Understanding the Buy America Preference Requirements Under Part 184

Until recent years, domestic procurement and preference requirements have generally been less strict for federal grants compared to those for federal contracts. The Office of Management and Budget (OMB), within the uniform guidance at 2 C.F.R. Part 200, has required an undefined preference “for the purchase, acquisition or use of goods, products or materials produced in the U.S.” (§200.322(a)). However, the Build America, Buy America (BABA) Act within the Infrastructure Investment and Jobs Act (IIJA) (Pub. L. 117-58), when enacted in November 2021, changed the importance of using U.S. components in federally funded programs and projects going forward. 

As a result, OMB has published final guidance in response to BABA, which establishes a Buy America preference for infrastructure projects at Part 184 under Title 2, Subtitle A of the Code of Federal Regulations, as well as a related provision within the uniform guidance at §200.322(c). The final guidance applies to federal awards obligated after the final guidance’s Oct. 23, 2023, effective date. This whitepaper discusses what is included within Part 184, what steps OMB took prior to the final guidance and what this means for federal grant recipients.