Expression of Interest to operate as a Skills Service Organisation

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Table of Contents1 Timetable for Expression of Interest..............................................................................................1

2 Introduction...................................................................................................................................2

3 Scope of the Expression of Interest................................................................................................5

4 The Australian VET System............................................................................................................7

5 The New Model: Roles and Responsibilities................................................................................11

6 New Model Workflow..................................................................................................................19

7 Funding for Training Product Development and Review.............................................................22

8 Rules of Application Process........................................................................................................25

9 List of Attachments to this Expression of Interest........................................................................41

10 Definitions...............................................................................................................................42

11 Rules of Interpretation............................................................................................................47

1 Timetable for Expression of Interest

Event DatesRelease of Expression of InterestOpening of registration for information sessions Monday 20 July 2015Submission of frequently asked questions (FAQs) and answers for publication

Monday 20 July to Wednesday 12 August 2015

Publication of any addenda and FAQs to the Expression of Interest

Monday 20 July to Friday 14 August 2015

Podcast available from Monday 27 July 2015Opening date of the online application system Monday 27 July 2015Information sessions

- Brisbane Tuesday 28 July 2015- Sydney Wednesday 29 July 2015- Canberra Monday 3 August 2015- Adelaide Tuesday 4 August 2015- Melbourne Wednesday 5 August 2015

Closing date and time of the Expression of Interest and online application system

Monday 24 August 2015 at 5.00pm AEST

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2 Introduction

The Australian Government is inviting eligible applicants to apply for funding to support industry in the development of training packages. This funding will be provided under new arrangements for training package development which are designed to be responsive to the needs of industry and employers, drive efficiencies, and deliver high quality training packages that are nationally endorsed and internationally regarded. Training packages are a fundamental element of the national training system. Ensuring that they are responsive to the needs of industry and employers will maximise the potential for individuals to access full, freely chosen and productive employment. Successful applicants will receive funding to support training package development and operate as a skills service organisation.

Under the Australian Government’s Smaller Government Reform agenda the number of formal bodies to support training package development is expected to be reduced. The new arrangements covered in this Expression of Interest will operate as a programme: Training Package Development for Australian Industry, administered by the Australian Government Department of Education and Training.

Industry reference committees will be at the centre of the new training package development arrangements. The Australian Government is building new partnerships with industry to support all training package development activity. This will result in training packages and other support activities for the VET sector focussing directly on the current skills needs of industry and future skills demands. Industry reference committees will play a critical role in identifying and responding to new and emerging skills and training needs arising from industry restructuring and the impact of global markets and innovation.

2.1 New Arrangements for Training Product Development for Australian Industry

Funding will be provided under new arrangements being established by the Australian Government for developing nationally endorsed training packages to guide training and assessment in the VET sector in Australia. Under these new arrangements, training package development will be more responsive to industry needs and industry will lead and be responsible for determining how and when training package content is updated. Industry is best placed to assess when training packages need to be updated and where changes will result in a workforce that is more appropriately skilled and able to meet the needs of industry. The new arrangements aim to:

enhance engagement with industry in the development of training packages; schedule development and review of training packages against published priorities and on

the basis of demonstrated industry need; and offer industry choice in how they are supported in developing training packages.

2.1.1 The current approachIn collaboration with state and territory governments, the Australian Government manages arrangements through which representatives of Australian industry identify the skills required to be delivered through training for job roles across industry sectors.

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Current industry advisory arrangements through Industry Skills Councils, established over a decade ago, have served the VET sector well. However, industry and individuals have made it clear through consultations and submissions to the Discussion Paper Industry Engagement in Training Package Development—Towards a Contestable Model, that the way industry provides input to training packages can be improved and made more efficient by better scheduling of changes and less duplication of content. The new approach to developing training packages also provides an opportunity to ensure content reflects the impact of technological change and global competition on the skills needed in the Australian workforce. There are cross-overs between industry sectors in production and service structures (including access to global supplies) giving rise to emerging industries and new skills which need to be reflected in training packages.

The new arrangements www.vetreform.industry.gov.au/news/new-arrangements-training-product-development-australian-industry will change training package development processes from one of continuous improvement to one that ensures that review and development activity is targeted according to the needs of industry and the economy and responds in a timely way to the requirements of governments.

2.1.2 A more dynamic approach to training package developmentThe new arrangements establish a more dynamic set of arrangements that foster genuine industry engagement, while maintaining the valuable elements of the current system. Targeting training package development to priority areas identified by industry and government will also improve value for money.

The New Arrangements for Training Product Development for Australian Industry focus on:

strengthening industry participation in training package development and review, and ensuring training aligns with jobs in the economy, by providing clear channels for input from industry and stakeholders;

assuring high quality training packages are available when industry needs them based on industry demand for skills across sectors and including strong industry oversight of final training packages;

offering choice to industry in the future about which skills service organisation works with them, and providing value for money to government by introducing contestability;

achieving efficiencies through the greater re-use of components of training packages where skills needs across industry sectors are similar and improving the scheduling of training package development and review; and

enhancing collaboration across all organisations involved in training package development.

2.1.3 An industry-led approach to training package developmentThe new arrangements put industry consultative mechanisms at the heart of training package development. Industry reference committees will be the primary mechanism for industry engagement about training package development. These committees will identify industry’s skills needs and develop business cases outlining the need for changes to training packages. Many of these committees already exist under various names. These existing committees will transition under the new arrangements until the Australian Industry and Skills Committee reviews membership to ensure there is adequate representation of all relevant industry sectors. New committees will be

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established by the Australian Industry and Skills Committee as required. Further information about industry reference committees and the role they play in the new arrangements is at paragraph 5.2.

The Australian Industry and Skills Committee will also be able to receive direct feedback from industry, especially about issues that cut across industry sectors. This allows stakeholders with cross industry issues and opportunities to provide input to a central point. This approach also ensures that the Australian Skills Quality Authority and other VET sector regulators can provide direct feedback on the impact of training packages on the quality of training across Australia. Further information about the Australian Industry and Skills Committee and the role they play in the new arrangements is at paragraph 5.1.

Skills service organisations will act as independent, professional service organisations and undertake the work commissioned by the Australian Industry and Skills Committee, under direction of the relevant industry reference committee. Further information about skills service organisations and their roles and responsibilities under the new arrangements is at paragraph 5.3.

2.1.4 A contestable approach to training package developmentThis Expression of Interest is an open process to invite applications to operate as a skills service organisation. Contestability is expected to improve responsiveness to industry needs, generate new approaches to development of training packages and drive efficiency. For example, some efficiencies may be gained through allocation of components of training package development, such as generic units of competency, which will require cross sector input. These may be allocated to industry reference committees and skills service organisations based on their effectiveness and capability. In addition, if after a period of time an industry sector finds their training package development needs are not being supported by their skills service organisation, they will be able to facilitate a move to another skills service organisation.

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3 Scope of the Expression of Interest

The Australian Government, through the Department of Education and Training, is implementing the new arrangements for training product development. This grants process invites applications to receive funding to perform the role of a skills service organisation. Skills service organisations will provide a range of independent, professional enabling activities to industry reference committees to support the review and development of training packages.

The initial term of the funding agreement for skills service organisations will be three years with the option to extend for another two years.

This Expression of Interest to operate as a skills service organisation provides details to guide the submission of applications as follows:

a description of training package development and the VET system; a description of the roles and responsibilities of the bodies involved in the new

arrangements including:

o the Australian Industry and Skills Committee;o industry reference committees; o skills service organisations;

an overview of the workflow under the new arrangements; information about funding arrangements; and rules for this Expression of Interest process.

3.1 Consideration of applicationsApplicants should demonstrate their claims against the criteria of this Expression of Interest. A two stage process for assessment of applications will be conducted.

The first stage includes an evaluation of applications received and the potential for applicants to be asked for further clarifying information. In this stage, consideration will not be based on demonstrated capability alone, but consideration will also be given to the best fit for serving the range of industry sectors, relative to other applications, to ensure appropriate coverage for industry involvement across the national training system.

The second stage will invite selected applicants to provide further details on their proposed business operations and funding structure, and the support they have from industry for undertaking the skills service organisation role. This would include any support they have from industry sector representatives, or existing industry reference committees. Based on all information provided by applicants, an assessment of value for money and a further consideration of best fit of industry sectors, successful applicants will be offered a funding agreement to operate as a skills service organisation. Applicants should note that the evaluation process for applications will continue until all funding agreements have been finalised.

The Australian Government requires that applicants, and any related entity, operate as professional service organisations with independent governance to support the industry reference committees

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and industries they serve. The Australian Government also requires that applicants be able to demonstrate their capacity to operate effectively across relevant industry sectors nationally.

3.2 Closing date and timeApplications must be submitted via the online application system by the closing date and time as specified in section 1 Timetable for Expression of Interest.

3.3 Information sessionsThe department will conduct a number of information sessions to provide information about the new arrangements for training package development, the Expression of Interest and to address questions by applicants. Information about the sessions and registration processes are available at www.education.gov.au/skills-service-organisations.

Applicants are strongly encouraged to register and attend a session. Questions concerning the Expression of Interest or the process should be submitted to trainingpackageEOI@education.gov.au

The answers to the questions will be progressively made available at www.education.gov.au/skills-service-organisations.

3.4 Reforms out of scope Separate to this Expression of Interest, but as part of the new arrangements for training package development, a number of other reforms will be undertaken. These include the development of a new model for the scheduling and commissioning of training package work including the identification of common elements (units of competency) across training packages. This model will be developed during the establishment of the new arrangements and the department expects to approach the market separately for advice and support to establish the model.

From time to time the department may also approach the market separately for advice and support such as:

specialist labour market and industry scanning to identify trends and key priorities for training;

specialist activities to improve the depth of engagement with industry and the integrity and reliability of the feedback; and

the development of information and communications technology and virtual learning capabilities to support innovative delivery of training.

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4 The Australian VET System

The Australian VET system provides people with work-ready skills for the labour market – skills that businesses and industries need to be productive and internationally competitive. A highly capable workforce will help place Australia’s economy in a position of strength in the global market and secure Australia’s economic prosperity, while increasing job opportunities for individuals.

