Modification History
Not applicable.
Unit Descriptor
Unit descriptor |
This unit covers the expenditure of public monies for simple procurement of low value/low risk goods and services using contractual arrangements that include simple tendering and requests for quotation. The unit requires analysis and decision making in the procurement process, which is undertaken under limited supervision. It includes planning and undertaking procurement, managing contractors and completing contractual arrangements. In practice, procuring goods and services overlaps with other generalist and specialist public sector or local government work activities, such as upholding and supporting the values and principles of public service, identifying and treating risks, exercising delegations, applying government processes, encouraging compliance with legislation in the public sector or local government, planning procurement, developing and distributing requests for offers, selecting providers and managing contracts. This unit is not recommended for those who specialise in procurement. It cannot be included in the Certificate IV in Government (Procurement and Contracting). No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement. |
Application of the Unit
Application of the unit |
This unit applies to those who enter into contracts or go out to tender or manage the procurement but are not procurement professionals. Those undertaking this unit may be developing a request for tender but procurement is not a major part of their role. |
Licensing/Regulatory Information
Not applicable.
Pre-Requisites
Prerequisite units |
Employability Skills Information
Employability skills |
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 required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide. |
Elements and Performance Criteria
ELEMENT |
PERFORMANCE CRITERIA |
1. Plan for procurement of goods or services . |
1.1. Market assessment is used to identify and select options for procuring goods or services in accordance with business plan requirements, legislation, policy and procedures, and probity requirements . 1.2. Commercial strategy is identified to achieve the procurement outcome set out in the business plan, achieve value for money, and meet legal and probity requirements. 1.3. Risk planning is conducted for the procurement activity according to procedures, delegations and guidelines. 1.4. Process and criteria for evaluation of offers from suppliers or service providers are identified to meet public sector probity requirements, and are recorded in a tender evaluation plan. 1.5. Procurement plan is developed to manage procurement process and contractual arrangements in accordance with legislation , policy and procedures , and probity requirements . 1.6. Stakeholders are consulted about the planned procurement and their feedback is incorporated into the procurement process. |
2. Undertake procurement . |
2.1. Method for requesting and receiving offers is chosen to suit the procurement activity and comply with organisational policy and procedures and probity requirements. 2.2. Specialist expertise is used to assist in evaluation of offers as required. 2.3. Evaluation and selection of the offer are made according to tender evaluation plan, and organisational policy and procedures. 2.4. Notification of successful and unsuccessful suppliers/providers is undertaken according to procurement plan, and organisational policy and procedures. 2.5. Work does not commence and payment is not made until contractual arrangements are formalised. 2.6. Contractual arrangements that are legally binding to all parties and suitable to the procurement activity are negotiated, formalised and reported according to organisational policy and procedures. |
3. Manage contractors . |
3.1. Communication strategies are established to build and maintain relationships with contractors. 3.2. Performance is monitored against contract performance indicators for quality assurance of the goods or services and to ensure compliance with contract specifications. 3.3. Contract performance indicators are regularly reviewed to ensure relevance. 3.4. Approvals are obtained for contract variations according to organisational and contractual requirements. 3.5. Disputes or complaints are investigated, documented and resolved or referred according to contractual provisions. 3.6. Contractual obligations to contractors are met. 3.7. Records are maintained according to organisational and legal requirements to provide an audit trail and for other organisational purposes . |
4. Complete contractual arrangements . |
4.1. Goods and services received are confirmed as meeting contractual specification and required outcome, and accounts are processed for payment according to organisational procedures. 4.2. Contracts are finalised, cancelled or terminated according to contractual arrangements. 4.3. Contract performance, outcomes and management processes are evaluated, and lessons learnt are recorded and used to inform ongoing contract management practices. |
Required Skills and Knowledge
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
EVIDENCE GUIDE |
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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 procure goods and services 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. 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
RANGE STATEMENT |
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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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Market assessment may include: |
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Evaluation of options may include: |
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Probity requirements : |
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Key elements of a commercial strategy may include: |
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Contractual arrangements may include: |
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Legislation , policy and procedures and probity requirements may include: |
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Stakeholders may include: |
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Methods for requesting and receiving offers may include: |
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Reporting may include: |
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Records may include: |
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Organisational purposes may include: |
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Unit Sector(s)
Unit sector |
Competency field
Competency field |
Procurement and Contract Management |
Co-requisite units
Co-requisite units |