The Cabinet Office has published a new Procurement Policy Note (PPN 04/23) on 'Procuring Steel in Government Contracts', which has replaced PPN 11/16 with immediate effect.

PPN 04/23 applies to all Central Government departments, executive agencies and non-departmental public bodies when conducting procurements where steel is being procured directly or indirectly. The PPN applies to procurements covered by Part 2 of the Public Contract Regulations 2015, Utilities Contracts Regulations 2016, Defence and Security Public Contracts Regulations 2011 and the Concessions Contracts Regulations 2016.

PPN 04/23 reflects changes made to the project appraisal and commercial policy landscape since 2016, and clarifies the scope of reporting requirements on steel origin data. In-scope organisations are required to submit the requested data to the Department for Business and Trade within ten weeks of the end of the financial year. The PPN provides further details on the format of how steel origin data should be recorded and collated.

In respect of the annual steel data return already required to be submitted by in-scope organisations, The PPN applies the requirement to provide actuals data on steel procured in the previous year to projects or programmes with a value of:

  • £10 million or higher, or
  • Less than £10 million where it is anticipated that the project/programme will require in excess of 500 tonnes of steel.

The PPN also provides guidance on selection, evaluation and award for the purposes of procurement and a template clause for use in contracts with suppliers, to help ensure the data requirements are passed on.

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This article is for general information only and reflects the position at the date of publication. It does not constitute legal advice.