Unit of competency Outline

Date retreived
23/07/2026 1:33 AM AWST

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Select providers and develop contracts

Select providers and develop contracts

Unit of competency
National Code
PSPPROC413A
State Code
D3733
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
3.00
Current Release Date
01/11/2012
View on TGA
State Implementation and Classification
Approved Date
05/11/2014
Field of Education
080315 - Project Management
Original Release Date
05/11/2014
Nominal Hours
30
Description
This unit covers the ability to select preferred providers as a result of a formal request for offer process. It includes evaluating offers, selecting preferred providers, obtaining approvals, developing and formalising contractual arrangements, and debriefing the market and other stakeholders.In practice, selecting providers overlaps with other generalist and specialist public sector and 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 and managing contracts.No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.
Notes
Elements and Performance Criteria
1. Select preferred providers
  • 1.1. Evaluation panel is formed and coordinated.
  • 1.2. Offers are evaluated according to evaluation plan and organisational probity requirements which relate to managing conflicts of interest and adherence to public sector standards.
  • 1.3. Specialist expertise is obtained where necessary to assist with evaluation of offers.
  • 1.4. Clarification and negotiation of matters contained in offers are undertaken with bidders according to organisational guidelines and public sector standards.
  • 1.5. Preferred providers are selected and recommendations for allocation of business are developed, justified and documented against selection criteria according to policy, procedures and governance requirements.
  • 1.6. Approvals are obtained for the recommended offers.
  • 1.7. Successful providers are notified in line with organisational protocols.
2. Develop and formalise contractual arrangements
  • 2.1. Approvals are obtained to enter negotiations, when required, and negotiation of the final wording of contract is conducted according to organisational policy and procedures and defined probity frameworks as set out in the evaluation plan.
  • 2.2. Approvals to enter into contracts are obtained according to policy and procedures.
  • 2.3. Commitments are not made and contractors do not commence until contracts are signed.
  • 2.4. Contracts are structured to capture and address identified risks, protect both parties, provide the basis for due performance, and outline expected standards of behaviour.
  • 2.5. Contracts are entered into that are valid and legally binding to the parties.
3. Debrief market and other stakeholders
  • 3.1. Advice on the contractual arrangements is provided to internal stakeholders according to organisational policy and procedures.
  • 3.2. Unsuccessful bidders are informed and debriefed upon request with constructive feedback on their proposals.
  • 3.3. Details of successful providers are made public according to probity requirements, organisational protocols and public sector standards.
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.
Offers may include:
delivery of goods for use or into store
provision of services
maintenance agreements
leasing agreements
consultancies
research and development
infrastructure assets
Evaluation:
must include:
processing offers
determining value for money
checking and investigating
collating information
comparative statements
accountability
may include staged procurement
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
Allocation of business may include:
single successful contractor
multiple successful contractors
standing offer (panel)
multiple contracts as a result of a single request for offer

Contracts may include:
memoranda of understanding and memoranda of agreement
in-house option directives
common use arrangements and standing offers
inter and intra-government agreements
service level agreements
deeds of agreement
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 select providers and develop contracts 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:
apply recognised offer evaluation methodologies to select a preferred provider
make provider selections in accordance with the offer evaluation plan, procurement plan and relevant policy and legislation
work with subject matter experts, such as legal, financial, commercial and technical
adhere to probity requirements
make written recommendations about suppliers to delegates and higher management
act within the scope of own delegations
keep appropriate records
debrief relevant stakeholders about their performance.
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 selecting providers and developing contracts
codes of conduct and codes of practice
workplace scenarios and case studies relating to a range of procurement activities associated with selecting providers and developing contracts
case studies that incorporate dilemmas, and probity requirements relating to selecting providers and developing contracts
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 selecting providers and developing contracts
review of selection reports, approvals and sign-offs, negotiation plans, draft contracts, final contracts, risk assessments and other documentation prepared 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
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
PSPPROC414A Manage contracts.
Replaces
State Code National Code Title Type
C8253 PSPPROC409A Receive and select offers Unit of competency
Replaced By
State Code National Code Title Type
AWU41 PSPPCM006 Select providers and develop contracts Unit of competency