PPN 022 (PA 2023)

PPN 022 Procuring Steel in Government Contracts

In: Define > Business need

Overview

This PPN applies to all central government departments, executive agencies and non-departmental public bodies when awarding public contracts for goods and / or services and / or works, and including special regime contracts, where steel is being procured directly or indirectly (collectively referred to as ‘in-scope organisations’).

Other public sector contracting authorities are encouraged to consider applying the approach set out in this PPN and guidance, as appropriate.

This PPN sets out a number of existing policies, tools and methodologies (Green Book, National Procurement Policy Statement, Construction Playbook and Social Value Model) that in-scope organisations should consider and apply (where appropriate) when designing relevant steel procurements. A relevant steel procurement is a regulated procurement where steel is being procured directly or indirectly.

The PPN also introduces new policy measures for all new relevant steel procurements. From 1 September 2025 in-scope organisations are required to:

  1. Consult UK Steel’s Digital Catalogue prior to design and procurement decisions being made. Include a contract clause which extends this obligation to Tier 1 contractors and their subcontractors (where relevant).
  2. Consider if the national security exemption in paragraph 25 of Schedule 2 to the Procurement Act 2023 is relevant to the procurement and apply as appropriate.

When applying this PPN, in-scope organisations and other public sector contracting authorities (where appropriate), must comply with their legal obligations, in particular the obligation not to discriminate against treaty state suppliers or to treat suppliers differently without justification.

This PPN also sets out the scope of reporting requirements for the steel pipeline and actuals data.

Note: This PPN replaces PPN 010.

Objective at this commercial stage

For procurements requiring significant amounts of steel (e.g. major infrastructure projects), broader consideration of social, economic and environmental factors, including strategic goals (established in the business case) should be fully reflected in the subsequent procurement strategy.

Key considerations at this commercial stage

In-scope organisations should:

  • consider how the tools, policies and methodologies outlined in the accompanying guidance to this PPN (i.e. PPN 022) may apply to the procurement
  • undertake a modern slavery risk assessment using the risk characteristics tool contained within the government’s ‘Tackling Modern Slavery in Government Supply Chains’ guidance (see PPN 009)
  • have regard, unless an exception applies, to the national priorities contained within the National Procurement Policy Statement (NPPS)
  • identify any social, economic and environmental considerations, relevant to the steel procurement, for testing through preliminary market engagement activities
  • ensure that broader economic and strategic goals, established in the business case, are fully reflected in the subsequent procurement strategy

Read the PPN

This applies to