Q: What are the IIJA and BABA Act, and how do they impact purchasing decisions?

A: The Infrastructure Investment and Jobs Act (IIJA) and the Build America, Buy America (BABA) Act are U.S. federal initiatives designed to enhance the country’s infrastructure and manufacturing capabilities by prioritizing the purchase and use of American-made products in federal and federally-funded projects. They aim to support domestic industries, create jobs, and boost the economy.

Q: How can I ensure products are compliant with IIJA and BABA Act requirements

A: To ensure compliance, look for clear vendor declarations about the manufacturing location and the percentage of American-made components in their products. Vendors should provide compliance letters or certifications tailored to BABA, as well as any other information required by your buyer. If this information is not readily available, contact the manufacturer directly for verification

Q. How can I overcome the lack of clear vendor information?

A. Uncertainty about product compliance arises from unclear or unavailable vendor information regarding their adherence to the Acts’ standards. Request detailed product compliance documentation from your vendors, including origin of materials and assembly information. If vendors are unresponsive or information is insufficient, seek alternative suppliers who can guarantee compliance.

Q. How can I keep myself—and my suppliers and contractors—informed?

A. Some businesses are not informed about the IIJA and BABA Act requirements and how they apply to their operations. To stay informed, regularly consult official government websites and subscribe to industry newsletters for updates on regulations, guidelines, and webinars explaining the Acts. The simplest way to stay informed is to browse this website and to download the Definitive Buyers Guide. If you need individualized legal guidance, you should consult with an attorney.

Q. How can I ensure that my global materials are compliant?

A. Companies struggle to ensure products made from globally sourced parts meet the Made in America standards, particularly with special alloys or uncommon materials. Focus on detailed documentation and certifications that verify the American manufacturing of the final product. Engage with suppliers to explore options for sourcing American-made components or alternative materials that comply.

Q. What can do if a supplier doesn’t have proper documentation?

A. Some suppliers either do not maintain adequate compliance documentation or do not make it easily accessible, causing delays and compliance risks. Establish clear requirements with vendors for timely provision of compliance documentation and BABA certifications before purchasing. Consider setting up partnerships only with vendors who can reliably supply such documentation. Additionally, consider requiring vendors to defend and indemnify you against any claims that their products are non-compliant.

Q. Where can I learn more about specific state requirements?

A. Differences in state requirements is a common concern. Stay informed about specific state requirements through state procurement offices and industry associations.

Q. I have pricing concerns. Is buying American-made or American-manufactured products profitable?

A. Domestic sourcing sometimes leads to increased costs. To judge the true costs of your project, evaluate the long-term benefits of compliance, such as access to federal contracts and potential incentives, against short-term cost increases. IIJA funding is specifically designed to make supporting America sustainable for businesses like you. Keep in mind that when BABA applies to a project, it applies to everyone. Complying with BABA should not put you at a price disadvantage on that project.

Q. I want to benefit from IIJA and BABAA, but don’t know my next steps. What should I do?

A. There are many good steps that you can take today to ensure your purchasing stays compliant.

1. Directly engage manufacturers for support and clarification on product compliance.

2. Share resources with your vendors so they understand the importance of compliance documentation.

3. Participate in webinars, like our Comply When you Buy Webinar, workshops, and conferences focused on IIJA and BABA compliance.

4. Regularly assess your vendors’ commitment to compliance and their ability to provide necessary documentation.

5. Develop a list of trusted, compliant vendors can simplify future procurement processes.

Remember, the IIJA and BABA Acts represent significant changes that will require time for full industry adaptation. Continuous learning, vendor communication, and active engagement with industry and government resources are key to navigating these requirements successfully.