Rothe Development Corp. v. United States Department of Defense
Rothe Development Corporation, a San Antonio-based company, sued the United States Department of Defense after losing a contract due to an evaluation preference favoring "socially and economically disadvantaged persons" under the 1207 program (10 U.S.C. § 2323). Rothe, the low bidder, argued this preference violated its Fifth Amendment equal protection rights. The government contended the preference met strict scrutiny standards. The court considered cross-motions for summary judgment, ultimately granting the government's motion and denying Rothe's. The decision affirmed that Congress has a compelling interest in remedying past discrimination in government contracting and found the 1207 program, with its rebuttable presumptions and limited duration, to be narrowly tailored, rejecting Rothe's arguments regarding burden of proof, neutral alternatives, and the impact on third parties.