DOD, SBA Sued Over Preference For Minority Contractors

Law360, New York (May 10, 2012, 1:28 PM EDT) -- Rothe Development Inc. launched a suit Wednesday to block the U.S. Department of Defense and the U.S. Small Business Administration from giving a leg up to minority-owned small businesses seeking government contracts, arguing the practice is unconstitutional.

In a complaint filed in Washington federal court, Rothe targeted a section of the Small Business Act that aims to promote businesses owned or controlled by socially and economically disadvantaged individuals, including those who are black, Hispanic, Native American and Asian.

The statute sets a governmentwide goal of awarding...
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