OMB Proposes Guidance for Implementing BABA in Federal Grants and Agreements

On February 9, the Office of Management and Budget (OMB) published a proposal to revise the Agency’s Guidance for Grants and Agreements. The proposed revisions are limited to the implementation of the Build America, Buy America Act (BABA) provisions of the Infrastructure Investments and Jobs Act (IIJA), which requires federal agencies to ensure that “none of the funds made available for a Federal financial assistance program for infrastructure, including each deficient program, 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.” The proposal adds a new section to the Act that includes guidance for determining the cost of manufactured products, and provides a variety of definitions including, “cost of components,” “constructions materials,” and “predominantly iron and steel.” The proposal generally aligns with OMB’s April 12, 2022, guidance memo on the initial implementation of BABA. The public has until March 13 to provide comments.