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In this case, the U.S. Court of Appealsfor the Federal Circuit declared theDefense Department's small, disadvantagedbusiness program unconstitutional.The court used what it called astrict scrutiny view of the congressionalrecord for the National DefenseAuthorization Act and said Congressfailed to show a pattern of discriminationagainst such businesses.The potential fallout could affectother set-aside programs that use similarcriteria, such as the 8(a) system.READ the entire decision at www.cafc.uscourts.gov/opinions/08-1017.pdf.The Government Accountability Officesaid Historically UnderutilizedBusiness Zone companies should getpreference over companies in othersmall-business categories. GAO officialsmade their decision in responseto a protest involving a Marine Corpsdecision to set aside a contract forbusinesses owned by service-disabledveterans.A HUBZone business protested,and the decision came down to thelanguage in the regulations. TheHUBZone rules say the contractingofficer "shall" set aside contracts whilethe rules for businesses owned byservice-disabled veterans say he orshe "may" set aside contracts.GAO said the Marine Corps shouldhave looked for HUBZone companiesfirst, and if they could not find a qualifiedone, then they could have chosena company owned by a service-disabledveteran.READ GAO's decision at www.gao.gov/decisions/bidpro/400278.pdf.