Unit of competency Outline
Date retreived
23/07/2026 6:00 AM AWST
23/07/2026 6:00 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.
Negotiate strategic procurement
Negotiate strategic procurement
Unit of competency
National Code
PSPPROC606B
PSPPROC606B
State Code
D3747
D3747
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
05/11/2014
Field of Education
080301 - Business Management
Original Release Date
05/11/2014
Nominal Hours
50
Description
This unit covers the ability 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.In practice, negotiating strategic procurement may occur in the context of other generalist and specialist work activities, such as maintaining and enhancing confidence in public service or local government, establishing and maintaining strategic networks, managing compliance with legislation in the public service or local government, managing risk, developing a business case, planning for strategic procurement, coordinating strategic procurement, and managing strategic contracts.No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.
Notes
Elements and Performance Criteria
1. Plan and prepare for strategic procurement negotiations
- 1.1. Input and advice are obtained from key stakeholders and the procurement and negotiating context is identified.
- 1.2. Information is gathered on suppliers and a best alternative to negotiating an agreement is developed.
- 1.3. Objectives, targets and bottom line position are determined for negotiations.
- 1.4. Composition of negotiating team and limits on negotiators' authority are determined according to organisational policy and procedures.
- 1.5. Negotiation process, timeframes and strategies are determined to suit complexity of procurement and supplier characteristics.
- 1.6. Negotiation plan/directive is developed that identifies negotiation roles of team members, lead negotiator, negotiating styles, tactics and boundaries/limits of authority to suit the procurement activity.
- 1.7. Negotiation plan is authorised and signed off according to organisational policy and procedures.
2. Undertake strategic procurement negotiations
- 2.1. Negotiations are opened, supplier tactics identified, and issues and options explored to identify mutually compatible interests.
- 2.2. Minor and major issues are dealt with and concessions to terms and conditions are negotiated to improve overall value for money of the procurement.
- 2.3. Concessions are made such that agreements remain consistent with original intentions and with procurement, organisational objectives and probity requirements.
- 2.4. If negotiations stall, tactics are used to break deadlocks and continue negotiations according to negotiation plan and organisational policy and procedures.
- 2.5. Negotiations are conducted and an offer is made in accordance with legislative requirements, organisational policy and procurement guidelines.
3. Finalise strategic procurement negotiations
- 3.1. Negotiations are closed and agreements are finalised according to procurement guidelines.
- 3.2. Where agreement is not possible immediately, communication channels are kept open while additional support, arguments and supporting evidence are obtained.
- 3.3. Where agreement is not possible and the best alternative is to be pursued instead, negotiations are terminated in a way that preserves the relationship with the supplier for possible future business and deters the possibility of legal liability.
- 3.4. Where agreements may have wider implications for procurement and the organisation, those implications are considered and necessary consultation is carried out.
- 3.5. Details and outcomes of negotiations are documented according to organisational policy and procedures.
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.
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
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
coordinated procurement
whole of government procurement
cooperative procurement
Procurement and negotiating context may include:
nature of procurement in terms of:
risk
expenditure
complexity
nature of supply market, such as:
fully competitive
dominated by a few large suppliers
sole supplier
unsophisticated suppliers
rural and remote issues
one-off negotiation versus need to maintain long-term relationship
existing relationship with supplier. including:
previous negotiations
supplier's business approach to government as client
state of current relationship
political or community sensitivities
skill and experience of negotiating team
balance of power in the negotiations
Negotiating team members may include:
financial
legal
technical
functional
engineering
scientific and research
human resource
commercial or business
Negotiating styles may include:
competitive
accommodating
avoidance
compromising
collaborative
Terms and conditions may include:
technical support aspects, such as:
warranties
life-cycle support
maintenance agreements
financial aspects, such as:
deposits
payment terms
discounts
payment schedules
travel costs
cancellation penalties
risk management aspects
management information
government support
timeframes
performance incentives and penalties
general matters, such as subcontracting
contract price
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
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
coordinated procurement
whole of government procurement
cooperative procurement
Procurement and negotiating context may include:
nature of procurement in terms of:
risk
expenditure
complexity
nature of supply market, such as:
fully competitive
dominated by a few large suppliers
sole supplier
unsophisticated suppliers
rural and remote issues
one-off negotiation versus need to maintain long-term relationship
existing relationship with supplier. including:
previous negotiations
supplier's business approach to government as client
state of current relationship
political or community sensitivities
skill and experience of negotiating team
balance of power in the negotiations
Negotiating team members may include:
financial
legal
technical
functional
engineering
scientific and research
human resource
commercial or business
Negotiating styles may include:
competitive
accommodating
avoidance
compromising
collaborative
Terms and conditions may include:
technical support aspects, such as:
warranties
life-cycle support
maintenance agreements
financial aspects, such as:
deposits
payment terms
discounts
payment schedules
travel costs
cancellation penalties
risk management aspects
management information
government support
timeframes
performance incentives and penalties
general matters, such as subcontracting
contract price
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 negotiate 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 negotiation plans (or similar) for strategic procurements
implement negotiation plans
respond flexibly, but within the boundaries of the plan, to issues, deadlocks and other situations that arise during negotiations
finalise strategic procurement negotiations with an agreement that captures the negotiated positions of all parties
act within own delegations and promptly escalate issues to higher authority when required
uphold high standards of public sector ethics and behaviour when negotiating with potential suppliers.
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 negotiating 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 negotiation process used, negotiation plans, negotiation directives, contracts or other agreements reached, notes from negotiations, risk assessments, 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
PSPGOV601B Apply government systems
PSPLEGN601B Manage compliance with legislation in the public sector
PSPMNGT607B Develop a business case
PSPMNGT608B Manage risk
PSPPM601B Direct complex project activities
PSPPROC604B Plan for strategic procurement
PSPPROC605B Coordinate strategic procurement
PSPPROC607A Manage strategic contracts.
Overview of assessment
Competency must be demonstrated in the ability to negotiate 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 negotiation plans (or similar) for strategic procurements
implement negotiation plans
respond flexibly, but within the boundaries of the plan, to issues, deadlocks and other situations that arise during negotiations
finalise strategic procurement negotiations with an agreement that captures the negotiated positions of all parties
act within own delegations and promptly escalate issues to higher authority when required
uphold high standards of public sector ethics and behaviour when negotiating with potential suppliers.
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 negotiating 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 negotiation process used, negotiation plans, negotiation directives, contracts or other agreements reached, notes from negotiations, risk assessments, 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
PSPGOV601B Apply government systems
PSPLEGN601B Manage compliance with legislation in the public sector
PSPMNGT607B Develop a business case
PSPMNGT608B Manage risk
PSPPM601B Direct complex project activities
PSPPROC604B Plan for strategic procurement
PSPPROC605B Coordinate strategic procurement
PSPPROC607A Manage strategic contracts.
Replaces
| State Code | National Code | Title | Type |
|---|---|---|---|
| C8263 | PSPPROC606A | Negotiate strategic procurement | Unit of competency |
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| AWU25 | PSPPCM022 | Negotiate strategic procurement | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| D378 | PSP61210 | Advanced Diploma of Government (Procurement and Contracting) | Qualification |
| J331 | PSP61212 | Advanced Diploma of Government (Procurement and Contracting) | Qualification |
| AWV2 | TLI60115 | Advanced Diploma of Materiel Logistics | Qualification |
| W944 | TLI60110 | Advanced Diploma of Materiel Logistics | Qualification |