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
standard form agreements
common use contracts
facilities management
prime contractor and subcontractor
gain sharing/open book
alliancing
coordinated procurement
whole of government procurement
cooperative procurement
Procurement expenditure may include:
products purchased
quantities
suppliers
locations
types, values and volumes of transactions
Risk may include:
goods and services critical to the organisation
product-related risk
organisation-related risk
supplier-related risk
market-related risk
national security risk
political risk
corruption risk
probity risk
Supply positioning results in four categories:
easy to secure supply and low relative expenditure
easy to secure supply and high relative expenditure
difficult to secure supply and low relative expenditure
difficult to secure supply and high relative expenditure
Supplier preferencing may categorise clients as:
nuisance account
development potential
exploitable
core business
Suppliers may include:
commercial companies
international companies
other public sector organisations
other governments, including commonwealth, state or territory, local and international
non-profit organisations
in-house
Other factors likely to affect strategic procurement may include:
value of business involved
complexity of marketplace
capacity of market
strategic and tactical issues
political influence
political imperatives and strategies
budgetary constraints
collaborative arrangements
Australian industry involvement requirements
environmental issues
extent of competition
protection of both parties
value for money considerations
degree of dependency of organisation programs on the procurement
where and why the need arises and for which unit or location
level of risk, complexity and sensitivity of the procurement
whether the need is for the replacement or enhancement of existing resources, or to meet an entirely new capability
joint ventures with the private sector to fund portions of the project in exchange for financial returns or intellectual property rights
alternatives, such as change in policy/process, equipment or equipment life extensions
use of in-house resources
leasing instead of up-front capital investment
consideration of supply chain issues
environmental, sustainability and corporate social responsibility principles
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
international governments
the organisation
other public sector organisations
employees, unions and staff associations
industry bodies
local communities
lobby groups and special user groups
Organisational needs may include:
political directives
commonwealth, and state or territory, and local government needs
responses to government White Papers, for example on long-term capability of the public sector to deliver government policy objectives
Appropriations may require:
delegates
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 indemnities

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 plan for 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:
prepare procurement profiles and supplier profiles
conduct procurement analysis of own organisation's buying requirements
consult with procurement stakeholders to inform the development of procurement requirements
use results of procurement analysis to develop procurement requirements
define strategic procurement requirements
prepare complex business cases or other documents to justify procurement decisions and expenditure.
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 planning for 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 planning for strategic procurement
review of strategic procurement plans, business cases, procurement justifications, budgets, supplier analysis, market analysis, risk assessment, tender documentation, 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
PSPMNGT609B Formulate business strategies
PSPPM601B Direct complex project activities
PSPPROC605B Coordinate strategic procurement
PSPPROC606B Negotiate strategic procurement
PSPPROC607A Manage strategic contracts.