The U.S. is in the middle of a manufacturing resurgence. After decades of reliance on overseas supply chains, federal policy is now pushing production back home. The Buy American Act (BAA) and the Build America, Buy America (BABA) provisions are reshaping how contractors, OEMs, and infrastructure developers source materials. These rules are designed to ensure U.S. tax dollars fund U.S. manufacturers, strengthening supply chains and creating domestic jobs.
For companies working in infrastructure, construction, and industrial projects, understanding Buy America is essential. Compliance can mean the difference between winning a contract or losing one. That’s why many firms are turning to domestic contract manufacturers like NexGen, who provide U.S.-based metal fabrication, machining, and assembly to help projects meet these requirements.
It’s easy to confuse the terms, but the two frameworks apply in different ways:
Buy American Act (BAA) – Governs direct federal procurement. Goods purchased by the federal government must meet domestic content thresholds: 60% (2022), 65% (2024+ deliveries), and 75% (2029+ deliveries).
Build America, Buy America (BABA) – Governs federally funded infrastructure projects. Projects using federal financial assistance must source iron, steel, construction materials, and manufactured products domestically.
In short: BAA applies when the federal government buys products. BABA applies when federal dollars flow through grants or funding for infrastructure projects. Both are ramping up pressure on domestic manufacturers to deliver.
The BABA framework divides materials into three categories that determine how they must be sourced:
Iron & Steel Products
All manufacturing processes, from melting to coating, must occur in the U.S.
Construction Materials
Includes non-ferrous metals, glass, fiber-optic cable, polymers, lumber, engineered wood, and drywall. All must be fully manufactured in America.
Manufactured Products
Finished goods must be made in the U.S. with rising domestic content thresholds aligned to the Buy American Act.
By categorizing your bill of materials correctly, you can avoid compliance pitfalls. NexGen supports this process by supplying U.S.-made fabricated steel and metal components that satisfy these definitions.
The push for compliance comes at the same time as unprecedented investment in U.S. infrastructure through the Infrastructure Investment and Jobs Act (IIJA).
As of July 2025, about 71% of IIJA funds are obligated but only 39% have been spent—meaning thousands of projects are still to come.
U.S. reshoring is also gaining steam. In 2024, American companies announced nearly 245,000 new manufacturing jobs linked to reshoring and foreign direct investment (FDI), with reshoring outpacing FDI by a wide margin.
This convergence of federal spending and domestic production capacity represents a historic opportunity—but also highlights the importance of having reliable U.S. contract manufacturing partners like NexGen to meet demand.
Buy America waivers do exist, but they are rare and difficult to secure. Agencies must publicly post waiver requests, allow time for comments, and route them through the White House’s Office of Management and Budget (OMB). Waivers are limited to very specific circumstances:
When domestic sourcing is inconsistent with the public interest.
When materials aren’t available in the U.S. in sufficient quantities.
When costs are unreasonably high.
For certain small grants or de minimis use cases.
Even in these cases, agencies expect detailed documentation of sourcing attempts. NexGen supports customers by providing traceable supplier certifications, MTRs, and process records that demonstrate good-faith efforts to source domestically.
NexGen is not a compliance consultancy—we are a U.S.-based contract manufacturer. What we provide is domestic manufacturing capacity, process control, and documentation that makes it easier for customers to demonstrate Buy America compliance.
Here’s how NexGen supports customers:
Domestic Sourcing Discipline
Strong relationships with U.S. mills and suppliers.
Verification of melt-and-pour requirements for steel.
Delivery of Material Test Reports (MTRs) and supplier attestations for traceability.
Documentation Support
Part-level travelers, heat-traceability records, and process documentation ready for integration into compliance packages.
Design-for-Practicality
Engineering input that helps align BOMs with Buy America thresholds by recommending U.S.-sourced alternatives or simplifying component design.
U.S.-Based Finishing & Logistics
Domestic powder coating, finishing, and assembly services to keep production entirely inside the U.S. supply chain.
Waiver Readiness (When Necessary)
Providing the documentation customers need to demonstrate sourcing efforts if a waiver must be pursued.
To avoid delays, procurement teams should explicitly define Buy America expectations in every RFP or PO. Key steps include:
Identify whether BAA or BABA applies.
Categorize materials clearly (iron/steel, construction materials, manufactured products).
Define domestic content thresholds (currently 65%, rising to 75% by 2029 under BAA).
Require supporting documentation (MTRs, supplier declarations, attestations).
Establish record retention policies.
Outline substitution and waiver contingency processes.
When your procurement framework is structured this way, manufacturers like NexGen can deliver seamlessly into your compliance process.
Compliance ultimately rests with project owners and primes—but choosing a proven U.S. manufacturer makes compliance achievable. NexGen brings:
Midwest-based manufacturing for shorter supply chains and lead-time security.
Proven capabilities in laser cutting, forming, welding, machining, assembly, packaging, and powder coating coordination.
Supportive documentation that simplifies compliance reporting.
By choosing NexGen, you’re working with a partner who understands the pressures of federal procurement compliance, Buy America sourcing, and domestic fabrication timelines. We help ensure your supply chain is Made in the USA—ready for infrastructure, energy, and industrial projects funded by federal dollars.
Let’s talk about your needs.
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