As you may be aware, a component of the Infrastructure Investment and Jobs Act (“IIJA”) termed “Build America, Buy America” or “BABA” (Pub. L. 117-58, Div. G, Tit. IX (Nov. 15, 2021)) contained a broad new requirement that all infrastructure projects funded by federal financial assistance (to include grants and cooperative agreements) would be subject to new Domestic Sourcing requirements for iron and steel, manufactured products, and construction materials. These requirements are set to take effect for all new federal awards for infrastructure projects made on or after May 14, 2022, as well as all infrastructure awards amended to add funding after that date.
Buy America Guidance
Yesterday, the federal Office of Management and Budget (“OMB”) issued OMB Memo 22-11, providing clarification on these significant new requirements, including the role of awarding agencies, the broad scope of applicability, key definitions, and a statutorily mandated centralized waiver notification system. OMB Memo 22-11 may be accessed here.
State and Local Government Infrastructure
In particular, we encourage State and Local Government entities to review these new obligations. Private nonprofit recipients should also remain alert for possible inclusion of such terms in any future construction awards.
If you have any questions regarding applicability or implementation on your federal awards, contact Scott S. Sheffler at firstname.lastname@example.org or 202.466.8960.