Australia’s VET system is recognised internationally as having considerable strengths, including its framework for nationally recognised and industry-informed qualifications. However, ongoing shifts in the economy and labour market raise new questions about the capacity of the training system to cater to employers and individuals with a range of differing skills needs.

The Australian Government’s VET Reform Agenda is focused on quality, jobs and status - ensuring Australia has a quality VET sector, delivering the skills needed in real jobs within the economy through quality courses delivered by quality training providers. A quality VET sector is also one where students achieve good employment outcomes, and businesses and workers are equipped with the skills they need to adapt to technology, changing economic conditions and to seize new opportunities.

People study VET for a range of reasons – in addition to training for entry or re-entry into employment, students may be existing workers who want to improve their careers. VET also delivers training to students who are looking for an enabling pathway through basic or foundation skills or as a way to move on to higher education. It also provides the skills necessary to meet regulatory and licensing requirements.

VET is highly flexible, providing subsidised and fee-for-service training. Around three million students a year study VET, with 1.5 million of those in government-subsidised training places, including over 390,000 apprentices and trainees. VET is also an important part of Australia’s international education market with over 100,000 overseas students in 2013.

Since the 1990s, the Australian Government, states and territories have been working together to share governance and agree the features needed for a consistent national training system. Decisions at this level are made through the Council of Australian Governments’ Industry and Skills Council. This has resulted in a system with national qualifications that are well established and understood, agreed national standards and effective regulation to ensure quality in the sector.

States and territories support VET in their jurisdictions through subsidies for training that meets local needs. They also oversee the operation of their public TAFE institutes. The states and territories have been opening up their funding to include both public and private training providers, to grow the capacity of their training markets and increase access. Increased competition between training providers will improve quality and give employers and students more choice about where to train.

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4.1 Nationally endorsed training productsTraining products is the generic term used to encompass:

industry defined and agreed VET qualifications, units of competency, and skill sets (currently contained in training packages which include one or more quality assured companion volumes);

support material for delivery of training; and accredited courses.

Accredited courses are outside of the scope of this Expression of Interest and will not be funded under this programme.

4.1.1 Training packagesThe Australian Government is committed to developing the skills and productive capacity of the Australian workforce. Training packages define the range of knowledge and skills (known as competencies) required by different industries and occupations. They also describe how these competencies can be packaged into nationally recognised qualifications that are aligned to the Australian Qualifications Framework.

Training packages consist of the following nationally endorsed components: units of competency which specify the standard of performance required in the workplace; assessment requirements (associated with each unit of competency) that specify the

evidence and conditions for assessment; qualifications that comply with the Australian Qualifications Framework (Certificate I to

Graduate Diploma); credit arrangements specifying existing arrangements between training package

qualifications and higher education in accordance with the Australian Qualifications Framework; and

one or more quality assured companion volumes.

Training packages do not prescribe how an individual should be trained. Training providers design courses that deliver the skills and knowledge identified in training packages, while tailoring training to individual learner needs and the needs of local or relevant employers and industries.

Training packages are endorsed under agreement between governments for national application through the VET system. The development and endorsement process for training packages ensures the qualifications, units of competency, skill sets and assessment requirements are developed to an agreed quality standard.

Extensive industry engagement in the development of training packages ensures that competencies and qualifications are highly responsive to existing and future demand for new skills for industry, and individuals. Attachment C provides a link to the current training package policy and standards.

Each training package:

provides a consistent and reliable set of endorsed components;

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enables nationally recognised qualifications to be awarded through the assessment of workplace competencies defined by industry;

encourages the development and delivery of flexible training which suits industry and individual requirements; and

encourages learning and assessment in a work-related environment which leads to verifiable workplace outcomes.

The recent meeting of the COAG Industry and Skills Council agreed that training packages must:

reflect identified workforce outcomes; support national (and international) portability of skills and competencies including

reflecting licensing and regulatory requirements; reflect national agreement about the core transferable skills and core job-specific skills

required for job roles as identified by industry; be flexible enough to meet the diversity of individual and employer needs, including the

capacity to adapt to changing job roles and workplaces; facilitate recognition of an individual’s skills and competencies and support movement

between the school, vocational education and higher education sectors; and support interpretation by training providers and others through the use of simple, concise

language and clear articulation of assessment requirements.

The following key principles underpin training package development:

open and inclusive industry-driven review, development, validation and endorsement of training packages;

strong and clear key stakeholder roles with critical points of intervention and consultation; a highly responsive process capable of meeting industry needs and priorities for new skills; clear and transparent process for resolving issues of contention across industry; and clear accountabilities and efficient processes to assure quality and relevance of training

packages.

Industry, through its engagement in the development of nationally endorsed training packages, remains central in ensuring that qualifications continue to reflect industry’s skills and training needs.

4.1.2 Support materialsSupport materials for the purpose of this Expression of Interest include materials prepared to support the implementation of training packages. These materials may include guidance materials to assist training providers to develop and deliver training courses and to undertake assessment. Development of support materials is included in the scope of this Expression of Interest. Support materials may be commissioned and funded under the direction of the Australian Industry and Skills Committee as additional activities or may be funded and developed independently by skills service organisations under direction of industry reference committees under commercial arrangements (for examples of support material see paragraph 5.3.2).

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4.1.3 Accredited coursesWhere no training package qualification or unit of competency exists to cover a particular training need, an accredited course may be developed and used. Accredited courses are used where there is a need for training to be nationally recognised and portable.

A course should not be accredited as nationally recognised training if it duplicates existing endorsed training package qualifications or if the outcome can be achieved through the contextualisation of a training package qualification.

4.2 Transition arrangements

4.2.1 Industry Skills CouncilsIndustry Skills Councils are the bodies which have previously received Australian Government funding to engage with industry sectors and stakeholders to develop and maintain training packages.

Each Industry Skills Council has had responsibility for a range of training packages and has worked with industry reference committees, or similar bodies to undertake this work. Industry Skills Councils have been tasked to transition existing training packages to be compliant with the Standards for Training Packages and Training Package Products Policy.

Industry Skills Councils are being funded to December 2015 to continue transitioning the remaining training packages and qualifications to these standards.

4.2.2 Transition of training package and support materialsIt is expected that training package and support materials developed by Industry Skills Councils will be transferred to a national VET repository established by the department. The repository will act as a central source of information, that includes documents and guides that will be necessary to operate the new model. Skills service organisations will have access to this repository as appropriate.

4.2.3 Existing contractual obligations of Industry Skills CouncilsIndustry Skills Councils hold a range of funding agreements and contracts with the Australian Government outside of their obligations concerning industry engagement and training packages. The key funding agreements relate to facilitating training delivery through the National Workforce Development Fund programme.

The department may discuss with applicants under consideration the possibility of taking over the responsibility for these existing funding agreements as appropriate. Applicants will not be disadvantaged if they decline to take on these responsibilities.

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5 The New Model: Roles and Responsibilities

The Australian Government is introducing a new model for engaging industry in the development of training products that will guide the delivery of VET. The new model will consist of three entities:

the Australian Industry and Skills Committee; industry reference committees; and skills service organisations.

5.1 Australian Industry and Skills CommitteeThe Australian Industry and Skills Committee has been established by the agreement of the members of the COAG Industry and Skills Council to provide effective industry leadership to the VET sector in Australia. The Committee’s role is to provide advice to ensure that the directions taken by Ministers are informed by an industry-based perspective focused on the quality and relevance of training in VET. As part of these responsibilities the Australian Industry and Skills Committee will play the critical role of overseeing qualifications and training package development, ensuring Australian workers are provided with industry-relevant skills that meet the future needs of employers.

The functions of the Australian Industry and Skills Committee are to:

advise on the implementation of national training policies; quality assure and endorse training packages for implementation; oversee the process for development and approval of accredited training; provide direction on the VET sector research priorities, including the work of the National

Centre for Vocational Education Research; provide advice to the COAG Industry and Skills Council on training provider and regulator

standards; coordinate industry engagement through the COAG Industry and Skills Council meetings;

and undertake work as directed by the COAG Industry and Skills Council.

The Australian Industry and Skills Committee will endorse the establishment of industry reference committees and their membership. Skills service organisations will assist, at the direction of the Australian Industry and Skills Committee, in establishing industry reference committees.

5.2 Industry reference committeesIndustry reference committees provide the industry engagement mechanism at the centre of training product development. They provide a forum for industry engagement and a conduit for industry feedback to government on industry trends and for promotion of VET to employers.

The industry reference committees are the consultative mechanism that will ensure that industry can provide advice about the skills and competencies they need to operate effectively and be productive. Advice gathered through the committees will inform the development of timely, high quality, industry-relevant training packages and other products that deliver the training outcomes required by industry.

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Training packages are structured on the basis of industry sectors in the Australian economy. Some training packages relate directly to one industry sector, while some packages bring together several industry sectors some of which have similar skills needs. Under current arrangements industry representatives, covering industry and employee representatives and stakeholders with an interest in the training package content, such as regulatory bodies and training sector representatives, come together to exchange views and to advise Industry Skills Councils about updates to training package content. See attachment D for a list of industry sectors and training packages.

Industry reference committees under the new model will become the formal point through which industry requirements for skills are considered and defined in training packages. The committees, which comprise individuals who are non-statutory appointments, will be formed, activated and supported as required to direct skills service organisations in the review, development and implementation of training package content relevant to the industry sectors they cover. Each industry reference committee will perform the following functions (supported by their skills service organisation as required):

gather industry intelligence for their industry sectors to inform advice on training product development and review;

direct the work of its skills service organisation in the development of industry proposals, business cases and case for endorsement;

oversight the development and review of training packages in line with the requirements of the Australian Industry and Skills Committee;

provide sign off for industry proposals, business cases, cases for endorsement and other submissions for consideration by the Australian Industry and Skills Committee;

direct the work of the skills service organisation in preparing the support materials where funding for additional activities is provided;

report, through the skills service organisation, to the Australian Industry and Skills Committee on progress of its work; and

promote the use of VET in the sectors they represent.

