relationship

people, plant, profit

fair work practices

commitment to environmental and sustainability practices

better community outcomes

Buying organisation’s market position may include:

the buying organisation’s ability to exert influence on the supplier market, including:

buying capacity

continuous or regular consumption

level of spend on goods and services

reputation and influence

ease of doing business with this organisation for suppliers

ability of suppliers to build relationships with this organisation

risks faced by the supplier in dealing with this organisation

desire of suppliers to have this organisation on their client list

ability of the buying organisation to offer a counter-cyclic demand for goods and services

opportunities to partner for product/service development

Internal stakeholders may include:

procurement and contract management staff

senior management

users of the goods and services

financial management staff

maintenance staff

asset or fleet managers

facilities managers

logisticians, including materiel logisticians

Human Resource Management staff

IT Staff

External and market stakeholders may include:

contractors

suppliers

industry peak bodies

government

other buyers

general public

users of the goods and services (if these are not internal)

Opportunities may include:

ability to influence the direction of the supply market to get a better product or service

innovative products or services

innovative delivery methods

better discounts through amalgamating requirements

cost reduction

better terms and conditions through amalgamating requirements

Risks may include:

technical

commercial

reputational and political

Market information may include:

share market announcements

company annual reports and other company supplied information

newspaper, magazine and other media articles

information supplied by stakeholders

information supplied by contract managers

Legislative and regulatory compliance may include:

international treaties

commonwealth, state and territory legislation and regulation

local government by-laws and regulations

accounting standards

other regulatory requirements

Market trends may include:

changes with market conditions that may lead to long term change in the supply market such as:

competition including mergers and business closures

technology

regulation and legislation

the economy

demand

globalisation

environment and sustainability issues

Supply chain management issues may include:

availability of alternative sources of supply

issues affecting component suppliers in the supply chain

issues affecting third party service providers

freight and distribution

cash flow management

supplier performance, capability and capacity

Innovative and/or creative opportunities may include:

paradigm shift

achievement of similar outcomes with vastly improved performance metrics

alternative products or service achieving better outcomes

new and unique ways of delivering products or services

opportunities for partnering

Supply market factors may include:

quality of goods and services

reliability of supply

nature of the supply market eg monopoly, near monopoly, competitive

sophistication of suppliers in understanding the needs of buyers

adherence to CSR principles

adherence to environmental and sustainability principles

political stability and the impact on sources of supply if there is instability

legal and ethical considerations

Australia’s international treaty obligation

broader government policy objectives that are to be advanced through procurement

Commercial trends may include:

private public partnerships (PPP)

strategic alliances

holistic service solutions

technological changes in delivery or outcome

Best practice may include:

techniques, methods, processes, activities, incentives, or rewards which conventional wisdom regards as more effective at delivering a particular outcome than any other techniques, methods, processes, etc. when applied to a particular condition or circumstance

Procurement life cycle is:

A series of steps from identification of need, acquisition processes, contract management through disposal, recycling and/or closure or transition of contract.

Benchmarks are:

a standard by which comparative measurement can be made, could include:

quality

time

price

cost

generally used in conjunction with best practice

Strategic supply market plans may contain:

strategic business plans

corporate plans

explanation of whole of government, organisational and business outcomes and how these will be achieved through the proposed procurement activities

supply market analysis and analysis of key potential suppliers

buying organisation analysis including level of spend

review of risks and opportunities

budgets

strategic human capital plans

business technological support plans

production plans

Tendering strategies may include:

public consultations about the buying organisation’s requirements

requests for information about the supply market’s ability to meet requirements

choice of different methods of requesting offers to suit different types of supply markets

use of site visits and industry briefings

innovative partnering, leasing or other strategies

assessment of risks associated with the procurement

Type of contract arrangement may include:

partnering

alliancing

standing offers

incentive contracts

"profit at risk" contracts

use of service level agreements

continuous improvement opportunities

Contract Management strategies may include:

planning

formal structured meetings

reports

meetings

risk management strategies

Strategic sourcing issues may include:

the importance of the goods and services to the buying organisation’s ability to deliver its core business outcomes

the availability and suitability of alternative sources of supply

budgetary factors

the political and environmental context for the procurement

the necessity to use procurement to advance the government’s other policy agendas such as environmental and sustainability, CSR, opportunities for women and Aboriginal and Torres Strait Islander people etc