In a recent discussion hosted by Rick Bennett with Dave Sinise (AMG Systems, VP of Sales – East Coast) and Tom Fontana, the group unpacked a compliance topic that’s quickly moving from “ITS transportation-only” chatter into mainstream security and telecom infrastructure conversations: Build America, Buy America (BABA).
What is BABA? It’s Different Than “Just Another Acronym”...
Rick, Dave, and Tom framed BABA as a federal funding clause that increasingly affects infrastructure projects—and, by extension, the technology installed within them. The core idea is simple: if taxpayer dollars are funding the project, the government wants more of the product value chain brought back to the U.S. In practical terms for manufactured technology, Dave described a phased approach that begins with U.S. final assembly and progresses to a requirement that products meet a domestic content threshold (commonly referenced as 55%) made up of components/parts and, depending on interpretation, certain labor elements.
The key takeaway from the conversation: even if your customer ir IT department isn’t asking about BABA today, you still need to be prepared for it—because funded projects can bring compliance requirements with them later in procurement, design review, or acceptance testing.
The Risk No One Wants: “Rip and Replace” After Install
Tom underscored the real-world concern integrators, consultants, and owners are starting to voice: if a system is deployed with non-compliant network hardware on a project that later requires BABA alignment, the cost and disruption of remediation (or full replacement) can be enormous. Nobody wants to explain to a stakeholder why switches, extenders, or media converters now have to be swapped out after they’ve already been commissioned—especially when the original project was federally funded (or became federally funded through downstream grants).
In other words: BABA isn’t just a purchasing checkbox—it’s a lifecycle risk issue.
What AMG Systems Is Doing to Meet BABA Expectations
Dave outlined AMG’s approach as both operational and strategic. Over the past several months, AMG has moved portions of production activity to its facility in Trumbull, Connecticut. The current model involves kitting components, bringing them to the U.S., and then performing final assembly, testing, packaging, and shipping domestically—supporting the early stage of BABA compliance expectations.
From there, AMG’s next step is more substantial: shifting toward having boards built domestically, sourcing through U.S.-based suppliers/contract manufacturers, and scaling the process needed to meet domestic content calculations for more complex devices. Dave pointed to the sheer number of chips and parts in managed switches as an example of why this is a major investment.
He also noted that some DOT customers are driving quality requirements alongside BABA—specifically the push for ISO 9000-series quality certification at the U.S. facility—another indicator that compliance is broadening beyond “where it’s built” into “how it’s built and controlled.”
Product Families AMG Highlighted for BABA Focus
To serve real project needs (especially in transportation/ITS environments), AMG is prioritizing a representative set of product types, including:
- AMG155 PoE injectors
- AMG160 Ethernet extenders
- AMG570 managed switches (starting with select port-count models)
- AMG260 / AMG265 media converters
The intent is to ensure projects can specify a compliant mix of network building blocks.
Practical Implication for Consultants, Integrators, and Owners
BABA awareness needs to move into daily system design and procurement conversations—into specification language, bill-of-material reviews, and pre-award compliance checks—before product gets ordered and installed. If federal funding touches the project, the procurement strategy has to assume compliance scrutiny will follow.
For teams already juggling standards like NDAA & TAA considerations in certain environments, BABA adds another layer that directly impacts product selection and supply chain validation—especially for network infrastructure that sits underneath both physical security and ITS systems.
Need help sorting out what BABA means for your next project design or submittal?
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