Unit of competency Outline

Date retreived
22/07/2026 1:06 PM AWST

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Negotiate strategic procurement

Negotiate strategic procurement

Unit of competency
National Code
PSPPCM022
State Code
AWU25
TGA Status
Current
DTWD Status
Approved
Current Release Number
1.00
Current Release Date
07/03/2016
View on TGA
State Implementation and Classification
Approved Date
21/07/2016
Field of Education
080301 - Business Management
Original Release Date
21/07/2016
Nominal Hours
50
Description
This unit describes the skills required to negotiate strategic procurement agreements within established guidelines, policies and procedures. It includes planning and preparing for negotiation, and undertaking and finalising the negotiation process for strategic procurement.This unit applies to those working in a role that requires negotiation of strategic procurement.The skills and knowledge described in this unit must be applied within the legislative, regulatory and policy environment in which they are carried out. Organisational policies and procedures must be consulted and adhered to.Those undertaking this unit will be working independently aided by consultation in a team environment, while performing complex tasks in familiar context.No licensing, legislative or certification requirements apply to unit at the time of publication.
Notes
Elements and Performance Criteria
1. Plan and prepare for strategic procurement negotiations
  • 1.1 Seek input and advice from key stakeholders and identify the procurement and negotiating context.
  • 1.2 Gather information on suppliers and develop a best alternative to negotiating an agreement.
  • 1.3 Determine objectives, targets and bottom line position for negotiations.
  • 1.4 Determine composition of negotiating team and limits on negotiators’ authority.
  • 1.5 Determine negotiation process, timeframes and strategies to suit complexity of procurement and supplier characteristics.
  • 1.6 Develop a negotiation plan or directive that identifies negotiation roles of team members, lead negotiator, negotiating styles, tactics and limits of authority to suit the procurement activity.
  • 1.7 Seek authorisation of negotiation plan.
2. Undertake strategic procurement negotiations
  • 2.1 Open negotiations, identify supplier tactics, and identify mutually compatible interests.
  • 2.2 Negotiate concessions to terms and conditions on minor and major issues to improve overall value for money of the procurement.
  • 2.3 Implement concessions such that agreements remain consistent with original intentions and with procurement, organisational objectives and probity requirements.
  • 2.4 Use appropriate tactics to break negotiation deadlocks and continue negotiations according to negotiation plan.
  • 2.5 Conduct negotiations and make an offer.
3. Finalise strategic procurement negotiations
  • 3.1 Finalise negotiations and agreements according to procurement guidelines.
  • 3.2 Keep communication channels open and seek additional support, arguments and supporting evidence where agreement is not possible immediately.
  • 3.3 Terminate negotiations and pursue the best alternative, where agreement is not possible in a way that preserves the relationship with the supplier for possible future business and deters the possibility of legal liability.
  • 3.4 Consider where agreements may have wider implications for procurement and the organisation, and carry out necessary consultation.
  • 3.5 Document details and outcomes of negotiations.
No information
No information
Replaces
State Code National Code Title Type
D3747 PSPPROC606B Negotiate strategic procurement Unit of competency