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Evidence Guide: PSPPROC508A - Make procurement decisions

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

From the Wiki University

 

PSPPROC508A - Make procurement decisions

What evidence can you provide to prove your understanding of each of the following citeria?

Comply with legal and policy obligations implicit in making procurement decisions.

  1. Legislative and policy requirements and organisational objectives and goals are identified and applied to inform procurement decisions.
  2. Probity principles of fairness and impartiality are applied and managed when making procurement decisions at all stages of the procurement process.
Legislative and policy requirements and organisational objectives and goals are identified and applied to inform procurement decisions.

Completed
Date:

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Probity principles of fairness and impartiality are applied and managed when making procurement decisions at all stages of the procurement process.

Completed
Date:

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Establish context for the procurement activity.

  1. Factors that may influence procurement decisions are identified and considered in the context of legislation, policy and organisational/business requirements to support effective decision making.
  2. Consultation takes place with stakeholders to determine likely impact of key factors at all stages of procurement process.
  3. Procurement decisions taken reflect this consideration of key factors affecting the procurement.
  4. Factors affecting procurement decisions are documented.
Factors that may influence procurement decisions are identified and considered in the context of legislation, policy and organisational/business requirements to support effective decision making.

Completed
Date:

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Consultation takes place with stakeholders to determine likely impact of key factors at all stages of procurement process.

Completed
Date:

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Procurement decisions taken reflect this consideration of key factors affecting the procurement.

Completed
Date:

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Factors affecting procurement decisions are documented.

Completed
Date:

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Select and approve procurement methods.

  1. Procurement methods are selected based on jurisdictional, legislative and policy requirements and suitability for the procurement requirements.
  2. Factors and risks are considered in selecting procurement method.
  3. Justification for selected procurement method is recorded.
  4. Approvals for the selection of procurement methods are exercised in accordance with jurisdictional and organisational policy and procedures, and recorded.
Procurement methods are selected based on jurisdictional, legislative and policy requirements and suitability for the procurement requirements.

Completed
Date:

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Factors and risks are considered in selecting procurement method.

Completed
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Justification for selected procurement method is recorded.

Completed
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Approvals for the selection of procurement methods are exercised in accordance with jurisdictional and organisational policy and procedures, and recorded.

Completed
Date:

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Select and approve contractual arrangements.

  1. Contractual arrangements are selected, based on jurisdictional and policy requirements and suitability for the procurement requirements.
  2. Factors and risks are considered in selecting contractual arrangements.
  3. Justification for selected contractual arrangements is recorded.
  4. Approvals for the selection of contractual arrangements are exercised in accordance with jurisdictional and organisational policy and procedures, and recorded.
Contractual arrangements are selected, based on jurisdictional and policy requirements and suitability for the procurement requirements.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Factors and risks are considered in selecting contractual arrangements.

Completed
Date:

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Justification for selected contractual arrangements is recorded.

Completed
Date:

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Approvals for the selection of contractual arrangements are exercised in accordance with jurisdictional and organisational policy and procedures, and recorded.

Completed
Date:

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Identify and consider factors affecting supplier choice.

  1. Supplier capability is researched and assessed as part of offer evaluation.
  2. Supplier supply chain management considerations are researched and applied in the context of policy requirements when making procurement decisions.
  3. Broader value for money considerations are applied to support and inform decisions.
Supplier capability is researched and assessed as part of offer evaluation.

Completed
Date:

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Supplier supply chain management considerations are researched and applied in the context of policy requirements when making procurement decisions.

Completed
Date:

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Broader value for money considerations are applied to support and inform decisions.

Completed
Date:

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Conduct tender evaluation.

  1. Tender evaluation panel or similar is formed when required by policy or to meet probity requirements.
  2. Advice, support and guidance on procurement processes and probity requirements are provided to members of the tender evaluation panel.
  3. Using negotiation and communication skills and procurement knowledge, issues that arise during the tender evaluation process are resolved.
  4. Tender decision-making processes and decisions reached are documented in a format suited to the procurement being undertaken and according to organisational policy and processes and probity requirements.
  5. Written procurement recommendations are made to the approval delegate after considering advice of panel.
Tender evaluation panel or similar is formed when required by policy or to meet probity requirements.

