The Build America, Buy America Act is expected to create more job opportunities in the USA. From small to larger business, including enterprises that may have a disadvantage by requiring the use of US products to be federally funded. Why is this a big deal? Creating and keeping jobs in the United States means strengthening our local and national economy and provides a secure financial system. Let’s discuss how BABA Act is providing provision for creating jobs and infrastructure investment in America.
How would the BABA Act impact international trade?
Section 70914(e) of the BABA Act states that the Buy America provisions “shall be applied in a manner consistent with the obligations of the United States under international agreements.” The Office of Management & Budget provides further clarification that if “a recipient is a State that has assumed procurement obligations pursuant to the Government Procurement with such obligations may be in the public interest.”
Will the BABA Act increase costs?
The focus of the BABA Act on American-made products may stimulate domestic manufacturing and competition, leading to potential cost savings. In the event of cost increases, agencies will have the ability to issue waivers in limited and strategic applications with the goal that Made in America goods will be used after companies make investments to expand domestic production. While a condition for a waiver is an increase in cost of 25%, this refers to the OVERALL project cost and NOT the individual product cost.
Will the BABA Act limit product choices?
The OBM states, “With the concurrence of the Made in America Office, a Federal agency may waive the application of a Buy America Preference when the agency finds that:
- one or more iron or steel items, manufactured products, or construction materials are not produced in the United States in sufficient and reasonably available quantities or of a satisfactory quality (a “nonavailability waiver”),
- the inclusion of one or more iron or steel items, manufactured products, or construction materials produced in the United States will increase the cost of the overall project by more than 25 percent (an “unreasonable cost waiver”),
- applying the domestic content procurement preference for one or more iron or steel items, manufactured products, or construction materials would be inconsistent with the public interest (a “public interest waiver”)—public interest waivers are the most flexible type of waiver, but, like all waivers, must be necessary and appropriately justified.”
How will the BABA Act impact job creation?
The requirement of the BABA Act will stimulate private sector investments in domestic manufacturing and bolster critical supply chains, thus supporting the creation of jobs for American workers and companies. If the United States is building and buying in America, then more jobs are created within the US.
At Trident Solutions, we are here to answer your questions about our BABAA compliant products. If you are not sure if one of our products is compliant, we can help and provide you with the information you need.
