SDB Preference Constitutional


In Rothe Dev. Corp. v. U.S. Dep't of Def. (W.D. Tex. July 2, 2004), the district court found that, although the initial enactments of a small disadvantaged business preference in DOD procurements were unconstitutional, in the 2003 version Congress sufficiently heeded the Supreme Court's affirmative action decisions in the past few years and supplied a "strong basis in the evidence" of racial discrimination to support the reenactment of the preference and withstand a facial challenge. The court brushed aside the evidence that the Asian-Americans benefited by the preference in the particular procurement were financially well off, noting that such evidence is only relevant to an administrative challenge to the SDB designation, not a constitutional challenge.