PSPPROC607A Release 2: Layout adjusted. No changes to content.
PSPPROC607A Release 1: Primary release.
This unit covers the competencies required to manage contracts for strategic purchases, to effectively minimise risks and achieve value for money to meet an organisation's core objectives. It includes managing the establishment, performance and evaluation of strategic contracts.
In practice, managing strategic contracts 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 negotiating strategic procurement.
No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.
This unit applies to those in specialist procurement and contracting.
Not applicable.
Not applicable.
This unit contains employability skills.
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. |
ELEMENT |
PERFORMANCE CRITERIA |
1. Manage contract establishment |
1.1. Requirements of contracts and strategic initiatives are discussed, clarified and agreed by all parties. 1.2. Responsibilities for establishing and carrying out procedures are assigned to achieve contract outcomes. 1.3. Effective communication strategies and processes are established and implemented to assist ongoing communication between internal and external stakeholders and contractors. 1.4. Relationship management is undertaken of all levels of personnel involved in procurement and contract management, within probity boundaries. 1.5. Strategic relationships are established and managed within probity boundaries to improve procurement capability and performance. 1.6. Risk management plans are updated according to organisational policy and procedures. |
2. Manage contract performance |
2.1. Progress of contracts is monitored against set targets and performance measures to ensure success of procurement activities. 2.2. Should monitoring find that set targets, performance measures and probity requirements are not being met, action is taken to rectify performance in a timely manner. 2.3. Advice and support are provided to solve problems, make improvements and maintain progress. 2.4. Disputes are managed promptly according to contractual conditions to achieve resolution and maintain contract performance and progress. 2.5. Opportunities to continuously improve procurement outcomes are sought and negotiated with contractors. 2.6. Approvals are provided or gained for contract variations that are negotiated and agreed between the parties. 2.7. Opportunities are provided for stakeholders and contractors to have input into and receive feedback on progress during the performance of the contract. 2.8. Internal and external stakeholders are engaged as necessary throughout the life of the contract to maintain progress. |
3. Manage contract evaluation |
3.1. Evaluation of contract performance is undertaken relative to planned performance measures and in consultation with stakeholders and contractors. 3.2. Where stakeholders and contractors do not agree, dispute resolution is undertaken according to organisational policy and procedures. 3.3. Conclusions are detailed against agreed criteria to provide a complete picture of performance of contractors , organisation's procurement processes and value for money . 3.4. Performance of strategic initiatives is measured relative to planned outcomes in consultation with industry and other stakeholders. 3.5. Lessons learnt from evaluations of contracts and strategic initiatives are documented according to organisational requirements and used to continuously improve future procurement activities. 3.6. Contractors and stakeholders are advised of evaluation outcomes in a timely manner according to organisational guidelines. |
This section describes the skills and knowledge required for this unit. |
Required skills |
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Required knowledge |
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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 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:
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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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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Contracts and strategic initiatives may include: |
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Stakeholders may include: |
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Monitoring may involve: |
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Contract variation may include modification of: |
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Evaluation of contractor performance may include: |
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Evaluation of organisation's procurement processes may focus on: |
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Value for money must reflect: |
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Not applicable.
Procurement and Contract Management.