White-Owned Landscaping Companies Challenge Houston’s Racial Minority Preference in City Contracts

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Lawsuit: defendants lost a bid for a city contract after another business received a 10-point bonus because of its minority ownership.

to block government policies privileging minority-owned businesses in city contracts. The policies also privilege women-owned businesses. However, the Pacific Legal Foundation , which represents the businesses, toldJerry and Theresa Thompson own Landscape Consultants of Texas and Metropolitan Landscape Management. Their companies compete for city landscaping contracts. However, because of the Thompsons’ race, their companies “cannot compete on equal footing with other businesses.

This means that Landscape Consultants must take at least $143,000 of work away from its staff, even though they are capable of doing the work, and pay a competitor to do the work—solely because of the race of Landscape Consultants’ owner and the race of its competitor’s owner. MDD evaluates bids across four categories. Of the 100 points possible, MDD automatically awards 10 points to a minority-owned business:Proposed Approach – 15 pointsIn 2022, Metropolitan Landscape submitted a bid for an MDD contract. MDD awarded Metropolitan Landscape 84.96 points across the three criteria for which it qualified, but Metropolitan Landscape lost the bid by 2.7 points because it received 0 points in the MWDBE category, according to the complaint.

If not for the 10 MWDBE points that were awarded to the successful bidder and not awarded to Metropolitan [Landscape] on the basis of the owner’s race, Metropolitan [Landscape] would have scored higher than all other bidders and secured the $350,000 contract.

 

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