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BAA and BABAA Guidance

Everything You Need to Know About Domestic Procurement Regulations and Achieving Federal Compliance

Projects funded by federal, state, or municipal entities are mandated to use domestic products that comply with the Buy American Act (BAA) or the Build America, Buy America Act (BABAA) standards. For compliance, a specific percentage of a product's components must be of U.S. origin—65% for BAA and 55% for BABAA as of 2024. These provisions are particularly relevant for LED lighting projects seeking eligibility for federal funding.

Key Compliance Insights

Buy American Act (BAA)

Projects funded by federal, state, or municipal entities are mandated to use domestic products that comply with the Buy American Act (BAA) or the Build America, Buy America Act (BABAA) standards. For compliance, a specific percentage of a product's components must be of U.S. origin—65% for BAA and 55% for BABAA as of 2024. These provisions are particularly relevant for LED lighting projects seeking eligibility for federal funding.

Build America, Buy America Act (BABAA)

BABA, enacted as part of the Infrastructure Investment and Jobs Act (IIJA) of 2021, established procurement preferences for federal infrastructure projects. It requires domestic components to make up a certain percentage of the total cost for federal funding eligibility, with a focus on three categories: iron or steel products, construction materials, and manufactured goods, including LED lighting.

Aspect
Buy American Act (BAA)
Build America, Buy America Act (BABAA)
Enactment
1933
2021 (1)
Scope of Application
Direct Federal Procurements
Federally Funded Infrastructure Projects
Domestic Content Requirement
65% As of 2024
Category-Specific Thresholds (2)
Product Categories Covered
End Products & Construction Materials (3)
Iron, Steel, Construction Materials & Manufactured Goods
Federal Regulatory Authorities
FAR & DFARS
OMB, MIAO & Agencies Distributing Federal Funds
Waivers
Allowed (4)
Allowed But Are Less Common (5)
Exceptions
Certain Trade Agreements & Small Procurements
Small Components or Limited Domestic Items (5)
Notes :
  • The Build America, Buy America Act (BABAA) was enacted as part of the Infrastructure Investment and Jobs Act (IIJA) in November 2021.
  • Mandates that all iron, steel, manufactured products, and construction materials used in infrastructure projects must be US produced. Compliance thresholds vary by product category, but the overarching requirement is maximum domestic sourcing.
  • Focuses on end products and construction materials, such as steel and iron for public construction projects.
  • Waivers under certain conditions, such as public interest, unavailability, or excessive cost. They are granted when adherence to BAA seems impractical.
  • Waivers are less common and subject to stricter scrutiny. Requires public posting and detailed justification, ensuring exceptions are made only when necessary.
  • Exemptions are allowed for small components or items not available domestically in sufficient quantity, but they are carefully regulated.
IKIO Buy American Act (BAA) Compliant Products

Need a compliant lighting solution? IKIO LED Lighting offers hundreds of products that meet BAA and BABAA compliance and can fulfill your federal project's regulatory requirements. Please review the list before placing your order to ensure your specifications are covered. If you can’t find what you need, contact our representative for a custom solution.

A Subsidiary of IKIO LED Lighting, Offering Federally Compliant Solutions
Bright Future USA is a dedicated manufacturer of BAA and BABAA compliant lighting solutions, strategically located in Batesville, Indiana. Recognizing the growing need for federally compliant products, Bright Future committedly produces luminaires that qualify as 'domestic end products' to meet that need. The company strongly focuses on federal and local government projects and stands as a beacon of regulatory excellence in the lighting industry.

Federal-Grade Domestic Sourcing

Bright Future leverages strong partnerships with tier-1 domestic suppliers to locally source high-quality materials for federal projects. This results in a consistent supply chain that not only bolsters the local economy but also aligns with strict federal compliance requirements.

Compliance in Documentation

Bright Future maintains full transparency in documentation, providing detailed records and ensuring preparedness for verification processes (supplier certifications, document reviews, etc.) These best practices guarantee confidence in the origin and quality of their products.

Advanced Manufacturing Capabilities

Bright Future's in-house manufacturing facility features a streamlined assembly area, SMT lines, an R&D facility, and a comprehensive testing lab. With equipment like liquid drop testers, salt spray corrosion chambers, and IP and vibration testing units, they ensure production of the highest-quality products.

Growing Manufacturing Footprint

Bright Future is expanding with a new facility dedicated to US-based production, increasing their total manufacturing space to over 75,000 sq ft. This growth underscores their commitment to BAA compliance and enhances their ability to deliver high-quality, American-made products as per the demand

BAA and BABA Compliant Products
Explore our range of federally compliant products below. Access detailed specifications, certifications, and more.
Commercial Lighting
Industrial Lighting