CALTRANS Charged with Race Bias in Awarding Contracts

State Legal News - June 18, 2009

Sacramento – A group of lawyers from the Pacific Legal Foundation has sued California Department of Transportation (CALTRANS) for violating state and federal laws by using “race- and sex-based quotas” in giving out contracts. The lawsuit was filed in behalf of the Associated General Contractors of America, San Diego Chapter.

According to the group, Caltran’s 2009 Disadvantaged Business Enterprise Program, sets a quota of 6.75 percent of federally-funded roads and highway project contracts which were awarded to women or members of certain groups, including African Americans, Asian-Pacific Americans, and Native Americans.

The lawyers’ group held that this practice is discriminatory, adding that the state agency “sideswipe the important principle of equal opportunity by using race” as basis for awarding contracts, and “not lowest cost by responsible bidders”.

The group called the awarding of contract as “unfair, wasteful, and un-Constitutional”.

According to the group, Caltrans’ program violated equal rights as guaranteed by Proposition 209, approved by voters in 1996, which bars “race- or sex-based preferences or discrimination in public contracting, employment and education”.

On the other hand, Caltrans responded by saying that it had not read the lawsuit but will comment on it later when they receive a copy.