5.2.1 Membership of industry reference committeesIndustry reference committees will be formed based on the best alignment of industry sectors, and recognised sub-sectors. It is expected that the current construct of industry groups operating under Industry Skills Councils will transition to the new arrangements in the first instance. However, some will be reformed or new committees established where the Australian Industry and Skills Committee is of the view the committee needs to be more representative of the industry sector, or where there is capacity to generate greater alignment between industry sub-sectors, or to bring new industry groups into the training system.

Industry reference committees are expected to bring together key representatives to identify changing skills needs within their sector and to inform the training package development process. The membership of each committee is to be based on the best source of direct input from the relevant industry sectors to ensure the demand for skills and contemporary views on developments in those sectors are taken into account.

The membership would be expected to be no more than 12 and would bring together members based on the following attributes:

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industry representatives such as members of industry groups and associations; employers from the industry or employer delegate; representatives of employees in the sector; stakeholders or representatives of the VET system; and other stakeholder organisations which rely on the output from training packages to support

their mission, such as regulatory practice.

Where an industry reference committee member has an interest in, or influence over, a skills service organisation or Registered Training Organisation they must declare this to the Australian Industry and Skills Committee and clearly demonstrate how they will separate these interests or duties from their role on the industry reference committee.

The industry reference committee directs the work of the skills service organisation in meeting the established priorities.

5.2.1.1 Current reference groups and review of industry reference committeesThe Australian Government has committed to carrying forward the reference groups currently operating under Industry Skills Councils.

As part of the process of establishing the new arrangements outlined in this Expression of Interest, from August 2015 the Australian Industry and Skills Committee will review and scope the membership of each of these reference groups to form industry reference committees. Each industry reference committee, once formed, will meet the criteria detailed further above. As industry reference committees are refreshed, they will be able to nominate their skills service organisation.

By way of information only, outside of this Expression of Interest process, representatives of the Australian Industry and Skills Committee will engage with the current reference groups and facilitate meetings during 2015 to establish a working relationship and to ensure to a smooth transition to the new arrangements.

5.2.2 Initial workplanEach industry reference committee will be expected to develop a set of priorities and workplan to ensure that the training package content they are responsible for is current and relevant to industry demand for skills and is of a high quality. The priorities and workplan are to be developed in a form that best suits the committee. The skills service organisation will be funded to provide support for the committee to undertake this work.

The initial workplan will help inform the broader set of priorities for training package development across all industry sectors.

5.2.3 Decision makingThe industry reference committee also needs to determine decision making processes to ensure there is an appropriate balance of interests in making decisions to recommend changes to training package content or new content.

The committee is expected to be self-managing in terms of assessing its effectiveness and need for change.

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5.2.4 Ongoing operation of industry reference committeesThe workplan for each industry reference committee endorsed by the Australian Industry and Skills Committee will determine the duration of an industry reference committee and the amount of times that it meets.

5.2.5 Committee statusDepending on the requirements of the workplan, a committee may have a status of active or inactive. It is envisaged that committees will normally meet twice per year, however the actual frequency of committee meetings will be subject to the initial review of current reference groups by the Australian Industry and Skills Committee and the endorsed workplan for that committee.

In response to emerging industry trends, or specialised or niche areas of training package activity, a temporary or fixed term industry reference committee would be established.

To ensure work is progressed between meetings, the industry reference committee’s skills service organisation will ensure there is an ongoing dialogue and will project manage the workflow.

5.2.6 Duration of industry reference committeesIndustry reference committees will operate for a period of time that suits the needs of the industry and work required by the Australian Industry and Skills Committee and will be articulated by the Australian Industry and Skills Committee at the time of commissioning. Most are expected to be refreshed every three years.

5.2.7 Memorandum of understanding between skills service organisations and industry reference committees

Industry reference committees will be asked to negotiate a memorandum of understanding with their skills service organisations to ensure there is clarity in expectations and processes. As part of this negotiation, industry reference committees will need to agree with the skills service organisation on the specific activities and the degree or depth of activities required.

The memorandum is to ensure that the separation of roles and responsibilities is maintained and that industry reference committees retain full responsibility for the content of training packages and that the skills service organisation does not direct this. However, with agreement from industry reference committees, skills service organisations can provide support and solutions on behalf of the industries covered by the committee. For instance, the skills service organisation might put in place, under direction from the industry reference committee, a system for proxy representation on the industry reference committee when a member is unable to attend, or chooses not to attend because of the non-controversial nature of the discussions. The memorandum of understanding for each industry reference committee, will form part of the skills service organisation’s annual workplan that will be submitted to the Australian Industry and Skills Committee.

5.2.8 Dispute resolutionIndustry reference committees are expected to operate on a consensus basis and within their agreed decision making framework. Where matters cannot be settled, the matter would be raised through the department for consideration and resolution, under the guidance of the Australian Industry and Skills Committee.

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5.3 Skills service organisationsSkills service organisations will be funded through a competitive grants process. They will be funded by the Australian Government through a funding agreement and will be funded for an initial three year period, subject to meeting performance requirements and other contractual arrangements with an option to extend for two years.

The skills service organisations will provide professional enabling activities to industry reference committees to support engagement with industry and guide the development of training products.

Skills service organisations will need to support industry engagement while remaining independent from both industry and the training sector itself. Skills service organisations will be governed by boards whose members can demonstrate independence as well as strategic capability and professional expertise.

Skills service organisations will not be prohibited from commercialising activities that have not been funded by government, provided these do not breach conflict of interest requirements set out in the funding agreement. However, these activities will not carry government endorsement.

The Australian Government recognises that each industry sector has different characteristics and that the new arrangements need to be flexible enough to ensure skills service organisations are able to provide high quality and tailored support to their clients which may include a number of different industry reference committees. This will require a strong ability to nurture stakeholder relationships and facilitate cooperation and partnerships.

The core role of skills service organisations is to provide enabling activities to a range of industry sectors to ensure training packages reflect the skills needs of industry. Skills service organisations will support a range of industry reference committees. Skills service organisations are accountable for providing technical, operational and secretariat activities to enable their industry reference committees to undertake their industry engagement and training product development and review activities. All decisions about the content of training packages are the responsibility of the industry reference committee.

5.3.1 Skills service organisation activitiesSkills service organisations will provide the full range of activities to industry reference committees to support them to develop, review and implement training packages and other products for the national training system. These activities include, but are not limited to:

• facilitating engagement across industry and the training sector;• facilitating the development of training packages for consideration by their industry

reference committees;

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• providing project management, information management, operational and secretariat support to industry reference committees assigned to them, including but not limited to:o scheduling and coordinating industry reference committee meetings as required;o developing industry proposals to assist the industry reference committees to make a

case for the development or review of training packages;o developing business cases as directed by the industry reference committees in

accordance with a decision by the Australian Industry and Skills Committee; o ensuring that training package development is in accordance with the relevant

approved business case and Australian Industry and Skills Committee commissioning request;

o working with industry reference committees to manage and undertake stakeholder engagement, and support industry reference committees in their stakeholder engagement as required;

• providing technical writing skills to support the industry reference committees in preparing technical specifications for training package and other product development, ensuring, where applicable:o compliance with national and international quality standards;o compliance with international agreements;o alignment with international standards to enable international mobility;

• providing quality assurance of training packages to ensure consistency with the approved business case, the Australian Industry and Skills Committee commissioning request, and the requirements of the relevant Standards for Training Packages and Training Package Products Policy;

• managing the training packages through the endorsement process on behalf of industry reference committees, including but not limited to:o developing cases for endorsement for consideration by the Australian Industry and

Skills Committee;o managing the endorsement process;

• uploading training packages and other materials, including procedural information, onto training.gov.au and/or a central website;

• providing negotiation and dispute resolution to mediate and arbitrate between conflicting industry views and between members of industry reference committees to achieve outcomes;

• providing a communication mechanism for feedback; • maintaining a website and publication of materials to support industry engagement and

implementation of training packages;• updating the national register and/or a central website with draft and endorsed training

packages;• preparing submissions for grants for the industry reference committee to undertake

additional activities, for example, the development of curricula; and• preparing support materials and undertaking additional activities as agreed with their

industry reference committee, to help with quality training delivery.

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5.3.2 Additional activities From time to time, the Australian Industry and Skills Committee may commission additional activities to support the national training system. Alternatively, skills service organisations may choose to offer these activities to industry and the VET sector on a commercial basis. These additional activities may include, but are not limited to:

Jobs: advice about pathways to jobs or career-related training pathways through careers forums, events or other communication media for both domestic and international audiences; skills audits to expose training gaps and inform the development of future training packages.

Quality: labour market or industry research; products to translate training packages into curricula and course material; assessment and delivery tools to support quality training outcomes; workshops to support the consistent interpretation and implementation of training package requirements; pilot projects to promote quality in the national training system; work supporting the development of networks to embed good learning and teaching in VET.

Status: support activities for the national training system to promote the status of VET both domestically and internationally; projects to align training packages with international frameworks; benchmarking of international qualifications with the Australian Qualifications Framework and the national training system; fostering international engagement.

5.3.3 Costs to be coveredThe skills service organisation will be funded through the New Arrangements for Training Product Development for Australian Industry programme. The costs of operating industry reference committees will be funded to a cap. Reasonable costs to non-government committee members such as travel and accommodation will be met from the funding for training package development costs. Other costs of committee membership, such as members’ time, represent the industry in-kind contribution to the national training system. Further information on funding is at section 7.

The additional costs to a skills service organisation in establishing a temporary industry reference committee would be reimbursed.

Use of online and virtual meetings will be encouraged to drive efficiency in meeting costs.

5.3.4 Independence, governance and performance The board of skills service organisations must be structurally independent from any controlling interests in the training industry and in other skills service organisations. The skills service organisation must have a governance structure to ensure that the members of its board can demonstrate they are not affiliated with, and are independent from, such interests.

The board of the skills service organisation is responsible for overseeing the operations of the organisation and must have governance arrangements to ensure they are independent of the policy discussions and decision making processes of the industry reference committees.

