Minority Individuals Business Opportunities

54). Minorities argon class as Blacks, Hispanics, Asians, Native Americans, Eskimos and Aleuts. To be certified as minority-owned, a vexation has to be at least 51-percent owned by classified minorities.

By 1989, approximately 230 jurisdictions?elements of the federal government, states, cities, counties, and special di unrelentings?had minority election programs that also included incentives for women (Dimeo, 1992, p. 54). mend some of these programs were race-neutral, others were in general race-conscious, and lifelessness others were mixtures of policies based on local politics, problems, and issues. During the early 1980s, the courts upheld the most minority-preference programs, precisely by 1987, earmark programs at the state and local levels were universe struck down by the courts (Dimeo, 1992, p. 54).

Legal Ch aloneenges to Minority resource Contract Programs

The prime(prenominal) successful challenge to a major(ip) minority-preference program was City of capital of Virginia v. J. A. Croson Co. (Dimeo, 1992, p. 55). In that case, the Supreme cost ruled 6-3 in 1989 that local governments must justify the select for set-aside programs. The Supreme Court held that a City of Richmond program setting aside 30 percent of all public ignores for minority businesses violated the 14th Amendment's equal apology clause. At the heart of this Supreme Court decision is the "strict scrutiny" standard used to

Henderson, L. J. (1995, July). Federal contract policy and management: The Small problem Administration 8(a) program. International Journal of Public Administration, 18(7), 1141-1160.

In October 1995, the division of Defense hang a set-aside program primarily for minority-owned firms (DOD suspends, 1995, p. 103). The "rule of two" set-aside contract program was suspended as part of the Clinton administration's ongoing review of federal assentient action programs following the Supreme Court's decision in Adarand v. Pena that necessitate "race neutral" government contracting.

The "rule of two" set-aside program reserved a prime contract for " petty disadvantaged businesses" whenever two or more firms are operable and qualified to submit a proposal if the proposal prices are no more than 10 percent above market place price. Since the inception of the set-aside program in 1987, $5.4 billion in prime Department of Defense contracts have been awarded under the program, of which $516 jillion in contracts were awarded under the set-aside program in the first three calendar quarters of 1995. The Department of Defense intent under the program was to award five-percent of all contracts to such firms.

Optimally, member 8(a) companies phase out the set-asides and "graduate" into the competitive business world. While the Section 8(a) program has been beneficial to some minority firms, thither is a disparity between those firms that have been able to wave under the program and those that have not prospered. The General story Office found that 40 percent of all contract dollars have been concentrated on a group of 50 minority contractors. Further, 60 percent of those contracts have been awarded to minority-owned firms in Washington, DC, Maryland, Virginia, and California. virtually one-half of the Section 8(a)-certified companies have never received a government contract.

Federal contracting rules requiring set-asides and other provisions favoring minori
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