ELEMENT

PERFORMANCE CRITERIA

1. Undertake market analysis

1.1. Organisation's strategic procurement requirements and commercial and policy factors impacting procurement are identified.

1.2. Extent to which a competitive market exists to meet the organisation's needs is researched.

1.3. Number of suppliers, their market share and the degree and type of competition between suppliers are identified.

1.4. Nature, quality and maturity of the supply chain are analysed.

1.5. Environmental, sustainability and corporate social responsibility factors affecting the supply market are identified and analysed.

1.6. Expert assistance is engaged as necessary to assist with market analysis.

2. Influence and develop markets

2.1. Supply markets and strategic industries are identified and analysed to identify emerging and predicted trends.

2.2. Analysis of supply markets and strategic industries is undertaken, including capabilities, limitations, financial standing and past performance of existing and potential suppliers.

2.3. Range of strategies, within probity boundaries, is used to influence markets.

2.4. Market development strategies are used to develop and influence market capability within probity boundaries.

2.5. Implications of procurement threats and opportunities imposed by supply markets are identified and communicated to stakeholders according to organisational guidelines and public sector standards.

3. Implement strategic procurement activities

3.1. Procurement methodologies are determined according to organisation's strategic procurement plan.

3.2. Requirements are designed to deliver business outcomes and provide value for money, including whole-of-life considerations.

3.3. Methodologies are guided by constraints, complexity and importance of procurement requirement and the marketplace.

3.4. Procurement activities are determined and teams are formed and coordinated to manage strategic procurement activities.

3.5. Performance measures are determined to suit the range of procurement activities.

3.6. Performance is analysed against measures, and a cycle of continuous improvement is implemented to improve procurement performance.

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 experts 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

problem-solving skills to:

apply decision-making processes or methodologies

identify and resolve strategic procurement issues

initiative and enterprise skills to:

identify and assess opportunities for development of strategic markets/industries

apply OHS, environmental, sustainability and corporate social responsibility practices in the context of strategic procurement

planning and organising skills to:

undertake research and business analysis

manage financial and other resources

manage procurement projects

learning skills to keep up-to-date 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 strategic procurement

such as OHS and equity and diversity

organisational procurement policies, practices and approval processes

aspects of contract law, trade practices law, and commercial law relating to contract management in the context of strategic procurement

probity principles and issues

codes of conduct, codes of practice and standards of individual behaviour relating to procurement

government procurement environment

competition policy theory, including competitive neutrality

supply chain management

legal requirements of government procurement

financial rules and regulations

implications of particular market arrangements

whole-of-life considerations

supplier issues and supply chain management in the context of strategic procurement

procurement management processes

cultural issues relating to strategic procurement and industry development

relationship management at all personnel levels

environmental, sustainability and corporate social responsibility principles relevant to strategic procurement

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 the ability to coordinate strategic procurement consistently 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:

use recognised methodologies to conduct market research and analysis

undertake activities to influence supply markets, within probity and other guidelines

undertake industry development activities consistent with government policy

consider and select procurement methodologies that reflect the complexity and risks of the strategic procurement being undertaken

develop performance measures for application during the procurement process

review procurement performance using performance measures

implement continuous improvement to procurement processes.

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 coordinating strategic procurement

codes of conduct and codes of practice

long-term 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 coordinating strategic procurement

review of strategic procurement plans, supplier analysis, market analysis, market development plans or activities, risk assessments, procurement methodologies or procurement approaches, formal sign-offs and approvals, 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:

PSPETHC601B Maintain and enhance confidence in public service

PSPLEGN601B Manage compliance with legislation in the public sector

PSPMNGT607B Develop a business case

PSPMNGT608B Manage risk

PSPPM601B Direct complex project activities

PSPPROC604B Plan for strategic procurement

PSPPROC606B Negotiate strategic procurement

PSPPROC607A Manage strategic contracts.

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.

Procurement may include:

public private partnerships (PPP)

leasing or buying

short-term or long-term arrangements

sole or multiple suppliers

maintenance and support arrangements

incentive contracting

firm or variable pricing regimes

franchising

research and development

pre-qualification of suppliers

standing orders and deeds of standing orders

standard form agreements

common use contracts

facilities management

prime contractor and subcontractor

gain sharing/open book

coordinated procurement

whole of government procurement

cooperative procurement.

Commercial and policy factors may include:

value or market share of business involved

complexity of marketplace

degree of dependency of organisation programs on the procurement

extent of competition

capture and assessment of identified risks

protection of both parties

value for money

basis of due performance

broader governmental policies that may affect the market or industry sector

competitive neutrality

environmental, sustainability and corporate social responsibility principles.

Markets may include:

local

national

international

regional.

Suppliers may include:

commercial companies

other public sector organisations

other governments, including commonwealth, state or territory, local and international

non-profit organisations

in-house.

Criteria for assessment of supplier capability may include:

financial viability/capacity, including insurances

past performance and infrastructure

skills and experience of key personnel

quality accreditations

earned value performance management

adequacy of proposed methodology and approach

technical merit of the proposed goods or service

industrial relations record

willingness to work towards common goals

observance and promotion of OHS requirements

technical and contractual compliance

compliance with commonwealth, state and territory policies regarding discrimination, workplace relations, environmental, sustainability and corporate social responsibility

compliance with codes of conduct, codes of practice and expected standards of behaviour.

Market development strategies may include:

market management, including development of key supply markets where these markets are not meeting the organisation's needs

supplier development, including identification of new local suppliers, development of the capabilities of existing suppliers and development of new products

reverse marketing

tactics to increase skill levels of suppliers, particularly in dealing with government

creating the supplier environment

communicating changes

procurement strategies, including splitting contracts, short-term development contracts, inviting companies to work together where each has skills.

Stakeholders may include:

end users, customers or clients, and 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.

Whole-of-life considerations may include:

benchmarks of expected financial performance

calculations of discounted cash flows

net present value

return on investment

transition costs in establishing initial contract

transition costs in renewing or extending contract

net return or cost on disposal of assets.

Teams may include:

financial

legal

technical

functional

engineering

scientific and research

human resource

commercial or business

consultants.

Performance measures may include:

purchase price reduction

cost reduction

value of additional negotiated benefits

improvement in payment terms

improved warranties

cost-saving measures

new sources of supply

substitute goods and services

improved supplier performance

reduction of demand

improved access to market information for early identification of supply problems

improved supply chain efficiencies

reduction if risk exposure

improved supplier attitude

eliminating supply monopolies

improved participation of local suppliers.

Range of procurement activities may include:

easy to secure supply and high relative expenditure

easy to secure supply and low relative expenditure

difficult to secure supply and low relative expenditure

difficult to secure supply and high relative expenditure.