Adarand Constructors, Inc. v. Peña

Adarand Constructors, Inc. v. Peña, 515 U.S. 200 (1995), was a landmark United States Supreme Court case which held that racial classifications, imposed by the federal government, must be analyzed under a standard of "strict scrutiny", the most stringent level of review which requires that racial classifications be narrowly tailored to further compelling governmental interests.

At the time this case was litigated, many contracts led by agencies of the United States federal government contained financial incentives for the prime contractor to employ subcontractors that were owned or controlled by "socially and economically disadvantaged individuals.

[6] Justice O'Connor held that regardless of the motive, strict scrutiny analysis applied to all race-based classification for both the State and Federal governments.

[7] The court specifically noted that Metro Broadcasting departed from prior cases by holding "benign" racial classifications need only satisfy intermediate scrutiny, which goes against the congruency of the 5th and 14th amendment.

The Commission found that such consideration is required by the strict scrutiny standard under Adarand and other Supreme Court decisions.