Unit of competency Outline

Date retreived
23/07/2026 10:17 AM AWST

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Establish procurement need

Establish procurement need

Unit of competency
National Code
PSPPROC407A
State Code
C8251
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
10/03/2009
State Implementation and Classification
Approved Date
26/09/2008
Field of Education
089901 - Purchasing, Warehousing And Distribution
Original Release Date
26/09/2008
Nominal Hours
30
Description
This unit covers the establishment, justification and approval of procurement requirements to achieve required outcome. It includes defining and justifying the need, researching potential impact and risks, and securing organisational support to proceed with procurement activity. The unit is suitable for any personnel who identify the need for procurement, and would not necessarily apply to procurement specialists whose role would typically begin as a result of procurement need being established and approved (including approval of appropriation).In practice, establishment of procurement need may overlap with other public sector generalist and specialist work activities such as acting ethically, complying with legislation, applying government processes, working with diversity, using resources, etc.This unit replaces PSPPROC401A Plan procurement. The units are not equivalent, as overlap between PSPPROC401A and PSPPROC402A has been removed, and the unit is more tightly focused on pre-procurement planning.There is multi-unit equivalence between new and superseded units. The combination of:PSPPROC401A Plan procurement + PSPPROC402A Request and receive offers+ PSPPROC403A Award contractsis equivalent to the combination:PSPPROC408A Develop requests for offersPSPPROC409A Receive and select offers
Notes
Elements and Performance Criteria
1 Define and justify procurement need
  • 1.1 Consultation is undertaken with stakeholders and experts to determine whether viable alternatives to procurement exist to address identified procurement need
  • 1.2 A representative sampling of clients, experts and suppliers is consulted to define and clarify requirements
  • 1.3 Procurement need is justified through consultation and negotiation with stakeholders and experts
  • 1.4 Other issues and opportunities are investigated for integration into procurement activity
2 Research potential procurement impact and risks
  • 2.1 Options are developed and the impacts, risks and costs of each are determined
  • 2.2 Recommendation is made and justified
  • 2.3 Identification and assessment of risks are undertaken using risk analysis tools that meet policy guidelines
  • 2.4 Stakeholder input is obtained and taken into account in the development of the procurement requirement
  • 2.5 Procurement requirement is developed which contains risk analysis, outcome measures, responsibilities and timelines
  • 2.6 Procurement requirement is outlined from transition to close-out, and meets legislative, policy and probity requirements
3 Secure organisational support for procurement
  • 3.1 Constraints or limitations of authority and approval requirements are identified
  • 3.2 Resource allocations and appropriation are confirmed for whole-of-life
  • 3.3 Approvals are obtained in accordance with procedures, guidelines and delegations
  • 3.4 Procurement requirement is conveyed to procurement specialists for development of procurement planning and implementation
  • 3.5 Value for money criteria are defined for assessment and measurement of performance
RANGE STATEMENT
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.
Stakeholders may include
end users, customers or clients and sponsors
potential providers or 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
Suppliers may include
commercial organisations
other government organisations
commercialised or privatised government organisations
non-profit organisations
Experts may include
legal, functional, technical, financial
scientific and research
human resource
commercial or business practices
consultants
other relevant organisations including foreign governments
Issues and opportunities may include
risk sharing
cost sharing
cost escalation
intellectual property rights
knowledge management
corporate knowledge
libraries, archives - historical value of public sector work
capital equipment/asset ownership
value engineering
value management
innovation
continuous improvement
future organisational requirements
quality
whole-of-life considerations
organisational integration and cooperation
Legislative, policy and probity requirements may include
Commonwealth or State/Territory legislation
equal employment opportunity and anti-discrimination law
Commonwealth/State/Territory Government procurement guidelines including environmental purchasing, access and equity, social justice guidelines
organisational policies and practices
security/confidentiality
risk management
Resource requirements may include
facilities
information technology
personnel
budget support equipment
use of contractor staff
professional service providers
risk assessment
Appropriations may require
Ministerial authorisation
compliance with instructions or finance circulars
confirmation by chief financial officer
special consideration if they concern:
long-term travel deals
long-term computer deals
long-term lease deals
issuing of indemnities
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:
PSPETHC401A Uphold and support the values and principles of public service
PSPGOV406B Gather and analyse information
PSPGOV422A Apply government processes
PSPLEGN401A Encourage compliance with legislation in the public sector
PSPPOL404A Support policy implementation
PSPPROC408A Develop requests for offers
PSPPROC409A Receive and select offers
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)
exercise of responsible care in planning the use of public monies
establishment of procurement need in a range of (2 or more) contexts (or occasions, over time)
Resources required to carry out assessment
These resources include:
legislation, policy, procedures and protocols relating to establishment of procurement needs
case studies and workplace scenarios to capture the range of situations likely to be encountered
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 establishing procurement need, including coping with difficulties, irregularities and breakdowns in routine
establishment of procurement need in a range of (2 or more) contexts (or occasions, over time)
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
projects
questioning
scenarios
simulation or role plays
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
Replaces
State Code National Code Title Type
C1464 PSPPROC401A Plan procurement Unit of competency
Replaced By
State Code National Code Title Type
D3731 PSPPROC411A Plan procurement Unit of competency
State Code National Code Title Type
C806 PSP41304 Certificate IV in Government (Procurement) Qualification