CASE STUDY $-$ Public Procurement Laws and Regulations INTRODUCTION. Laws and regulations are important to the proper functioning of a public procurement department. All relationships between suppliers and governments must incorporate the legal elements of a contract and comply with existing statutes and regulations. A public procurement officer must understand the law of agency, the importance of different types of authority in contracting, and the difference among warranties that protect the purchaser. The Federal Governments in Canada and the United States, each of the states and provinces, and all local governments have unique legal and regulatory measures that support the procurement function. BACKGROUND. A procurement official of the U$.$S$.$ Department of Homeland Security is reviewing audit reports relating to several contracts awarded after Hurricane Katrina struck Louisiana in $2005.$ Among the issues raised by the auditors are the following: A levee that was repaired by a contractor has begun to leak. The contractor refuses to make repairs and states that the warranty for the work has expired. More than $$100,000$ was paid to a supplier reportedly based on a telephone conversation with an unknown representative in the company$$s office in Minnesota. No records are available to document what the expenditure was for, whether any goods or services were received, or whether the expenditure was approved by an agent of the government with the appropriate authority to bind the government in a contract. A Louisiana contractor filed suit in state court against the Department under the provisions of the Uniform Commercial Code and Louisiana law, accusing the Department of breach of contract when no supplies were ordered under the provisions of a federal indefinite delivery, indefinite quantity $($IDIQ$)$ contract issued in the aftermath of the storm DISCUSSION. The procurement officer must prepare a memorandum to the Agency$$s Chief Procurement Officer discussing these audit exceptions, recommending actions to address them, and suggesting policies to prevent their recurrence in the future.

QUESTIONS.

$1.$ What violations of law and regulation are indicated by each of these situations?

$2.$ How might personnel working in the procurement emergency operations center have avoided these audit exceptions after the hurricane?

$3.$ What are the elements of basic contract law appear to be missing from these incidents?

$4.$ Who should the procurement officer consult for advice on these issues