The Buy American Act (BAA) and Build America, Buy America (BABA) Act are often misunderstood, and for good reason. While there are similarities in their requirements, the two federal regulations are distinct.
Looking for Aeroflex USA compliance documentation?
Download Certification of BAA Compliance here and Certification of BABA Compliance here.
What is the Buy American Act (BAA)?
BAA became law in 1933 and refers to direct procurement of products by the U.S. federal government for its own projects. The BAA has been implemented through provisions in the Federal Acquisition Regulation (“FAR”), which set out requirements for specific projects. For construction materials, the requirements may be found at FAR 52.225-9. The requirements for “domestic construction materials” are as follows:
- 1) Manufactured in the United States; AND
- 2) EITHER;
- a. b. The cost of components manufactured in the U.S. exceeds 60%, OR
- is a commercially available off-the-shelf product (“COTS”).
A COTS product is any product that is sold in substantial quantities in the commercial marketplace and sold to the Government in the same form as in the commercial marketplace.
What is the Build America, Buy America Act (BABA)?
BABA was signed into law in November 2021 as part of the Infrastructure Investment and Jobs Act and implemented in May of 2022. It requires that federal funds allocated for state and local infrastructure projects be procured with iron, steel, and construction materials that are manufactured in the United States. Additionally, there is a cost of components requirement. This requirement is known as the “Buy America Preference (BAP),” and the specific requirements are codified in 2 CFR § 184. The BABA test for manufactured products largely mirrors the BAA requirements discussed above.
BABA compliance: the term “infrastructure” is broadly defined by the EPA to include projects such as:
- Buildings and real property
- Roads, highways, and bridges
- Railroads (including passenger and freight)
- Utilities
- Dams, ports, harbors and other maritime facilities
- Airports and other freight and intermodal facilities
- Water systems (including drinking and wastewater)
- Electrical transmission facilities and systems
- Utilities
- Broadband infrastructure
- Structures, facilities, and equipment for the generation, transport, and distribution of energy (including EV charging)
Construction materials include glass, drywall, lumber, fiber optic cable, non-ferrous metals like copper and aluminum, PVC, and insulation. Requirements for BABA compliance have been designed to increase incrementally over time. The original required domestic content threshold (measured by total cost) of manufactured products started at 55%, increased to 60% in October 2022, and 65% by 2024. This requirement will top out at 75% in 2029.
For mechanical systems, BABA considerations may include piping systems, HVAC equipment, ductwork, and insulation materials used within the project. As with any federally funded project, requirements should be verified against project specifications and applicable agency guidance.
Key Differences Between BAA and BABA
Both BAA and BABA are designed to encourage domestic manufacturing, but they apply to different project types.
Requirement | BAA | BABA |
| Applies To | Direct federal procurement | Federally funded infrastructure |
| Established | 1933 | 2021 |
| Governing Rules | FAR | IIJA / OMB Guidance |
| Applies to Insulation? | Yes | Yes |
| Domestic Content Threshold | COTS or 60% | 65% domestic content* |
| Typical Projects | Federal facilities and agencies | Infrastructure and public works |
| Documentation Requirements | Often required | Almost always |
| Mechanical Insulation Materials are Impacted | Yes | Yes |
The biggest distinction between the two regulations is that BAA applies primarily to when the federal government is purchasing materials directly, while BABA applies to a wide range of projects receiving federal infrastructure funding.
BAA and BABA Compliance for Mechanical Insulation Projects
Mechanical insulation falls under the umbrella of “Construction Materials” as defined by both BAA and BABA requirements but is often a small portion of a project’s overall cost. However, it is still critical to ensure that it is included in the submittal and compliance verification process.
Documentation Requirements
Many contractors encounter compliance questions during the submittal process, so it’s important to start gathering clear documentation early in the proposal process to reduce delays and support smoother project approvals.
Common documentation requests include:
- Manufacturer compliance letters
- Product identification information
- Country-of-origin verification
- Material sourcing documentation
- Project-specific certifications
One of the most common challenges on federally funded projects occurs when compliance requirements are identified late in the procurement process. To help avoid delays:
- Review compliance requirements early in design.
- Verify project funding sources.
- Confirm material eligibility before procurement.
- Include compliance documentation with submittals whenever possible.
Download Aeroflex USA Compliance Certifications
Aeroflex USA provides our customers with both standard and project-specific compliance certifications to support qualifying insulation products used on projects requiring Buy American Act (BAA) or Build America, Buy America Act (BABA) compliance.
BAA Certification
AEROFLEX EPDM™ closed-cell elastomeric insulation and most AEROFLEX® accessories comply with BAA because they are manufactured in the USA and are COTS products. Click here for our BAA certification, including a full list of all qualifying insulation products manufactured in the United States that meet applicable BAA requirements.
BABA Certification
AEROFLEX brand products are manufactured products as defined by BABA. AEROFLEX EPDM insulation and most accessories comply with current BABA requirements based on being manufactured in the USA with more than 65% domestic components by total cost. Click here for our BABA certification. Aeroflex USA can also provide individualized BABA certification letters upon request. Please contact us with your project details, and we will do our best to provide required certification letters in a timely manner.
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Need Help Identifying BAA or BABA Compliant Insulation Products?
If you have questions about project requirements, compliance documentation, or qualifying insulation products, the Aeroflex USA technical team can help identify available solutions and provide supporting documentation for your project. Contact us today with any questions.
Frequently Asked Questions (FAQs)
What is the difference between BAA and BABA?
The Buy American Act (BAA) generally applies to direct purchases made by federal agencies, while the Build America, Buy America Act (BABA) applies to many federally funded infrastructure projects.
Is BAA the same as BABA?
No. Although both programs have been designed with the objective of encouraging domestic manufacturing, they apply to different procurement and funding situations and are governed by different regulations.
Does BABA apply to insulation products?
Insulation products can and typically are subject to BABA compliance requirements, as insulation will generally fall under the umbrella of “Construction Materials”. However, this can vary depending on the project and funding source. Please always review your project specifications carefully before submittal for full requirement details.
How can contractors verify compliance for BAA and BABA?
The best approach is to review current manufacturer certifications, confirm project requirements, and coordinate with project stakeholders before procurement. If you have any questions related to Aeroflex USA product compliance, please don’t hesitate to contact us.
Sources: https://www.govinfo.gov/content/pkg/PLAW-117publ58/pdf/PLAW-117publ58.pdf