Completed
Date:

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Advice, support and guidance on procurement processes and probity requirements are provided to members of the tender evaluation panel.

Completed
Date:

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Using negotiation and communication skills and procurement knowledge, issues that arise during the tender evaluation process are resolved.

Completed
Date:

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Tender decision-making processes and decisions reached are documented in a format suited to the procurement being undertaken and according to organisational policy and processes and probity requirements.

Completed
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Written procurement recommendations are made to the approval delegate after considering advice of panel.

Completed
Date:

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Maintain effective accountability and transparency in procurement decision making.

  1. Records, including plans and sub-plans, are maintained to provide an effective audit trail of decisions taken throughout the procurement process.
  2. Compliance with jurisdictional and organisational procurement reporting requirements is maintained.
  3. Records are maintained to provide aggregate procurement reporting requirements internal and external to the organisation.
Records, including plans and sub-plans, are maintained to provide an effective audit trail of decisions taken throughout the procurement process.

Completed
Date:

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Compliance with jurisdictional and organisational procurement reporting requirements is maintained.

Completed
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Records are maintained to provide aggregate procurement reporting requirements internal and external to the organisation.

Completed
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Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

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 making procurement decisions consistently and 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:

apply a detailed understanding of legal and policy settings to particular procurement activities to achieve procurement results

undertake market research and consultation with stakeholders

decide on and apply effective procurement methods, including type of contractual arrangement to be used, to suit the nature of the procurement being undertaken

identify and consider a range of factors that might affect the choice of supplier so that the procurement decision is robust, achieves value for money, withstands scrutiny and contributes to the organisation's business direction

obtain the necessary resources and expertise to convene an effective tender evaluation panel

demonstrate accountability and transparency in procurement decision making

act within own delegation and refer promptly to higher authority when this is not possible.

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 procuring goods and services and managing contracts

codes of conduct and codes of practice

workplace scenarios and case studies relating to a range of procurement activities associated with making procurement decisions

case studies that incorporate dilemmas, and probity requirements relating to making procurement decisions.

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 planning for procurement outcomes

review of documents demonstrating sound procurement decisions made or reviewed by the candidate across all stages of the procurement cycle, exercise of delegations or approval authority, or 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. 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:

PSPETHC501B Promote the values and ethos of public service

PSPGOV507A Undertake negotiations

PSPLEGN501B Promote compliance with legislation in the public sector

PSPPROC503B Manage contract performance

PSPPROC504B Finalise contracts

PSPPROC505A Manage procurement risk

PSPPROC506A Plan to manage a contract

PSPPROC507A Plan for procurement outcomes.

Required Skills and Knowledge

Required skills

communication skills to:

consult and negotiate with contractors and stakeholders

network, within probity boundaries, with contractors and stakeholders

write a business case

read complex documents, such as contracts, legislation and guidelines

provide feedback

teamwork skills to:

model effective team management approaches

respond to diversity

problem-solving skills to:

resolve complicated procurement issues

develop options for inclusion in a business case

apply decision-making processes or methodologies

initiative and enterprise skills to:

apply the content of complex documents, such as contracts, legislation and guidelines

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

planning and organising skills to:

undertake research and business analysis

document procurement decisions

manage and update procurement plans

learning skills to keep up-to-date with:

best practice examples in procurement practice

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 procurement, including environmental purchasing and corporate social responsibility guidance

such as OHS and equity and diversity

organisational procurement policies, practices and approval processes

procurement planning for a range of complex procurement requirements and outcomes

decision-making processes and methodologies

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

financial and accounting issues relevant to the procurement

cultural issues relating to complex procurement and industry development in certain sectors

relationship management

equal employment opportunity relevant to the procurement

OHS requirements relevant to the procurement

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

Range Statement

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.

