On August 23, 2023, the White House’s Office of Management and Budget (“OMB”) released its final guidance implementing Title IX of the Infrastructure Investment and Jobs Act (“IIJA”) – the Build America, Buy America (“BABA”) Act. Below are the top 10 takeaways for legal professionals working with infrastructure projects:
- The guidance provides legislation on amendments to Title 2 of the Code of Federal Regulations, including the introduction of a new Part 184.
- Additionally, the guidance makes alterations to the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at 2 C.F.R. Part 200.
- It is important to recognize that these adjustments reflect a significant development in the regulation around infrastructure projects and domestic spending.
- These changes come in light of the IIJA – otherwise known as the “BABA” Act – a government-led initiative to stimulate domestic production and job creation.
- This innovation represents an intent to ensure governmental spending is directed towards promoting American businesses and labour.
- The legislation is comprehensive, encompassing a wide range of infrastructure projects and federal awards; henceforth, legal professionals should review their compliance with the new guidelines.
- While many aspects of the guidance might seem familiar, they now have additional stipulations that require careful consideration.
- Legal professionals should be aware of these changes and advise their clients accordingly, ensuring the sanctity of their legal and regulatory responsibilities.
- For ongoing and future infrastructure projects, these updates could have substantial implications on project planning, execution, and budgeting.
- It is essential that legal professionals review and comprehend these changes to appropriately advise their clients and avoid potential regulatory pitfalls.
For further details, you may refer to the original guidelines issued by the OMB on the implementation of the BABA Act on the official document.