Unit of competency Outline
Date retreived
22/07/2026 5:36 AM AWST
22/07/2026 5:36 AM AWST
Whilst all efforts are made to provide accurate and timely information from the relevant source/documentation, please be aware that the information supplied may not be the most current version. The accuracy of the detail has not been confirmed by the Department and therefore should not be relied upon without first confirming the contents.
Direct the management of contracts
Direct the management of contracts
Unit of competency
National Code
PSPPROC602B
PSPPROC602B
State Code
C8259
C8259
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
12/05/2010
Field of Education
090901 - Business And Commercial Law
Original Release Date
12/05/2010
Nominal Hours
60
Description
This unit covers management of contracts for strategic purchases to effectively minimise risks and achieve value for money to meet an organisations core objectives. It includes managing contract establishment, performance and evaluation.In practice, directing the management of contracts may overlap with other public sector generalist and specialist work activities such as acting ethically, applying government systems, managing resources, managing client services, managing risk, etc.This unit replaces and is equivalent to PSPPROC602A Direct the management of contracts.
Notes
Elements and Performance Criteria
1 Manage contract establishment
- 1.1 The requirements of contracts and strategic initiatives are discussed, clarified, and agreed by all parties
- 1.2 Responsibilities for establishing and carrying out procedures are assigned to achieve contract outcomes
- 1.3 Effective communication strategies and processes are established and implemented to assist ongoing communication between stakeholders and contractors
- 1.4 Relationship management is undertaken at all levels of personnel involved in procurement and contract management
- 1.5 Strategic relationships are established and managed to improve procurement capability and performance
- 1.6 Risk management plans are updated in accordance with organisational policy and procedures
2 Manage contract performance
- 2.1 Progress of contracts is monitored against set targets and performance measures to ensure success of procurement activities
- 2.2 Should monitoring find that set targets and performance measures are not being met, action is taken to rectify performance in a timely manner
- 2.3 Advice and support are provided to solve problems, make improvements and maintain progress
- 2.4 Opportunities to improve procurement outcomes are sought and negotiated with contractors
- 2.5 Approvals are provided/gained for contract variations negotiated and agreed between the parties
- 2.6 Opportunities are provided for stakeholders and contractors to have input into and receive feedback on progress during the performance contracts
3 Manage contract evaluation
- 3.1 Evaluation of contract performance is undertaken relative to planned performance measures and in consultation with stakeholders and contractors
- 3.2 Where stakeholders and contractors do not agree, dispute resolution is undertaken in accordance with organisational policy and procedures
- 3.3 Conclusions are detailed against agreed criteria to provide a complete picture of performance of contractors, the organisation's procurement processes and value for money
- 3.4 The performance of strategic initiatives is measured relative to planned outcomes in consultation with industry and other stakeholders
- 3.5 Lessons learnt from evaluations of contracts and strategic initiatives are documented in accordance with organisational requirements and used to continuously improve future procurement activities
- 3.6 Contractors and stakeholders are advised of evaluation outcomes in a timely manner in accordance with organisational guidelines
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.
Contracts and strategic initiatives may include
non-traditional procurement/finance activities
strategic procurement activities such as industry development
in-house option directives
inter/intra-government agreements
memoranda of understanding/memoranda of agreement
public private partnerships
purchases from suppliers
Stakeholders may include
end users
customers/clients
sponsors
potential providers/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
Monitoring may involve
progress meetings
visits to the contractor's premises
provision of samples
regular progress reports from the contractor
independent audit
end user feedback
Contract variation may include
modification of:
targets
performance measures
procurement plans
resourcing
monitoring and evaluation processes
Evaluation of contractor performance may include
strengths and weaknesses
client acceptance of service delivery (client satisfaction)
achievements in meeting delivery and completion dates
compliance with other contractual requirements
performance in relation to relevant policy objectives such as industry development, care for the environment, occupational health and safety, and affirmative action
achievement of the contractor in developing Australian and New Zealand supply networks
general relationships including effectiveness of communication at all levels
performance of key technical personnel
acceptability and cost of whole-of-life technical support including lead times and availability of spares and maintenance services
achievements in innovation and quality improvement programs
acceptability and suitability for future agreements including potential status as an approved contractor
Evaluation of the organisation's procurement processes may focus on
effectiveness of project management including the project plan and the responsibilities and accountabilities set out in it
quality of the business case, as indicated by the achievement of planned outcome and the contribution to program objectives
effectiveness of contractor qualification processes
value obtained in bid clarification and post-tender negotiation
effectiveness of project management systems, focusing particularly on management information
effectiveness of risk management
methods for controlling variations in cost, time, quality and performance from the initial planning to completion
adequacy of safeguards against fraud, error and impropriety
incidence of material losses due to waste or inefficiency
overall performance in terms of cost, time, service and quality
Value for money must reflect
whole-of-life program benefits
residual values
costs of parts
servicing and maintenance
industry benchmarks
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.
