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Adarand Construction, a federally owned company, was unjustly denied a subcontract on a U.S. Department of Transportation highway project — even though it submitted the lowest bid — solely because the owner of the company, Randy Pech, was the wrong color. The Department of Transportation, like many other federal agencies (but unbeknownst to most Americans), provides a financial incentive for general contractors to award subcontracts not on the basis of merit, but on the skin color of the subcontractor. And it does so not because the government has been shown to have discriminated in the past, but because statistically the percentage of subcontractors who fall into each of the government's racial categories does not mirror the racial mix of the population as a whole.
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