Constitutional Law

Proposed Rule Threatens Women-Owned Businesses

Recently proposed regulations by the Small Business Administration to limit federal contracting set-asides for women-owned business have come under fire as having "no basis in law" and portending "doom" for the seven-year old program, according to the East Bay Business Times. Besides limiting set-asides to four industries, the proposed rule also requires each federal agency to make a finding that it had discriminated against women before setting aside contracts.

Jennifer Brown, Vice President and Legal Director of Legal Momentum, a legal advocacy organization dedicated to securing equality and justice for women, condemned the proposed rule, saying:

It is frankly impossible to imagine any federal agency making a formal determination that it had engaged in sex discrimination in awarding government contracts. [This would not only] embarrass the agency but presumably open it to litigation by past disappointed contractors.

She added that no court decisions require individual agencies to make such findings.

Denise Farris, a commercial construction lawyer, said, "the practical effect of this rule is that virtually no contracts will ever be successful set aside under this program."

Full post as published by ACS Blog on February 06, 2008 (boomark / email).