Through a Federal Register notice on February 9, 2023, the U.S. Office of Management and Budget (OMB) is proposing to revise OMB Guidance for Grants and Agreements to support implementation of the Build America, Buy America (BABA) Act provisions of the Bipartisan Infrastructure Law, and to clarify existing requirements. Comments are due to OMB by March 13, 2023.
The BABA Act required that by May 14, 2022, the head of each covered federal agency shall ensure that “none of the funds made available for a federal financial assistance program for infrastructure may be obligated for a project unless all of the iron, steel, manufactured products, and construction materials used in the project are produced in the United States.”
OMB is proposing a new part 184 in 2 CFR chapter I to support implementation of the act, and clarify existing requirements within 2 CFR 200.322. The proposed revisions are intended to improve uniformity and consistency in the implementation of BABA requirements across the government.
The proposed new part 184 includes guidance for determining the cost of manufactured products, and proposes to use the definition of “cost of components” in the Federal Acquisition Regulation used for federal procurement. The new part also includes OMB’s proposed standards for “all manufacturing processes” for the manufacture of construction materials, as required by the act. OMB is proposing to modify 2 CFR 200.322 to direct the federal agency to the new part for guidance on all awards that include infrastructure projects.
The link to the Federal Register notice is:
The U.S. EPA webpage on BABA at https://www.epa.gov/cwsrf/build-america-buy-america-baba, includes Office of Land and Emergency Management (OLEM) FAQs about the act.
Bipartisan Infrastructure Law – Build America, Buy America Act Buy America – Construction Program Guide – Contract Administration – Construction – Federal Highway Administration (dot.gov)
Buy America Requirements for Infrastructure: Analysis of New Proposed Rule and Guidance from White House
Office Of Management and Budget 2 CFR Parts 184 and 200 Guidance for Grants and Agreements
Initial Implementation Guidance on Application of Buy America Preference in Federal Financial Assistance Programs for Infrastructure