Elements and Performance Criteria

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.

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.