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SDB Preference Constitutional

Client Alert | less than 1 min read | 08.02.04

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.

Insights

Client Alert | 5 min read | 03.30.26

Déjà Vu? New Executive Order Outlines Restrictions on Contractor and Subcontractor DEI Activity

On March 26, 2026, President Trump issued an executive order (EO) titled Addressing DEI Discrimination by Federal Contractors. The EO declares diversity, equity, and inclusion (DEI) “activities” “unethical and often illegal,” and imposes new obligations on federal contractors and subcontractors related to DEI programming. Contractors that do business with the federal government — or that work as subcontractors for companies that do — should review the EO closely to determine the extent to which they are compliant with the new requirements....