FEMA’s latest Buy America policy is changing the game for hardware manufacturers. To stay eligible for FEMA funding, manufacturers must navigate specific compliance requirements, explore waiver possibilities, and refine their sourcing strategies. In this article, we unpack the key compliance requirements and strategic approaches for manufacturers looking to secure federally funded contracts.
But First, What is FEMA?
The Federal Emergency Management Agency (FEMA) is a U.S. government agency responsible for coordinating disaster response and recovery efforts. It provides financial assistance, resources, and support to enhance preparedness and resilience in infrastructure and emergency management.
What is Build America, Buy America Act (BABAA)?
The Build America, Buy America Act (BABAA) is a federal policy that mandates the use of U.S.-manufactured materials in infrastructure projects receiving federal funding. This act reinforces domestic production and supply chain stability by requiring that iron, steel, manufactured products, and construction materials be sourced from within the United States. Ensuring compliance with these regulations is important to securing government contracts.
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3 Keynotes of FEMA Buy America Requirements
To ensure compliance with these regulations, below are 3 key takeaways from the new policy you must know.
1. U.S. Manufacturing Requirement
To qualify for FEMA-funded projects, at least 55% of a product’s components must be manufactured in the United States. This rule applies to all infrastructure projects funded by FEMA grants, ensuring a preference for domestically produced goods.
2. No Direct Waiver Requests
Manufacturers cannot apply for waivers directly. FEMA does not process waiver requests from manufacturers, suppliers, or distributors. Instead, waiver applications must be submitted by the project sponsor, such as local governments or primary contractors.
Read the 2024 Buy America Preferences in FEMA to fully update the latest policy.
3. Available Waivers for Partial Compliance
While the Buy America requirements are strict, there are exceptions under specific conditions:
- Small Project Waiver: Projects valued under $250,000 are exempt from Buy America rules.
- De Minimis Waiver: Allows up to 5% of non-compliant materials, with a total cap of $1 million per project.
- Minor Components Waiver: Permits up to 5% foreign iron or steel content in an otherwise compliant product.
How to Ensure Compliance with FEMA Buy America Preference
To qualify for FEMA-funded projects, hardware manufacturers should consider these key actions:
- Review sourcing strategies to meet the 55% U.S.-made requirement.
- Collaborate with project sponsors for waiver eligibility assessment.
- Stay updated on FEMA’s evolving procurement policies to maintain competitive eligibility.
By following these rules, manufacturers can confidently navigate FEMA-funded projects while ensuring full compliance. With the right strategy, these guidelines can open doors to new opportunities and long-term business growth.
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As a GSA-certified supplier, Waterson spring-loaded self-closing hinges deliver high-quality solutions that meet even the strictest standards. Our hinges are engineered for durability, fire safety, and compliance with both commercial and residential infrastructure standards. Trusted worldwide, we are dedicated to providing the best self-closing spring hinge solutions for secure, compliant infrastructure projects. See all our features.
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