The House D.C. Appropriations subcommittee, troubled by the District's circumvention of competitive bidding procedures, approved an amendment yesterday prohibiting city agencies from renewing so-called sole source contracts without inviting other companies to bid.

The subcommittee also chided the District government for having yet to implement regulations under a 1985 Procurement and Practices law approved by the D.C. Council. And Rep. Ralph Regula (R-Ohio) expressed concern "regarding allegations of favoritism and improper bidding procedures" in awarding contracts.

Regula, who offered the riders to the District's $3 billion budget for the fiscal year beginning Oct. 1, said he was alarmed that some city agencies were "rolling over" contracts from one year to the next without attempting to bring down their cost through competitive bidding.

Regula cited a March 15 report in The Washington Post about a controversial contract with a firm called the Breadmakers to supply bread to the Lorton Reformatory and the D.C. public schools that was extended three consecutive years without competitive bidding.

Internal agency reports issued before two of the renewals were granted to the firm cited "chaotic" service, widespread delivery problems, stale bread and, in one instance, a shard of glass found in a hamburger bun that had been served to a public school student. The contract is currently worth $700,000 a year.

Another example cited by Regula was the decision by the D.C. Department of Human Services to pay $62,999 to JAM Corp., a Washington public relations firm, to print 4,000 copies of its 1986 annual report -- or $15.75 per copy -- under the firm's sole source contract.

The Department of Public Works paid $1.28 per copy for 2,500 copies of its 1986 annual report and the D.C. court system paid $3.35 per copy for its 1985 annual report, according to figures compiled by Regula's staff.

"I don't think sole source contracts should be used unless {the service} can't be secured in any other way or it's an emergency," Regula said.

D.C. law permits the city to bypass competitive bidding and select a sole source contractor in cases where goods or services are offered by only one company, or in cases of emergency.

David E. Rivers, a subject of an federal probe of city contracting, chose JAM to produce the annual reports while he was director of the human services agency, according to two sources familiar with the contract. For the first three years, the agency hired JAM without formal contracts and paid it under the city's small purchase procedures, although the amounts exceeded the $10,000 limit on small purchases.

Jeanne Clarke Harris, president of JAM, which employs Mayor Marion Barry's wife Effi as a vice president, said last week that federal prosecutors subpoenaed JAM's records two years ago and found no impropriety. She said her firm charged a reasonable fee for annual reports.

"That covers overhead, administrative costs, everything," she said. "You could take that to any printer and get {charged} the same cost. They would all be in the same range."

Officials from other advertising firms said JAM appeared to have charged a fair cost for the reports, but that the department paid for a top-line product more appropriate for a big corporation than a governmental agency.

In approving the new budget for the District, the subcommittee asked the city to find a way to increase the salary of the D.C. medical examiner by $27,500 a year, to $95,000, and to boost salaries of a number of deputies, to enable the city to attract and keep qualified personnel. Rep. Les AuCoin (D-Ore.), who proposed the language, noted the chief medical examiner's post has been vacant since 1982.