News Summary
Indiana has submitted a formal request for a temporary federal waiver to shift from race- and gender-based contractor requirements toward a race- and gender-neutral policy. Supported by Attorney General Todd Rokita and 16 other states, this move aims to focus on economic status rather than demographic characteristics in contracting practices. The waiver, valid for three years, aligns with a disparity study and legal reviews concerning federal diversity mandates. Indiana continues to support disadvantaged businesses through development programs, despite potential policy adjustments based on ongoing legal and study outcomes.
Indianapolis, Indiana
The Indiana Department of Transportation (INDOT) has formally requested a temporary waiver from federal diverse contractor requirements. This request marks Indiana as the first state to pursue such an exemption, citing constitutional concerns and aiming for a transition to a race- and gender-neutral policy in its contracting practices. The waiver application was filed with the U.S. Department of Transportation and represents a significant shift in the state’s approach to managing contracts and promoting diversity among contractors.
Indiana Attorney General Todd Rokita has expressed strong support for the waiver, labeling the current diverse contractor requirements as “unconstitutional.” Rokita’s backing is echoed by the attorneys general of 16 other states, all arguing that prioritizing contractors based on race or gender undermines the principle of fair competition in the marketplace.
If granted, the waiver would permit INDOT to establish goals and certify businesses based on the availability of economically disadvantaged small businesses within various regions and sectors. This methodology aims to focus on economic status rather than demographic characteristics, thereby seeking a clearer and more equitable foundation for state contracting opportunities.
Details of the Waiver Request
The waiver request is for a duration of three years, which lines up with the timeline for INDOT’s next disparity study. This study will gather data to inform the creation of new disadvantaged business goals that would be rooted solely in economic factors, rather than race or gender considerations.
Despite the shift away from criteria based on diversity characteristics, INDOT assures continued support for disadvantaged business enterprises (DBEs) across the state. This includes offering business development programs, forums, virtual learning sessions, and networking events aimed at bolstering opportunities for these businesses, regardless of their ownership attributes.
Continuing Legal Review
The Indiana administration is presently seeking legal clarity on the future of the Governor’s Commission on Supplier Diversity as well as the Minority and Women’s Business Enterprises Program. In light of these developments, recent cancellation of certain events, such as the Division of Supplier Diversity’s annual Business Conference and the B2Bloom Expo, has occurred due to the ongoing legal reassessments.
Under the current program, various contracts have set participation goals that include 8% for minority-owned businesses and 10% for women-owned businesses. These benchmarks are significant as they illustrate the state’s previous commitment to promoting diversity in state contracting.
Context and Recent Judicial Decisions
The push for legal review and adjustments to Indiana’s diversity contracting framework follows a recent U.S. Supreme Court ruling that limited the use of race in college admissions. This ruling underscores a growing scrutiny concerning race-based considerations in federal funding. Furthermore, a memorandum from the U.S. Attorney General outlined concerns regarding unlawful discrimination in federal programs, amplifying tensions surrounding diversity mandates.
The Indiana Department of Administration has recognized the need for a comprehensive study to assess diversity in state contracts, a project that is due for completion this year. Attention is also focused on ensuring that any future programs developed will align with federal law. Some questions raised include the legality of the existing diversity business program and whether initiatives emphasizing veteran status and small business classification would comply with regulations.
As Indiana navigates this complex legal landscape, the state’s approach to enhancing inclusivity through business contracts is under careful examination, with future adjustments likely hinging on outcomes from forthcoming studies and legal interpretations.
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HERE Resources
Additional Resources
- Indiana Capital Chronicle: Indiana Requests Waiver from Unconstitutional Diverse Contractor Requirements
- News and Tribune: Indiana Requests Waiver from Unconstitutional Diverse Contractor Requirements
- IndyStar: Braun Admin’s Latest DEI Target
- ENR: Adrian Russell Helps Diverse Businesses and Individuals to Succeed
- Wikipedia: Diversity in Construction
Author: STAFF HERE INDIANAPOLIS WRITER
The INDIANAPOLIS STAFF WRITER represents the experienced team at HEREIndianapolis.com, your go-to source for actionable local news and information in Indianapolis, Marion County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Indianapolis 500, Indy Jazz Fest, and the Indiana State Fair. Our coverage extends to key organizations like the Indy Chamber and Visit Indy, plus leading businesses in motorsports and healthcare that power the local economy such as Indianapolis Motor Speedway and IU Health. As part of the broader HERE network, we provide comprehensive, credible insights into Indiana's dynamic landscape.
