BABAA Emphasizes Made in America Products

The Build America, Buy America Act (BABAA) (Pub. L. No. 117-58, §§ 70901-52), enacted under Division G, Title IX of the Infrastructure Investment and Jobs Act (IIJA) of November 15, 2021 and effective May 14, 2022, applies a buy America requirement to federally funded, public infrastructure projects. These projects include structures, facilities, and equipment for

• Roads, highways, and bridges,
• Public transportation, intercity passenger, and freight railroads,
• Freight and intermodal facilities and airports,
• Dams, ports, harbors, and other maritime facilities,
• Water systems (drinking and wastewater),
• Electrical transmission facilities and systems,
• Utilities and broadband infrastructure, and
• Real property that generates, transports, and distributes energy, including electric vehicle charging stations.

The purpose of BABAA is to increase the demand for United States manufacturing and supply chain fulfillment for both emerging and existing industries in the U.S., thus, helping to sustain and grow domestically produced goods while funding American jobs with American tax dollars.

The USDA worked with the Office of Management and Budget (OMB) and the Made in America Office (MIAO) on defining certain aspects of the BABA Act and issued final guidance, which became effective in October of 2023.

The Act applies to three categories of products.

1. Iron and Steel Products
2. Manufactured Items
3. Construction Materials

Section 70914 of the IIJA states, “an Agency may not obligate funds for an infrastructure project unless all iron, steel, manufactured products, and construction materials used in the project are produced in the United States or the Agency applies a waiver to the domestic content procurement preference requirement.” (Products should only be classified into one of these categories, not multiple; the Act does not apply to materials used temporarily at a work site, such as manufacturing equipment, tools, scaffolding, etc.)

That is,

For iron and steel products to qualify as “produced in the United States,” all manufacturing processes from the initial melting stage through the application of coatings, must have occurred in the United States.

For manufactured products, the product must be manufactured in the United States and the cost of the components mined, produced or manufactured in the United States must be greater than 55% of the total cost of all components.

For construction products, all manufacturing processes must occur in the United States.

Gibson Stainless products fall under the category of iron and steel products and are therefore considered BABAA compliant if all manufacturing processes from the melt to final assembly are done in the United States. The products labeled as “100% Made in USA” would all qualify for BABAA compliance.

At Gibson Stainless, we are proud of our Made in America ethos and the transparency we offer regarding our products’ country of origin. The country of origin of all Gibson products can be found in our online catalog or in our Country of Origin Guide.

Please contact us today to learn more about the Build America, Buy America Act or to have a letter written regarding the country of origin of a product.