To ensure performance skills service organisations will need to have governance arrangements which include a board with the ability to garner relevant governance capability to oversee their

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operations and provision of support to industry reference committees. The professional board is accountable for the quality of the enabling activities provided to each of its industry reference committees. For definitions of independence and professional board refer to section 10.

The scope of functions for the professional board includes ensuring a governance framework is in place for managing the supporting activities, their scope, and the performance of those providing the support, to the industry reference committees, and, where possible, mitigating risk in meeting agreed outcomes.

The board must have policies and procedures for assessing, at least annually, its performance relative to its objectives, and the performance of individual directors. The board must have in place a formal policy on board renewal. This policy must provide details of how the board intends to renew itself in order to ensure it remains open to new ideas and independent thinking, while retaining adequate expertise. The policy must give consideration to whether directors have served on the board for a period which could, or could reasonably be perceived to, materially interfere with their ability to act in the best interests of its industry reference committees. Details of governance arrangements will be requested at stages 1 and 2. Further information on what applicants will be asked to provide at each stage is at section 8.

5.3.5 Outcomes monitoring and performance managementAttachment A provides a performance management framework for skills service organisations.

5.3.6 Changing skills service organisationIn line with the objectives of the new approach to training product development, based on the principle of contestability, skills service organisations will need to be responsive to their industry reference committees who will have the option of transferring skills service organisations, where there are valid and verifiable reasons. A change would not normally be considered within the two year period following the set-up of the refreshed industry reference committees, although an industry reference committee request for change may be considered in extenuating circumstances. Any proposal for change would need to be agreed by the Australian Industry and Skills Committee.

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6 New Model Workflow

6.1 Step 1 - industry proposal Recommendations for changes to training packages will be brought forward in the form of an industry proposal. This is not intended to be an onerous process and is likely to be a short document which will be submitted via an online mechanism and will describe:

the need for the review or development of a new training package including how the proposed new or reviewed units are different from existing units of competency;

why it is a priority; the potential impact; an estimate of how many units of competency will need to be reviewed; and an outline of industry stakeholder support for the change. In addition, industry proposals

will need to explain how the proposed change meets government priorities and industry needs.

6.2 Step 2 - validating the need for development or review The Australian Industry and Skills Committee will consider each industry proposal in the context of government priorities, research and analysis of industry need and the broader economic and international trends, and will identify those industry proposals which will proceed to a business case.

Once an industry proposal has been accepted, the Australian Industry and Skills Committee will commission the development of business cases and allocate the work to the relevant industry reference committee. The business case will be a comprehensive document that expands on one or more industry proposals and provides details regarding the evidence for a change to an existing training package or the development of a new training package. The business case will need to include information such as, but not limited to:

industry supported case for change and expected impact of the change including on the industry sector and on the VET sector;

an assessment of the benefits and estimated costs to the VET sector and industry sectors that are expected from the proposed change, including an assessment of impact on productivity if the change is not made;

the extent to which core common competencies can be used to support skills outcomes for the industries covered;

the process that will be followed to ensures qualifications are current; the process that will be followed to ensure changes are incorporated into existing

qualifications; and any external impacts such as regulatory changes or changes to industry practice which are

driving the proposed change.

The industry reference committee will be supported by its nominated skills service organisation to develop the business case. The Australian Industry and Skills Committee will direct funding to the skills service organisation to support the work of the industry reference committee to develop the business case. Under the direction and authorisation of the industry reference committee, the skills

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service organisation will submit the business case to the Australian Industry and Skills Committee for approval.

6.3 Step 3 - commissioning training package development and reviewThe Australian Industry and Skills Committee will consider the business cases and, where appropriate, commission changes to units of competency. The approved business case will form the basis of the training package development work, although the Australian Industry and Skills Committee may include additional requirements, or agree to a smaller package of work within the commissioning request. The Australian Industry and Skills Committee will commission industry reference committees to carry out training package development and will direct funding to their skills service organisation to support this work through technical writing and validation of changes within the training package.

6.4 Step 4 - endorsing training package changesAt completing commissioned work, the skills service organisation will prepare a case for endorsement and, under the direction and authorisation of the industry reference committee, present the training package to the Australian Industry and Skills Committee for formal endorsement. The completed work will be assessed against the commissioning request as well as the Standards for Training Packages and Training Package Products Policy.

6.5 Additional information about the process

6.5.1 Mechanisms for industry and VET stakeholder feedbackIn the new model, there are two mechanisms for industry to provide advice about the skills and competencies required by their industry sector to effectively operate and be productive:

Industry reference committees are the formal mechanism and all stakeholders will be encouraged to provide input and feedback through these arrangements. The industry reference committees’ skills service organisation will facilitate this industry engagement.

The Australian Industry and Skills Committee will also establish an online mechanism where feedback on training packages and support materials can be provided.

6.5.2 Developing an evidence base for decision making The Australian Industry and Skills Committee will develop an evidence base to assist it to make decisions on priorities for changes to training packages and to schedule training package development work. Some of this evidence base will be developed within the department, but the Australian Industry and Skills Committee will also commission formal research based on analysis of emerging workforce trends. This research may be required to ascertain in-depth information about the developments within an industry sector or sectors, the broader impact on skills demand, and the form and content of training packages. This work is also intended to produce a breadth of quality research and analysis that will be published and will be a resource for industry, government and regulators.

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The commissioned research and analysis is likely to include:

general trends in the labour market which give an indication of the priority for training such as high demand occupations requiring skilled workers, skills for emerging industries and specialist or niche skills;

specific industry trends requiring revised skills or qualifications; regulatory or work-practice requirements impacting on the skills required of workers; and feedback from the training sector, including training sector regulators, training providers and

students on enhancements to promote improved training outcomes.

6.5.3 Scheduling training package development and reviewThe Australian Industry and Skills Committee will manage an annual schedule for the review of training packages (through commissioning of business cases) and for changes to, or development of training packages (through commissioning of training package development for approved business cases). This will form part of a strategic plan for publication and will provide a framework for the training package development and review work that will be commissioned over a three year period.

To enable skills service organisations to plan and manage the workload for training package development, bulk business cases can be submitted to the Australian Industry and Skills Committee. Based on the Australian Industry and Skills Committee’s strategic plan and the allocation of training package work, each skills service organisation will develop a three year rolling workplan for all commissioned work.

There will be flexibility to submit business cases on an as needs basis to reflect industry need.

6.5.4 Access to training packages All material related to training package development, including companion volumes funded by the Australian Government, will be made available to skills service organisations and the relevant industry reference committee. The intention is that, at the end of each funding agreement, the intellectual property and ownership of training packages and support materials will vest with the primary funder. Attachment B provides principles for ownership and management of intellectual property.

The department expects to establish a national VET repository of formal training package materials for general access, especially for the VET sector.

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7 Funding for Training Product Development and Review

The Australian Government is inviting organisations to apply to receive funding to perform the role of a skills service organisation to support industry in the development of training packages. Applicants are being invited through a competitive grants process.

The new arrangements not only reshape the functions and decision making responsibilities of industry reference committees and skills service organisations, they also introduce a new approach to funding arrangements. Previously the training package review and development has been block funded on a continuous improvement basis to a maximum of $42 million per year. The new arrangements will involve a targeted activity based funding model where training package review and development is prioritised, scheduled and commissioned. The Australian Government expects to achieve greater efficiency through:

targeted and prioritised activity; streamlining the number of organisations funded to undertake this work; and funding both training package development and additional activities on an as needs basis.

There are approximately 17,000 units of competency within 1,619 qualifications, across 58 training packages. The Australian Industry and Skills Committee will control the flow of commissioning requests to ensure that activity reflects actual demand and priorities, and is within the allocated budget.

The principles on which the revised approach to funding is based are the:

desire for greater responsiveness to the needs of industry and improved efficiency of training package development;

separation of funding from authority for identifying training package content; introduction of contestability for funding by:

o providing a mechanism through which industry reference committees can move to another skills service organisation if there is a robust case for transfer;

o evaluating a skills service organisation as not having met their contractual obligations if they are unable to maintain a critical number of industry reference committees;

establishment of a performance management framework to encourage quality and timeliness of delivery. A performance management framework is at attachment A;

making public the performance expectations of skills service organisations and their performance against those expectations; and

requiring skills service organisations to demonstrate that they are not affiliated with, and are independent from, any controlling interests in the training industry and in other skills service organisations so as to ensure that training package development is driven by the needs of industry, and the national priorities identified by the Australian Industry and Skills Committee.

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7.1 Types of funding

7.1.1 Commencement and overhead fundingFunding will be provided to successful applicants for commencement and overhead costs.

Commencement costs may include transition-in costs. Consideration will be given to matters such as whether the applicant has experience in undertaking training package development, has established working relationships within the VET sector or with industry in the allocated sectors, and to what extent there may be any one-off costs driven by changing to the new model.

Overhead costs include fixed and variable overhead costs. The latter would include costs driven by the volume of work arising from training package development but not the actual activities of training package development.

7.1.2 Training package review and development fundingTraining package development costs are those associated with the activities undertaken to review or develop a training package, qualification or unit of competency.

Under the new arrangements work on the review and development of training packages will be commissioned in discrete stages:

1. Business Case to develop or review a training package. This involves:

gathering industry intelligence and building the case for change; identifying the units of competency that require development or revision; and consulting with stakeholders.

2. Commissioning Request to develop or review a training package. This involves:

writing changes to the unit; and managing endorsement.

Training package development funding will be full activity based funding, meaning it is based on the full suite of commissioned activities, including organisational, supervision and oversight costs and board costs.

All costs associated with developing an industry proposal will need to be absorbed by the proponent.

Training package development work will be allocated on the basis of decisions of the Australian Industry and Skills Committee.

Further funding for additional activities to support the national training system will be available on an ad hoc basis and this will not form part of this Expression of Interest process.

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Applicants will be required to provide details of their approach to estimating costs at stage 1 and to provide cost estimates at stage 2. Further information on what applicants will be asked to provide at each stage is at section 8

7.1.3 Basis for pricingTraining package development funding is activity based funding that will be paid on a price per unit of competency basis for work that has been commissioned and endorsed by the Australian Industry and Skills Committee.