Contracts and strategic initiatives may include
non-traditional procurement/finance activities
strategic procurement activities such as industry development
in-house option directives
inter/intra-government agreements
memoranda of understanding/memoranda of agreement
public private partnerships
purchases from suppliers
Stakeholders may include
end users
customers/clients
sponsors
potential providers/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
Monitoring may involve
progress meetings
visits to the contractor's premises
provision of samples
regular progress reports from the contractor
independent audit
end user feedback
Contract variation may include
modification of:
targets
performance measures
procurement plans
resourcing
monitoring and evaluation processes
Evaluation of contractor performance may include
strengths and weaknesses
client acceptance of service delivery (client satisfaction)
achievements in meeting delivery and completion dates
compliance with other contractual requirements
performance in relation to relevant policy objectives such as industry development, care for the environment, occupational health and safety, and affirmative action
achievement of the contractor in developing Australian and New Zealand supply networks
general relationships including effectiveness of communication at all levels
performance of key technical personnel
acceptability and cost of whole-of-life technical support including lead times and availability of spares and maintenance services
achievements in innovation and quality improvement programs
acceptability and suitability for future agreements including potential status as an approved contractor
Evaluation of the organisation's procurement processes may focus on
effectiveness of project management including the project plan and the responsibilities and accountabilities set out in it
quality of the business case, as indicated by the achievement of planned outcome and the contribution to program objectives
effectiveness of contractor qualification processes
value obtained in bid clarification and post-tender negotiation
effectiveness of project management systems, focusing particularly on management information
effectiveness of risk management
methods for controlling variations in cost, time, quality and performance from the initial planning to completion
adequacy of safeguards against fraud, error and impropriety
incidence of material losses due to waste or inefficiency
overall performance in terms of cost, time, service and quality
Value for money must reflect
whole-of-life program benefits
residual values
costs of parts
servicing and maintenance
industry benchmarks
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:
PSPETHC601B Maintain and enhance confidence in public service
PSPLEGN601B Manage compliance with legislation in the public sector
PSPGOV601B Apply government systems
PSPMNGT602B Manage resources
PSPMNGT604B Manage change
PSPMNGT606B Manage quality client service
PSPMNGT608B Manage risk
PSPPROC604A Plan for strategic procurement
PSPPROC605A Coordinate strategic procurement
PSPPROC606A Negotiate strategic procurement
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)
direction of contract management in a range of (3 or more) contexts (or occasions, over time) including 1 non-traditional procurement/finance activity such as a strategic initiative for industry development
Resources required to carry out assessment
These resources include:
legislation, policy, procedures and protocols relating to contract management
case studies and workplace scenarios to capture the range of situations likely to be encountered when directing the management of contracts
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 directing the management of contracts, including coping with difficulties, irregularities and breakdowns in routine
direction of contract management in a range of (3 or more) contexts (or occasions, over time) including 1 non-traditional procurement/finance activity such as a strategic initiative for industry development
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
questioning
scenarios
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
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:
PSPETHC601B Maintain and enhance confidence in public service
PSPLEGN601B Manage compliance with legislation in the public sector
PSPGOV601B Apply government systems
PSPMNGT602B Manage resources
PSPMNGT604B Manage change
PSPMNGT606B Manage quality client service
PSPMNGT608B Manage risk
PSPPROC604A Plan for strategic procurement
PSPPROC605A Coordinate strategic procurement
PSPPROC606A Negotiate strategic procurement
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)
direction of contract management in a range of (3 or more) contexts (or occasions, over time) including 1 non-traditional procurement/finance activity such as a strategic initiative for industry development
Resources required to carry out assessment
These resources include:
legislation, policy, procedures and protocols relating to contract management
case studies and workplace scenarios to capture the range of situations likely to be encountered when directing the management of contracts
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 directing the management of contracts, including coping with difficulties, irregularities and breakdowns in routine
direction of contract management in a range of (3 or more) contexts (or occasions, over time) including 1 non-traditional procurement/finance activity such as a strategic initiative for industry development
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
questioning
scenarios
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 |
|---|---|---|---|
| C3458 | PSPPROC602A | Direct the management of contracts | Unit of competency |
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| D3743 | PSPPROC607A | Manage strategic contracts | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| D661 | CUV60311 | Advanced Diploma of Creative Product Development | Qualification |
| C808 | PSP60704 | Advanced Diploma of Government (Strategic Procurement) | Qualification |
| D365 | CUS60309 | Advanced Diploma of Music Business | Qualification |