Cree Lighting’s Duane Henderson Discusses BAA/BABA at LightFair 2025
Since its launch in December, the NEMRA Lighting Division has grown rapidly and is expected to welcome its 100th member this month. Staying true to its mission of education and networking, the Division hosted a packed breakfast session during LightFair 2025 focused on BAA and BABA compliance.
Duane Henderson Breaks Down Compliance Complexities
Divisional Vice President Jeff Bristol kicked off the event by introducing Duane Henderson, LC, of Cree Lighting—a respected industry veteran with over 30 years of experience. Known for simplifying complex topics, Henderson was the ideal speaker to tackle one of the lighting industry’s most confusing issues: Buy American compliance.
With standing room only, members and guests listened closely as Henderson clarified the evolving rules surrounding the Buy American Act (BAA) and the Build America, Buy America Act (BABA). His insights gave manufacturers, reps, and specifiers much-needed clarity on how these laws impact lighting products.
BAA vs. BABA: Understanding the Differences
Henderson began by drawing a clear distinction between BAA and BABA. While both aim to prioritize U.S.-made products in federally funded projects, BABA—enacted under the 2021 Infrastructure Investment and Jobs Act—sets stricter thresholds.
“For example, the cost of a product’s components that are mined, produced, or manufactured in the U.S. must make up at least 65% of the total cost,” Henderson explained. That percentage will rise to 75% in 2029. “This isn’t decreasing,” he warned. “It’s escalating. So now is the time to evaluate your vendors and supply chains.”
Dispelling the COTS Myth
Henderson also clarified the often-misunderstood exception for Commercially Off-The-Shelf (COTS) products under BAA. He explained that COTS products should be widely available with no customization for government use—such as laptops or software.
However, even COTS items must be manufactured in the United States. When Henderson asked the audience if anyone had ever seen a lighting product classified as COTS, no hands went up. “Lighting doesn’t usually fall under that category,” he noted.
Trade Agreements and TAA Considerations
Next, Henderson addressed the Trade Agreements Act (TAA) of 1979, which sometimes applies to BAA projects. This act allows products from designated countries—like Mexico and Canada—to be treated the same as U.S.-made goods. China, however, is not on that list.
“TAA only applies at certain contract thresholds,” Henderson added, stressing that understanding contract size and spend is crucial to determining applicability.
Navigating Waivers and Protecting U.S. Supply Chains
Henderson discussed waivers that the U.S. government can issue when domestic alternatives are unavailable. “These waivers are publicly posted and typically allow 15 days for public comment,” he said.
Manufacturers who believe they produce the waived product have the right to respond. “If your company makes that product, you can reach out to the agency and show that it’s available domestically,” Henderson said. “That could prevent the waiver from being finalized.”
What Reps and Distributors Must Do
Henderson emphasized that responsibility doesn’t stop with manufacturers. Reps and distributors must also stay informed. “When you’re working with specifiers on government-funded projects, ask about domestic preference. If it’s in the bid, pass that requirement on to the manufacturer for compliance review.”
He also urged reps to gather documentation early. “If a manufacturer says a product complies, ask for a Manufacturer’s Certification Letter. This keeps everyone aligned—from bid to installation.”
Supply Chains Are Now Strategic Assets
In the lighting industry, supply chains have become more important than ever. Tracking both cost and country of origin is vital for BAA/BABA compliance. But even beyond government-funded jobs, understanding your supply chain helps mitigate tariff risks and maintain competitiveness.
Henderson added that BAA/BABA language isn’t just for federal work. “You can include these standards in your specifications to support American manufacturing or meet customer procurement goals.”
A Roadmap for Federal Funding Success
The session wrapped with a lively Q&A, confirming the audience’s strong interest in the topic. Henderson didn’t just deliver a policy overview—he gave attendees a practical roadmap to navigate lighting’s new federally funded landscape.
Reflecting on the event, Jeff Bristol commented,
“NEMRA Lighting is committed to strengthening collaboration between lighting agencies and manufacturers to drive mutual success in a rapidly evolving market. Through strategic advocacy, innovative educational resources, and unmatched networking opportunities, NEMRA Lighting empowers its members and fortifies the entire lighting industry ecosystem—creating sustainable value and long-term growth for all stakeholders.”
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