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Elements and Performance Criteria

  1. Manage contract establishment.
  2. Manage contract performance.
  3. Manage contract evaluation.

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 teams of expert negotiators in functions such as finance legal technical and engineering

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

identify and resolve strategic contract management issues

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

initiative and enterprise skills to

identify assess and implement opportunities for performance improvement

apply OHS environmental sustainability and corporate social responsibility practices in the context of managing strategic contracts

planning and organising skills to

undertake research and business analysis

manage financial and other resources

manage strategic procurement contracts contract management plans and subplans

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 managing strategic contracts including environmental purchasing guidance

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 managing strategic contracts

probity principles and issues

codes of conduct codes of practice and standards of individual behaviour relating to management of contracts and relationships with contractors

government procurement environment

legal requirements of government contracting

financial rules and regulations

implications of particular contracting arrangements

wholeoflife considerations

procurement management processes

cultural issues relating to contract management and industry development

relationship management at all personnel levels

environmental sustainability and corporate social responsibility principles relevant to managing strategic contracts

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 managing strategic contracts consistently and 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

develop contract management plans and subplans suited to the nature of the contracts

establish contract management relationships with stakeholders using strategic techniques such as start up workshops service level agreements etc

implement contract management plans

manage contractors to ensure the delivery of contract outcomes using flexibility and initiative to deal with issues as they arise

implement contract performance measures

provide contractors with performance feedback

deal promptly and proactively with contract disputes and refer to higher authority when this is not possible

communicate effectively with internal and external stakeholders about the operation of contracts

uphold probity standards in all dealings with contractors

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 managing strategic contracts

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 managing strategic contracts

review of contract management plans and related subplans such as transition plans probity plans contract variations contract performance reports and reviews budgets negotiation notes from meetings with contractors risk assessments formal signoffs and approvals contract closure reports 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

PSPPMB Direct complex project activities

PSPPM601B Direct complex project activities

PSPPROCB Plan for strategic procurement

PSPPROC604B Plan for strategic procurement

PSPPROCB Coordinate strategic procurement

PSPPROC605B Coordinate strategic procurement

PSPPROCB Negotiate strategic procurement

PSPPROC606B Negotiate strategic procurement.


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.

Contracts and strategic initiatives may include:

non-traditional procurement and finance activities

strategic procurement activities, such as industry development

in-house option directives

inter and intra-government agreements

memoranda of understanding and memoranda of agreement

public private partnerships (PPP)

purchases from suppliers

coordinated procurement arrangements

whole of government procurement arrangements

cooperative procurement arrangements.

Stakeholders may include:

end users

customers or clients

sponsors

current or potential providers or suppliers

technical or functional experts or advisers

commonwealth, state or territory, and local government

the organisation

other public sector organisations

employees, unions and staff associations

industry bodies

local communities

lobby groups and special user groups.

Monitoring may involve:

progress meetings and regular progress reports from contractor

visits to contractor's premises

provision of samples

tests and verification

independent audit

end-user feedback.

Contract variation may include modification of:

targets

performance measures

procurement plans

resourcing

monitoring and evaluation processes.

Evaluation of contractor performance may include:

strengths and weaknesses

client acceptance of service delivery (client satisfaction)

meeting delivery and completion dates

compliance with other contractual requirements

performance in relation to relevant policy objectives, such as industry development, care for the environment, OHS and affirmative action

achievements of the contractor in developing Australian and New Zealand supply networks

general relationships, including effectiveness of communication at all levels

performance of key technical personnel

acceptability and cost of whole-of-life technical support, including lead times and availability of spares and maintenance services

achievements in innovation and quality improvement programs

acceptability and suitability for future agreements, including potential status as an approved contractor

adherence to codes of practice and codes of conduct.

Evaluation of organisation's procurement processes may focus on:

effectiveness of project management, including project plan and responsibilities and accountabilities set out in it

quality of the business case, as indicated by achievement of planned outcome and contribution to program objectives

effectiveness of contractor qualification processes

value obtained in bid clarification and post-tender negotiation

effectiveness of project management systems, focusing particularly on management information

effectiveness of risk management, including corruption risks and probity risks

methods for controlling variations in cost, time, quality and performance from initial planning to completion

adequacy of safeguards against fraud, error and impropriety

incidence of material losses due to waste or inefficiency

overall performance in terms of cost, time, service and quality

compliance with procurement policy.

Value for money must reflect:

whole-of-life program benefits

residual values

disposal costs or disposal return

costs of parts

servicing and maintenance

industry benchmarks.