This unit describes the skills and knowledge required to establish the basis of a Performance Based Contract (PBC). It includes determining the requirements, establishing an integrated project team, and drafting a business case.

This unit applies to administrators or managers working within the contract management field in Defence but may be applicable to any individual in this field of work.

The skills and knowledge described in this unit must be applied within the legislative, regulatory and policy environment in which they are carried out. Organisational policies and procedures must be consulted and adhered to.

Those undertaking this unit would work within a team or as a supervisor under limited direction, while performing complex tasks in a range of contexts.

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

ELEMENTS

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1

Determine the requirements

1.1

Analyse the contracted requirements

1.2

Establish the contract outcome

1.3

Establish the contract scope of work

1.4

Prepare an initial requirements report

2

Establish an integrated project team

2.1

Define the team necessary to establish the PBC

2.2

Assess list of stakeholders required to establish the PBC

3

Draft a business case

3.1

Assess the net benefit

3.2

Assess the key enablers

3.3

Consult with stakeholders to determine the resource implications

3.4

Select the PBC approach with stakeholders

3.5

Prepare a business case report with recommendations

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.

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.

As a minimum, assessors must satisfy applicable regulatory requirements, which include requirements in the Standards for Registered Training Organisations, current at the time of assessment.

As a minimum, assessment must satisfy applicable regulatory requirements, which include requirements in the Standards for Registered Training Organisations, current at the time of assessment.

Assessment must occur in workplace operational situations where it is appropriate to do so; where this is not appropriate, assessment must occur in simulated workplace operational situations that replicate workplace conditions.

Assessment processes and techniques must be appropriate to the language, literacy and numeracy requirements of the work being performed and the needs of the candidate.

Resources for assessment must include access to:

a range of relevant exercises, case studies and/or other simulations

relevant and appropriate materials, tools, equipment and personal protective equipment (PPE) currently used in industry

applicable documentation, including workplace procedures, regulations, codes of practice and operation manuals

acceptable means of simulated assessment.

Foundation skills essential to performance are explicit in the performance criteria of this unit of competency.

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.

Not applicable.

Performance based contract