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.
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.

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.