PPN 022 (PA 2023)

PPN 022 Procuring Steel in Government Contracts

In: Plan > Market strategy and management

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

Preliminary market engagement, involving the whole supply chain, can be used to combine both an understanding of the capability and capacity of the market, and to make suppliers aware of future opportunities.

Consult UK Steel’s Digital Catalogue prior to design and procurement decisions being made.

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)
  • engage early with steel producers and fabricators to understand the range of solutions and options available from the market and the deliverability of their requirements. Early engagement encourages market interest (including from small and medium-sized enterprises (‘SMEs’) and new entrants) and can provide in-scope organisations with valuable information to develop the delivery model and shape the procurement design, by testing and piloting approaches, routes to market, conditions of participation, and award criteria, including social value considerations
  • ensure preliminary market engagement involves all tiers of the supply chain including steel producers, fabricators and stockists
  • consider whether potential contractors have pre-established vertical supply chain arrangements, in advance, to ensure maximising supply chain diversity, resilience, innovation, and to provide a level playing field