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City of South Bend Disparity Study 2020 <br />While strict scrutiny is designed to require clear articulation of the evidentiary <br />basis for race -based decision-making and careful adoption of remedies to address <br />discrimination, it is not, as Justice O'Connor stressed, an impossible test that no <br />proof can meet. Strict scrutiny need not be "fatal in fact." <br />C. Establishing a "Strong Basis in Evidence" for South <br />Bend's Minority- and Women -Owned Business <br />Enterprise Program <br />The case law on the DBE program should guide the City's program for locally - <br />funded contracts. As discussed, 49 C.F.R. Part 26 has been upheld by every court, <br />and local programs for Minority- and Women -Owned Business Enterprises ("M/ <br />WBEs") will be judged against this legal framework .27 We note that programs for <br />veterans, persons with disabilities or truly race- and gender -neutral small business <br />efforts are not subject to strict scrutiny and no evidence comparable to that in a <br />disparity study is needed to enact such initiatives. <br />While Congress evaluated the evidence of discrimination against M/WBEs in the <br />federal marketplace, a local agency must conduct its own fact finding. It is well <br />established that disparities between an agency's utilization of M/WBEs and their <br />availability in the relevant marketplace provide a sufficient basis for the consider- <br />ation of race- or gender -conscious remedies. Proof of the disparate imparts of <br />economic factors on M/WBEs and the disparate treatment of such firms by actors <br />critical to their success will meet strict scrutiny. Discrimination must be shown <br />using statistics and economic models to examine the effects of systems or markets <br />on different groups, as well as by evidence of personal experiences with discrimi- <br />natory conduct, policies or systems. 28 Specific evidence of discrimination or its <br />absence may be direct or circumstantial and should include economic factors and <br />opportunities in the private sector affecting the success of M/WBEs.29 <br />Croson's admonition that "mere societal" discrimination is not enough to meet <br />strict scrutiny is met where the government presents evidence of discrimination in <br />the industry targeted by the program. "If such evidence is presented, it is immate- <br />rial for constitutional purposes whether the industry discrimination springs from <br />widespread discriminatory attitudes shared bysociety or is the product of policies, <br />practices, and attitudes unique to the industry... The genesis of the identified dis- <br />crimination is irrelevant." There is no requirement to "show the existence of spe- <br />27. Midwest Fence Corp. v US Department of Transportation, Illinois Department of Transportation, Illinois State Toll High- <br />way Authority, 840 F.3d 953 (7th Cir. 2016) ("Midwest Fence ll"). <br />28. Adarand VII, 228 F.3d at 1166 ("statistical and anecdotal evidence are appropriate'). <br />29. Id. <br />26 © 2020 Colette Holt & Associates, All Rights Reserved. <br />