Develop partnering arrangements

This unit covers the exploration of opportunities for government organisations to develop partnering arrangements with the private sector and to proceed to formal agreement based on evaluation to ensure the public interest is fully protected. It includes exploring partnering opportunities, assessing feasibility, establishing partnering arrangements and fostering productive partnering relationshipsIn practice, development of partnering arrangements may overlap with other generalist or specialist public sector workplace activities such as applying government systems, establishing and maintaining strategic networks, planning procurement, managing risk etc.This is one of two units dealing with partnering arrangements. The second unit is an imported unit, CHCCD19A Establish and maintain community, government and business partnerships from the Community Services Training Package which may be used in Diploma or Advanced Diploma qualifications.No licensing, legislative, regulatory or certification requirements apply to this unit at the time of publication


Not applicable.


Not applicable.

Elements and Performance Criteria



1. Explore partnering opportunities

1.1 Rigorous assessment is undertaken to establish the potential for private sector involvement in the delivery of public sector services or infrastructure.

1.2 Need, affordability and priority for private sector partnering are determined to ensure the public interest is fully protected.

1.3 The service/infrastructure requirement to be provided through a partnering arrangement is identified, benefits to the community are confirmed and potential partners are identified.

2. Assess feasibility

2.1 A full feasibility study is conducted that includes environmental analysis, social impact and cost-benefit analysis to confirm the merits of partnering options for financing, delivery and value for money.

2.2 A full assessment of risk is conducted, including the risks and costs the government would be prepared to retain.

2.3 A detailed assessment of costs and potential revenue streams is undertaken and a comparison is undertaken with the costs associated with public sector provision.

2.4 Community stakeholders are consulted to provide input in the feasibility and planning stages of any partnering arrangement.

3. Establish partnering arrangements

3.1 Detailed requirements are determined for the partnering arrangement in accordance with government policy and priorities.

3.2 Procurement options are investigated, including a full public tender process, in accordance with legislative and organisational requirements.

3.3 Contracts are arranged that specify partnering duration, outputs, benefits and performance incentives, if any, in accordance with government policy and procedures.

3.4 Risk is allocated to whichever party is best able to manage it and an accountability structure and approval process is developed.

3.5 Government approvals are obtained and contractual arrangements are entered into in accordance with organisational policy and procedures.

4. Foster productive partnering relationships

4.1 Reasons/benefits for the partnering arrangement, roles, limitations and expectations are affirmed throughout the life of the relationship.

4.2 Ongoing communication is used to confirm vision, agreed goals, outcomes, measures of performance, agreed accountabilities and the limits of the arrangement for both parties.

4.3 Ethical standards and public sector accountabilities are maintained and, when necessary, explained to partners in a manner suited to their requirements.

4.4 Strategies for solving problems and dealing with conflict are agreed and used in accordance with organisational policy and procedures to build trust/mutual respect for the benefit of both parties.

Required Skills

This section describes the essential skills and knowledge and their level, required for this unit.

Skill requirements

Look for evidence that confirms skills in:

establishing and fostering trusting, ongoing relationships with individuals and businesses

using a range of communication styles to suit different audiences and purposes

explaining complex and formal policies and concepts to a variety of audiences

responding to diversity, including gender and disability

applying workplace safety procedures to partnering activities

accessing/preparing information electronically or in hard copy

Knowledge requirements

Look for evidence that confirms knowledge and understanding of:


public sector ethics and accountability

public sector values and codes of conduct

government/agency policies and procedures relating to public private partnering

relationship contracting with the private sector

relationship management in the context of partnering

management of expectations in the context of partnering

principles of cultural awareness and cross-cultural communication

equal employment opportunity, equity and diversity principles

workplace safety issues relating to public private partnering

Evidence Required

The Evidence Guide specifies the evidence required to demonstrate achievement in the unit of competency as a whole. It must be read in conjunction with the Unit descriptor, Performance Criteria, the Range Statement and the Assessment Guidelines for the Public Sector Training Package.

Units to be assessed together

Pre-requisite units that must be achieved prior to this unit:Nil

Co-requisite units that must be assessed with this unit:Nil

Co-assessed units that may be assessed with this unit to increase the efficiency and realism of the assessment process include, but are not limited to:

PSPGOV601B Apply government systems

PSPGOV602B Establish and maintain strategic networks

PSPPROC604A Plan for strategic procurement outcomes

PSPMNGT608B Manage risk

Overview of evidence requirements

In addition to integrated demonstration of the elements and their related performance criteria, look for evidence that confirms:

the knowledge requirements of this unit

the skill requirements of this unit

application of the Employability Skills as they relate to this unit (see Employability Summaries in Qualifications Framework)

development of 1 significant long-term partnering arrangement or a number of (2 or more) smaller arrangements

Resources required to carry out assessment

These resources include:

workplace scenarios or case studies

government partnering policy, principles and practices

legislation related to public private partnering arrangements

public sector values and codes of conduct

relationship contracts

government requirements for value for money, public benefit testing

public sector comparator

Where and how to assess evidence

Valid assessment of this unit requires:

a workplace environment or one that closely resembles normal work practice and replicates the range of conditions likely to be encountered when developing partnering arrangements, including coping with difficulties, irregularities and breakdowns in routine

development of 1 significant long-term partnering arrangement or a number of (2 or more) smaller arrangements

Assessment methods should reflect workplace demands, such as literacy, and the needs of particular groups, such as:

people with disabilities

people from culturally and linguistically diverse backgrounds

Aboriginal and Torres Strait Islander people


young people

older people

people in rural and remote locations

Assessment methods suitable for valid and reliable assessment of this competency may include, but are not limited to, a combination of 2 or more of:

case studies





authenticated evidence from the workplace and/or training courses

For consistency of 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

Range Statement

The Range Statement provides information about the context in which the unit of competency is carried out. The variables cater for differences between States and Territories and the Commonwealth, and between organisations and workplaces. They allow for different work requirements, work practices and knowledge. The Range Statement also provides a focus for assessment. It relates to the unit as a whole. Text in bold italics in the Performance Criteria is explained here.

Partnering with the private sector may include:

harnessing private sector management skills, innovation and efficiencies

significant private sector involvement in provision of infrastructure or service need

qualitative risk transfer to the private sector

long-term output based contract arrangements

relationship contract

community input into specifications

Potential partners will consist of:

an identifiable market of private sector bidders prepared to compete for the partnering opportunity

Value for money may be achieved where:

the project size justifies the transaction and management costs

there is a defined measurable service delivery function or output mechanism

there is scope within the project delivery for the optimisation and the allocation of manageable risk to the private sector, delivering a cost-effective outcome

there is scope for sector private sector innovation, value adding and/or cost reductions in the delivery and operation of the service

there is real value in transferring responsibility for the operational and maintenance phase of the project to the private sector

there is an identifiable market of private sector bidders prepared to compete for the opportunity to deliver the project

Stakeholders may include:

all those individuals and groups both inside and outside the organisation that have some direct interest in the organisation's behaviour, actions, products and services such as:

employees at all levels of the organisation



other public sector organisations

private sector

non-government organisations

union and association representatives

boards of management



Requirements for the partnering arrangement may include:

statement of benefits

specified outputs

contract term

risk assessment and management plan

accountability structure

performance incentives

operational or management efficiencies

optimally developed relationship contract

best value for money

responsible use of public and private resources



fair appeals process

market sounding

financing options

Risk management may include:

acceptance of risks

avoidance of risks

minimisation of risks


Not applicable.

Competency Field


Employability Skills

This unit contains employability skills.

Licensing Information

Not applicable.