Buy American Act (BAA) vs. Build America, Buy America Act (BABAA): What’s the Difference?

The Buy American Act (BAA) and the Build America, Buy America Act (BABAA) are both U.S. domestic-preference laws. They apply to different types of purchases, require different percentages of U.S.-made content, and are verified differently depending on which one governs your project.

If you are having difficulty telling the two apart and understanding how to ensure you comply with their requirements, you are not alone. Similar names and overlapping purposes make it easy to be confused about which law applies to you and how to ensure the products you purchase are in compliance with the law.

As a global manufacturer of industrial pressure and temperature instrumentation for industries serving customers in the United States, Ashcroft understands how these laws affect our company and our customers.

To help guide you, we've compiled answers to some of our customers' most frequently asked questions.

Read on for a high-level review of the Buy American Act and the Build America, Buy America Act, including the similarities and differences between them, considerations for purchasing products for use in U.S.-based projects, and how Ashcroft can help you find pressure and temperature instrumentation that meets your specific needs.

What is the Buy American Act (BAA)?

The Buy American Act (BAA) requires the U.S. government to prioritize the purchase of products made in America by American workers for use inside the United States.

Originally enacted in 1933, the BAA generally applies to purchases made directly by the federal government and establishes domestic content requirements for manufactured products.

What is the Build America, Buy America Act (BABAA)?

The Build America, Buy America Act (BABAA) focuses on maximizing the use of American-made goods, products, materials, and construction materials in federally funded infrastructure projects.

Enacted as part of the Infrastructure Investment and Jobs Act in November 2021, BABAA applies primarily to federally assisted infrastructure projects rather than direct federal procurement.

Is the Buy American Act the same as the Build America, Buy America Act?

No. Both laws encourage the use of products manufactured in the United States, but they apply to different types of government purchases and have different domestic content requirements.

The table below provides a quick comparison. The following sections explain each requirement in more detail.

Figure 1. BAA vs. BABAA at a glance

While both laws support domestic manufacturing, the applicable requirements depend on the type of project, funding source, and product being purchased.

What constitutes an American-made product under BAA?

Under BAA, a manufactured product must be manufactured in the United States, and the cost of domestic components must exceed 65% of the total cost of all components. This threshold is scheduled to increase to 75% beginning in 2029.

Component cost refers to the parts that make up the finished good.

NOTE: The component cost calculation cannot include any other costs associated with building the product, such as labor costs and standard burden costs.

Why was the Buy American Act created?

The BAA was created to ensure taxpayer money supports goods, products, materials, and services made in the United States whenever possible to boost domestic businesses and support American workers.

More recently, updates to domestic content requirements have supported broader federal efforts to strengthen domestic manufacturing and improve supply chain resilience. Learn more about the Buy American Act in the Federal Acquisition Regulation (FAR). 

What constitutes American-made under BABAA?

Under BABAA, the requirements differ depending on whether the item is classified as a manufactured product, an iron or steel product, or a construction material.

For manufactured products, the product must be 100% manufactured in the United States, and the cost of domestic components must exceed 55% of the total cost of all components.

For iron and steel products, 100% of the manufacturing processes, from the initial melting stage through the application of coatings, must occur in the United States.

BABAA applies to iron, steel, manufactured products, and construction materials used in federally funded infrastructure projects.

NOTE: The 55% calculation cannot include any other costs associated with building the product, such as labor costs and standard burden costs.

What designated countries can be added to the U.S. component content percentage?

Because current federal guidance distinguishes between trade agreement applicability under the Buy American Act and domestic content requirements under the Build America, Buy America Act, please refer to the Federal Acuisition Regulation (FAR).

Trade agreements and designated-country status can affect certain federal procurements governed by the Buy American Act. However, products or components from designated countries do not automatically count toward U.S. domestic content requirements under either law. The applicable contract, funding source, agency guidance, and any approved waiver determine how these requirements apply.

Are there exemptions to the BAA and BABAA laws?

Yes. However, the exemptions are not identical under the two laws.

Under the Buy American Act, certain Commercial Off-the-Shelf (COTS) items may qualify for an exception to the domestic component test (as defined under FAR Subpart 25.1 [Supplies] and FAR 52.225-9 [Construction Materials]). Separate requirements continue to apply to products consisting wholly or predominantly of iron or steel.

Under BABAA, agencies may grant waivers in limited circumstances, such as when qualifying domestic products are unavailable, inconsistent with the public interest, or would increase the overall cost of the project beyond established thresholds.

Learn more about Build America, Buy America implementation guidance.

What is a commercial off-the-shelf product?

A Commercial Off-the-Shelf (COTS) product is a ready-made, mass-produced item used by the public or nongovernmental entities that is sold or made available to the general public.

Under the Buy American Act, COTS products receive special treatment under the Federal Acquisition Regulation. However, products consisting wholly or predominantly of iron or steel remain subject to additional requirements.

Because BABAA uses different statutory requirements, a product's COTS status alone does not determine whether it complies with BABAA.

What do the BAA and BABAA mean for you?

If you purchase products for U.S. government or federally funded infrastructure projects, it is important to determine which law applies before selecting instrumentation.

• For direct federal procurement, qualifying domestic products may receive a purchasing preference under the Buy American Act.

• For federally funded infrastructure projects, BABAA establishes domestic sourcing requirements for the iron, steel, manufactured products, and construction materials incorporated into the project.

Understanding which law governs your project can help you identify the documentation required before purchasing pressure or temperature instrumentation.

How do I verify if a product has BAA or BABAA certification?

To confirm BAA or BABAA compliance, you'll need to provide a complete model number for the instrument being requested. Different options or additions to a model code may change where a component part is sourced.

The instrument is then verified against a bill of materials (BOM), including the country of origin and applicable component information, and a certificate is issued once compliance is confirmed.

Because compliance is determined by the complete model number, different configurations of the same product family may not have the same certification status.

Are Ashcroft instruments BAA or BABAA certified?

It depends on the part number.

Based on the criteria outlined above, let a product specialist know which certification you need and provide the complete part number. Using that information, Ashcroft will review the product's bill of materials to determine whether the specified configuration meets the applicable BAA or BABAA requirements.

Because component sourcing can vary by model and selected options, compliance should always be confirmed for the exact instrument configuration being purchased.

What kind of verification will Ashcroft provide?

Ashcroft will provide you with the appropriate certification paperwork for your reference.

About Ashcroft

Ashcroft was founded by Edward Ashcroft in 1852 to provide safe, accurate and reliable pressure and temperature instruments to workers in the steam-powered industry. Today, Ashcroft continues to keep our customers’ operations running with confidence. Our products can be found in thousands of critical applications around the world such as water/wastewater, oil and gas, power generation and more.

Feel free to contact us if you have any questions about our products or services.