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.
Contracts and strategic initiatives may include:
non-traditional procurement and finance activities
strategic procurement activities, such as industry development
in-house option directives
inter and intra-government agreements
memoranda of understanding and memoranda of agreement
public private partnerships (PPP)
purchases from suppliers
coordinated procurement arrangements
whole of government procurement arrangements
cooperative procurement arrangements.
Stakeholders may include:
end users
customers or clients
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.
Monitoring may involve:
progress meetings and regular progress reports from contractor
visits to contractor's premises
provision of samples
tests and verification
independent audit
end-user feedback.
Contract variation may include modification of:
targets
performance measures
procurement plans
resourcing
monitoring and evaluation processes.
Evaluation of contractor performance may include:
strengths and weaknesses
client acceptance of service delivery (client satisfaction)
meeting delivery and completion dates
compliance with other contractual requirements
performance in relation to relevant policy objectives, such as industry development, care for the environment, OHS and affirmative action
achievements of the contractor in developing Australian and New Zealand supply networks
general relationships, including effectiveness of communication at all levels
performance of key technical personnel
acceptability and cost of whole-of-life technical support, including lead times and availability of spares and maintenance services
achievements in innovation and quality improvement programs
acceptability and suitability for future agreements, including potential status as an approved contractor
adherence to codes of practice and codes of conduct.
Evaluation of organisation's procurement processes may focus on:
effectiveness of project management, including project plan and responsibilities and accountabilities set out in it
quality of the business case, as indicated by achievement of planned outcome and contribution to program objectives
effectiveness of contractor qualification processes
value obtained in bid clarification and post-tender negotiation
effectiveness of project management systems, focusing particularly on management information
effectiveness of risk management, including corruption risks and probity risks
methods for controlling variations in cost, time, quality and performance from initial planning to completion
adequacy of safeguards against fraud, error and impropriety
incidence of material losses due to waste or inefficiency
overall performance in terms of cost, time, service and quality
compliance with procurement policy.
Value for money must reflect:
whole-of-life program benefits
residual values
disposal costs or disposal return
costs of parts
servicing and maintenance
industry benchmarks.

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 managing strategic contracts consistently and 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:
develop contract management plans and sub-plans suited to the nature of the contracts
establish contract management relationships with stakeholders using strategic techniques such as start up workshops, service level agreements, etc.
implement contract management plans
manage contractors to ensure the delivery of contract outcomes, using flexibility and initiative to deal with issues as they arise
implement contract performance measures
provide contractors with performance feedback
deal promptly and proactively with contract disputes and refer to higher authority when this is not possible
communicate effectively with internal and external stakeholders about the operation of contracts
uphold probity standards in all dealings with contractors.
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 managing strategic contracts
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 managing strategic contracts
review of contract management plans and related sub-plans, such as transition plans, probity plans, contract variations, contract performance reports and reviews, budgets, negotiation notes from meetings with contractors, risk assessments, formal sign-offs and approvals, contract closure reports, 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
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
PSPPROC606B Negotiate strategic procurement.