Navigating BABA Compliance; A 101 Guide for Investment Casting Customers
Welcome back to another 5-minute rundown, the series where we tackle a topic in the investment casting world in 5 minutes or less. Today’s topic is Build America, Buy America (BABA Compliance) and how US-based customers can benefit from a BABA Compliant Investment Casting Foundry.
Let’s get into it!
So, What is BABA Compliance?
BABA stands for the Build America, Buy America Act, which is a part of the Infrastructure Investment and Jobs Act (IIJA). It requires that all iron, steel, manufactured products, and construction materials used in federally funded infrastructure projects be produced in the United States.
Diving a little deeper, within the lens of castings:
Iron & Steel: Must be "melted and poured" in the U.S. All manufacturing processes, from the initial melting stage through the application of coatings, must occur domestically.
Manufactured Products: The final product must be manufactured in the U.S., and the cost of domestic components must exceed 55% of the total component cost.
BABA compliance helps infrastructure projects such as power generation, roads, and rail, and beyond, to gain and maintain essential government funding. You may be familiar with the Biden Era Build Back Better plan or recognize the Infrastructure Investment and Jobs Act of 2021. While it is beyond the scope of this article to unpack every piece of the legislation, simply put, it outlines requirements for federally funded projects as well as lays a framework that allows project managers to seek grants and other funding to keep their projects moving.
Why Customers Need a BABA Compliant Foundry?
For customers seeking or using federal funding for their projects, BABA Compliance is the difference between having a funded project or experiencing significant delays/project shutdown.
Here’s are a few key points:
Securing Federal Funding: Infrastructure projects (water systems, roads, data centers, solar energy, etc.) often rely on federal grants or loans. Using non-compliant parts can jeopardize the entire project’s funding.
Audit-Ready Documentation: A BABA-compliant foundry makes parts you can use and can provide the Certification Letters required by government agencies (EPA, DOT, HUD).
Avoiding Project Delays: Finding out a component is non-compliant mid-build can lead to work stoppages or the costly recall or replacement of installed parts.
Onshoring and BABA Compliance: Some projects that were previously outsourced/offshored to foreign countries are now required to be produced within the United States. If you’re in such an industry, seeking out a BABA compliant foundry to assist in onshoring your parts can avoid significant headaches and project delays.
Benefits of a BABA Compliant Foundry:
Beyond loss of funding, audits, or project delays without compliant parts, there are several other benefits to seeking out a BABA compliant investment casting foundry.
No Off Hour Meetings, Easy Communication: US-based foundries will share a similar or common timezone with you allowing for much more streamlined communication. There is also no need to worry about a language barrier you may experience when offshoring.
No Tariffs or Custom Fees: Tariff is word that has become a bit of a boogeyman in 2025, avoid the unknown and price fluctuations with a US-based partner.
Simplified Supply Chain: Stateside foundries will have proximity to you making for streamlined shipping and less delay at ports.
Quality Standards: Sometimes offshoring can come with risks due to varying quality standards in different countries. Seek out a foundry that has quality certifications and standards like ISO-9001.
Grants: Opting for a US-based foundry can help your company and project secure federal funding or grants to undertake new or expanded projects.
Location, Location, Location: A US-based foundry allows quicker visits during the onboarding stage. Visit a foundry that is a short drive or flight away as opposed to requiring international travel.
Is IPC Foundry Group BABA Compliant?
Yes! IPC Foundry Group is a BABA-compliant investment casting foundry, and, at the time of writing this article, operates two US-based foundries in Utah and Texas. IPC is ISO-9001 and CMMC-2 certified and specializes in helping companies navigate the complexities of onshoring as a long-term production partner for all your cast components.
If you'd like to learn more about our operations and capabilities, contact our team today!
