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Federal Market Intelligence for Small Business |
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Set-Aside Alert Analysis:8(a) challenge in TN courtA Tennessee company is in court challenging the constitutional basis of the Small Business Administration’s 8(a) Business Development Program. The case potentially could eviscerate the 8(a) program’s preferences for disadvantaged ethnic and racial groups. It is a possible outcome that would have been unthinkable several years ago, but with an activist Supreme Court in power--and currently considering an overhaul of affirmative action in university admissions--it is conceivable 8(a) could be another target. The Center for Individual Rights (CIR), a District of Columbia law firm, brought the case on behalf of Ultima Services Corp., owned by Celeste Bennett. The lawsuit is in the U.S. District Court for the Eastern District of Tennessee. Congress created 8(a) to address longstanding underrepresentation of disadvantaged small firms in federal contracts. Certain racial and ethnic groups are presumed to be socially disadvantaged including Native, Black and Hispanic Americans. Ultima claims that 8(a)’s presumption of disadvantage is discriminatory. The Biden Administration is defending 8(a) with four arguments, Schwabe, Williamson & Wyatt PC wrote in a blog:
On Dec. 8, the court asked the parties whether the case would be affected by the upcoming SCOTUS ruling on student admissions. Both Ultima and the USDA said it would not be affected.
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