Application
This unit describes the skills required to plan for highly complex, innovative, sophisticated and often long-term strategic procurement within established guidelines, policies and procedures. This may involve high-level capability development for government.
Strategic procurement is high risk, often involving political elements. This includes conducting a procurement business analysis, defining procurement requirements, and justifying procurement expenditure.
This unit applies to those working in roles involving procurement planning.
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 independently seeking advice as required, performing complex tasks in a range of familiar contexts
No licensing, legislative or certification requirements apply to unit at the time of publication.
Elements and Performance Criteria
ELEMENTS | PERFORMANCE CRITERIA |
Elements describe the essential outcomes | Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the range of conditions section. |
1. Conduct procurement business analysis | 1.1 Analyse organisation’s corporate procurement plan, procurement-related expenditure, associated levels of risk and supply markets. 1.2 Prepare a procurement profile that identifies past and projected procurement expenditure and associated levels of risk. 1.3 Undertake supply positioning and categorise goods and services by their relative expenditure and difficulty of securing supply to assist in the development of procurement objectives. 1.4 Use supplier preferences to identify how suppliers view the organisation as a client. 1.5 Identify and document other factors likely to affect strategic procurement according to organisational requirements. 1.6 Practice due diligence to investigate existing relationships with suppliers, notably coordinated procurement contracts (CPCs) or coordinated procurement opportunities. |
2. Define procurement requirements | 2.1 Determine procurement requirements through consultation and negotiation with stakeholders and experts and define to reflect organisational needs. 2.2 Identify and incorporate accountability measures into procurement plans. 2.3 Obtain appropriations to fund strategic procurement. 2.4 Obtain approvals to address procurement requirements. |
3. Justify procurement expenditure | 3.1 Develop business case with stakeholders to determine viability of proposed procurement expenditure. 3.2 Establish reasons for procurement requirement, timeframes and expected whole-of-life costs and benefits in the business case. 3.3 Develop output specification with stakeholders to assist in achieving procurement outcomes. |
Evidence of Performance
Evidence required to demonstrate competence must satisfy all of the requirements of the elements and performance criteria. If not otherwise specified the candidate must demonstrate evidence of performance of the following on at least one occasion.
reading and writing complex documents
applying understanding of supplier issues and supply chain management in the context of strategic procurement
identifying and assessing strategic procurement options and alternatives
undertaking research and business analysis
managing financial and other resources
exercising best practice in strategic procurement and procurement legislation.
Evidence of Knowledge
Evidence required to demonstrate competence must satisfy all of the requirements of the elements and performance criteria. If not otherwise specified the depth of knowledge demonstrated must be appropriate to the job context of the candidate.
Commonwealth, state or territory, and local government legislation, policies, practices and guidelines relating to strategic procurement
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
whole of life 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
Assessment Conditions
This unit contains no specific industry-mandated assessment conditions. Guidance on suggested and recommended conditions and methods can be found in the Implementation Guide.
Assessors must satisfy the NVR/AQTF mandatory competency requirements for assessors.
Foundation Skills
Foundation skills are embedded within the elements and performance criteria of this unit.
Competency Field
Procurement