What is BABA (Build America, Buy America)?
BABA, or "Build America, Buy America", is a set of federal regulations and initiatives in the United States aimed at promoting domestic manufacturing and the use of American-made products in infrastructure projects.
What are the key elements of BABA?
- Federal projects must use materials and products made in the USA and it particularly applies to transportation, water, public works projects, broadband projects, building renovations/construction, and energy infrastructure projects.
- A certain percentage of components in the products must be domestically sourced.
- It aims to boost employment opportunities in the US for manufacturing and construction.
- It should strengthen domestic supply chains and reduce reliance on foreign-made goods.
Who is subject to BABA regulations?
The Buy America, Build America (BABA) regulations apply to a wide range of companies and agencies involved in federally funded infrastructure projects. Projects that are not federally funded or do not fall under the specified material supplier group are not subject to BABA compliance. It is important to note that the funding source and the federal program involved can determine the specifics for each instance of required compliance.
- Federal agencies who are administering infrastructure spending programs
- State and local governments
- Private companies or private/public partnerships
- Public utilities
- Transportation authorities that include transit agencies, port authorities, and airport authorities
- Educational institutions
- Non-profit organizations
- Tribal governments
- Material suppliers and producers that produce iron, steel, and construction materials
- Engineering and design firms
When does enforcement of BABA begin?
Enforcement of the Buy America and Build America provisions has been phased in over time, with different aspects coming into effect at different times. Here's a brief overview of the enforcement timeline and responsible parties:
The starting period of enforcement came with the Infrastructure Investment and Jobs Act (IIJA), also known as the Bipartisan Infrastructure Law, signed in November 2021. But the full enforcement of the expanded provisions didn’t begin until October 1, 2022, after a 180-day phase-in period.
Who enforces BABA compliance?
- Federal agencies: Each federal agency overseeing infrastructure projects is responsible for enforcing Buy America provisions within their jurisdiction. Key agencies include the Department of Transportation, the Environmental Protection Agency, and the Department of Energy
- The Office of Management and Budget (OMB) provides overall guidance and coordination
- Made in America Office which was created in 2021 within the OMB to oversee and strengthen Buy America implementation
- State and local governments are often responsible for ensuring compliance for their federally funded projects
- Contractors and subcontractors are also required to certify compliance and maintain records
What are the challenges for companies subject to the regulation?
Companies subject to Buy America and Build America regulations face several challenges. As with most new vast legislation and regulations, interpreting the law into practice can be difficult. Here are some already known complexities facing companies beholden to BABA regulations, companies looking to provide products in compliance with BABA regulations, and the global supply chain.
Supply chain adjustments:
- Difficulty finding domestic suppliers for all components
- Potentially higher costs for US made materials and products
- Need to restructure existing supply chains
Compliance complexity:
- Varying requirements across different federal agencies
- Keeping track of changing regulations and waivers
- Detailed documentation and certification processes
Cost increases
- Higher prices for domestic materials may reduce competitiveness
- Potential need for new investments in U.S. manufacturing facilities
Limited domestic capacity:
- Some specialized components may not be available from US manufacturers
- Bottlenecks in domestic production for high-demand materials and products
Global competitiveness:
- Increased costs may disadvantage US companies in international markets
- Potential for trade disputes or retaliatory measures from other countries
Workforce challenges:
- Potential skills gaps in domestic manufacturing
- Need for training and recruitment to expand US production
Technology transfer:
- Difficulties in relocating specialized manufacturing processes to the US
- Intellectual property concerns when shifting production
Timeline pressures:
- Adapting to new requirements while meeting project deadlines
- Potential delays in sourcing domestic materials
What are the strategies for addressing the challenges posed by BABA?
Here are some strategies companies can employ to address the challenges of Buy America and Build America regulations:
Supply chain mapping and diversification:
- Conduct thorough supply chain audits
- Identify and cultivate multiple domestic suppliers
- Invest in vertical integration where feasible
Compliance management:
- Implement robust compliance tracking systems
- Provide regular training for staff on current regulations
- Consider hiring or designating Buy America compliance specialists
Cost management:
- Negotiate long-term contracts with domestic suppliers
- Explore process efficiencies to offset higher material costs
- Consider reshoring or nearshoring strategies
Capacity building:
- Invest in expanding domestic manufacturing capabilities
- Form strategic partnerships or joint ventures with US manufacturers
- Support supplier development programs
Innovation and alternatives:
- Research alternative materials that meet Buy America requirements
- Invest in R&D for new production methods or materials
- Explore additive manufacturing/3D printing for certain components
Project management:
- Build in extra lead time for sourcing domestic materials
- Use agile project management techniques to adapt to changes
- Develop contingency plans for potential supply disruptions
Financial strategies:
- Explore government incentives for domestic manufacturing
- Consider creative financing options for capital investments
- Develop pricing strategies that account for compliance costs
How can KOBOLD help me with my BABA compliance requirements?
KOBOLD was founded by and has always remained committed to American manufacturing. We have provided reliable, high-quality products from our Pittsburgh manufacturing operations for 35 years (as of 2024). We have partnered with a wide variety of US OEMS, engineering firms, and government agencies over the years.
As of September of 2024, many KOBOLD products have been certified as BABA compliant and we are working to include even more of our products as BABA compliant. Listed below are the highlights of our BABA compliant products.
Flow Products:
Ultrasonic Flow Meter
Magnetic Flow Meter
Flow Regulators
Paddle Type Flow Meter
Variable Area Flow Meters
Most of our Paddle Wheel Flow Meters
Most of our Flow Indicators
Level Products:
We have a team of knowledgeable engineers at your disposal who would be happy to help you assure that the instrumentation in your project is BABA compliant. Please schedule an appointment at a time that is convenient for you.
Schedule an Appointment
Sight Flow Indicator with Self-Cleaning Mechanism
$221
Compact Inline Ultrasonic Flow Meter
$1,084
Economical Inline Magnetic Flow Meter
$418
Automatic Flow Regulating Valve
$108
