When selling goods to the US federal government, compliance with purchasing regulations isn’t optional. A variety of regulations are in effect, and Panduit has an extensive selection of products that comply with these acts for use in federal or federally funded projects.
The most common acts governing federal purchases are the Buy American Act (BAA), Trade Agreements Act (TAA), and the Build America, Buy America Act (BABA) infrastructure funding initiatives. We take a closer look at these regulations.
Buy American Act
The Buy American Act of 1933 (BAA) is a critical regulation that governs federal procurement processes. Generally speaking, the BAA requires that commercially-available-off-the-shelf (COTS) items be manufactured in the United States. While this description sounds pretty simple, there are stipulations around what qualifies a product to be compliant with BAA, so it isn’t as quite as simple as “Made in America.”
One stipulation is “cost of component testing.” Because Panduit products are considered commercially-available-off-the-shelf, we are exempt from cost of component testing.
Another condition for BAA compliance is for products that are made from 50 percent or more steel or iron, and where that material is sourced from.
· Panduit products that are made in the U.S., which are mainly (50 percent or more) steel or iron, are checked to see sourcing and manufacturing process before BAA compliance is declared
· Panduit products that are made in the U.S., which do not consist of mainly steel or iron are clearly marked “Made In USA”
Learn more about the Buy American Act.
Often, the BAA is the initial request on a government project. However, if a certain monetary threshold is met or if there are specific challenges that restrict US-made products from being used, a waiver can be issued to allow for TAA-compliant products.
Trade Agreements Act
The Trade Agreements Act of 1979 (TAA) helps promote international trade agreements. The TAA allows federal government projects to use products that are manufactured in countries that participate in an international trade agreement. TAA general compliance requirements are:
- Goods must be produced in the United States or designated countries that are found in:
- The WTO GPA (World Trade Organization Agreement on Government Procurement)
- FTA (Free Trade Agreements)
- A least developed country
- A Caribbean Basin country
- No allowance of products produced in non-compliant countries or countries that are either allowed or disallowed
Panduit will only state compliance to TAA if the country of origin is specifically listed in the Federal Acquisition Regulation (F.A.R.) agreement 52.225-5.
The government commonly allows or grants allowance through waivers for TAA-compliant products because manufacturers typically cannot provide all of the components needed for cabling projects from domestic sources. Panduit has global manufacturing sites in TAA-designated countries, which allows Panduit to offer an end-to-end network infrastructure solution that is TAA compliant.
Build America, Buy America Act
The newest purchasing act is the Build America, Buy America Act of 2021 (BABA), which revises the requirements of the BAA to place stricter USA-made rulings on manufactured products. This revision only applies to infrastructure projects that are federally funded under the Infrastructure Investment and Jobs Act (IIJA). General requirements for manufactured products for BABA compliance are:
- Project must be receiving federal funding for BABA rulings to apply, unless stated otherwise
- Products must be manufactured in the United States
- Products must be manufactured from a minimum percentage of materials from the US
- The standard percentage is for US-sourced materials is anything greater than 55 percent, but this ruling varies dependent upon the type of project
The strictness of BABA has put pressure on manufacturers who rely on offshore product sourcing and may not have full transparency into where their suppliers source materials. Like the BAA, waivers can be issued for similar reasons which can allow for a lower percentage of US-sourced materials or for products from TAA-designated countries to be approved.
Panduit is continuing to monitor BABA requirements as IIJA projects are funded. Keep up with BABA waivers and modifications.
Serious about Compliance
We recognize the need for BAA, TAA, and BABA compliance for infrastructure projects and can quickly provide information on what products are compliant. As a US-based company with several manufacturing locations in the US and in TAA-compliant countries, Panduit has a broad portfolio of compliant products available for your next project. Our compliance flyer outlines our compliance with purchasing acts.
Why is Panduit the right choice for your Government Project?
- US-based company headquartered in Illinois
- 50+ years of as a supplier to the government
- Significant US manufacturing base
- Manufacturing in TAA-compliant countries, including Mexico, Costa Rica, Romania, and more
- Reliable, flexible, and secure network infrastructure solutions
- Dedicated federal team that can provide compliance certification upon request
Learn more about Panduit solutions for federal government at http://www.panduit.com/government. If you are looking for Panduit products that meet a specific requirement, please contact FedGov@panduit.com.
