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If you’re supplying goods to federally funded infrastructure projects or bidding on public procurement, these three words could decide whether you win the contract, or lose it on a technicality.
Why the Confusion Exists
“Buy American,” “Buy America,” and “BABA” sound interchangeable. They’re not.
Each is a separate legal framework. Each applies in different contexts. And if your sourcing documentation doesn’t match the right one, you’re disqualified, fast.
1. Buy American Act (BAA): Federal Procurement Standard
Applies to: Direct federal agency purchases Enacted: 1933
Requirements:
- Product must be manufactured in the U.S.
- ≥55% of component costs must be U.S.-made (post-2022 inflation rule)
Waivers allowed when:
- In the public interest
- Domestic alternatives unavailable
- Cost is unreasonable
Key takeaway: BAA focuses on component-level origin, not just final assembly.
2. Buy America: Infrastructure-Specific (DOT Rule)
Applies to: Federally funded transportation projects — highways, rail, ports, buses
Requirements:
- 100% U.S.-sourced iron and steel
- Manufactured products must be produced in the U.S.
- Applies to state and local projects using federal DOT funding
Difference vs. BAA: Buy America governs how infrastructure money is spent, not what federal agencies purchase directly.
3. Build America, Buy America Act (BABA): The New Layer
Enacted: November 2021 under the Infrastructure Investment and Jobs Act (IIJA)
Scope expansion: Extends Buy America provisions beyond transport to:
- Water systems
- Energy infrastructure
- Broadband networks
- Schools and public facilities
Requirements:
- Iron & Steel: All manufacturing — from melting to coating — must occur in the U.S.
- Manufactured Products: Final assembly and significant transformation in the U.S.
- Construction Materials: Must use U.S.-sourced cement, glass, fiber optics, drywall, etc.
Enforcement: Managed by the Made in America Office (OMB); waivers are publicly posted for review.
Bottom line: BABA is the broadest and most far-reaching domestic preference mandate to date — reshaping supplier eligibility across construction, utilities, and tech.
Why It Matters for Manufacturers
If you sell into:
- Federal agencies → BAA
- DOT-funded projects → Buy America
- Federally assisted infrastructure → BABA
…then your BOM, COO labels, and supplier declarations must match the correct rule. The wrong origin claim isn’t just risky — it’s an instant disqualifier.
Common Pitfalls
- Declaring “Made in USA” when subcomponents aren’t
- Failing to verify the project’s funding source
- Missing supplier documentation
- Not maintaining traceable records for audits
Best Practices to Stay Compliant
1. Map Each Contract to the Right Rule Identify whether it’s federal procurement (BAA), DOT funding (Buy America), or IIJA-backed (BABA).
2. Classify Your Materials Correctly Iron, steel, manufactured goods, construction materials — each has different thresholds.
3. Secure Written Supplier Declarations Collect COO statements, cost breakdowns, and transformation proof.
4. Maintain Traceable Documentation OMB or contracting agencies can request evidence at any point.
How Acquis Simplifies Domestic Preference Compliance
At Acquis, we make compliance documentation traceable and audit-ready:
- COO and component-level tracking
- Automated BOM validation for U.S. content
- Waiver and rule monitoring
- Supplier declaration workflows integrated into your data
Outcome: You gain full visibility, supplier-level clarity, and proof of compliance — across BAA, Buy America, and BABA.
Final Takeaway
In 2025, Buy American ≠ Buy America ≠ BABA. Confusing them isn’t a small oversight — it’s a contract killer.
If you’re not mapping your product origin by rule, you’re gambling with your bids. With Acquis, you eliminate that risk.
Talk to a compliance expert and make your bids bulletproof.