Yeah, that step drill is gonna cost you about $40, go easy on it! I would just go with a short jobber bit, start with a 1/4" pilot and finish up with the correct size. Drilling steel is easy with good bits and stepping up in size when it's called for. Small holes don't need any lube either. A lot of people use the wrong thing to lube with and it makes the job harder and damages the bit. Never use penetrating oil as a drill bit lube. regular motor oil will work in a pinch.