Elements and Performance Criteria

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.
Strategic implications may include:
results which directly impact on the buying organisation’s ability to deliver its core business including criticality of supply
non delivery, late delivery or poor quality products and services being received
reputational risk including:
the government losing confidence in the organisation’s ability to perform
the public losing confidence in the organisation
public embarrassment
breach of legislation, treaty or government policy
procurement that costs more than planned for
timelines not met
The buying organisation may include:
a controlling and reporting entity
administrative departments
Government corporations or business enterprises
Statutory Authorities
a local government
an entity of convenience (eg a division/branch/section)
some other entity which makes a purchase using taxpayer funding
Level of spend may include:
all resources, direct and indirect, consumed in:
acquiring goods and services
managing the procurement process including managing contracts
value, volume and breakdown of spend
Supplier’s capability and capacity may include:
financial viability/capacity
past performance
skills and expertise
quality accreditations
compliance with national and/or international standards
technological position
staff loyalty, development and succession planning
compliance with Corporate Social Responsibility (CSR), sustainability and environmental requirements and emerging trends
continuous improvement practices
Corporate Social Responsibility (CSR) principles may include:
triple bottom line reporting
managing up and down stream in the business relationship
people, plant, profit
fair work practices
commitment to environmental and sustainability practices
better community outcomes
Buying organisation’s market position may include:
the buying organisation’s ability to exert influence on the supplier market, including:
buying capacity
continuous or regular consumption
level of spend on goods and services
reputation and influence
ease of doing business with this organisation for suppliers
ability of suppliers to build relationships with this organisation
risks faced by the supplier in dealing with this organisation
desire of suppliers to have this organisation on their client list
ability of the buying organisation to offer a counter-cyclic demand for goods and services
opportunities to partner for product/service development
Internal stakeholders may include:
procurement and contract management staff
senior management
users of the goods and services
financial management staff
maintenance staff
asset or fleet managers
facilities managers
logisticians, including materiel logisticians
Human Resource Management staff
IT Staff
External and market stakeholders may include:
contractors
suppliers
industry peak bodies
government
other buyers
general public
users of the goods and services (if these are not internal)
Opportunities may include:
ability to influence the direction of the supply market to get a better product or service
innovative products or services
innovative delivery methods
better discounts through amalgamating requirements
cost reduction
better terms and conditions through amalgamating requirements
Risks may include:

technical
commercial
reputational and political
Market information may include:
share market announcements
company annual reports and other company supplied information
newspaper, magazine and other media articles
information supplied by stakeholders
information supplied by contract managers
Legislative and regulatory compliance may include:
international treaties
commonwealth, state and territory legislation and regulation
local government by-laws and regulations
accounting standards
other regulatory requirements
Market trends may include:
changes with market conditions that may lead to long term change in the supply market such as:
competition including mergers and business closures
technology
regulation and legislation
the economy
demand
globalisation
environment and sustainability issues
Supply chain management issues may include:
availability of alternative sources of supply
issues affecting component suppliers in the supply chain
issues affecting third party service providers
freight and distribution
cash flow management
supplier performance, capability and capacity
Innovative and/or creative opportunities may include:
paradigm shift
achievement of similar outcomes with vastly improved performance metrics
alternative products or service achieving better outcomes
new and unique ways of delivering products or services
opportunities for partnering
Supply market factors may include:
quality of goods and services
reliability of supply
nature of the supply market eg monopoly, near monopoly, competitive
sophistication of suppliers in understanding the needs of buyers
adherence to CSR principles
adherence to environmental and sustainability principles
political stability and the impact on sources of supply if there is instability
legal and ethical considerations
Australia’s international treaty obligation
broader government policy objectives that are to be advanced through procurement
Commercial trends may include:
private public partnerships (PPP)
strategic alliances
holistic service solutions
technological changes in delivery or outcome
Best practice may include:
techniques, methods, processes, activities, incentives, or rewards which conventional wisdom regards as more effective at delivering a particular outcome than any other techniques, methods, processes, etc. when applied to a particular condition or circumstance
Procurement life cycle is:
A series of steps from identification of need, acquisition processes, contract management through disposal, recycling and/or closure or transition of contract.
Benchmarks are:
a standard by which comparative measurement can be made, could include:
quality
time
price
cost
generally used in conjunction with best practice
Strategic supply market plans may contain:
strategic business plans
corporate plans
explanation of whole of government, organisational and business outcomes and how these will be achieved through the proposed procurement activities
supply market analysis and analysis of key potential suppliers
buying organisation analysis including level of spend
review of risks and opportunities
budgets
strategic human capital plans
business technological support plans
production plans
Tendering strategies may include:
public consultations about the buying organisation’s requirements
requests for information about the supply market’s ability to meet requirements
choice of different methods of requesting offers to suit different types of supply markets
use of site visits and industry briefings
innovative partnering, leasing or other strategies
assessment of risks associated with the procurement
Type of contract arrangement may include:
partnering
alliancing
standing offers
incentive contracts
"profit at risk" contracts
use of service level agreements
continuous improvement opportunities
Contract Management strategies may include:
planning
formal structured meetings
reports
meetings
risk management strategies
Strategic sourcing issues may include:
the importance of the goods and services to the buying organisation’s ability to deliver its core business outcomes
the availability and suitability of alternative sources of supply
budgetary factors
the political and environmental context for the procurement
the necessity to use procurement to advance the government’s other policy agendas such as environmental and sustainability, CSR, opportunities for women and Aboriginal and Torres Strait Islander people etc