Units of competency may be classified as standard or complex. Guides for the complexity of each unit of competency are currently being devised and will be provided to those invited to stage 2 of the application process.

It is important to note that:

the assessment of complexity will take account of the level of industry engagement required to develop the unit of competency (e.g. the number of industry reference committees, industry sectors, industry sub-sectors, engagement with government, licensing and accreditation agencies, the number of qualifications and training packages affected by the unit of competency);

work volumes will be based on the number of units of competency as agreed by the Australian Industry and Skills Committee for review and/or development, and work allocation will be priced on this basis at either the standard or complex rate for each unit;

work allocation for training package development will largely be at the qualification or skills set level as this is the form in which units of competency are arranged. However, there will be a small number of units of competency that will form commissioning requests on their own, mostly for those associated with a regulatory change or a public safety requirement;

there may also be consideration of funding to assist engagement with thin/dispersed/niche sectors and/or with a high proportion of small players; and

it is expected that the Australian Industry and Skills Committee will allocate a minimum amount of work to each skills service organisations.

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8 Rules of Application Process

This section details the rules that apply for making an application and provides an overview of:

a) eligibility;b) when and how to lodge an application;c) what the application needs to include;d) an overview of the steps in evaluating each application; e) what applicants have to provide in the online application system; andf) other important information.

8.1 The Expression of Interest processA key objective of the Expression of Interest process is to achieve national coverage for training package development.

The evaluation process will be structured to ensure that applicants with the highest rankings against the criteria are selected to provide the best national coverage across industries, and value for money. This may mean that a lower ranked applicant is shortlisted over a higher ranked applicant on the basis that the former can provide the industry coverage relative to other shortlisted applicants, and value for money.

It is possible that to achieve that outcome, an applicant:

a) will not be offered all or any of its preferred sectors; or b) that has ranked or achieved a high ranking against the criteria will not be successful.

An independent external evaluator, the Industry Working Group, and officials from the department will participate at various stages of the evaluation process. Final decisions will be made by the Assistant Minister for Education and Training.

8.2 Information sessions The department will conduct a number of information sessions to provide information about the new model, this Expression of Interest process and to address questions from applicants. Information about the sessions and registration processes are available at www.education.gov.au/skills-service-organisations.

Information sessions will be conducted for the sole purpose of providing background information to applicants. Any information provided at an information session will be provided to applicants subject to the terms and conditions set out in this Expression of Interest.

The information sessions are intended to provide information to applicants that are considering submitting a response to this Expression of Interest. They are not intended to provide information to, or be attended by, the public generally.

Applicants are strongly encouraged to register and attend a session or to visit the website to view presentation material and frequently asked questions. Questions concerning the Expression of

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Interest or the process should be submitted to the website. Answers to the questions will progressively be made publicly available at the same website.

Applicants must not rely on a statement made at an information session as amending or adding to this Expression of Interest unless that amendment or addition is confirmed by the department in writing on the website.

8.3 Applicants' eligibility requirements

8.3.1 RequirementsEach applicant must satisfy the following requirements to be eligible to submit a response and for funding consideration under this Expression of Interest process:

a) applicants must show independence (as defined in the Definitions), directly or through Associated Entities, in the industry sector they have nominated to support;

b) the applicant must not apply in the capacity of a trustee of any trust;c) the applicant must not be a Commonwealth, state, territory or local government

department or agency of government, or an incorporated entity that is substantially controlled by such a party;

d) the applicant must have no judicial decision against it (not including a decision(s) under appeal) relating to employee entitlements where the applicant, has not paid the claim;

e) the applicant must not be a Group Training Organisation; f) the applicant must not be a Registered Training Organisation; and g) the applicant submits an application on the basis that, if the application is successful, a

separate, single legal entity will be established to become the skills service organisation.

8.4 Consortia requirementsWhere the applicant comprises consortia, or an incorporated entity representing the consortia, each consortia member must satisfy the eligibility requirements outlined in paragraph 8.3.1 above. A consortium may submit an application on the basis that, if the application is successful, a separate, single legal entity will be established to become the skilled service organisation. That legal entity will take full responsibility for all aspects of the contractual arrangement.

8.5 Applicant contact informationIt is in the interests of applicants to ensure that the department, through the online application system, has up to date contact information for the applicant.

Unless an applicant notifies the department to the contrary via trainingpackageEOI@education.gov.au the department will use the contact details provided by an applicant in its response to this Expression of Interest in communicating with the applicant.

8.6 How to lodge the applicationInformation about this Expression of Interest, information sessions, and how to apply will be available on the department’s website www.education.gov.au/skills-service-organisations.

Applicants should direct any questions arising during the preparation of an application or requests for clarification in writing to trainingpackageEOI@education.gov.au

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Applicants will be required to register and lodge applications via the online application system Applications will only be accepted through the online application system.

8.7 TimeframeApplicants may lodge their application from the opening date of the online application system as specified in section 1 Timetable for Expression of Interest. Applicants are advised to familiarise themselves with the format and data entry requirements of the online application system.

Applications must be lodged no later than the closing date and time as specified in section 1 Timetable for Expression of Interest.

Applications lodged by other means, including applications sent directly to the department, will not be evaluated and will be excluded. Applicants acknowledge that lodgement of their applications on time and in accordance with this Expression of Interest is entirely their responsibility.

The department accepts no responsibility for applications received after the closing date and time.

8.8 When to lodge the applicationa) applications must be lodged before the closing date and time; b) the judgement of the department as to the time an application has been lodged will be final; c) any application lodged after the closing date and time will be deemed to be a late

application;d) the closing date and time may be extended by the department issuing an addendum in

accordance with paragraph 8.14;e) it is the department's intention to exclude late applications except where the application is

late as a consequence of the mishandling of the application by the department or the department’s external evaluator; and

f) late applications may be evaluated or excluded at the absolute discretion of department.

8.8.1 Documentation to be provided by applicants Applications will require the following information which will form the basis for evaluation in stage 1 of the application process (see paragraphs 8.9 and 8.10 for full details of the process).

For full details of information and documentation that applicants must provide, applicants should register via the online application system at

http://360providers.apetsoftware.com.au/Public/PublicJobs.aspx?Code=depteduproduction

Below is a summary of the information that will be collected through the online application system:

a) applicant contact details; andb) information provided to support applicants’ claims against criteria, including industry sector

combinations, additional attributes, and details on proposed independence, governance and performance arrangements.

8.8.2 No alternative applications An applicant must submit an application that complies with the requirements of this Expression of Interest. Alternative applications will not be considered.

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8.9 Evaluation processAn external evaluator will, on behalf of the department, undertake steps 1 to 4 below. At the completion of step 4, the external evaluator will provide a report detailing their findings against each step and each applicant.

8.9.1 Step 1 - screening All applications received will be screened for completeness, unintentional errors and compliance with this Expression of Interest.

8.9.2 Step 2 - criteriaApplications will be assessed for compliance with the criteria.

8.9.3 Step 3 - assessment against additional attributesApplications that satisfy the criteria will then be assessed against additional attributes that could enhance the operation of a skills service organisation.

8.9.4 Step 4 - assessment of independence, governance and performance Applicants will be evaluated to assess their proposed corporate governance, organisational structure and corporate viability.

8.9.5 Step 5 - verification and consultationIn this step, the department, in conjunction with the Industry Working Group, may clarify claims with an applicant based on the external evaluator’s report of their findings against steps 1-4. The Industry Working Group will provide advice on the Expression of Interest and the allocation of industry sectors.

8.9.6 Outcomes from steps 1 to 5As a result of steps 1 to 5 the department will develop a shortlist of applicants and proposed industry allocations.

8.10 What applicants will be evaluated againstApplicants must provide a complete application that complies with this Expression of Interest. Applications will be screened at step 1 as set out below.

The department may exclude an application from consideration if:

a) the application is lodged after the closing date and time;b) the application is not in English; c) the application contains costings that are not in Australian dollars or are not clearly and

legibly stated; d) the applicant is an entity other than a natural person and has not provided evidence of its

independence as required by paragraph 8.3.1a;e) an applicant or a member of its consortia does not satisfy the eligibility requirements in

paragraphs 8.3.1 and 8.4;f) the application includes electronic files that cannot be read or decrypted; g) the electronic copy of the application is found to contain a virus, worm or other disabling

feature; or

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h) the department believes the application potentially contains any virus, malicious code or anything else that might compromise the integrity or security of the computing environment of the department or the external evaluator.

8.10.1 CriteriaCriteria are listed in order of importance.

Criteria Areas to be covered in the response

Types of examples that may support claims against the criteria (not intended as an exhaustive list)

1. Ability to build and sustain the organisational capability and capacity required to deliver results

1.1 Describe how you would build and sustain the organisation’s capability and capacity to support the industry reference committees and deliver the packages and activities.

The approach proposed to be applied to building the necessary capacity and capability in the organisations. The organisation understands what the gaps are and how these are going to be addressed. This includes details of any relevant systems and processes that they utilise in managing project delivery and ensuring that activities are delivered to a high quality, on time and to budget.If subcontractors, the approach to engaging and managing them.

2. Ability to service a combination of industry sectors

2.1 Describe your ability to develop effective networks across industry sectors.

Demonstrates an understanding of the role of the skills service organisation in supporting and facilitating industry engagement through the industry reference committees. Demonstrates understanding of the challenges within and across industry sectors.

2.2 Considering what you are well suited to or would prefer to cover, indicate:(a) part or all of one or more industry sectors, and/or(b) combinations of industry sectors, and/or(c) combinations of training packages, or(d) that you are able to cover any sector or training package that may be allocated through stage 2.

Combinations may include multiple sectors or training packages or parts of sectors.

Combinations may be innovative and different to traditional arrangements. Possibilities include, but are not limited to, vertical or horizontal synergies such as alignment through supply chains, generic units which cut across all industries, or industries with common emerging technologies.

