Buy American vs. Buy America vs. Build America, Buy America (BABA)

If you’re supplying goods to federal infrastructure projects or bidding for public procurement—these three words could decide whether you win the contract or lose it on a technicality.

Why the Confusion?

“Buy American,” “Buy America,” and “BABA” sound interchangeable. They’re not.

Each is a separate legal requirement. Each applies in different contexts. And non-compliance doesn’t just delay deals—it disqualifies you.

Quick Definitions: What’s the Difference between “Buy American,” “Buy America,” and “BABA” sound interchangeable?

Buy American Act (BAA): Federal Procurement Standard

Key Details of Buy American Act (BAA):

• Originated in 1933

• Applies to direct federal purchases

• Requires:

  • Product is manufactured in the U.S.
  • At least 55% of component costs are U.S.-made (post-2022 inflation rule)

Waivers May Apply to Buy American Act (BAA):

• Public interest
• Unavailability in sufficient quantity/quality
• Unreasonable cost

BAA is about sourcing origin at the component level, not just final assembly.

Buy America: Infrastructure-Specific (DOT)

Key Details of Buy America:

• Applies to transportation funding: highways, rail, buses, ports

• Mandates:

  • 100% of iron and steel must be U.S.-sourced
  • Manufactured products must be produced in the U.S.

• Applies to state and local projects receiving federal DOT funds

Different from BAA: This isn’t procurement—it’s funding-related. It governs how infrastructure money is spent, not what GSA buys.

Build America, Buy America Act (BABA): The New Layer

Key Details of Build America, Buy America Act (BABA)

Enacted: November 2021 under IIJA

BABA expands “Buy America” requirements to:

• Broad infrastructure categories: water, energy, broadband, schools
• Non-transport projects receiving any federal financial assistance

Requirements of Build America, Buy America Act (BABA):

• Iron & Steel: All manufacturing from melting to coating must occur in the U.S.
• Manufactured Products: Final product and significant transformation must happen in the U.S.
• Construction Materials: U.S.-sourced cement, drywall, glass, fiber optic cable, etc.

Enforcement of Build America, Buy America Act (BABA):

• Administered by Made in America Office (OMB)
• Waivers published for public review

BABA = newest and widest-reaching mandate. It applies beyond DOT and changes the compliance burden for tech, construction, and utilities suppliers.

Why “Buy American,” “Buy America,” and “BABA” Matter to Manufacturers

If you’re selling into:

• Government-funded infrastructure (BABA)
• Transportation (Buy America)
• Federal agencies (Buy American Act)

...your label, your BOM, and your supplier declarations all need to match the rule that governs the contract.

The wrong origin claim? That’s a contract killer.

What Gets You Flagged

Best Practices for “Buy American,” “Buy America,” and “BABA” Compliance

1- Map Each Contract to the Right Rule

Always check:

• Who is funding the project?
• Is it federal procurement (BAA), DOT funding (Buy America), or IIJA-backed (BABA)?

2- Classify Your Materials Accurately

Are you selling:

• Iron or steel?
• Manufactured goods?
• Construction materials? → The thresholds and definitions change.

3- Get Written Supplier Declarations

Don’t rely on “yes, it’s compliant.” You need:

• COO statements
• Component origin breakdowns
• Proof of U.S.-based transformation (if needed)

4- Maintain a Traceable Audit Trail

Especially under BABA, OMB can require proof of compliance on short notice.

How Acquis Simplifies Domestic Preference Compliance

At Acquis, we streamline how you manage origin documentation and compliance risk:

• Component-level COO tracking
• BOM validation for U.S.-sourced content
• Waiver monitoring
• Supplier declaration workflows

Talk to our compliance team to align your product data with evolving Buy America rules—before your next bid is rejected.

Buy American ≠ Buy America ≠ BABA. And in 2025, confusing them costs you real business.

If you’re not tracing your product origin by category—and aligning with the right rule—you’re gambling with government contracts.

With Acquis, you gain full visibility, supplier-level clarity, and audit-ready documentation for all domestic preference requirements.

Let’s make your bids bulletproof. Talk to a compliance expert →