THE MOST RELIABLE, COST EFFECTIVE AND EFFICIENT BLOWERS
MADE IN THE USA 
1-855-INOVAIR | (913) 469-7244
1-855-INOVAIR | (913) 469-7244
The Build America Buy America Act (BABA) has introduced transformative standards for federally funded infrastructure projects, particularly in water and wastewater treatment. Inovair can provide a practical roadmap for project managers and procurement teams to navigate the challenging landscape of BABA.
GUIDELINES FOR NAVIGATING BABA COMPLIANCE
- Benefits of BABA:
Suporting American manufacturing, reducing uncertainty of a late change and/or tariffs, and cheaper funding - Understanding BABA Requirements:
Key aspects of the Build America Buy America Act are outlined, emphasizing its significance in infrastructure projects. - Compliance Checklist:
A list of steps to ensure all materials and components meet BABA standards, from sourcing to final assembly. - Documentation Best Practices:
Advice on maintaining proper records and certifications to demonstrate compliance during audits or inspections. - Common Pitfalls and Solutions:
Frequent challenges faced during compliance efforts are outlined and actionable solutions are suggested. - BABA Enforcement:
How the governing agencies will be monitoring and evaluating projects that don’t meet BABA guidelines.
BENEFITS OF BUILD AMERICA BUY AMERICA (BABA)
Choosing a BABA-compliant blower not only supports American manufacturing but also provides significant financial and logistical advantages. By sourcing domestically, projects benefit from greater supply chain stability, reducing the risk of unexpected delays, tariffs, or cost fluctuations due to geopolitical changes. Additionally, BABA compliance can unlock access to key funding programs, such as the Clean Water and Drinking Water State Revolving Funds (SRFs), Water Infrastructure Finance and Innovation Act (WIFIA) loans, and federal infrastructure grants, which often offer lower interest rates and more favorable terms for projects using domestically manufactured equipment. This combination of economic incentives and risk reduction makes BABA-compliant solutions a smart long-term investment for wastewater treatment facilities.
UNDERSTANDING BABA REQUIREMENTS
BABA was established to ensure that federally funded projects prioritize domestic manufacturing and sourcing. Specifically, the act requires:
- Projects:
All iron, steel, manufactured products, and construction materials must be produced in the United States, with final manufacturing occurring domestically. - Manufactured Products:
At least 55% of the total cost of components must come from the United States. - Funding Applicability:
Projects initiated after May 14, 2022, or receiving federal funding from the 2024 federal fiscal year onward, are subject to BABA guidelines.
Compared the ARRA, the standards are much higher. Details of these two Acts and how they differ is outlined in our post “Understanding BABA for Water and Wastewater Treatment.”
KEY AGENCIES OVERSEEING BABA COMPLIANCE
Three primary agencies are involved in enforcing BABA guidelines for water treatment:
- Environmental Protection Agency (EPA): Plays a crucial role in implementation and enforcement.
- Office of Management and Budget (OMB): Issues guidance and regulations.
- Inspector General: Oversees compliance through enforcement actions, including criminal prosecution, product substitution litigation, and civil litigation under the False Claims Act.
BABA COMPLIANCE CHECKLIST: MANUFACTURING FOCUS
BABA compliance emphasizes domestic manufacturing, making every step of the production process critical. Key considerations include:
- Domestic Content Requirements:
55% of the total cost of manufactured goods must be domestic. - Materials and Components:
Raw materials and castings must come from U.S. foundries to meet compliance. - Fair Market Costing:
Ensures transparency in component sourcing and cost basis. - Exclusions:
Overhead not related to component manufacturing, such as upfront submittals and performance testing of completed packages, is excluded. - Self-Contained Packages vs. Kits:
Components of site-assembled kits, such as a MBR or SBR package, must meet BABA compliance individually even if they are brought to the worksite separately or at different times. - Project Specifications:
Must allow the use of BABA compliant products that meet the intent of the specification and the project needs. - Validation of Compliance:
Manufacturer must provide written documentation of compliance, signed by an officer of the company. Compliance is based on costed bill of materials for the manufactured product being supplied. - Additional Deliverables & BABA Resources:
Other compliance-related documentation or requirements may be determined based on project-specific needs or regulatory updates.
SPECIFICATIONS AND PROJECT NEEDS
BABA guidelines require project specifications to:
For example, a project may not specify a specific technology provided other technologies can meet the project design performance requirements.
- Address project needs while allowing for the use of BABA compliant products.
- Avoid restricting competition by favoring specific technologies or brands unnecessarily.
For example, a project may not specify a specific technology provided other technologies can meet the project design performance requirements.
DOCUMENTATION BEST PRACTICES
Maintaining accurate and detailed documentation is critical for ensuring BABA compliance. Here are some best practices:
- Certifications: Keep records of all certifications from manufacturers verifying compliance with BABA requirements.
- Cost Breakdown: Maintain a detailed costed bill of materials to prove domestic content percentages.
- Audit Preparation: Organize and store records systematically to facilitate quick and easy access during inspections or audits.
- Regular Updates: Periodically review documentation to ensure it remains current with the latest guidelines.
COMMON PITFALLS AND SOLUTIONS
While navigating BABA compliance, projects often face common challenges. Here’s how to address them:
- Pitfall: Misinterpreting domestic content requirements. Solution: Work closely with manufacturers like Inovair who can provide clear documentation and guidance.
- Pitfall: Overlooking overhead exclusions in compliance calculations. Solution: Focus on manufacturing-related costs and exclude unrelated expenses, such as performance testing of completed systems.
- Pitfall: Specifying products or technologies that inadvertently exclude compliant options. Solution: Design specifications around functional requirements to ensure compliance without unnecessary restrictions.
BABA ENFORCEMENT
The EPA Inspector General enforces BABA compliance through three primary paths:
Waiver requests are closely scrutinized, and the EPA has directed Inovair and other American manufacturers to oppose any waivers for which compliant products are available. Cases can be initiated by the Inspector General or whistleblowers, ensuring thorough oversight of compliance.
- Criminal Prosecution: For cases involving deliberate violations of BABA requirements.
- Product Substitution Litigation: Pursued when buyers are misled into believing they purchased a U.S.-compliant product.
- Civil Litigation under the False Claims Act: Focuses on cases where non-compliance is evident through a preponderance of evidence rather than beyond a reasonable doubt. This can result in treble damages.
Waiver requests are closely scrutinized, and the EPA has directed Inovair and other American manufacturers to oppose any waivers for which compliant products are available. Cases can be initiated by the Inspector General or whistleblowers, ensuring thorough oversight of compliance.
Contact Us
Please feel free to contact us if you have any additional questions on BABA, our products, or if you want to arrange a meeting time at WEFTEC to discuss your project(s).
Resources & References
EPA Build America, Buy America Act (BABA) Implementation Seminar
EPA Water Infrastructure Finance and Innovation Act (WIFIA)
EPA Clean Water State Revolving Fund (CWSRF)