Influenced by the U.S. Supreme Court’s SFFA college affirmative action decision, on July 19, the U.S. District Court for the Eastern District of Tennessee enjoined the U.S. Small Business Administration (SBA) from determining federal contractor eligibility for its 8(a) Business Development program according to a “rebuttable presumption” that individuals of certain racial groups are socially disadvantaged. The court held that the presumption, as applied, violated the guarantee of equal protection under the U.S. Constitution. The SBA, in turn, issued interim guidance on the program’s ongoing operation.
Read on for details of the Ultima Services Corp. v. U.S. Department of Agriculture decision and its impact on federal contractors.