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Minority Set-asides Threatened |
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Minority Set-asides Threatened
Report urges federal agencies to re-examine issuing contracts based on race and gender
By Glenn Townes
A recent report sharply criticizes federal agencies
that give preferential treatment to minority-owned businesses. The
report issued by the U.S. Commission on Civil Rights was released in
August and has sparked outrage by some small business industry experts
that argue that race-based federal procurement programs are essential
in order to ensure that minority-owned businesses have equal access to
government contracts.
In a written statement, Gerald A. Reynolds, chairman of the commission
wrote, “Federal agencies are disregarding their constitutional
obligation to seriously consider race-neutral alternatives. After ten
years, they are still not complying with the Supreme Court's mandate,
and they are not even complying with the Clinton administration's
guidance on race-neutral alternatives.”
The report by the commission contends that federal agencies have fallen
woefully short in efforts to follow a 1995 Supreme Court decision that
ruled that racially based preferences must indeed serve a public
interest. The high court directed agencies to consider “race-neutral
alternatives.” The ruling was based on a controversial case-Adarand
Constructors, Inc. v Peña in which the Supreme Court held that all
racial classifications imposed by federal, state, or local governments
must be subjected to “strict scrutiny” in deciding whether a law or
policy is constitutional.
The commission suggests that federal agencies separate big contracts
into small-subcontracts and increase their efforts to publicize
contracting opportunities that will help small firms compete for
awards. The report has brought a wave of criticism from some leaders in
small business, with many contending that the suggestions made by the
commission will stifle efforts to allow minority-owned businesses fair
access to government contracts.
Brian Drum, a leading national consultant on small business issues and
president and CEO of New York City-based Drum Associates Inc., says
federal programs allow minority-owned businesses to bid on work that
they probably would not get without these programs. Drum says these
programs help small minority-owned business assimilate into the work
economy quicker. Drum was named Small Business Person of the Year in
April 2005 by the New York District Office of the U.S. Small Business
Administration. He says federal contracting programs are one of the
strongest government diversity initiatives.
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