Courts Upholds CALTRANS DBE Program

Ninth Circuit Court of Appeals rules in favor of the California Department of Transportation.

On April 16, 2013 the Ninth Circuit Court of Appeals ruled that the California Department of Transportation's (CALTRANS) equal opportunity program ensures minority and women owned businesses have an opportunity to compete for Department of Transportation (DOT) and related contracts. The program is known as the Disadvantaged Business Enterprise (DBE). The U.S. Court of Appeals for the Ninth Circuit said that CALTRAN's DBE outreach program is clearly within constitutional parameters. In 2009 the San Diego Chapter of the Associated General Contractors of America (AGC) filed a lawsuit challenging CALTRAN's DBE program. They claimed the DBE program was unconstitutional because it provides preferences based on race and sex to businesses owned by African Americans, Native Americans, Asian-Pacific Americans, and women on federal DOT contracts. AGC filed an appeal in 2011 after summary judgment was granted in U.S. District Court. AGC's attorney has indicated that it is likely they will appeal the decision to the Supreme Court. Read the Court's full decision...