Public Sector - Draft 2

PSPPCM003 Procure goods and services_validation

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Unit application and prerequisites




Procure goods and services


This unit describes the performance outcomes, skills knowledge required to manage 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.


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 would work under minor supervision, while performing routine tasks in familiar contexts.


The skills in this unit must be applied in accordance with Commonwealth and State or Territory legislation, Australian standards and industry codes of practice.


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








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Elements and performance criteria



Elements describe the essential outcomes

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

  1. Plan for procurement of goods and services
    1. Identify and select options for procuring goods and services using market assessment.
    2. Identify commercial strategy to achieve the procurement outcome set out in the business plan.
    3. Conduct risk planning for the procurement activity.
    4. Identify process and criteria for evaluation of offers from suppliers or service providers to meet public sector probity requirements and record them in a tender evaluation plan.
    5. Develop procurement plan to manage procurement process and contractual arrangements.
    6. Consult stakeholders about the planned procurement and incorporate their feedback into the procurement process.
  1. Undertake procurement
    1. Choose method for requesting and receiving offers to suit the procurement activity and comply with organisational policies and procedures and probity requirements.
    2. Evaluate offers and select using specialist expertise.
    3. Notify successful and unsuccessful suppliers.
    4. Ensure contractual arrangements are formalised before work commences and payment is made.
    5. Negotiate, formalise and report contractual arrangements that are legally binding to all parties and suitable to the procurement activity.
  1. Manage contractors
    1. Establish communication strategies to build and maintain relationships with contractors.
    2. Monitor performance against performance indicators for quality assurance of the goods or services to ensure compliance with contract specifications.
    3. Obtain approvals for contract variations.
    4. Investigate, document and resolve disputes or complaints.
    5. Ensure contractual obligations to contractors are met.
    6. Maintain records to provide an audit trail.
  1. Complete contractual arrangements
    1. Confirm goods and services received meet contractual specification and required outcome, and process accounts for payment.
    2. Finalise, cancel or terminate contracts.
    3. Evaluate and record contract performance, outcomes and management processes, to inform ongoing contract management practices.


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Foundation skills


Foundation skills essential to performance in this unit, but not explicit in the performance criteria are listed here, along with a brief context statement.



Writing skills to:

  • develop project documents using vocabulary and structure appropriate to the audience, context and purpose.

Oral communication skills to:

  • provide clear information and instructions
  • use questioning and listening skills to confirm understanding.

Numeracy skills to:

  • use basic mathematical formulas to calculate whole numbers and decimals to confirm actual versus expected expenditure.

Initiative and enterprise skills to:

  • understand responsibilities and boundary of own role
  • adhere to organisational policy and procedures.

Teamwork skills to:

  • uses agreed communication practices and chain of command to share and provide information
  • collaborates with other to achieve required outcomes.


Release 1: This unit supersedes and is equivalent to PSPPCM0003 Procure goods and services.


Companion Volume Implementation Guide


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Performance evidence


Assessment Requirements for PSPPCM0003 Procure goods and services


Evidence of the ability to complete tasks outlined in elements and performance criteria of this unit in the context of the job role, and:

  • develop at least one procurement plan for goods or services
  • for the above procurement plan:
    • write procurement specifications in unambiguous terms
    • consult and negotiate with providers
    • write, read and/or sign contractual agreements
    • engage in ongoing communication with contractors that may involve explaining or clarifying written and oral information, note-taking at meetings, active listening, and checking for understanding
    • provide feedback
    • evaluate procurement options and select the most suitable option
    • assess goods or services provided against specifications
    • manage contractor performance against contract requirements
    • make payments and manage financial arrangements
    • keep up-to-date with relevant procurement legislation, policies and procedures.


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Knowledge evidence


Demonstrated knowledge required to complete the tasks outlined in elements and performance criteria of this unit:

  • organisational procurement policies, practices and approval processes
  • organisation’s code of conduct and code of ethics
  • procurement options and methods
  • probity and ethical issues
  • codes of conduct, codes of practice and standards of individual behaviour relating to procuring goods and services, in particular identifying and managing conflict of interest, gifts and inappropriate relationships with providers
  • procedures for receipt and payment of goods or services
  • common use arrangements
  • procurement approval procedures
  • financial accountability requirements
  • aspects of contract law, laws of tort, trade practices law, commercial law and other legislation relating to receipt and evaluation of offers, negotiation and award of contracts.


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Assessment conditions







Skills must be demonstrated in either:

  • a workplace environment or
  • a simulated environment that closely resembles normal workplace environment.


Assessment must ensure access to:

  • legislation, policy, procedures and protocols relating to procuring goods and services
  • codes of conduct and codes of practice
  • relevant resources and equipment required of the working environment.


Assessors must satisfy the Standards for Registered Training Organisations’ requirements for assessors.


Companion Volume Implementation Guide


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