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Showing posts with the label procurement costs

The NMSDC Certification Case Is an Economic Case.

We filed a Motion for Permission to Submit an Amicus Curiae (Friend of the Court) Brief in American Alliance for Equal Rights v. National Minority Supplier Development Council, et al. , Case No. 2:26-cv-02126-JWB-JBW , pending in the U.S. District Court for the District of Kansas. The proposed brief asks a question that deserves greater attention:  What are the economic consequences of enjoining NMSDC's Minority Business Enterprise certification program? The brief does not attempt to resolve the legal issues before the Court. Instead, it examines the potential effects of disrupting a major supplier-certification system on GDP, employment, wages, procurement costs, competition, business formation, tax revenues, and long-term market efficiency . Certification Has an Economic Function Supplier certification is more than an administrative designation. It can reduce information asymmetry, supplier-search costs, verification expenses, and contracting uncertainty . The brief draws on the...