At the time of writing, federal procurement compliance is governed by two different laws: Build America, Buy America (BABA), which forms part of the Infrastructure Investment and Jobs Act and was signed into law by former President Joe Biden in 2021, and the Buy American Act, which has been in place since 1933. Which of these laws applies in any given instance depends not upon the product being purchased, but on who is funding the project. 

Both laws were designed to promote and support U.S. manufacturing, protect American jobs, and reduce the United States’ reliance on international supply chains by requiring that the majority of components used within federally funded infrastructure projects be made in America. 

Many manufacturers and suppliers make the mistake of treating these two distinct laws as interchangeable. This often leads to misclassification, which can trigger unnecessary documentation requirements or create avoidable compliance exposure.

In this article, we will explain how each law works, where PVC products such as geomembranes fall under BABA’s material categories, and what changed on October 1, 2026.

BABA vs. the Buy American Act: Two Laws, Two Contexts

While BABA and the Buy American Act both relate to domestic sourcing for government spending and public projects, they are two distinct laws. Ultimately, the type of project funding determines which law governs in any given case.

BABA applies when the federal government funds a project indirectly through grants or loans to a state, city, utility, or other agency. Relevant programs include EPA State Revolving Fund water and wastewater projects and federal-aid highway projects. The Buy American Act applies when a federal agency is the direct contracting party–for example, the Army Corps of Engineers or the Bureau of Reclamation contracts.

Though there is crossover, the rules under each law are distinct. The documentation they require therefore, differs accordingly.

BABA’s Four Material Categories

BABA covers various materials and organizes those materials into four mutually exclusive categories. The category to which a particular product belongs determines the compliance standards it must meet. Because the category of a product determines which domestic content standard applies, there is no overlap between categories.

BABA’s four material categories are: 

  • Iron and steel (all stages of the manufacturing process, from melting through to the application of coatings, must take place in the U.S.) 
  • Manufactured products (broadly defined as “articles, materials, or supplies that have been processed into a specific form and shape or have been combined with other articles, materials, or supplies to create a product with different properties than the individual articles, materials, or supplies”) 
  • Construction materials (including non-ferrous metals, plastic and polymer-based products, glass, fiber-optic cable, optical fiber, lumber, engineered wood, and drywall)
  • Excluded materials (certain raw materials, including cement, stone, sand, gravel, and aggregate binders, as well as temporary products and materials such as scaffolding and tools) 

Understanding where a specific product lands within this framework is the first step in any BABA compliance analysis.

Buy American Act Thresholds for Direct Federal Purchases

The Buy American Act (BAA) governs direct federal procurement of goods and materials for public projects within the United States. The Buy America Act covers manufactured goods as well as raw goods and construction materials. There are some waivers in place for commercial off-the-shelf items. 

Under the Buy American Act, covered products must be manufactured in the U.S. with a domestic component cost of at least 65%. The current threshold is applicable from 2024 through 2028. In 2029, it will increase to a minimum 75% domestic component cost. 

For direct federal agency contracts, these are the benchmarks against which manufacturer compliance documentation will be evaluated. Manufacturers and suppliers looking to secure federal contracts should ensure their products meet the current threshold and that robust documentation is in place. They should also begin looking ahead to ensure their products will meet the new criteria from 2029. 

Where PVC Geomembranes Fall: Construction Materials

Under BABA, the “construction materials” category includes plastic and polymer-based products, with polyvinyl chloride (PVC) specifically named in the federal definition. Therefore, PVC geomembranes and other similar products are subject to BABA. In order to be BABA-compliant, all manufacturing of construction materials must occur within the United States. 

For direct federal purchases under BAA, PVC geomembranes are also considered a construction material and must consist of at least 65% domestic components by cost. 

At Ronald Mark, we are proud of our compounds and coat our RMA XTRM PLY® PVC geomembranes at our various facilities across the US. This makes our geomembranes both BABA- and BAA-compliant for use in federally funded projects. 

If you are an engineer or contractor sourcing BABA-compliant geomembranes or seeking proof of compliance, please request product-specific compliance documentation directly from Ronald Mark.

What Changed on October 1, 2026, and Why It Matters for Classification

On October 1, 2026, the Federal Highway Administration (FHWA) completed its phase-out of a long-standing waiver for manufactured products on federal-aid highway projects. Since 1983, manufactured products that were permanently incorporated into federal-aid projects were not required to be produced domestically (though any components made of predominantly iron or steel were still subject to the regulation). 

However, as of October 1 this year, covered manufactured products must now be made in the U.S. At least 55% of a manufactured product’s components (determined by cost) must also be mined, produced, or manufactured in the United States. 

It is important to note that this change applies only to manufactured products on highway jobs. It does not alter the existing regulations applying to construction materials, nor does it affect water and wastewater projects in any way. 

In the context of PVC geomembranes, a geomembrane correctly classified as a construction material on a highway project would be subject to the construction materials standard and not to the manufactured products threshold. 

Engineers and contractors working on highway projects should take special care to understand changes in regulations and how their sourcing may be affected. Misclassification may introduce costly compliance requirements and associated documentation burdens that do not apply.

Specify It Right the First Time

The similarities between Build America, Buy America (BABA) and the Buy American Act confuse many manufacturers and suppliers, leading to inadvertent misclassification. This creates financial risk as well as compliance risk. In addition, being sure of product classifications prevents unnecessary work and cost.

Remember: BABA governs projects funded indirectly by the federal government through grants or loans to a state, city, utility, or other agency, while the Buy America Act governs direct federal contracts with suppliers. The FHWA change, which came into effect on October 1 this year, affects manufactured products utilized in highway jobs only. 

This article is intended to provide an accessible explanation and educational background information, and is not a substitute for legal advice. For project-specific compliance questions, always consult qualified legal counsel and request manufacturer documentation directly.

PVC geomembranes sit within BABA’s construction materials category. Because correct classification in specs and submittals is the foundation of any compliant project, Ronald Mark provides comprehensive documentation for all our products. Please contact Ronald Mark and speak to a member of the team to request documentation.

 

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