Waiver framework
The 5 BABA waiver categories
When a bill of materials falls short of a Build America, Buy America standard, these are the categories that can let the project proceed. Each must be requested from the funding agency and granted. A waiver is never a pass on its own.
The categories
Five paths, two with a hard number
Two of these carry an objective test you can check yourself. The other three turn on a finding by the head of the funding agency, so plan for a lead time on the request.
Public Interest Waiver
A waiver granted when applying the Buy America preference would be inconsistent with the public interest. It may be project-specific or issued as a general applicability waiver, and must be construed to maximize use of US-made goods.
Nonavailability Waiver
A waiver granted when the required iron, steel, manufactured products, or construction materials are not produced in the United States in sufficient and reasonably available quantities or of a satisfactory quality.
Unreasonable Cost Waiver
A waiver granted when including US-produced materials would increase the cost of the overall project by more than 25 percent.
De Minimis Waiver
A general applicability public interest waiver that agencies may adopt for infrastructure purchases below a de minimis threshold. OMB gives the example of five percent of applicable project costs up to a maximum of $1,000,000, where applicable project costs are the material costs subject to the Buy America preference.
Small Grants Waiver
A public interest waiver agencies may consider for awards at or below the Simplified Acquisition Threshold. OMB notes the SAT is currently $250,000, and the award, inclusive of other funding sources, is not anticipated to exceed the SAT over the life of the award.
See which waivers your agency recognises
Run your bill of materials and any line that fails its standard shows the waiver categories that could apply.