Changes and trends in small disadvantaged business (SDB) programs

Abstract

Since the late 1960s, it has been the policy of the Federal Government to support the development of small disadvantaged businesses (SDBs) owned and controlled by minorities and women. However, as a result of the current controversy over the proper role of affirmative action and the recent Supreme Court's landmark decision in the Adarand Constructors, Inc. v. Pena, which challenged a Federal program that provided cash bonuses to prime contractors for awarding subcontracts to minority owned businesses, Federal SDB set-aside programs are facing uncertain future. Both the Clinton Administration and 104th Congress are currently reviewing the Federal affirmative action programs and have proposed various legislative proposals and programs that would meet the constitutional standards set forth in the Adarand decision. One of the objectives of this thesis is to analyze the major Supreme Court decisions, currently ongoing challenges to set-aside programs and political environment that have had a profound influence in shaping the Federal Government's SDB programs. This research also analyzes the latest legislative proposals and programs that are being developed to withstand the standards set forth in Adarand case. This study recommends a consolidated single piece of legislative proposal that can best serve the public in promoting small disadvantaged businesses.