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 through an ability to predict future procurement needs, based on the analysis of past and current organisational and market data. Current planning, emerging legislative, regulatory, social, business and market trends must also be assessed in order to predict future market activities. Strategies must be developed against those predictions and appropriate arrangements for the sourcing of strategic goods and services implemented.
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Assessment must confirm an ability to:
gather and analyse complex financial, business and market information and develop procurement, market and supplier profiles
identify and apply the people skills relevant to planning, and implementing strategic sourcing
identify and interpret complex legislation, regulation, policy, including international treaties, principles of CSR, OH&S, sustainability, environmental and social trends
contribute to complex procurement planning documents which support core business and organisational and government outcomes
assess local and international markets, identify trends and develop strategies to ensure organisational market placement necessary to meet future needs
identify and secure future market sources of supply to meet organisational core business
contribute to and implement strategic sourcing strategies and processes within an organisation based on analysis of demand and spend patterns
consider both qualitative and quantitative factors in reaching decisions or recommendations
Consistency in performance
Competency must be demonstrated by providing evidence of undertaking a range of relevant work tasks in an actual or simulated procurement environment on a least two separate occasions.
Context of and specific resources for assessment
This unit of competency is to be assessed in the workplace or a simulated workplace environment.
Participants may need to access:
sample data on finance, procurement and markets to analyse and then to build recommendations
corporate planning documents including strategic procurement, finance, technology, logistics and human capital planning
relevant legislation
current information relevant to CSR, sustainability, environment and social legislation, trends and expectations
relevant market information
workplace scenarios and case studies relating to organisational expectations for future and strategic development of core business
emerging market trends, such as PPP, strategic alliance, e commerce, holistic service solution, engaging the corporate sector to deliver on behalf of or instead of government
case studies that incorporate challenges from which to develop strategies to deal with future sourcing of goods and/or services and the methods that may need to be employed to secure future requirements
Method of assessment
Suggested assessment methods include:
questioning to assess understanding of key subject matter areas, such as research, analysis, markets, legislation, planning, decision making, communication and mechanisms to secure market sources
preparing written reports and reviews of strategies, market information, market dynamics, procurement plans and approaches to secure future market sources
completing reviews of market information, best practice guides, planning documents and strategies, business models and budgets, lobby group predictions, political philosophies and policies, community expectations, technological advancements and other relevant material prepared by the candidate in a range of contexts
preparing a range of tendering and contractual strategy documentation suited to the particular goods and services and supply market.
preparing strategic sourcing plans, market profiles or other similar documents for strategic sourcing activities
contributing to and implementing sound strategic sourcing strategies based on analysis and reviews
demonstrating research, communication, consultation and negotiation skills
In all cases, practical assessment should be supported by questioning 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, but not compromise the integrity of the assessment.
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.
PSPETHC501B Promote the values and ethos of public service
PSPGOV507A Undertake negotiations
PSPLEGN501B Promote compliance with legislation in the public sector
PSPOHS501A Monitor and maintain workplace safety
PSPPROC503B Manage contract performance
PSPPROC504B Finalise contracts
PSPPROC505A Manage procurement risk
PSPPROC506A Plan to manage a contract
PSPPROC507A Plan for procurement outcomes
PSPPROC508A Make procurement decisions
PSPPROC509A Participate in budget and procurement review processes