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, other than 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, where they do not have equivalent measures in place. They should do so, in accordance with the relevant instructions in each case and in light of any relevant legal obligations which may apply.
The PPN sets out a number of existing policies, tools and methodologies 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 sets out the scope of reporting requirements on steel pipeline and actuals data.
Note: This PPN replaces PPN 02/23 for procurements commencing on or after 24 February 2025.
Objective at this commercial stage
Developing clear, appropriate outcome-based technical specifications is key to facilitating innovative, cost-effective solutions.
As steel is typically not bought directly, it is necessary to ensure that the contractor cascades any important technical requirements, which define the characteristics required of the material, product or supply of the steel, both through the specification and contract conditions, where appropriate.
Key considerations at this commercial stage
In-scope organisations should:
- ensure that preliminary market engagement involves all tiers of the supply chain including steel producers, fabricators and stockists to help buyers understand the range of solutions and options available from the market, inform and test the procurement approach and the deliverability of their requirements
- ensure price and cost calculations are based on whole life cost, when considering value for money , and not the lowest purchase price
- consider that, in regard to steel, the resources required by the production process, and costs connected with environmental impacts, including the cost of emissions at the production plant and during transport, are likely to be relevant in determining the whole life cost of an asset
- consider relevant criteria for projects / programmes requiring steel, which may cover:
- cost / benefits of specialised niche solutions (e.g. design, weight, durability, adaptability for subsequent use), speed of response, service and responsiveness to changes, at all points in the life cycle of the product
- supply chain management (e.g. requiring a good, secure supply chain and management performance)
- outcomes identified through the IPA’s Project / Programme Outcome Profile (POP) tool, Social Value Model and any relevant priorities set out in the National Procurement Policy Statement (NPPS)
- health and safety (requiring the same standards of health and safety throughout the supply chain, including steel production)
Legal framework
This content is under development.
