O'DOnnell Construction Company v. District of Columbia

963 F.2d 420, 295 U.S. App. D.C. 317, 1992 WL 88199
CourtCourt of Appeals for the D.C. Circuit
DecidedMay 10, 1992
Docket91-7056
StatusPublished
Cited by60 cases

This text of 963 F.2d 420 (O'DOnnell Construction Company v. District of Columbia) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
O'DOnnell Construction Company v. District of Columbia, 963 F.2d 420, 295 U.S. App. D.C. 317, 1992 WL 88199 (D.C. Cir. 1992).

Opinions

Opinion for the court filed by Circuit Judge RANDOLPH.

Separate concurring statement filed by Circuit Judge RUTH BADER GINSBURG.

RANDOLPH, Circuit Judge:

The Supreme Court’s decision in City of Richmond v. J.A. Croson Co., 488 U.S. 469, 109 S.Ct. 706, 102 L.Ed.2d 854 (1989), controls our disposition of this constitutional challenge to the District of Columbia Minority Contracting Act. The case comes to us on appeal from the district court’s denial of a preliminary injunction. O’Donnell Constr. Co. v. District of Columbia, 762 F.Supp. 354 (D.D.C.1991). We hold that the O’Donnell Construction Company has made out a substantial case that the District is violating O’Donnell’s Fifth Amendment right to equal protection of the laws and that the district court therefore should have enjoined the District, during the pendency of this suit, from enforcing the Act in a manner that deprives O’Donnell of the equal opportunity to compete for city road construction contracts.

I

O’Donnell Construction Company, a Virginia corporation with its principal place of business in the District of Columbia, is a road construction firm, performing most of its work for government agencies in the Washington area. Founded in 1985, the company’s stock is owned by Arnold J. and John A. O’Donnell, both of whom are white. More than three-fourths of O’Donnell’s employees are members of a minority. Affidavit of Arnold J. O’Donnell at 2 (Sept. 20, 1989). O’Donnell sued the District in 1989 under 42 U.S.C. §§ 1981 and 1983, claiming that the District’s use of racial classifications in awarding road construction contracts violated the equal protection component of the Fifth Amendment. The complaint challenged both the D.C. Minority Contracting Act and the District’s federally-assisted Disadvantaged Business Enterprise Program. Only the Minority Contracting Act is before us in this appeal.

For fifteen years, the District of Columbia’s awarding of construction con[422]*422tracts has been governed by the Minority Contracting Act. The present version of the Act requires each District agency to “[a]llocate its construction contracts in order to reach the goal of 35 percent ... of the dollar volume of all construction contracts to be let to local minority business enterprises” or, as they are commonly called, MBEs. D.C.Code Ann. § 1-1146(a)(1). District agencies must submit quarterly reports to the District’s Minority Business Opportunity Commission setting forth the degree to which they have met the goal and an explanation of any failure to do so. D.C.Code Ann. § 1-1146(a)(3)(D). The Commission has general authority to implement and enforce the Act. D.C.Code Ann. § 1-1149.

In order to achieve the 35 percent figure in contracting agencies, the Commission—a seven-member body appointed by the Mayor—must establish, among its programs for assisting minority contractors, “a sheltered market approach to contracts.” D.C.Code Ann. § 1-1147(b). Each agency must implement the Commission’s programs. D.C.Code Ann. § 1-1146(a)(3)(A). In a sheltered market, agencies set aside contracts and subcontracts for “limited competition” in bidding among MBEs, to the exclusion of all others. Only MBEs certified by the Commission are permitted to participate in the sheltered markets. D.C.Code Ann. § 1-1147(b). While non-minority firms are ineligible to compete in sheltered markets, MBEs are eligible to bid for both sheltered and non-sheltered contracts. The Act itself does not specify the precise portion of the District’s contracts reserved for sheltered markets, but it does require each agency to allocate to the sheltered market a sufficient portion of its contracts to enable it to reach the 35 percent goal. D.C.Code Ann. § 1-1149(3).

Under § 1-1147(c) of the Act, “[t]he prime contractor shall perform at least 50 percent of the contracting effort” and “if he subcontracts, 50 percent of the subcontracting effort” must go to MBEs. D.C.Code Ann. § 1-1147(c) & (d).

The Act also confers upon the Commission several discretionary powers designed to increase MBE participation in District contracting. For example, in individual cases the Commission can waive bonding requirements or recommend subdividing contracts if “necessary to achieve the purposes of” the Act. D.C.Code Ann. § 1-1149(6) & (7). The Commission is also required to monitor minority contracting problems and “make further recommendations that increase minority contractor’s [sic] participation.” D.C.Code Ann. § 1-1149(10). O’Donnell does not appear to challenge these provisions.

The favored class of “local minority business enterprises,” as defined in the current Act, are local firms — those with their principal place of business in the District — in which members of a minority own or control an interest greater than 50 percent. D.C.Code Ann. § 1-1142(2) & (3). As it now reads, the Act defines “minority” to mean “Black Americans, Native Americans, Asian Americans, Pacific Islander Americans, and Hispanic Americans, who by virtue of being members of the foregoing groups, are economically and socially disadvantaged because of historical discrimination practiced against these groups by institutions within the United States of America.” D.C.Code Ann. § 1-1142(1). Earlier versions of the Act contained somewhat different definitions and had expressly included “Eskimos” and “Aleuts.” See D.C. Law 3-91, § 2(a), 27 D.C. Reg. 3280; and D.C. Law 1-95, § 3(a), 23 D.C. Reg. 9532b. The present definition was enacted in 1983. The reasons for the change are uncertain. The District of Columbia Council made no findings regarding the purpose of the amendment or the need for it.

In the district court the parties disputed how much of the District’s road construction contracts were let through the Act’s sheltered market procedures. O’Donnell claimed that in 1987 and 1988, 100 percent of such contracts were reserved for the sheltered market. As a firm doing only road construction, O’Donnell maintained that the District thus entirely excluded it from bidding solely because of the race of its owners.

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Bluebook (online)
963 F.2d 420, 295 U.S. App. D.C. 317, 1992 WL 88199, Counsel Stack Legal Research, https://law.counselstack.com/opinion/odonnell-construction-company-v-district-of-columbia-cadc-1992.