Unit of competency Outline

Date retreived
23/07/2026 6:49 AM AWST

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Influence and define strategic procurement

Influence and define strategic procurement

Unit of competency
National Code
PSPPROC704A
State Code
D3748
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
2.00
Current Release Date
07/03/2012
State Implementation and Classification
Approved Date
05/11/2014
Field of Education
080301 - Business Management
Original Release Date
05/11/2014
Nominal Hours
70
Description
This unit covers the ability to formulate an organisation's strategic procurement goals and take action to gain support for strategic procurement directions. It includes ensuring that the organisation's strategic procurement direction is aligned with that of the government.In practice, influencing strategic procurement directions may overlap with other public sector or local government generalist and specialist work activities, such as providing strategic direction, influencing strategic policy, leading and influencing ethical practice in the public sector or local government, and undertaking strategic risk management.No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.
Notes
Elements and Performance Criteria
1. Formulate strategic procurement goals
  • 1.1. Procurement direction is determined through open and ethical consultation with organisation's governing body and stakeholders.
  • 1.2. Strategic procurement goals are formulated that are consistent with organisation's business plan, strategic direction, mission and values, and take into account the requirements, expectations and interests of organisation's governing body and stakeholders.
  • 1.3. Strategic procurement goals are developed that support the ethos of the organisation and accurately reflect its role in its environment.
  • 1.4. Strategic procurement goals are developed that support and align with the policy expectations of government for the organisation.
  • 1.5. Strategic procurement goals are reviewed to ensure that opportunities and current and emerging trends are reflected.
  • 1.6. Strategic procurement goals are used to guide procurement processes that deliver best value for money.
2. Gain support for strategic procurement direction
  • 2.1. Strategic procurement goals are presented to stakeholders in such a way as to gain their support.
  • 2.2. Where stakeholder interests are in conflict, realistic and rational compromises are found that balance interests and acknowledge concerns.
  • 2.3. Where less than full support is obtained, consequences for the organisation are identified and steps are taken to minimise potential problems.
  • 2.4. Ongoing consultation with stakeholders is maintained to ensure support for and ownership of the organisation's strategic procurement goals.
  • 2.5. Outcomes of the consultation process are recorded and considered before procurement decisions are reached.
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.
Determining procurement direction may be influenced by:
stakeholder needs and intentions
end user requirements
government policies
Australian industry involvement requirements
potential provider/supplier base
industry development requirements
disposal of assets
probity requirements
environmental, sustainability and corporate social responsibility issues
Stakeholders may include:
end users
customers or clients
sponsors
potential providers or suppliers
current 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
Developed goals:
are challenging, realistic, achievable and measurable
encourage members of the organisation to be creative and innovative within procurement guidelines
Value for money may include:
fitness for purpose
whole-of-life costs
fair and reasonable market prices
timely delivery
post-delivery support
effective warranties
price basis
disposal options
whole of government perspective
effects of government buying on market structure and sustainability
market competitiveness and sophistication
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 influence and define 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:
formulate strategic procurement goals in line with organisation's business direction and government policy imperatives
reflect the organisation's ethos in its strategic procurement goals
encourage wide input into the development of strategic procurement goals and direction
encourage consideration of innovation and new opportunities in procurement direction for the organisation
publicise organisation's strategic procurement goals and direction
work effectively with disagreement between stakeholders
use recognised approaches to gain support for the strategic procurement direction established for the organisation
demonstrate effective implementation of goals even when full support is not gained.
Candidates for this qualification must demonstrate a high level of understanding of underpinning knowledge and the ability to apply this to practical workplace situations.
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 and managing contracts at the strategic level
codes of conduct and codes of practice
long-term government policy papers, such as White Papers
strategic procurement plans and direction statements
published performance audits or similar relating to strategic procurement issues
workplace scenarios and case studies relating to a range of strategic procurement 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 influencing strategic procurement direction
preparation of formal written papers covering strategic procurement issues
review of strategic plans, strategic procurement plans, long-term budgets, forward procurement plans, industry engagement plans, responses to performance audits covering strategic procurement issues 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. Questioning techniques should suit the language and literacy levels of the candidate.
Guidance information for assessment
Sufficient evidence must be gathered 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:
BSBFIM701A Manage financial resources
BSBINN801A Lead innovative thinking and practice
BSBREL701A Develop and cultivate collaborative partnerships and relationships
PSPETHC701A Lead and influence ethical practice in the public sector
PSPMNGT703A Lead and influence change
PSPMNGT704A Undertake enterprise risk management
PSPPROC705A Establish strategic procurement context
PSPPROC706A Evaluate and improve strategic procurement performance.
Replaces
State Code National Code Title Type
C8264 PSPPROC701B Establish strategic procurement directions Unit of competency
Replaced By
State Code National Code Title Type
AWU22 PSPPCM025 Influence and define strategic procurement direction Unit of competency