3. Capacity to operate effectively

3.1 Describe how you would develop and maintain the capacity

Demonstrates an understanding of the diversity of industry stakeholders in a

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Criteria Areas to be covered in the response

Types of examples that may support claims against the criteria (not intended as an exhaustive list)

across industry sectors nationally

to operate effectively across multiple industry sectors nationally.

sector at the national level.

4. Independence, governance and performance

4.1 Outline the composition of your proposed management and corporate governance arrangements, addressing:

a) how the board would have a professional membership;

b) the size of the board;c) the number of executive

and non-executive directors or their equivalent; and

d) details of directors who are or will be members or shareholders of the applicant.

Where a consortia submits an application on the basis that if the application is successful, a single legal entity will be established to become the skills service organisation, the application is required to provide the information in paragraph 8.4 in relation to the proposed legal entity as if it had been incorporated at the time the application is submitted.

4.2 Provide details of how you will meet the independence, governance and performance requirements in paragraph 5.3.4.

Demonstrates an understanding of the need for independence, both structurally and in decision making, a robust governance structure and the importance of performance management of service providers.

5. Ability to develop and nurture stakeholder relationships and facilitate cooperation and partnerships

5.1 Provide examples to describe how you would develop and nurture stakeholder relationships and facilitate cooperation and partnerships including with employers as well as industry more broadly.

Shows a deep understanding and appreciation of stakeholder engagement and is able to describe their approach towards engaging with key stakeholders. Examples of stakeholders for the task include employers and industry.This would include details of their ability to engage with employers directly.

Demonstrates their approach towards conflict resolution between key stakeholders.

Demonstrates ability to manage situations where key stakeholders hold different views.

6. Ability to marshal and facilitate the

6.1 Provide details of your ability to marshal and facilitate the effective

Shows a working knowledge and/or detailed understanding of the technical

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Criteria Areas to be covered in the response

Types of examples that may support claims against the criteria (not intended as an exhaustive list)

effective utilisation of professional knowledge, skills and expertise

utilisation of professional/technical knowledge and skills.

writing skills required for training package development. This includes demonstrating the organisation’s skills, expertise and/or experience in technical writing in relation to training package maintenance or development and/or demonstrated relationship with subcontractors who will deliver technical writing activities, and maintaining capacity of access to activities for the development of training packages.This also includes an appreciation of how the comprehensiveness of the stakeholder engagement and the technical writing of the training package impacts on sector acceptance/take-up of the training package. Outlines how limited resources will be allocated and shared across multiple clients and tasks operating in parallel.

6.2 Provide details, one-page CVs or characteristics/skills/experience of key personnel who would lead the development of capabilities and delivery of activities required for a skills service organisation.

Demonstrates skills, knowledge and experience (including any relevant certifications) related to project management, organisational development, talent management, facilitation, negotiation and technical skills. May provide an approach to sourcing key personnel including the skills, qualifications and experience required. Identifies if any of these people are subcontractors or related to a partner organisation that the applicant may engage with to supplement their capabilities.

7. Financial sustainability

7.1 You are not required to provide estimates of cost at stage 1, however, you should provide:

a) the basis of your claim to commencement costs;

b) your approach for determining overhead costs; and

c) your approach for determining unit

Demonstrates an understanding of fixed and variable costs and business models.

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Criteria Areas to be covered in the response

Types of examples that may support claims against the criteria (not intended as an exhaustive list)

complexity and the cost structures.

8. Capability to support industry reference committees to develop VET sector training packages

8.1 Describe your capability to develop training packages within the VET sector at a national level.

Has an understanding of the VET sector and training packages system and demonstrates their knowledge and experience of how to develop and maintain training packages. Understands the need for interdependence between the role of a skills service organisation and other organisations operating within the system and can broadly describe how they would work with those other organisations to achieve quality results.

9. Capacity to support training package development effectively across the national training system

9.1 Describe how you would develop and manage the capacity to support a significant and fluctuating proportion of existing units of competency.

Demonstrates ability to support multiple industry sectors. Where combinations of industry sectors are nominated, demonstrates capacity to support those sectors and to scale up or down the number of units of competency as required. Describes the resource management practices to be applied including use of subcontractors if applicable.

8.10.2 Additional attributesDescribe the additional attributes your organisation would bring to the role of a skills service organisation. These additional attributes could include, but are not limited to:

a) demonstrated expertise in engaging with industry bodies and enterprises to track developments in skills needs for workers in these sectors;

b) demonstrated expertise in job design across workplaces and within industry sectors, including the impact of technology and industry sector micro-economic reform;

c) knowledge of the role of occupational regulation, workplace practice regulation (such as Responsible Service of Alcohol) and other requirements impacting upon training package content;

d) a working knowledge of international trends and standards for jobs and/or connections with the international VET sector, which can inform the development of Australian standards within training packages;

e) demonstrated expertise in providing professional support to another organisation;f) demonstrated experience in developing activities which support the delivery of quality

training outcomes, particularly to support Registered Training Organisations; and

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g) any other skill or expertise that could enhance the operation of a skills service organisation.

This list is not intended to be exhaustive.

8.10.3 Verification of claims and consultation with applicantsVerification may involve structured interviews in order to test the claims of an applicant. It may also involve discussions with an applicant on feasibility of industry coverage.

Concurrently, there will be an indicative allocation of industry sectors to applicants as part of the consideration of the best fit for the national training system. These indicative allocations will inform internal policy discussions which will also consider:

a) analysis of combinations of industry sectors proposed by de-identified applicants;b) expert advice from the Industry Working Group on appropriate industry sector allocations;

andc) government priorities for the national training system.

The department may conduct further dialogue with an applicant which may include consideration of:

a) sectoral combinations;b) financial sustainability; c) capacity to scale up or down; and d) capacity and willingness to vary allocated sectors to accommodate unsubscribed sectors or

to align with other proposed sectors.

8.10.4 Outcomes from steps 1 to 5The shortlist for stage 2 will not be determined exclusively by the applicants’ initial ranking and will be influenced by the objective to achieve national coverage across all sectors. The shortlist will reflect a comparative assessment of the applicants’ initial ranking and the optimal outcome for the national coverage as determined by the department. The department may choose, through the process of evaluating, assessing, allocating industry sectors and negotiating, to revisit applications, including applications that have not been previously excluded or withdrawn, to ensure the needs of the national training system are met.

8.11 Stage 2

8.11.1 Step 1- request for further details Applicants whose application is chosen to progress from stage 1 to stage 2 will be invited to provide further information including:

a) funding structure including final commencement and overhead costs and initial training package development costs;

b) business operational model including a business plan with details of the composition of management and a corporate governance framework, including policies and procedures to ensure independence and to manage conflicts of interest, for the skills service organisation;

c) a detailed business plan on the industry sector allocation advised by the department; and

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d) industry support, including from industry sector representatives, or existing industry reference committees.

To support applicants to provide this information, applicants will be provided with additional information which may include, but not necessarily be limited to, a draft funding agreement, draft guidelines, details of funding for training package development, and transitional arrangements. It is expected that applicants will be given three weeks to submit further information.

An applicant may withdraw their application if they consider the proposed allocation of industry sectors is unacceptable. An applicant who withdraws their application will not be reconsidered in the process. The department may, following the withdrawal of an application, identify alternative applicants for consideration, based on those applicants who have not been excluded because of non-compliance. The department may choose, through the process of evaluating, assessing, allocating sectors and negotiating, to revisit applications, including applications that have not been previously excluded or withdrawn, to ensure the needs of the national training system are met.

8.11.2 Step 2 - value for money assessmentA value for money assessment (time, quality, cost) will be conducted based on the evaluation in stage 1 and further information submitted by the applicant in step 1 of stage 2.

A recommendation will then be made on the allocation of industry sectors for a final decision by the Assistant Minister for Education and Training.

The department will negotiate a funding agreement with each preferred applicant. Funding will not be provided until a funding agreement has been signed by both parties.

8.11.2.1 DebriefingsDebriefings will be offered to applicants after the funding agreements with successful applicants have been signed.

8.12 After lodging the application

8.12.1 Correcting applications or providing additional informationIf, after lodgement, an applicant becomes aware of any discrepancy, error or omission in its application, it may submit a correction or provide additional information to the external evaluator through the online application system.

The correction or additional information must be provided by the closing date and time by marking it as 'CORRECTION' or 'ADDITIONAL INFORMATION'. Any corrections submitted after the closing date and time may or may not be accepted at the absolute discretion of department.

8.12.2 Application validity periodIn lodging an application, the applicant acknowledges that its application remains valid and open for acceptance by the department for a period of 12 months from the closing date and time.

8.12.3 Ownership of application documentsAll application documents become the property of the department on lodgement. However, subject to the following paragraph, ownership of the intellectual property rights in the application documents will remain unchanged.

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The department may use and copy the application documents as it requires for the purposes of the Expression of Interest process, evaluating applications, negotiating and preparing an agreement, audit requirements and complying with reporting requirements including any governmental and parliamentary requests for information by the Australian Government, a Minister, the Parliament or Parliamentary Committees.

8.12.4 PublicityApplicants must not furnish any information, make any statement or issue any document or other written or printed material concerning the acceptance of any application in response to this Expression of Interest for publication in any media without the prior written approval of the department.

8.13 What applicants must not doApplicants must not, and must ensure that their officers, employees, agents and advisers do not, in relation to the preparation, lodgement or assessment of applications:

a) make false or misleading or deceptive claims or statements;b) improperly obtain confidential information;c) receive improper assistance from any existing or former officers or employees, or

contractors of the department; d) engage in collusive behaviour, anti-competitive conduct, unlawful, unethical or other similar

conduct with any other applicant or other person; ore) attempt to improperly influence an officer or employee of the department or violate any

applicable laws regarding the offering of inducements; or f) approach any officer or employee of the department other than as expressly set out in this

Expression of Interest.

8.13.1 Limit on successful applicationsApplicants who submit more than one application can have a maximum of one successful application.