Legislative and policy requirements may include:

commonwealth or state and territory legislation

council rules and by-laws

equal employment opportunity and anti-discrimination law

free trade and other international agreements

commonwealth, and state or territory government procurement guidelines

environmental and sustainable procurement

OHS legislation and policies

corporate social responsibility policies

organisational policies and practices.

Organisational objectives may be contained in:

political directives

commonwealth, and state or territory government needs

responses to government strategic papers, such as White Papers, for example on long-term capability of the public sector to deliver government policy objectives

organisational strategic and business plans.

Probity principles:

may include:

accountability

transparency

confidentiality

management of conflict of interests

impartiality

are maintained to:

ensure conformity to processes

facilitate accountability

ensure proponents are treated in a fair and equitable manner

encourage commercial completion

preserve public and private sector confidence in government processes.

Factors may include:

where and why the need arises and for which unit or location

degree of dependency of organisation on the procurement

identification of business success factors

value of business

complexity of marketplace

capacity of market

supply chain

political influence

political imperatives

budgetary constraints

collaborative arrangements

Australian industry involvement requirements

environmental issues

extent of competition

value for money considerations

level of risk, complexity and sensitivity of the procurement

new capability or replacement/enhancement of existing resources

intellectual property ownership

policy requirements or changes, e.g. ethical and social.

Stakeholders may include:

end users, customers or clients, and sponsors

potential providers or suppliers

current providers or suppliers

technical or functional experts or advisers

commonwealth, state or territory, and local government

international governments

buying organisation

other public sector organisations

employees, unions and staff associations

industry bodies

local communities

lobby groups and special user groups.

Procurement methods may include:

open tender or proposal

select tender

restricted tender

direct sourcing

sole sourcing

staged procurement.

Risks may include:

risk identified during market research

criticality of the procurement to the organisation

supplier-related risk

product-related risk

organisation-related risk

market-related risk

national security risk

political risk

corruption risk

probity risk.

Approvals may require:

delegate authorisation

ministerial authorisation

compliance with instructions or finance circulars

expert advice

other internal approval processes.

Contractual arrangements may include:

whole of government arrangements

existing agency or departmental agreements

leasing arrangements

alliance and partnership arrangements

memoranda of understanding and memoranda of agreement

contracts

standing offers

deeds of agreement

inter and intra-government agreements

outsourcing arrangements

in-house agreements.

Supplier capability may include:

financial viability/capacity, including insurances

past performance

skills and expertise of key personnel

quality accreditations

adequacy of proposed methodology and approach

technical merit of the proposed good or service

industrial relations record

technical and contractual compliance

observance and promotion of OHS requirements

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

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

Supply chain management may include:

interconnected businesses

product and service packages

consumption of raw materials

movement and storage of raw materials

work-in-process management

manufacturing flow

point of origin to point of consumption

channel partners

events that may disrupt supply

performance measurement

logistics and transport

warehousing.

Value for money may include:

benefits versus cost

fitness for purpose

whole-of-life costs, including maintenance, warranty and operating costs

market considerations

government policy objectives, e.g. industry development and employment creation

strategic partnerships

quality

risks

supplier capacity

climate change, environmental considerations and energy conservation

disposal value.

Tender evaluation panel may include:

tender evaluation working groups

selection panels

expert advisory sub-panels

subject and technical experts

users

past and present contract managers

probity experts.

Issues may include:

differences of opinion between panel members about:

processes or technical content

business needs or intentions of their organisation

attempted influence by suppliers

scope creep by clients

lack of familiarity with software or other tools.

Plans and sub-plans may include:

procurement plan

bid evaluation plan

contract negotiation plan

contract management plan

risk management plan

contingency plan

probity plan

communication and public relations plan

human resource management plan

disposal plan

contract review plan

environmental sustainability plan

industry policy plan

business continuity plan.

Procurement reporting requirements may include:

public notification of:

business opportunities

contracts and other agreements to supply (e.g. AusTender or similar system)

annual or other forward procurement plans

annual reports

senate/parliament reports

internal reports.

Records may include entries into:

financial management systems

reporting systems

database systems

central registers and repositories.