BABA_Special_Conditions_Appendix2 (2).docx

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RFP - Mini-Excavator
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PE-66133-NONST-2026-000000008
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Burke County, Georgia

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This document is an Appendix from the Environmental Protection Agency (EPA) providing example contractual language for federal financial infrastructure assistance agreements that must comply with the Build America, Buy America (BABA) Act requirements under the Infrastructure Investment and Jobs Act (IIJA), Public Law 117-58. The document serves as a template for state and local agencies to incorporate BABA compliance obligations into assistance agreements, such as State Revolving Fund (SRF) loan agreements. The clause requires that all iron, steel, manufactured products, and construction materials used in funded projects be produced in the United States, unless a waiver has been obtained from the cognizant federal agency or the contributing agencies have advised in writing that BABA requirements do not apply to the specific project.

Recipients of federal infrastructure assistance are required to comply with all applicable federal requirements and maintain comprehensive records and reporting on project performance, costs, and progress as mandated by funding authorities including the EPA and relevant states. The agreement specifies that all contracts and subcontracts related to projects are subject to audit by federal and state entities, and non-compliance may result in significant remedial actions including repayment of assistance in advance of bond maturity, termination of grants or cooperative agreements, and other corrective measures. The document also establishes that when multiple federal agencies fund a single infrastructure project, the agency contributing the greatest amount of federal funds serves as the "Cognizant Agency for Made in America" and coordinates waiver requests and criteria across all contributing agencies to ensure uniform standards and minimize duplicative efforts by recipients.

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APPENDIX 2

Example Build America, Buy America (BABA) Act Assistance Agreement Language

ALL FEDERAL FINANCIAL INFRASTRUCTURE ASSISTANCE AGREEMENTS MUST HAVE A CLAUSE REQUIRING COMPLIANCE WITH THE BABA REQUIREMENTS. THIS IS AN EXAMPLE OF WHAT COULD BE INCLUDED IN AN ASSISTANCE AGREEMENT (E.G., SRF LOAN AGREEMENT). EPA MAKES NO CLAIMS REGARDING THE LEGAL SUFFICIENCY OF THIS CLAUSE WITH RESPECT TO STATE LAW:

Comply with all federal requirements applicable to the assistance received (including those imposed by the Infrastructure Investment and Jobs Act (“IIJA”), Public Law No. I 17-58) which the Participant understands includes, but is not limited to, the following requirements: that all of the iron and steel, manufactured products, and construction materials used in the Project are to be produced in the United States (“Build America, Buy America Requirements”) unless (i) the Participant has requested and obtained a waiver from the cognizant Agency[1] pertaining to the Project or the Project is otherwise covered by a general applicability waiver; or (ii) all of the contributing Agencies have otherwise advised the Participant in writing that the Build America, Buy America Requirements are not applicable to the Project.

Comply with all record keeping and reporting requirements under all applicable legal authorities, including any reports required by the funding authority (such as EPA and/or a state), such as performance indicators of program deliverables, information on costs and project progress. The Participant understands that (i) each contract and subcontract related to the Project is subject to audit by appropriate federal and state entities and (ii) failure to comply with the applicable legal requirements and this Agreement may result in a default hereunder that results in a repayment of the assistance agreement in advance of the maturity of the Bonds, termination and/or repayment of grants, cooperative agreements, direct assistance or other types of financial assistance, and/or other remedial actions.

[1]From OMB Guidance M-22- 11: To avoid a need for duplicative waiver requests from entities that receive funding for one infrastructure project through multiple Federal agencies, the Federal agency contributing the greatest amount of Federal funds for the project should be considered the “Cognizant Agency for Made in America” and should take responsibility for coordinating with the other Federal awarding agencies. Such coordination will provide uniform waiver criteria and adjudication processes, minimize duplicative efforts among Federal agencies, and reduce burdens on recipients. The Cognizant Agency for Made in America shall be responsible for consulting with the other Federal awarding agencies, publicizing the proposed joint waiver, and submitting the proposed joint waiver for review to MIAO.

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