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.
Legislation and policies may include:
commonwealth or state and territory legislation, including equal employment opportunity and anti-discrimination law
council rules and by-laws
national and international codes of practice and risk management standards
organisational policies and practices
government policy
codes of conduct and codes of practice
national competition policy.
Procurement risks may include:
contextual and environmental factors
too many or too few potential suppliers
unsophisticated marketplace
timeframes for procurement too short
inappropriate method of procurement used
inadequate budget and other resources
inappropriate form of contract selected
supplier inability to meet obligations
end user or buyer inability to meet obligations
unclear contract terms and conditions
contractual disputes
factors outside the control of either party, such as global health pandemic, failure of third-party businesses or natural disasters
implications if dependence on one supplier, versus risks in lack of continuity and consistency of services provided
changes to government policy.
Probity risks may include:
corruption
fraud
conflict of interest (actual, perceived or potential)
unfair treatment of providers or potential providers
misuse of resources
misuse of information
manipulation of the marketplace.
Risk assessments differentiate between risks that have:
high impact/consequence/likelihood
low impact/consequence/likelihood.
Risk management is often considered in relation to an organisation's:
people
assets and physical environment
reputation and image
legal issues
business continuity
finances
stated outcomes.
Risk treatments may include those that:
avoid risk
transfer risk
reduce likelihood
reduce consequence
partially reduce assessed risk level so that risk can be accepted.
Risk controls may include:
legislation
government policies and guidance
organisational policies, processes and procedures
standardised documentation and templates
hierarchy of controls, such as fraud control plans and security plans
staff skills and knowledge.

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 manage procurement risk 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 risk management methodologies to identify and assess risks for all stages of a procurement activity
prepare a risk management plan for a procurement activity, using templates where available
implement risk management plans
review and revise risk management plans to reflect the changing procurement context and environment during the procurement activity
liaise and consult with stakeholders to ensure that risks are appropriately identified and managed
make recommendations to higher management about options for the management of procurement risks.
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 procurement risk
codes of conduct and codes of practice
workplace scenarios and case studies relating to a range of procurement activities associated with managing procurement risk
case studies that incorporate dilemmas and probity requirements relating to managing procurement risk.
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 managing procurement risk
review of risk assessments, risk management plans, contract management plans, contracts, probity plans, budgets, transition plans and other documentation prepared 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
PSPPROC506A Plan to manage a contract
PSPPROC507A Plan for procurement outcomes
PSPPROC508A Make procurement decisions.