Water Infrastructure and the Importance of BABA Compliance

Since the Infrastructure

Investment and Jobs Act (IIJA) was first enacted in 2021, the water and wastewater treatment industry in the United States has undergone a significant shift. A cornerstone of this legislation is the Build America, Buy America Act (BABA), which sets domestic content procurement requirements for federally funded infrastructure projects. For engineers and project managers, this means the specification of chemical metering systems — whether that includes individual pumps, complete skid systems , or associated equipment — these items must be thoroughly vetted to ensure they meet the standards needed to qualify for federal funds.

BABA Requirements for Metering Systems

BABA breaks down all the physical components of any given project into three categories: iron or steel, construction materials, and manufactured products. Chemical metering systems, including pumps and chemical feed systems, flow meters, sensors, and more, are classified as manufactured products. This classification is important because it determines the specific compliance threshold a metering system must meet in order to be used in a project receiving any form of federal financial assistance.

To be BABA-compliant, a chemical metering system must satisfy two primary requirements:

1. Domestic manufacture. The final product must be manufactured or assembled within the U.S. (Figure 1)
2. The 55% cost threshold. The cost of the components that are mined, produced, or manufactured in the U.S. must exceed 55% of the total cost of all components in the product.

These rules are applied on an individual product basis. In other words, an engineer cannot “average out” a project’s compliance by pairing a 100% U.S.-made pump with a flow meter which is only 40% U.S.-made. Every individual item in the project must independently meet the 55% threshold.

Impact On Specification

The biggest mistake any engineer can make under BABA rules is failing to verify manufacturing locations before specifying a brand. In the past, specifying a highquality European pump wasn’t an uncommon practice; however, in today’s market if that pump is not manufactured in the U.S. according to BABA standards, it may render a project ineligible for federal funds.

As such, engineers and project managers must now incorporate BABA requirements directly into bid documents and design specifications. Doing this means:

• Conducting early research. Domestic manufacturers must be identified during the design phase to avoid lastminute scrambles.
• Considering alternative designs/brands. If a preferred component is not available domestically, engineers must explore different designs or products that are compliant and meet performance needs.
• Estimating costs. Specifications should reflect costs based on domestically produced materials, as U.S.-made products may carry different price points.

The Paper Trail

Perhaps the biggest challenge BABA imposes on infrastructure projects is not the compliance itself, but rather the obligation to prove compliance. Specifically, project managers must build and establish a detailed paper trail before federal funds are distributed. Manufacturers and suppliers are responsible for providing certifications that assert BABA compliance.

A valid certification should include the project name, a specific product description, the city and state of manufacture, a citation of BABA requirements, and a signature from an authorized representative. For complex products like complete, pre-fabricated metering skid systems, this might include step certifications, where each entity in the supply chain (e.g., the frame fabricator, the pump manufacturer) certifies their specific contribution.

The Cost Of Non-Compliance

If a non-compliant product is specified for a project, the consequences can be costly and delay inducing. BABA allows project managers to apply for waivers for a number of reasons, including lack of compliant alternatives, unreasonable cost (an increase of 25% or more to the project cost), or public interest.

However, applying for and receiving a waiver can take weeks to months, leading to lost operational time and increased labor costs while crews sit idle. For many wastewater treatment operations, these delays can even result in fines, particularly if the plant cannot meet its expansion or discharge requirements on schedule. As a result, it is almost always more cost-effective to specify a slightly more expensive BABA-compliant product than to risk the timeline of a waiver.

Strategic Advantage of Vertical Integration

The intended impact of BABA has been to encourage engineers and project managers to prioritize manufacturers with vertically integrated domestic operations. Companies that handle their own machining, injection molding, and assembly in U.S.-based facilities — such as Blue White Industries’ operations in California — find it significantly easier to prove compliance, and because their components are made in their own facility, the supply chain is easier for engineers to trace and document.

BABA has fundamentally changed how chemical metering systems are specified for federally funded water infrastructure projects, making compliance a design requirement rather than an afterthought. By prioritizing BABA-compliant, vertically integrated manufacturers early in the specification process, engineers and project managers can not only protect project timelines and budgets but also gain confidence that their designs are built to withstand both regulatory scrutiny and long-term operational demands.

Written by:
Blue-White® Industries
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