Section 8014 of the Defense Appropriations Act for fiscal year 2000 granted an outsourcing preference for firms “under 51 percent Native American ownership,” Pub.L. No. 106-79, § 8014(3), 113 Stat. 1212, 1234 (1999). The question is whether this preference constituted racial discrimination in violation of the Fifth Amendment’s Due Process Clause.
Plaintiffs are the American Federation of Government Employees, AFL-CIO; an affiliated local union representing civilian Defense Department employees at the Kirtland Air Force Base in New Mexico; and two civilian Defense Department employees who were allegedly displaced when the Air Force, invoking § 8014(3), awarded a contract to Chugach Management Services
The FY 2000 appropriations act prohibited the Defense Department from using appropriated funds to pay private contractors for performing work previously done by more than ten government employees unless the Department first performed a “most efficient and cost>effective organization analysis” and certified the analysis to the House and Senate Committees on Appropriations. Department of Defense Appropriations Act, 2000, Pub.L. No. 106-79, § 8014, 113 Stat. 1212, 1234 (1999). This provision contained an exception for a “commercial or industrial type function of the Department of Defense” that was “planned to be converted to performance by a qualified firm under 51 percent Native American ownership.” Id. § 8014(3), 113 Stat. 1234. A similar exception first
The Chugach contract at Kirtland was the only one the Air Force awarded pursuant to § 8014(3) of the FY 2000 appropriations act, and so far as the parties know, the only such contract awarded by the Defense Department. In the next year Congress altered the language of § 8014(3), so that the exception applied not to “Native American ownership” but to “ownership by an Indian tribe, as defined in section 450b(e) of title 25, United States Code, or a Native Hawaiian organization, as defined in section 637(a)(15) of title 15, United States Code.” Department of Defense Appropriations Act, 2001, Pub.L. No. 106-259, § 8014, 114 Stat. 656, 677 (2000).
In the district court, plaintiffs claimed that § 8014(3), as contained in the FY 2000 act, violated the equal protection component of the Due Process Clause and deprived them of an interest in federal employment in violation of substantive due process. The district court granted Chugach’s motion to intervene as a defendant, and denied plaintiffs’ motion for a preliminary injunction. Am. Fed’n of Gov’t Employees v. United States,
Plaintiffs believe § 8014(3) is unconstitutional under Adarand Constructors, Inc. v. Pena,
For its part, the government urges us to construe § 8014(3) to avoid any constitutional doubts plaintiffs may have raised and to hold that the provision applies only to “members” of federally recognized Indian tribes and “tribal entities.” The government believes these classifications are, in light of Morton v. Mancari,
We will begin our analysis with some winnowing. Among their prayers for relief, plaintiffs sought to enjoin the government from awarding “any contract under the preference given to 51% Native-American owned firms in § 8014 of FY 2000 Defense Appropriations Act.” That fiscal year has long since passed. This particular claim for relief, which we read as referring to initial awards of contracts, is therefore moot. Plaintiffs also sought to enjoin the government from renewing “any contract granted under, or otherwise in effect due to” the preference in § 8014(3). For plaintiffs to have standing to seek such broad relief - relating not just to the renewal of the contract at Kirtland, but to the renewal of “any contract” - they must be under some real and imminent threat of harm. The Supreme Court in Adarand,
We believe the case must be narrowed in another, related respect. Although the Kirtland § 8014(3) contract was awarded to a firm wholly owned by federally recognized Indian tribes, plaintiffs want us to decide that the provision is unconstitutional because, in FY 2000, it authorized preferences not only for Indian tribes but also for firms owned by Native Americans who were not tribal members and who owned no more than 51 percent of the firm. Plaintiffs thus want to expand this case well beyond its factual context. Prudence, as reflected in a longstanding rule of constitutional adjudication, counsels otherwise. The Supreme Court summarized the rule in United States v. Raines,
To put the matter somewhat differently, the “Native Americans” preference in § 8104(3) breaks down into at least three possible classifications: (1) federally recognized Indian tribes, (2) members of federally recognized Indian tribes, and (3) all others who might be deemed Native Americans. If these three classifications
Our approach is, we believe, not only faithful to Article III of the Constitution, but also consistent with the Court’s admonition in Raines that federal courts should avoid “premature interpretations of statutes in areas where their constitutional application might be cloudy.” Raines,
Judge Friendly’s formulation captures an important qualification to the saving-construction doctrine - namely, that the constitutional doubt must be “real.” Hypothetical applications of a statute, or to be more precise, hypothetical applications of § 8014(3), must be likely. Otherwise the constitutional doubt raised by legal arguments about those hypothetical applications cannot be considered real. Without this qualification, the courts would risk giving advisory and unnecessary statutory interpretations, based on judicial expressions of doubts regarding the constitutionality of statutes as applied to situations that may never arise. For these reasons, and because we believe the only issue properly before us is the validity of a preference for Indian tribes, we decline the government’s request for a narrowing interpretation of § 8014(3).
What we have written thus far is consistent with the Supreme Court’s disposition in Adarand. Under federal law, some prime contractors received additional compensation if they hired as subcontractors firms owned by individuals who were socially and economically disadvantaged. “Black Americans, Hispanic Americans,
With respect to the question properly before us, only a few general principles of federal Indian law need to be mentioned. Congress has the power “[t]o regulate Commerce ... with the Indian Tribes,” U.S. Const, art. I, § 8, cl. 3. Congress thus has the authority, exclusive of the States, to determine which “distinctly Indian communities” should be recognized as Indian tribes. United States v. Sandoval,
Morton v. Mancari, for instance, upheld a longstanding statutory preference for hiring members of federally recognized Indian tribes to fill positions in the Department of Interior’s Bureau of Indian Affairs. Two years after Mancari, the Court sustained as against an equal protection challenge a court-ordered exemption from a state sales tax for cigarettes sold on a reservation to tribal members residing on the reservation. See Moe v. Confederated Salish & Kootenai Tribes of Flathead Reservation,
These two lines of authority may be reconciled, plaintiffs argue, on the basis that the preference in Mancari was limited to members of federally recognized Indian tribes, while the preference in Adarand was not so limited, and thus constituted - in the Court’s words in Mancari - a preference “granted to Indians ... as a discrete racial group,”
Despite these precedents, plaintiffs argue that § 8014(3) should be tested by “strict scrutiny” rather than rational basis review because the Supreme Court in Mancari thought it important that the preference for tribal members there applied only to employment in the Indian service. See Rice v. Cayetano,
Whatever the significance of the Mancari dictum - the Court said the case would be “more difficult,” not that the blanket exemption would be unconstitutional - the question before us is not in the “difficult” category. The critical consideration is Congress’ power to regulate commerce “with the Indian Tribes.” While Congress may use this power to regulate tribal members, see United States v. Holliday, 70 U.S. (3 Wall.) 407, 417,
As to the rational basis for § 8014(3), plaintiffs say the objective cannot be the obvious one - namely, tribal economic development, which the Supreme Court has described as an “important federal interestf].” California v. Cabazon Band of Mission Indians,
It was therefore entirely proper for the district court to examine legislative material, generated in other contexts, showing the need for economic development of federally recognized tribes in Alaska. Am. Fed’n of Gov’t Employees,
All that remains is plaintiffs’ claim, made in one paragraph of their brief, that § 8014(3) violates substantive due process under the Fifth Amendment because they, or at least some of them, have a property interest in federal employment. The government may infringe upon fundamental property interests only if the infringement is “narrowly tailored to serve a compelling state interest.” Reno v. Flores,
The judgment of the district court granting summary judgment for the federal defendants and the intervenor-defendants is therefore
Affirmed.