8.14 Changes to this Expression of InterestIf the department amends this Expression of Interest (including by adding to, altering, deleting or excluding the department’s requirements, changing the structure and timing of the Expression of Interest process or varying or extending any time or date in this Expression of Interest), it will issue an addendum which will appear on the www.education.gov.au/skills-service-organisations. The department will not notify applicants of any addendum to this Expression of Interest. It is the applicant’s responsibility to regularly check www.education.gov.au/skills-service-organisations for any notices of addendum for this Expression of Interest process.

Applicants must submit their applications in accordance with this Expression of Interest as amended by any addendum. All conditions of this Expression of Interest will apply to all addenda, unless amended.

The department will accept no responsibility if an applicant fails to become aware of any addendum notice which appears on www.education.gov.au/skills-service-organisations.

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8.15 Disclosure of application information

8.15.1 Applicant confidential information The department undertakes to keep confidential any confidential information provided to the department by applicants prior to the awarding of a funding agreement and, in respect of unsuccessful applicants, after awarding of a funding agreement.

The undertaking in paragraph 8.16 does not apply if the confidential information is:

a) disclosed by the department to its advisers, officers, employees, agents or a member of an Industry Working Group or Industry Reference Committee, solely in order to conduct the Expression of Interest process;

b) disclosed by the department to the responsible Minister (or Assistant Minister) or to an Australian Government agency;

c) disclosed by the department, in response to a request by a House or a Committee of the Parliament of the Commonwealth of Australia; or

d) authorised or required by law to be disclosed.

8.16 Important notices about this Expression of InterestApplications are made on the basis that each applicant acknowledges that:

a) they have examined the Expression of Interest, any documents referred to in it, and any other information made available in writing by the department to applicants for the purpose of participating in this Expression of Interest process;

b) this Expression of Interest is designed to summarise information concerning the department's requirements only and is not necessarily a comprehensive description of it;

c) to the maximum extent permitted by law, neither the department, nor its officers, employees, advisers or agents will in any way be liable to any person or body for any loss, damage, claim, cost or expense of any nature arising in any way out of, or in connection with, the statements, opinions, projections, forecasts or other representations, actual or implied, contained in or omitted from this Expression of Interest or by reason of any reliance on them by any person or body;

d) it has sought and examined all necessary information which is obtainable by making reasonable enquiries relevant to the department’s requirements including the risks and other circumstances which may affect an application;

e) in lodging its application, it did not rely on any express or implied statement, warranty or representation, whether oral, written, or otherwise made by or on behalf of the department other than as expressly contained in this Expression of Interest or an addendum to this Expression of Interest issued by the department;

f) it did not use the improper assistance of any existing or former officers, employees or contractors of the department;

g) it has satisfied itself as to the correctness and sufficiency of its application; h) it will comply with the terms and conditions set out in this Expression of Interest; i) nothing in this Expression of Interest should be construed as giving rise to any contractual

obligations of the Australian Government or the department to any applicant. No contractual obligations or liabilities are intended to arise as a consequence of this Expression

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of Interest and until the Australian Government or the department executes a funding agreement with a successful applicant; and

j) by submitting an application in response to this Expression of Interest, an applicant acknowledges and accepts that no contractual relationship with the Australian Government or the department will arise.

The department believes the contents of this Expression of Interest to be accurate at the date this Expression of Interest is issued. The accuracy of any statements, contained in this Expression of Interest may change. Where any statement relates to future matters, no steps have been taken to verify that the statement is based on reasonable grounds, and, to the maximum extent permitted by law, no representation or warranty, expressed or implied, is made by the department, or any of its officers, employees, advisers or agents that the statement is accurate.

8.17 Further information about this Expression of InterestApplicants should direct any questions arising during the preparation of an application or requests for clarification in writing to trainingpackageEOI@education.gov.au

The department will not answer any questions received less than five business days before the closing date and time, unless the department deems that it would be necessary in relation to this Expression of Interest, or that it may disadvantage applicants if an answer is not given.

Where appropriate, the department will publish questions and answers at www.education.gov.au/skills-service-organisations without disclosing the source of the questions or revealing the substance of a proposed application.

If an applicant finds any discrepancy, error or omission in this Expression of Interest, they should notify the department in writing before the closing date and time.

8.18 Clarification, additional information and corrections

8.18.1 Clarification After the closing date and time, the department may engage in any discussions with, or seek clarification on any matter, from any applicant.

The department may require an applicant to submit additional information to allow further consideration of its application.

If the department considers that there is an unintentional error in an application, the department may give the applicant an opportunity to correct the error. If the department gives an applicant an opportunity to correct an unintentional error of form, it will give the same opportunity to all applicants in the same position.

8.18.2 Independent inquiriesThe department may make independent inquiries about any of the matters that may be relevant to the evaluation of any application (including past performance of the applicant and any Associated Entities) and may take this into consideration when evaluating applications.

The department reserves the right to contact applicants' referees, or any other person, directly and without notifying applicants.

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8.18.3 Security, probity and financial checksThe department may conduct such security, probity and financial (including credit) checks as it deems necessary on applicants, their partners, associates or Associated Entities (including consortia members) or their officers, employees or agents, for the purpose of evaluating applications or at any other stage of the Expression of Interest process. These checks may require individuals to sign forms verifying information relating to that individual and authorising the provision of confidential or personal information.

Applicants must provide, at their own cost, all reasonable assistance required by the department in undertaking and conducting the security, probity and financial checks.

The department reserves the right to request financial statements and other information relevant to determining the financial viability of applicants, their partners or their Associated Entities and any consortia members.

8.19 Relevant lawsThe law applying in the Australian Capital Territory applies to this Expression of Interest and to the Expression of Interest process. Each applicant must comply with all relevant laws in preparing and lodging its application and taking part in the Expression of Interest process.

8.20 Seek own adviceThis Expression of Interest is not business, investment, legal or tax advice. Applicants should seek their own independent professional advice in respect of all matters in connection with this Expression of Interest.

8.21 Return or destruction of department’s informationThe department may, at any stage, require all written or electronically stored information provided to applicants (whether confidential or otherwise and without regard to the type of media on which such information was provided to any applicant) and all copies of such information made by applicants to be:

a) returned to the department – in which case the applicant must promptly return all such information to the address identified by department; or

b) destroyed by the applicant – in which case the applicant must promptly destroy all such information and provide the department with written certification that the information has been destroyed.

8.22 ComplaintsApplicants should address any complaints regarding the Expression of Interest process in writing to trainingpackageEOI@education.gov.au

8.23 Bear own costsAll expenses and costs incurred by an applicant in connection with this Expression of Interest, including preparing and lodging an application, providing the department with further information, attending information sessions, giving presentations, attending interviews and participating in any subsequent negotiations, are the sole responsibility of the applicant.

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The department is not liable for any costs or other compensation in relation to the consideration of this Expression of Interest, lodgement of any application or participation in the Expression of Interest process by any applicants where the department takes any action permitted under this Expression of Interest, including any exercise of the department’s rights under paragraph 8.24.

The department is not liable for any loss, damage, claim, cost or expense incurred by applicants or any other person if, for any reason, an application or any other material or communication relevant to this Expression of Interest is not received on time, is corrupted or altered or otherwise not received as sent, cannot be read or decrypted, or has its security or integrity compromised.

8.24 Department's rights and reservations

8.24.1 Reservation and discretions generallyWithout limiting its rights at law or otherwise, the department may:

a) amend this Expression of Interest, including the form of the funding agreement;b) suspend, defer, vary or discontinue the Expression of Interest process or any part of it

related to an industry sector allocation or an industry (including during negotiations);c) exclude any applicant, including a member of an applicant’s consortia, if the department

becomes aware that the applicant:

o is or becomes bankrupt or insolvent (whichever is applicable);o has made false declarations in documents that relate to this Expression of Interest,

including through the online application system; oro has failed to meet any substantive requirement or perform any substantiative obligation

under any contract with department or any of its shareholders; o does not satisfy, or ceases to satisfy, or a member of its consortia does not satisfy, or

fails to satisfy, any of the eligibility requirements in paragraphs 8.3 and 8.4; oro is ineligible.

d) determine at any stage, a shortlist of applicants;e) before final selection (with or without shortlisting) enter into negotiations with one or

more applicants (including parallel negotiations with more than one applicant or negotiations with all applicants without shortlisting);

f) discontinue negotiations with any applicant at any time for any reason;g) require additional information or clarification from any applicant or anyone else;h) provide additional information or clarification to applicants;i) negotiate with any person who is not an applicant, and enter into a funding agreement

with that person on such terms as the department in its absolute discretion accepts;j) add to, alter, delete or exclude the department’s requirements;k) request revised costing information from any one or more applicants at any time;l) publish or disclose the names of applicants (whether successful or unsuccessful); m) allow or not allow an Associated Entity or other entity to take over an application in

substitution for the original applicant;n) change the structure and timing of the Expression of Interest process;o) vary or extend any time or date in this Expression of Interest at any time and for such

period as the department in its absolute discretion considers appropriate;

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p) vary any of the terms or conditions of the funding agreement to be entered into as a result of this Expression of Interest during negotiations with any applicant; or

q) enter into any contractual arrangements or other arrangements which will best meet the department's needs.

8.25 Exclusion of applicationsThe department may exclude an application from consideration if:

a) the application is incomplete;b) the applicant or application does not comply with this Expression of Interest; c) the application is clearly uncompetitive when compared with the other applications

received; or d) the application fails to satisfy a criterion or is unsuitable or unsatisfactory against one or

more of the other criteria.

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9 List of Attachments to this Expression of Interest

A. Performance Management Framework for New Arrangements

B. Ownership and Management of Intellectual Property

C. Websites

D. List of Industry Sectors and Training Packages

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10 Definitions

Addendum means any addition to this Expression of Interest made by the department before the closing date and time.

Additional activities are activities other than training package development that:

may be commissioned and funded under the grants programme; or undertaken as commercial activities.

These may include, but are not limited to, industry scanning/research, the development of learning resources, assessment resources and professional development resources.

Additional attributes are qualities, skills, experience or characteristics of applicants that are desirable. Where applicants choose to outline any additional attributes, these will be considered in the evaluation process.

Applicant means any entity, organisation or individual that submits an Application.

Application means an application submitted in response to this Expression of Interest.

