Procurement Capability Index
About the Procurement Capability Index (PCI)
The Procurement Capability Index (PCI) is a self-assessment tool that provides agencies with a view on their procurement capability.
The PCI covers the complete cycle of good procurement and measures agency procurement capability across eleven categories:
- Strategic planning for commercial outcomes
- Procurement strategy alignment with agency key result areas
- Commercial leadership to drive outcomes
- Procurement function engagement with agency stakeholders
- Governance and organisation of the procurement function
- Alignment with policy and processes
- Sourcing and collaboration
- Supplier relationship management
- Management of people and skills development
- Knowledge and performance management
- Use of technology processes and tools
An agency’s PCI self-assessment will be supported by a review and moderation process that includes peer review, external checks and supplier feedback to provide confidence that the results are relevant and accurate.
The PCI self-assessment tool (find the tool and supporting documents when you scroll down this webpage) will generate three reports:
- the PCI evaluation result,
- the PCI evaluation summary, and
- the BASS (Better Administration and Support Services) summary.
PCI self-assessment tools and guides
Agencies will need the following in order to complete their PCI self-assessment.
For the agency self-assessment to be relevant and accurate, agencies will need to be in touch with their internal stakeholders who have a view on procurement activity within their agency. Examples of stakeholders are agency internal procurement team, senior management team and agency buyers.
Benefits of completing the PCI self-assessment
The PCI self-assessment enables an agency to identify their strengths and weaknesses in relation to their procurement capability, and benchmark their performance against ‘best in class’ expectations, and other agencies.
Completing the PCI self-assessment annually can help agencies track actual, measurable improvements in their procurement capability at the agency level over time
Agencies can use their PCI self-assessment results to develop strategies for improvement and put together their agency procurement capability plan. It can provide information on the areas agencies need to put additional focus in to reach an acceptable level of performance, or take a high performing team to the next level.
Agencies that need to complete the PCI
We encourage all agencies to use and become familiar with the PCI.
From mid to late 2017, all agencies covered by the Government Rules of Sourcing will be required to formally complete the Procurement Capability Index.