Business foundations and core principles

Business Foundations

Embodied in the U.S. constitutional framework is the quintessential guarantee of equal protection under the law for all individuals. Over time this doctrine has incorporated evolving standards of equal protection to remedy historic injustice for minority and unrepresented groups: African-Americans, Hispanic-Americans, Asian-Americans, and women. At issue in the context of constitutional protection of equal protection in the economic realm, is the question of whether there is a "compelling governmental interest" (Reed, O. Shedd, P. Morehead, J. & Pagnattaro, M. 2008) to award contracts on the basis of race- based preferences.

Supreme court for over a decade failed to adequately deal with a range of cases which brought to the forefront the issue of race- based preferences. In Bakke, Fullilove, and Wygant the Court failed to reach a consensus and "left unresolved the proper analysis for remedial race-based governmental action" (Reed, O. & et all. 2008) However, in two subsequent cases Croson and Metro, the Court classified state and Federal race- based preferences under two distinct categories; the former held state race considerations to a standard of strict scrutiny, while the latter held that Federal policies relating to race "need only satisfy intermediate scrutiny" (Reed, O. & et all. 2008). The case of Adarand Constructors however, finalized the standard on all race preferences at the state and federal level.

Why was Adarand Constructors, as low bidder on the guardrail subcontract, not awarded the contract?

"Government procurement is guided by a few basic principles: contracts are generally awarded to the lowest bidder; in addition, they are open to all qualified bidders; and there are prohibitions against favoritism. Moreover, the government is required by law to set aside contracts for small, disadvantaged businesses, including those owned by women and minorities" (Encyclopedia of Business. N.D.). In the case of Adarand their submission bid was the lowest however, under the 1987 Surface Transportation and Uniform Relocation Assistance Act "not less than 10% of the appropriated funds shall be expended with small business concerns owned and controlled by socially and economically disadvantaged individuals" (Reed, O. & et all. 2008). The firm Gonzales Construction Company which had also submitted a competing yet higher bid was chosen over Adarand because "Gonzales is certified as a small business controlled by socially and economically disadvantaged individuals" (Reed, O. & et all. 2008). Adarand was not certified as such and as a result their bid while lowest was not awarded.

What is the conflict between the opinions in Croson and Metro Broadcasting?