PPN 022 (PA 2023)

PPN 022 Procuring Steel in Government Contracts

In: Procure > Finalise and publish procurement pack

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

The procurement documents should incorporate clear and appropriate outcome-based technical specifications with obligations on the supplier to consult UK Steel’s Digital Catalogue and provide steel data, including origin data, where relevant.

Key considerations at this commercial stage

In-scope organisations should:

  • consult UK Steel’s Digital Catalogue prior to design and procurement decisions being made and include a contract clause which extends this obligation to Tier 1 contractors and their subcontractors (where relevant)
  • develop clear, appropriate outcome-based technical specifications given that these are key to facilitating innovative, cost-effective solutions
  • ensure technical specifications do not unnecessarily narrow the competitive pool of suppliers and suppliers are treated equally
  • if using a competitive tendering procedure, ensure requirements are not designed in a way that narrows the number of capable suppliers and / or give an unfair advantage to particular suppliers
  • ensure obligations to provide steel origin data are included within contractual terms and conditions. An example contract clause is provided in a separate document accompanying this PPN (i.e. PPN 022)
  • consider contractual mechanisms which manage and incentivise safe production and delivery of steel
  • include relevant and proportionate terms and conditions by reference to the subject-matter of the contract and in accordance with the relevant model form of contract for construction