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

This unit describes the skills required to operate a Performance Based Contract (PBC) within an existing contract or in commencing a new contract. 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 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  

Conduct PBC tender evaluation 

1.1 

Contribute to detailing the PBC requirements within a Tender Evaluation Plan (TEP)

1.2 

Contribute to assessing individual tenderer performance against a PBC

1.3 

Contribute to establishing the requirements for the PBC element of an Offer Definition and Improvement Activity (ODIA)

1.4 

Contribute to assessing individual tenderer performance against the PBC element of an ODIA

1.5 

Document individual tenderers against TEP and PBC requirements in the source evaluation report

2 

Undertake PBC negotiations 

2.1 

Contribute to establishing the PBC element of the Contract Negotiations Directive (CND)

2.2 

Assist with the negotiation of PBC requirements and framework with stakeholders, including contractors

2.3 

Document final agreement against CND and PBC requirements

3 

Operate a PBC 

3.1 

Calculate PBC performance measures in accordance with agreed PBC elements

3.2 

Document PBC elements and identified performance measures in the payment schedule

3.3 

Document PBC elements against identified performance measures in the rewards and remedies solution

3.4 

Ensure PBC elements and performance measures are included in the remediation plan

3.5 

Contribute to evaluating effectiveness of agreed PBC elements and identified performance measures and modify

3.6 

Communicate all modifications with relevant stakeholders

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:

• applying any rewards and remedies for contractor performance
• assessing the performance of a contractor
• calculating the performance payment of a contractor
• planning and conducting Performance Based Contract (PBC) negotiations
• planning and conducting PBC tender evaluation
• preparing complex PBC documents and reports.

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:

• government procurement processes and timeframes
• management of stakeholders and stakeholder expectations
• PBC principles and processes
• performance measure report and its requirements in the application of a PBC
• relevant legislation and organisational policies and procedures.

As a minimum, assessors must satisfy applicable regulatory requirements, which include requirements in the Standards for Registered Training Organisations, current at the time of assessment.

As a minimum, assessment must satisfy applicable regulatory requirements, which include requirements in the Standards for Registered Training Organisations, current at the time of assessment.

Assessment must occur in workplace operational situations where it is appropriate to do so; where this is not appropriate, assessment must occur in simulated workplace operational situations that replicate 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 other simulations
• acceptable means of simulated assessment.
• applicable documentation, including workplace procedures, regulations, codes of practice and operation manuals
• relevant and appropriate materials, tools, equipment and personal protective equipment (PPE) currently used in industry