BUY AMERICAN ACT (BAA)

• Enacted: 1933, amended multiple times (e.g., 2022 updates under Executive Orders).

• Scope: Applies to direct federal procurement of goods and services by federal agencies for public use (e.g., supplies, construction materials for federal buildings).

• Requirements:
  • Goods must be manufactured in the U.S. with at least 60% domestic content (increasing to 75% by 2029 under recent updates) or qualify as "wholly" U.S.-made.
  • Applies to products like office supplies, vehicles, or construction materials purchased directly by the federal government.
  • Does not apply to federally funded state or local projects (unlike BABA or BA).

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• Applicability: Limited to federal government purchases under the Federal Acquisition Regulation (FAR), typically for contracts above the micro-purchase threshold (e.g., $10,000).

• Key Feature: Focuses on federal purchasing, not grants or financial assistance to states/localities.

• Waivers: Waivers are available for non-availability, unreasonable cost (if domestic sourcing increases costs by 20% or more), or public interest. Also allows exceptions for goods from countries with U.S. trade agreements (e.g., WTO Government Procurement Agreement).

BUY AMERICA ACT (BA)

• Enacted: 1982, under the Surface Transportation Assistance Act, with updates over time.

• Scope: Applies to federally funded transportation projects (e.g., highways, public transit, rail, aviation) administered by the Department of Transportation (DOT).

• Requirements:
  • Requires that iron, steel, and certain manufactured products used in these projects be produced in the U.S.
  • For manufactured products, at least 55% of components (by cost) must be U.S.-made, and final assembly must occur in the U.S.
  • Focuses primarily on iron and steel, with less emphasis on other materials compared to BABA.

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• Applicability: Limited to DOT-funded projects, such as those under the Federal Highway Administration (FHWA), Federal Transit Administration (FTA), or Federal Aviation Administration (FAA).

• Key Feature: Narrower in scope than BABA, focusing specifically on transportation infrastructure.

• Waivers: Similar to BABA, allows waivers for public interest, non-availability, or cost (if domestic sourcing increases costs by more than 25%).

BUILD AMERICA, BUY AMERICA ACT (BABA)

• Enacted: 2021, as part of the Infrastructure Investment and Jobs Act (IIJA).

• Scope: Applies to federal financial assistance for infrastructure projects (e.g., transportation, water, broadband, energy) funded by the IIJA.

• Requirements:
  • Mandates that iron, steel, manufactured products, and construction materials used in covered projects be produced in the U.S.
  • Covers a broader range of materials compared to BA, including non-ferrous materials and construction materials like glass, plastic, and lumber.
  • Includes a cost-based domestic content threshold (e.g., 55% for manufactured products, increasing over time).

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• Applicability: Applies to all recipients of federal infrastructure funding, including state, local, and tribal governments, and private entities receiving federal grants.

• Key Feature: Expands domestic procurement beyond traditional Buy America requirements to include a wider range of infrastructure projects and materials.

• Waivers: Allows waivers for public interest, non-availability, or unreasonable cost, subject to strict review.