PPN 04/23 (PCR 2015)

Procuring steel in government contracts

In: Procure > Selection stage

Overview

This PPN applies to all central government departments, executive agencies and non-departmental public bodies when conducting procurements covered by Part 2 of the Public Contracts Regulations 2015 (PCR 2015), the Utilities Contracts Regulations 2016 (UCRs), the Defence and Security Public Contracts Regulations 2011 (DSPCRs), and the Concession Contracts Regulations 2016 (CCRs), 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, where it is relevant and proportionate to do so 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 origin data.

Objective at this commercial stage

The supplier’s ability to manage its supply chain, deliver steel safely and ensure compliance with health and safety legislation should be assessed at the selection stage.

Key considerations at this commercial stage

In-scope organisations should:

  • include supplier qualification questions:
    • for projects / programmes involving a relevant steel procurement, adopt the Standard Selection Questionnaire (SQ) to assess matters relating to a bidders ability to manage its supply chain, deliver steel safely and ensure compliance with health and safety legislation
    • for works contracts, including the procurement of mixed contracts that include supplies and services, use the Common Assessment Standard (CAS), or PAS91, in place of the standard SQ template in pre-qualification of bidders
  • consider whether any mandatory or discretionary grounds for exclusions apply
  • consider the following factors, if intending to specify a particular label (e.g. a certification) as means of proof that the works, services or supplies correspond to required social, environmental or other characteristics:
    • whether the label can be linked to the subject-matter of the contract
    • whether the label is accessible to all interested parties
    • the requirement to accept equivalent labels
    • if the label is established by an open and transparent procedure, and
    • if the label has been set by a third party over which the supplier applying for the label cannot exercise decisive influence.

The PPN should be read alongside the relevant parts of the legal framework, including but not limited to, the following provisions of the Public Contracts Regulations 2015 (which may be particularly relevant to the consideration of this PPN):

  • Regulation 18: Principles of procurement
  • Regulation 40: Preliminary market consultations
  • Regulation 42: Technical specifications
  • Regulation 43: Labels
  • Regulation 58: Selection criteria
  • Regulation 60: Means of proof
  • Regulation 62: Quality assurance standards and environmental management standards
  • Regulation 63: Reliance on the capacities of other entities
  • Regulation 67: Contract award criteria
  • Regulation 68: Life-cycle costing
  • Regulation 70: Conditions for performance of contracts
  • Regulation 71: Subcontracting
  • Regulation 107: Qualitative selection

Additional support and guidance

Make sure you:

  • read the PPN and any supporting implementation guidance
  • seek legal and commercial advice in the context of specific procurements