Elements and Performance Criteria

Element

Performance Criteria

1

Manage contract establishment

1.1

The requirements of contracts and strategic initiatives are discussed, clarified, and agreed by all parties

1.2

Responsibilities for establishing and carrying out procedures are assigned to achieve contract outcomes

1.3

Effective communication strategies and processes are established and implemented to assist ongoing communication between stakeholders and contractors

1.4

Relationship management is undertaken at all levels of personnel involved in procurement and contract management

1.5

Strategic relationships are established and managed to improve procurement capability and performance

1.6

Risk management plans are updated in accordance with organisational policy and procedures

2

Manage contract performance

2.1

Progress of contracts is monitored against set targets and performance measures to ensure success of procurement activities

2.2

Should monitoring find that set targets and performance measures are not being met, action is taken to rectify performance in a timely manner

2.3

Advice and support are provided to solve problems, make improvements and maintain progress

2.4

Opportunities to improve procurement outcomes are sought and negotiated with contractors

2.5

Approvals are provided/gained for contract variations negotiated and agreed between the parties

2.6

Opportunities are provided for stakeholders and contractors to have input into and receive feedback on progress during the performance contracts

3

Manage contract evaluation

3.1

Evaluation of contract performance is undertaken relative to planned performance measures and in consultation with stakeholders and contractors

3.2

Where stakeholders and contractors do not agree, dispute resolution is undertaken in accordance with organisational policy and procedures

3.3

Conclusions are detailed against agreed criteria to provide a complete picture of performance of contractors, the organisation's procurement processes and value for money

3.4

The performance of strategic initiatives is measured relative to planned outcomes in consultation with industry and other stakeholders

3.5

Lessons learnt from evaluations of contracts and strategic initiatives are documented in accordance with organisational requirements and used to continuously improve future procurement activities

3.6

Contractors and stakeholders are advised of evaluation outcomes in a timely manner in accordance with organisational guidelines

REQUIRED SKILLS AND KNOWLEDGE

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

Skill requirements

Look for evidence that confirms skills in:

managing strategic relationships

reading and applying complex, formal documents such as contracts, legislation and guidelines and applying them to contract management and industry development

networking with diverse clients, contractors and end users

responding to diversity, including gender and disability

problem solving, including conceptual and reasoning skills

undertaking research and analysis

managing financial and other resources

measuring the performance of strategic initiatives

applying occupational health and safety and environmental requirements in the context of contract management

Knowledge requirements

Look for evidence that confirms knowledge and understanding of:

Commonwealth/State/Territory Government legislation, policies, practices and guidelines relating to contract management, including environmental purchasing guidance

aspects of law of contract, trade practices law, commercial law relating to contract management

probity principles and issues

government procurement environment

legal requirements of government contracting

financial rules and regulation requirements

implications of particular contracting arrangements

whole-of-life considerations

procurement management processes

equal employment opportunity, equity and diversity principles

cultural issues relating to contract management and industry development

relationship management at all different levels of personnel

public sector legislation including occupational health and safety and environment

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:

PSPETHC601B Maintain and enhance confidence in public service

PSPLEGN601B Manage compliance with legislation in the public sector

PSPGOV601B Apply government systems

PSPMNGT602B Manage resources

PSPMNGT604B Manage change

PSPMNGT606B Manage quality client service

PSPMNGT608B Manage risk

PSPPROC604A Plan for strategic procurement

PSPPROC605A Coordinate strategic procurement

PSPPROC606A Negotiate strategic procurement

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)

direction of contract management in a range of (3 or more) contexts (or occasions, over time) including 1 non-traditional procurement/finance activity such as a strategic initiative for industry development

Resources required to carry out assessment

These resources include:

legislation, policy, procedures and protocols relating to contract management

case studies and workplace scenarios to capture the range of situations likely to be encountered when directing the management of contracts

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 directing the management of contracts, including coping with difficulties, irregularities and breakdowns in routine

direction of contract management in a range of (3 or more) contexts (or occasions, over time) including 1 non-traditional procurement/finance activity such as a strategic initiative for industry development

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

women

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

portfolios

questioning

scenarios

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

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 italics in the Performance Criteria is explained here.

Contracts and strategic initiatives may include

non-traditional procurement/finance activities

strategic procurement activities such as industry development

in-house option directives

inter/intra-government agreements

memoranda of understanding/memoranda of agreement

public private partnerships

purchases from suppliers

Stakeholders may include

end users

customers/clients

sponsors

potential providers/suppliers

current providers/suppliers

technical or functional experts or advisers

Federal, State/Territory and/or Local Government

the organisation

other public sector organisations

employees

unions or staff associations

industry bodies

local communities and society as a whole

lobby groups, special user groups

Monitoring may involve

progress meetings

visits to the contractor's premises

provision of samples

regular progress reports from the contractor

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)

achievements in 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, occupational health and safety, and affirmative action

achievement 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

Evaluation of the organisation's procurement processes may focus on

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

quality of the business case, as indicated by the achievement of planned outcome and the 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

methods for controlling variations in cost, time, quality and performance from the 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

Value for money must reflect

whole-of-life program benefits

residual values

costs of parts

servicing and maintenance

industry benchmarks