Release 2. This is the second release of this unit of competency in the DEF Defence Training Package.

This unit describes the skills and knowledge required to establish the basis of a Performance Based Contract (PBC). It includes determining the requirements, establishing an integrated project team, and drafting a business case for the PBC. This unit applies to administrators or managers working within the contract management field in Defence but may be applicable to any individual in this field of work.

The skills and knowledge described in this unit must be applied within the legislative, regulatory and policy environment in which they are carried out. Organisational policies and procedures must be consulted and adhered to.

Those undertaking this unit would work within a team or as a supervisor under limited direction, while performing complex tasks in a range of contexts.

No licensing, legislative or certification requirements apply to this unit at the time of publication.

Not applicable.

Performance based contract

Not applicable.

ELEMENTS 

PERFORMANCE CRITERIA 

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1  

Determine the requirements 

1.1 

Contribute to analysing the contracted requirements

1.2 

Contribute to establishing the contract outcome

1.3 

Contribute to establishing the contract scope of work

1.4 

Contribute to preparing an initial requirements report

2 

Establish an integrated project team 

2.1 

Contribute to defining the team necessary to establish the PBC

2.2 

Contribute to assessing the list of stakeholders required to establish the PBC

3 

Draft a business case 

3.1 

Contribute to assessing the net benefit

3.2 

Contribute to assessing the key enablers

3.3 

Consult with stakeholders to determine the resource implications

3.4 

Contribute to selecting the PBC approach with stakeholders

3.5 

Contribute to preparing a PBC business case report with recommendations

Foundation skills essential to performance are explicit in the performance criteria of this unit of competency.

Range is restricted to essential operating conditions and any other variables essential to the work environment.

Non-essential conditions may be found in the Companion Volume Implementation Guide.

No equivalent unit.

Release 2. This is the second release of this unit of competency in the DEF Defence Training Package.

Evidence required to demonstrate competence in this unit must be relevant to and satisfy all of the requirements of the elements and performance criteria on at least one occasion and include:

• analysing the net cost/benefit ratio to determine the viability of a Performance Based Contract (PBC)
• defining the contract outcome and scope of work to define capability
• using PBC methodologies to define the PBC business case within the procurement strategy
• using stakeholder negotiation to meet contract requirements and outcomes.

Evidence required to demonstrate competence in this unit must be relevant to and satisfy all of the requirements of the elements and performance criteria and include knowledge of:

• analytical and operational skills to comprehend complex contractual provisions
• contract strategy and construction components and key elements
• communication techniques to effectively communicate decisions
• Defence business units and operational procedures
• government procurement processes and options
• relevant legislation and organisational policy.

Assessors must hold credentials specified within the Standards for Registered Training Organisations current at the time of assessment.

Assessment must satisfy the Principles of Assessment and Rules of Evidence and all regulatory requirements included within the Standards for Registered Training Organisations current at the time of assessment.

Assessment must occur in workplace operational situations. Where this is not appropriate, assessment must occur in simulated workplace operational situations that reflect workplace conditions.

Assessment processes and techniques must be appropriate to the language, literacy and numeracy requirements of the work being performed and the needs of the candidate.

Resources for assessment must include access to:

• a range of relevant exercises, case studies and/or simulations
• acceptable means of simulation assessment
• applicable documentation, including workplace procedures, regulations, codes of practice and operation manuals
• relevant materials, tools, equipment and PPE currently used in industry.