On April 11, 1983, the Richmond City Council adopted the Minority Business Utilization Plan requiring prime contractors awarded city construction contracts to subcontract at least 30% of the dollar amount of each contract to one or more Minority Business Enterprises defined as businesses at least 51% owned and controlled by black, Spanish-speaking, Oriental, Indian, Eskimo, or Aleut citizens with no geographic limit.
The Plan was enacted after a public hearing at which council members relied on a study showing that although the city's population was 50% black, minority-owned businesses had received only 0.67% of the city's prime construction contracts from 1978 to 1983, and noted that local contractors' associations had virtually no minority members.
No direct evidence was presented that the city had discriminated in letting contracts or that its prime contractors had discriminated against minority subcontractors.
On September 6, 1983, the city issued an invitation to bid on plumbing fixtures for the city jail.
J. A. Croson Company, a mechanical plumbing and heating contractor owned by a white person, submitted the sole bid of $126,530 on October 13, 1983.
Croson contacted multiple minority firms but received no timely, competitive bid for the fixtures, which represented 75% of the contract value.
Croson submitted a request for a waiver of the 30% set-aside requirement.
The city denied Croson's waiver request, indicating that Croson had 10 days to submit an MBE Utilization Commitment Form, and warned that failure to do so could result in its bid being considered unresponsive.
The city informed Croson that it had decided to rebid the project.
Croson filed suit under 42 U.S.C. § 1983 in the United States District Court for the Eastern District of Virginia alleging that the Plan violated the Equal Protection Clause.
The District Court upheld the Plan in all respects.
A divided panel of the Court of Appeals for the Fourth Circuit initially affirmed the Plan.
We granted the writ, vacated the opinion of the Court of Appeals, and remanded the case for further consideration in light of our intervening decision in Wygant v. Jackson Board of Education, 476 U. S. 267 (1986).
On remand, a divided panel of the Court of Appeals struck down the Richmond set-aside program as violating both prongs of strict scrutiny under the Equal Protection Clause of the Fourteenth Amendment.
We noted probable jurisdiction of the city's appeal, 484 U. S. 1058 (1988), and we now affirm the judgment.
View case