Unit of competency Outline

Date retreived
22/07/2026 6:36 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.

Procure goods and services

Procure goods and services

Unit of competency
National Code
PSPPROC406B
State Code
D3730
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
3.00
Current Release Date
01/11/2012
State Implementation and Classification
Approved Date
04/07/2014
Field of Education
089901 - Purchasing, Warehousing And Distribution
Original Release Date
04/07/2014
Nominal Hours
50
Description
This unit covers the expenditure of public monies for simple procurement of low value/low risk goods and services using contractual arrangements that include simple tendering and requests for quotation. The unit requires analysis and decision making in the procurement process, which is undertaken under limited supervision. It includes planning and undertaking procurement, managing contractors and completing contractual arrangements.In practice, procuring goods and services overlaps with other generalist and specialist public sector or local government work activities, such as upholding and supporting the values and principles of public service, identifying and treating risks, exercising delegations, applying government processes, encouraging compliance with legislation in the public sector or local government, planning procurement, developing and distributing requests for offers, selecting providers and managing contracts.This unit is not recommended for those who specialise in procurement. It cannot be included in the Certificate IV in Government (Procurement and Contracting).No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.
Notes
Elements and Performance Criteria
1. Plan for procurement of goods or services.
  • 1.1. Market assessment is used to identify and select options for procuring goods or services in accordance with business plan requirements, legislation, policy and procedures, and probity requirements.
  • 1.2. Commercial strategy is identified to achieve the procurement outcome set out in the business plan, achieve value for money, and meet legal and probity requirements.
  • 1.3. Risk planning is conducted for the procurement activity according to procedures, delegations and guidelines.
  • 1.4. Process and criteria for evaluation of offers from suppliers or service providers are identified to meet public sector probity requirements, and are recorded in a tender evaluation plan.
  • 1.5. Procurement plan is developed to manage procurement process and contractual arrangements in accordance with legislation, policy and procedures, and probity requirements.
  • 1.6. Stakeholders are consulted about the planned procurement and their feedback is incorporated into the procurement process.
2. Undertake procurement.
  • 2.1. Method for requesting and receiving offers is chosen to suit the procurement activity and comply with organisational policy and procedures and probity requirements.
  • 2.2. Specialist expertise is used to assist in evaluation of offers as required.
  • 2.3. Evaluation and selection of the offer are made according to tender evaluation plan, and organisational policy and procedures.
  • 2.4. Notification of successful and unsuccessful suppliers/providers is undertaken according to procurement plan, and organisational policy and procedures.
  • 2.5. Work does not commence and payment is not made until contractual arrangements are formalised.
  • 2.6. Contractual arrangements that are legally binding to all parties and suitable to the procurement activity are negotiated, formalised and reported according to organisational policy and procedures.
3. Manage contractors.
  • 3.1. Communication strategies are established to build and maintain relationships with contractors.
  • 3.2. Performance is monitored against contract performance indicators for quality assurance of the goods or services and to ensure compliance with contract specifications.
  • 3.3. Contract performance indicators are regularly reviewed to ensure relevance.
  • 3.4. Approvals are obtained for contract variations according to organisational and contractual requirements.
  • 3.5. Disputes or complaints are investigated, documented and resolved or referred according to contractual provisions.
  • 3.6. Contractual obligations to contractors are met.
  • 3.7. Records are maintained according to organisational and legal requirements to provide an audit trail and for other organisational purposes.
4. Complete contractual arrangements.
  • 4.1. Goods and services received are confirmed as meeting contractual specification and required outcome, and accounts are processed for payment according to organisational procedures.
  • 4.2. Contracts are finalised, cancelled or terminated according to contractual arrangements.
  • 4.3. Contract performance, outcomes and management processes are evaluated, and lessons learnt are recorded and used to inform ongoing contract management practices.
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.
Market assessment may include:
structure of the market
number and quality of providers
factors and conditions which may affect supply of goods or provision of services
potential impact of intended procurement activity
Evaluation of options may include:
stakeholder consultation
confirmation that procurement is necessary
development of a business case
comparison of internal and outsourced provision
Probity requirements:
may include:
accountability
transparency
confidentiality
managing conflict of interest
impartiality
are maintained to:
encourage 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
Key elements of a commercial strategy may include:
consultation with key stakeholders
expenditure budget meets organisational requirements for probity and accountability
procurement process agreed by users and documented, and meets legal and probity requirements
approvals obtained
contractual arrangements that capture and address identified risks, protection of all parties, and include performance indicators that provide the basis for due performance
Contractual arrangements may include:
verbal and written orders
purchase order
government credit cards
petty cash
memoranda of understanding/memoranda of agreement
in-house service level agreements
contracts
standing offers
inter and intra-government agreements
Legislation, policy and procedures and probity requirements may include:
commonwealth or state and territory legislation
council rules and by-laws
equal employment opportunity and anti-discrimination law
commonwealth, and state or territory government procurement guidelines, including environmental purchasing guidelines
organisational policies and practices
probity guidelines
financial management requirements
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
the organisation
other public sector organisations
employees, unions and staff associations
industry bodies
local communities
lobby groups and special user groups
Methods for requesting and receiving offers may include:
requests for quotation
direct purchases using existing supply agreements, such as standing offers
oral quotations
written quotations
direct purchases from retail or wholesale outlets
electronic commerce
Reporting may include:
gazettal notices
public notification
Gazette Publishing System (GaPS)
electronic
verbal
annual reports
internal and/or external
statistical reports
Records may include:
purchase requests and orders
simple procurement submissions and proposals
invoices and payment requests
statements and petty cash vouchers
offer and contract documents
evaluation process documentation
records of authorised decisions
corporate credit card transaction statements
records of supplier performance
gazettal notices
financial statements
asset registers
records of conversation
actions taken to manage identified conflict of interest
Organisational purposes may include:
reports and other documents
future procurement planning and contract management
accountability requirements
Ministerials
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 procure goods and services 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:
plan a procurement activity, using templates where these are available, to a level of detail commensurate with the complexity and risk profile of the procurement
implement the procurement plan in a way that reflects the legislative and policy environment applicable to the organisation
develop a suitable contract management plan, using templates if available
manage the performance of contractors to ensure that the goods or services are delivered in accordance with the contract
act within own delegations and refer issues to higher authority when necessary.
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
codes of conduct and codes of practice
workplace scenarios and case studies relating to a range of procurement activities
case studies that incorporate dilemmas, and probity requirements relating to procurement of goods and services.
Method of assessment
The following assessment methods are suggested:
questions to assess understanding of relevant legislation and procedures
review of strategies selected for procurement
review of procurement plans, requests for quotation/tender, tender evaluation plans, selection reports, contracts, contract management plans and reports, and other documentation prepared by the candidate in a range of contexts
feedback from peers or supervisors on actions taken to monitor and review contract performance.
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:
PSPETHC401A Uphold and support the values and principles of public service
PSPGOV417A Identify and treat risks
PSPGOV421A Exercise delegations
PSPLEGN401A Encourage compliance with legislation in the public sector
PSPPROC411A Plan procurement
PSPPROC412A Develop and distribute requests for offers
PSPPROC413A Select providers and develop contracts
PSPPROC414A Manage contracts.
Replaces
State Code National Code Title Type
C8250 PSPPROC406A Procure goods and services Unit of competency
Replaced By
State Code National Code Title Type
AWU44 PSPPCM003 Procure goods and services Unit of competency