What Is BABA Compliance?
By: Tom Frankel
Post Date: August 15th 2024
Build America, Buy America (BABA) Act requires all infrastructure projects that receive funding directly from the federal government to use building materials made in the United States. It is part of President Biden’s Infrastructure Investment and Jobs Act and has been effective since May 14, 2022.
Most U.S. infrastructure projects used to rely on internationally produced products, but BABA has changed the processes of all these projects.
Table Of Contents
- HOW DOES THE BABA COMPLAINT SYSTEM WORK?
- WHY IS BABA COMPLIANCE IMPORTANT?
- EMBRACE BABA WITH SSI AERATION,INC.
How Does the BABA Compliant System Work?
Meeting BABA’s requirements can be complex as companies balance compliance with profitability to ensure a favorable project outcome. From sourcing raw materials to creating the end products, manufacturers must ensure that every step is BABA compliant.
Here are the requirements for the relevant BABA categories:
- Manufactured products: The final product must be made in the U.S., and more than 55% of the components in the product must be manufactured in the US.
- Iron and steel: From the initial melting process to coating applications, all manufacturing must be done in the United States.
- Construction materials: The manufacturing processes of all construction materials required for infrastructure projects must occur in the U.S.
In some cases, boosting the profitability of a business while embracing BABA can be challenging. Here are some waivers that exist to combat these challenges:
- Unreasonable cost waiver: Manufacturers can receive a waiver if including American-made materials increases product costs by more than 25%.
- Non-availability waiver: The government can grant a waiver if the products needed for a project are not produced in the U.S. in sufficient quantities or of satisfactory quality.
- Public interest waiver: The government can also grant a waiver if the locally produced products are incompatible with public interest.
Why Is BABA Compliance Important?
BABA aims to reinvest the money used for federal projects into American companies because it comes from taxpayer money. This way, it helps to:
- Strengthen the domestic supply chain: BABA encourages the domestic manufacturing of materials used in building infrastructure by prioritizing American-made materials.
- Create jobs and boost the economy: BABA increases the demand for American-made construction materials by insisting that federally funded infrastructure projects only use materials made locally. This stimulates the U.S. manufacturing sector and creates jobs.
Embrace BABA With SSI Aeration, Inc.
Working with a reliable provider that meets BABA requirements is essential to maintaining your funding. SSI, Aeration, Inc. is a global leader in designing and manufacturing wastewater treatment plant equipment. All our wastewater treatment systems and aeration diffusers are made in America.
Contact our experts to learn more about our BABA-compliant products.
Mr. Frankel co-founded SSI in 1995 with experience in design and distribution of engineered systems. He is in charge of sales, marketing and operations in the company. Mr. Frankel holds multiple US patents related to diffusers. He is a graduate of Washington University in St. Louis.