Economist Files Motion Seeking Permission to Present Economic Analysis in NMSDC Certification Case

WASHINGTON - EntSun -- Economist William Michael Cunningham has submitted a Motion for Leave to File an Amicus Curiae Brief in American Alliance for Equal Rights v. National Minority Supplier Development Council, et al., Case No. 2:26-cv-02126-JWB-JBW, pending before the United States District Court for the District of Kansas.

The proposed amicus brief offers an independent economic analysis of the potential consequences of enjoining the National Minority Supplier Development Council's ("NMSDC") Minority Business Enterprise ("MBE") certification program. The motion asks the Court for permission to consider economic evidence that is not addressed in the parties' pleadings.

"This case raises important legal questions," Cunningham said. "My proposed brief does not attempt to resolve those legal issues. Instead, it provides an economic framework that quantifies the potential consequences of the requested injunction for businesses, workers, procurement markets, and the broader U.S. economy." Among the issues analyzed are:

• Potential effects on U.S. gross domestic product (GDP) and regional economic output;
• Employment, wages, and labor income;
• Supplier competition and procurement costs;
• Small-business formation and firm growth;
• Federal, state, and local tax revenues;
• Supply-chain resilience; and
• Long-term market efficiency.

The analysis draws upon the foundational economic scholarship of Nobel laureates Gary S. Becker, George A. Akerlof, Michael Spence, Joseph E. Stiglitz, Ronald H. Coase, and Oliver E. Williamson, whose work explains how information asymmetry, transaction costs, discrimination, and institutional design influence market performance.

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According to the proposed brief, supplier certification serves as a market institution that reduces information asymmetry between purchasers and suppliers, lowers transaction costs, facilitates supplier verification, broadens competition, and improves procurement efficiency.

Using conservative economic assumptions, the proposed analysis estimates that a significant disruption of the NMSDC certification system could result in substantial reductions in economic activity, employment, business formation, and tax revenues, while increasing procurement costs and reducing supplier competition.

Cunningham appears solely in his individual capacity as an economist. The motion states that no party or counsel for any party funded the preparation of the proposed amicus brief.

The motion further explains that federal district courts routinely exercise their discretion to permit amicus participation when a proposed brief offers specialized expertise that may assist the Court. The accompanying economic analysis is intended to provide an independent perspective on issues extending beyond the immediate parties to the litigation.

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In conjunction with the filing, Cunningham has prepared a technical memorandum summarizing the economic issues presented in the case and encouraging economists, procurement specialists, business organizations, and academic researchers to examine the broader economic implications of supplier certification.

To download the proposed brief, please see: https://drive.google.com/file/d/1MRy0wObpQ7HSH45FnoB_gkNCxYcWcLFT/view?usp=sharing