Tell us about your expertise when it comes to federal domestic procurement regulations, particularly the Build America Buy America Act (BABA).
While I don’t consider myself an expert on domestic procurement regulations, my position at a company heavily involved in trade association activities has given me the opportunity to participate in policy discussions, particularly around BABA. BABA was born out of the Infrastructure, Investment and Jobs Act (IIJA) that was passed in 2021, providing $1.2 trillion in spending for infrastructure projects which include the refurbishment of bridges, roads, ports, and airports, and so much more that is included in infrastructure that people don’t always think about. A spending package this large should benefit U.S. companies, and that’s where BABA comes in. BABA’s purpose is to ensure that this large amount of spending is not only helping U.S. companies, but also contributing to domestic job creation. Basically, if you are using this funding, you need to be buying products that are made in the U.S. But what does that really mean? Everyone has a different idea of what made in America actually implies. BABA has come in to provide a definition to be used for projects using funding through IIJA.
This definition states that all iron, steel, manufactured products, and construction materials, must be produced in the United States. It also includes a 55% cost of components test for manufactured products. BABA is exciting because it has been a catalyst for different federal agencies, who all have different regulations around domestic procurement, to take a step back and reconsider their regulations in favor of BABA. For example, the Federal Highway Administration has had a waiver process in place for commercial off the shelf products, and after BABA guidance was finalized in August of 2023, they are evaluating if the waiver process should remain in place.
As a previous specifier, how would you ensure compliance with BABA when making lighting selections?
Something to keep in mind about BABA is that it’s very narrowly focused. It only applies to those projects that receive funding from IIJA, and not all government projects in general. For general government projects not being funded by IIJA, building materials would need to comply with the Buy America(n) Act (BAA). If I were to be working on a government project, my first step would be to have a good understanding of what domestic procurement regulations would need to be met. Some manufacturers like Acuity Brands make this easier by providing guidance, like a compliance checklist, that can be used as an additional tool when making compliance determinations.
How do you think BABA will impact lighting decisions?
While BABA will be a factor in a narrow set of projects, I could also see it bleeding into specifications for non-IIJA or non-government projects altogether. There are a couple of reasons for this. The first reason is that no matter the project, there could be a preference for products that are contributing to the creation of jobs and production in the United States. Secondly, we may see BABA compliant products selected for non-IIJA or non-government projects simply because lighting specifiers want to make sure all bases are covered. However, I would caution against this for non-IIJA funded projects because ordering a product that is BABA compliant when it doesn’t need to be could incur higher costs that may impact the project budget.
How does the government ensure compliance with BABA on IIJA-funded projects?
BABA was born out of a historical funding bill, allocating $1.2 trillion to infrastructure projects with the hope of creating jobs in the United States. With this much investment, there will be measures and audits to ensure compliance. One example of these measures for domestic procurement compliance was an audit recently completed by the United States Department of Defense. The audit uncovered significant compliance issues with BAA in the procurement of LED lighting improvement projects. When procuring BABA compliant products, it is important to purchase from a manufacturer that backs BABA product qualification claims with certifications of compliance.
