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Using Iserror with If statement and Vlookup

Using Iserror with If statement and Vlookup

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I have the following formula in a cell:
=IF($K2="STEEL",VLOOKUP($B2,'Macos 12 Mo. Data'!$A$4:$AU$326,40,FALSE),0)
Problem is that the results of this are used for calculations and K2 sometimes doesn't equal "STEEL" so I get an error. I've tried putting an Iserror and have the error = 0 but am doing something wrong.

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Can some one explain this formula to me in plain English? I don't understand why the ISERROR function is being used, or why VLOOKUP is in there twice.

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