The Buy American requirement was born from the aftermath of the Great Depression. The fear that foreign companies would come in and take American jobs and prospects was real. The government imposed heavy tariffs on companies buying their goods from foreign companies, but it could not stop imports entirely. One control it did have was to stop the purchase of foreign goods when it was bidding and prospecting government contracts. What began as an idea to help American companies and workers ended up placing a hard ship on companies looking to contract with the government.
The Buy American Act was signed into law in March of 1933. “The Act's purpose is to protect U.S. industries and jobs by preferring domestic products …show more content…
Both companies are financially stable and produce a superior product. The navigation systems are sold only to the government at a substantial profit due to the secret nature of the system. VectorCal and Eagle easily adapted the requirements of the Buy American requirements by purchasing the materials in the United States and designing the navigations systems in house. The United States has grown steadily in the field of technology, negating the need to purchase materials from a foreign country. Eagle Drones builds each drone onsite in a secure location, protecting the product. Both companies investigate and vet all employees ensuring the technology is safe from hacking. The disadvantage of the Buy American Act would be uncovered if there was a significant change in the business model or financial status of the company. If the company was not able to meet the demand of the contract and had to resort to cheaper labor in another country, it would not be in compliance with the Act. Any change to the business model in order to lower expenses with a change in materials not produced in the United States, would lead to a breach of contract. The company is forced to comply with the Buy American Act once the contract is taken, no matter the cost or change in