Modification History
PSPPROC606B Release 2: Layout adjusted. No changes to content.
PSPPROC606B Release 1: Primary release.
Unit Descriptor
This unit covers the ability to negotiate strategic procurement agreements within established guidelines, policies and procedures. It includes planning and preparing for negotiation, and undertaking and finalising the negotiation process for strategic procurement.
In practice, negotiating strategic procurement may occur in the context of other generalist and specialist work activities, such as maintaining and enhancing confidence in public service or local government, establishing and maintaining strategic networks, managing compliance with legislation in the public service or local government, managing risk, developing a business case, planning for strategic procurement, coordinating strategic procurement, and managing strategic contracts.
No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.
Application of the Unit
This unit applies to those in specialist procurement and contracting.
Licensing/Regulatory Information
Not applicable.
Pre-Requisites
Not applicable.
Employability Skills Information
This unit contains employability skills.
Elements and Performance Criteria Pre-Content
Elements describe the essential outcomes of a unit of competency. |
Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the range statement. Assessment of performance is to be consistent with the evidence guide. |
Elements and Performance Criteria
ELEMENT |
PERFORMANCE CRITERIA |
1. Plan and prepare for strategic procurement negotiations |
1.1. Input and advice are obtained from key stakeholders and the procurement and negotiating context is identified. 1.2. Information is gathered on suppliers and a best alternative to negotiating an agreement is developed. 1.3. Objectives, targets and bottom line position are determined for negotiations. 1.4. Composition of negotiating team and limits on negotiators' authority are determined according to organisational policy and procedures. 1.5. Negotiation process, timeframes and strategies are determined to suit complexity of procurement and supplier characteristics. 1.6. Negotiation plan/directive is developed that identifies negotiation roles of team members, lead negotiator, negotiating styles , tactics and boundaries/limits of authority to suit the procurement activity. 1.7. Negotiation plan is authorised and signed off according to organisational policy and procedures. |
2. Undertake strategic procurement negotiations |
2.1. Negotiations are opened, supplier tactics identified, and issues and options explored to identify mutually compatible interests. 2.2. Minor and major issues are dealt with and concessions to terms and conditions are negotiated to improve overall value for money of the procurement. 2.3. Concessions are made such that agreements remain consistent with original intentions and with procurement, organisational objectives and probity requirements. 2.4. If negotiations stall, tactics are used to break deadlocks and continue negotiations according to negotiation plan and organisational policy and procedures. 2.5. Negotiations are conducted and an offer is made in accordance with legislative requirements, organisational policy and procurement guidelines. |
3. Finalise strategic procurement negotiations |
3.1. Negotiations are closed and agreements are finalised according to procurement guidelines. 3.2. Where agreement is not possible immediately, communication channels are kept open while additional support, arguments and supporting evidence are obtained. 3.3. Where agreement is not possible and the best alternative is to be pursued instead, negotiations are terminated in a way that preserves the relationship with the supplier for possible future business and deters the possibility of legal liability. 3.4. Where agreements may have wider implications for procurement and the organisation, those implications are considered and necessary consultation is carried out. 3.5. Details and outcomes of negotiations are documented according to organisational policy and procedures. |
Required Skills and Knowledge
This section describes the skills and knowledge required for this unit. |
Required skills |
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Required knowledge |
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Evidence Guide
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. |
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Overview of assessment |
Competency must be demonstrated in the ability to negotiate for strategic procurement 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:
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:
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Method of assessment |
The following assessment methods are suggested:
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:
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Range Statement
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. |
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Stakeholders may include: |
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Procurement may include: |
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Procurement and negotiating context may include: |
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Negotiating team members may include: |
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Negotiating styles may include: |
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Terms and conditions may include: |
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Unit Sector(s)
Not applicable.
Competency field
Procurement and Contract Management.