Associated entity has the same meaning as under s50AAA of the Corporations Act 2001 (Cth).

Australian Industry and Skills Committee is a body of individuals set up by the Council of Australian Governments’ Industry and Skills Council comprising members nominated by from the Commonwealth and states and territories to provide advice on the implementation of national VET policies, to ensure that the directions taken by Ministers are informed by an industry-based perspective focused on the quality and relevance of the national training system, and where required, to endorse industry-defined training qualifications to Ministers on training in the VET sector. The work of this committee will be supported by the department.

Board, or where the organisation is not an incorporated entity, its equivalent, refers to a group of persons, commonly referred to as directors, elected or appointed to govern and manage the affairs of the legal entity funded to operate as a skills service organisation. In this Expression of Interest references to Board are references to a Board or its equivalent and references to directors are references to directors or their equivalent. See also definitions of independence and of professional board.

Business case is a submission to develop or review a training package, made to the Australian Industry and Skills Committee. The business case seeks to validate the industry proposal and provides a comprehensive analysis of the evidence for change, based on industry intelligence and consultation. This analysis includes the benefits and estimated costs to, and impact on, the VET sector, industry sectors and training providers that are expected to flow from the proposed change to the training package.

Case for endorsement demonstrates how the training package development work meets the business case approved in the commissioning request from the Australian Industry and Skills Committee.

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Case for transfer is evidence required to support the request for the move of an industry reference committee from one skills service organisation to another.

Closing date and time means the closing date and time specified in relation to this Expression of Interest as amended by any addendum.

COAG is the Council of Australian Governments.

COAG Industry and Skills Council is the ministerial council of Commonwealth, state and territory Ministers with portfolio responsibility for industry and skills in their jurisdiction and any successor to that council that has responsibility for skills.

Commencement costs are one-off costs incurred to set up a skills service organisation.

Commissioning request refers to when the Australian Industry and Skills Committee commissions, in writing:

a business case; training package development or review;. an additional activity.

The commissioning request may be narrower or broader in scope than the industry proposal or business case and may include additional activities.

Companion volumes are materials which are developed to support the implementation and application of training packages.

Conflict of interest means where a person has a commercial, private or personal interest, or a duty to another organisation or entity, that influences or conflicts, or may (or may be perceived or have potential to) influence or conflict with that person’s objective exercise of their duties.

Corporate governance encompasses the rules, relationships, policies, systems and processes that provide an accountability framework for organisations to operate within.

Criteria are the criteria that applicants responding to this Expression of Interest will need to address in their application to receive funding to perform the role of a skills service organisation. These criteria are listed in the section 8 on Rules of Application Process and will be used to evaluate applications.

Department means the Department of Education and Training or any successor Australian Government department that may administer skills and training.

Eligible applicant is an applicant that meets the Applicants’ Eligibility Requirements in paragraphs 8.3 and 8.4.

Expression of Interest is the process of seeking applications for funding.

Foundation skills include language, literacy and numeracy and employability skills.

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Generic unit of competency is a unit which is common to more than one occupation and is included in more than one training package, eg. OH&S.

Independence refers to both the structural and decision making independence of the skills service organisation’s board or equivalent.

Structural independence refers to the independence of the board, or its equivalent, and its members. For the purposes of this Expression of Interest an independent director is a non-executive director who is free from any business or other association – including those arising out of a substantial shareholding, involvement in past management or as a supplier, customer or adviser – that could materially interfere with the exercise of their independent judgement.

Decision making independence refers to the independence of the board, or its equivalent, and its members from the policy discussions and decision making processes of the industry reference committees.

Industry refers to one or more of the following: employers, employees, and associations, or representatives, of these individuals.

Industry proposal is a proposal to scope the development or review of training packages submitted to the Australian Industry and Skills Committee. The proposal identifies the need to develop or revise a training package and may be from industry, government or a regulator.

Industry reference committees are the consultative mechanisms that will ensure that industry can provide advice about the skills and competencies required by their industry sector to operate effectively.

Industry scanning refers to intelligence gathering and research to gain a current picture of one or more industries and their future skills needs. It includes national and global perspectives, as well as consultation with industry. Industry scanning or intelligence gathering may include, but is not limited to, what has traditionally been referred to as escans. Industry scanning may be formal or informal.

Industry sector allocation is a group of sectors, or groups of their sub-sector components, allocated through this process to a skills service organisation.

Industry sectors are groups of similar or related businesses that share common markets, technologies and worker skills needs.

Industry Skills Councils are the bodies which have previously received funding to engage with industry sectors and stakeholders to develop and maintain training packages.

Industry Working Group refers to an advisory committee comprising members of the Australian Industry and Skills Committee convened for the period of the Expression of Interest to provide advice to assist the Assistant Minister for Education and Training in decision making.

National training system is the Australian system for VET under which employers, the states and territories of Australia, and the Australian Government, collectively develop national standards for the development of curricula, units of competency and processes for the assessment of students and the issuance of qualifications by Registered Training Organisations.

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National VET repository is a proposed national repository that will have two elements:

a publicly accessible website for materials such as training packages, companion volumes, industry intelligence and assessment and training resources; and

information and materials that will not be public, including progress reports for all training package deliverables (including any draft qualifications or research in progress), advisory committee membership and other stakeholder details.

Nationally endorsed training packages are those training packages which have been endorsed by the COAG Industry and Skills Council.

Overhead costs are the ongoing costs associated with running the skills service organisation functions.

Professional board means a board, or its equivalent, whose members are appointed for their professional expertise. The board would need a combination of the following skills:

strategic expertise – to maintain a view of external forces and trends, guide and review strategy, and offer clear direction to the organisation;

accounting and finance – to read and comprehend the accounts, financial material presented to the board (and any financial reporting requirements) and some understanding of the organisation’s financial drivers/funding and business model;

legal – to oversee compliance with numerous regulatory and contractual requirements, and ensure members understand their legal duties and obligations;

risk management – to identify and effectively address areas of major risk to the organisation; people management – to manage performance of the Chief Executive Officer in particular,

ensure sufficient organisational capability and drive necessary change; and VET sector and broad industry knowledge – to bring insights that can inform strategy

development and execution.

Skill sets are logical groupings of units of competency which meet an identified need or industry outcome. They are not qualifications and are defined as single units of competency or a combination of units of competency from an endorsed training package which link to a licensing requirement or regulatory requirement, or a defined industry need.

Skills service organisations are organisations funded for the purpose of providing professional technical, operational and secretariat support in the development of training packages, under the direction of industry reference committees and in accordance with their funding agreement with the department.

Stakeholders refers to those who are important to the success of the new arrangements as they influence the quality of training or are impacted by it, including, but not limited to: national training system students and parents; industry generally; the Australian Skills Quality Authority; career counsellors; Registered Training Organisations and trainers.

Standards for Training Packages are the 2012 Standards for Training Packages, as amended from time to time.

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Statements are defined as any statements, opinions, projections, forecasts, representations or other information.

training.gov.au is a website managed by the Department of Education and Training which also contains the national register on VET in Australia.

Training package defines the range of knowledge and skills (known as competencies) required by different occupations and industries and, in some cases, the circumstances under which those competencies can be assessed. They also describe how these competencies can be packaged into nationally recognised qualifications that are aligned to the Australian Qualifications Framework. They do not prescribe how an individual should be trained. Training packages consist of the following:

Endorsed components

units of competency which specify the standard of performance required in the workplace; assessment requirements that specify the evidence and conditions for assessment; qualifications that comply with the Australian Qualifications Framework (Certificate I to

Graduate Diploma); and credit arrangements specifying existing arrangements between training package

qualifications and higher education in accordance with the Australian Qualifications Framework.

Non-endorsed components

One or more quality assured companion volumes.

Training package development costs are the costs associated with the activities undertaken to develop a training package, qualification or unit of competency.

Training Package Products Policy is a document, as amended from time to time, developed to support the 2012 Standards for Training Packages.

Transition-in costs refer to agreed transition costs included in the one-off costs associated with setting up the skills service organisation capability.

Unit of competency is a specification of industry knowledge and skill, and the application of that knowledge and skill to the standard of performance expected in the workplace.

VET is vocational education and training.

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11 Rules of Interpretation

In this document:

a) capitalised terms or terms which are expressed in italics or are listed under Definitions are defined terms;

b) headings do not affect the interpretation of this document;c) the singular includes the plural and the plural includes the singular;d) other parts of speech and grammatical forms of a word or phrase defined in this

agreement have a corresponding meaning;e) a reference to a 'person' includes any individual, firm, company, partnership, joint

venture, an unincorporated body or association, trust, corporation or other body corporate and any government agency (whether or not having a separate legal personality);

f) a reference to a clause, party, annexure, exhibit or schedule is a reference to a clause of, and a party, annexure, exhibit and schedule to, this agreement and a reference to this agreement includes any clause, annexure, exhibit and schedule;

g) a reference to a document (including this agreement) includes all amendments or supplements to, or replacements or novations of, that document;

h) a reference to a party to any document includes that party's successors and permitted assigns;

i) a reference to time is to Canberra local time; j) a reference to any legislation includes all delegated legislation made under it and includes

all amendments, consolidations, replacements or re-enactments of any of them, from time to time;

k) a reference to a document includes any agreement or contract in writing, or any certificate, notice, deed, instrument or other document of any kind;

l) a reference to the department, is a reference to the body which replaces it or which substantially succeeds to its powers or functions;

m) the words 'include', 'including', 'for example', 'such as' or any form of those words or similar expressions in this document do not limit what else is included and must be construed as if they are followed by the words 'without limitation', unless there is express wording to the contrary;

n) a reference to a day is to the period of time commencing at midnight and ending 24 hours later;

o) if a period of time is specified and dates from a day or the day of an act, event or circumstance, that period is to be determined exclusive of that day;

p) a reference to '$', 'A$', 'AUD', 'dollars' or 'Dollars' is a reference to the lawful currency of the Commonwealth of Australia; and

q) a reference to a business day or working day is a reference to a day other than a Saturday or Sunday that banks are open for business in the Australian Capital Territory.

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