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Elements and Performance Criteria

  1. Conduct procurement business analysis
  2. Define procurement requirements
  3. Justify procurement expenditure

Required Skills

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

problemsolving skills to

apply decisionmaking 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 uptodate 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

wholeoflife 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

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 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 organisations 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

longterm 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 signoffs 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

PSPETHCB Maintain and enhance confidence in public service

PSPETHC601B Maintain and enhance confidence in public service

PSPLEGNB Manage compliance with legislation in the public sector

PSPLEGN601B Manage compliance with legislation in the public sector

PSPMNGTB Develop a business case

PSPMNGT607B Develop a business case

PSPMNGTB Manage risk

PSPMNGT608B Manage risk

PSPMNGTB Formulate business strategies

PSPMNGT609B Formulate business strategies

PSPPMB Direct complex project activities

PSPPM601B Direct complex project activities

PSPPROCB Coordinate strategic procurement

PSPPROC605B Coordinate strategic procurement

PSPPROCB Negotiate strategic procurement

PSPPROC606B Negotiate strategic procurement

PSPPROCA Manage strategic contracts

PSPPROC607A Manage strategic contracts.


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.

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