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Subcontracting Preferences Struck Down Regulations; Subcontractors

Thursday, June 09, 2005 03:00 pm

Subcontracting Preferences Struck Down Regulations; Subcontractors

A federal appeals court has ruled that race and sex based preferences in federally funded transportation contracts are not unconstitutional on their face. But as applied by the State of Washington, they denied equal protection of the law.

The federal Transportation Equity Act for the 21st Century (TEA-21) requires states accepting federal transportation funding to implement a disadvantaged business enterprise utilization program. Under the implementing regulations, companies owned by women or racial minorities are presumed to be disadvantaged. Bu [...]

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