B.A.B.A. Cheat Sheet

Build America, Buy America (BABA)

What is BABA?

• The Build America, Buy America Act was enacted in 2021 as part of the Infrastructure Investment and Jobs Act (IIJA). It mandates a preference for domestic content in infrastructure projects funded by federal financial assistance.

Key Requirements:

• Iron and Steel: All manufacturing processes from melting through coating must occur in the United States.
• Manufactured Products: Must be manufactured in the U.S., with more      than 55% of the cost of components being of U.S. origin.
• Construction Materials: Must be manufactured in the U.S., including non-ferrous metals, plastics, glass, fiber optic cables, lumber, engineered wood, and drywall.

Applicable Projects:

• Infrastructure projects funded by federal financial assistance post-January 2, 2023, which include:
  • Roads, bridges, public transport, dams, ports, airports, water systems, energy facilities, etc.

Exemptions and Waivers:

• Small Projects: Projects costing under $250,000 might be exempt under certain waivers.
• Waiver Types:
  • Nonavailability: When products are not produced in the U.S. in sufficient quantity or quality.
  • Unreasonable  Cost: If domestic materials increase project cost by more than  25%.
  • Public Interest: When domestic preference is not in the public interest.