Thursday, November 06, 2008

Appeals Court: DoD Need Not Set Aside Business for Racial Minorities

The Federal Court of Appeals has invalidated, or at least put at risk, a 5% provision for businesses headed by racial minorities. This provision, in existence for over 20 years, considered groups such as African-Americans and Native Americans, "socially disadvantaged;" allowing such businesses to win contracts even if their bid was not the lowest so long as it was close to lowest. Judge Xavier Rodriguez found no strong evidence that the Defense Department has been a passive participant in widespread racial discrimination.

My guess is that this will be appealed to the Supreme Court; nevertheless, an interesting decision. One question: will an Obama-led Justice Department file a brief supporting overturning of this ruling?


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