BAA and BABA FAQ
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This guide provides a simplified overview of Buy America Act (BAA) and Build America, Buy America Act (BABA) requirements, along with answers to frequently asked questions. We aim to help you navigate these regulations and ensure your projects meet compliance standards.
The Buy America Act (BAA), enacted in 1933, applies to direct U.S. Federal government purchases exceeding $10,000. For a lighting product to be BAA compliant, it must meet the following criteria:
- • The product must be manufactured in the U.S.
- • At least 65% of the cost of all components must be sourced from U.S. mines, producers, or manufacturers.
The Build America, Buy America Act (BABA), enacted in 2021 as part of the Infrastructure Investment and Jobs Act (IIJA), expands the BAA requirements. BABA applies to federally funded infrastructure projects, regardless of whether the federal government directly procures the materials. This includes projects like bridges, roads, and buildings where lighting products are permanently incorporated. For lighting products to comply with BABA, they must meet these conditions:
- • The product must be manufactured in the U.S.
- • At least 55% of the total cost of all components must be mined, produced, or manufactured in the U.S.
- • Buy America Act - www.gao.gov/products/105519
- • Build America Buy America www.commerce.gov/oam/build-america-buy-america
- • Securing and maintaining federal contracts.
- • Avoiding project delays and financial penalties.
- • Demonstrating commitment to supporting American industries.
BAA applies to direct federal government purchases, while BABA applies to projects funded by the federal government, including infrastructure projects. BABA also has a different domestic component percentage requirement. (35% for BAA and 45% for BABA).
Yes, but the total cost of foreign components must remain below the specified percentage thresholds (35% for BAA and 45% for BABA).
The percentage is calculated based on the total cost of all components in the finished product.
Yes, there can be waivers granted in cases where domestically produced materials are not available or would significantly increase project costs. Each waiver is project specific.
Manufacturers typically provide certifications of compliance. Documentation may include origin certificates, manufacturing records, and component cost breakdowns.
Please visit our dedicated BA/BABA complaint products list.
No. When drivers and controls are integrated within a luminaire, they are considered components of the final product. The entire luminaire qualifies for BABA if it is manufactured in the U.S. and at least 55% of its total component cost is from U.S. sources. Drivers and controls sold separately must meet BABA requirements independently.
Yes, federal agencies funding projects may issue waivers for BABA based on reasons like non-availability, cost, or public interest. These waivers are typically specific to a project or timeframe. To apply for a waiver, the contractor must directly contact the federal agency administering the funds for their project and follow their specific waiver application process, as outlined on the agency's website. For example, for a FEMA-funded project, the waiver application would be submitted through FEMA.
Links to waiver information for federal agencies:
Federal Transit Administration: www.transit.dot.gov/buyamerica
Federal Aviation Administration: www.faa.gov/airports/aip/buy_american
Federal Highway Administration: www.fhwa.dot.gov/construction/contracts/waivers.cfm
Environmental Protection Agency: www.epa.gov/baba/build-america-buy-america-baba-approved-waivers
Department of Education: www.ed.gov/about/doing-business-ed/contractor-requirements/build-america-buy-america-waivers
Department of Housing and Urban Development: www.hudexchange.info/programs/baba/waivers/
For more information, please contact sales@insightlighting.com.