I take exception to the comments of Rep. Ralph Regula (R-Ohio) concerning the implementation of the Procurement Practices Act of 1985 {letters, June 25}. Rep. Regula cites as his reason for offering an amendment to the District's Appropriations Act the failure of the mayor and the D.C. Council to take the opportunity to close an apparent loophole in the law: the law's silence on the issue of non-competitive renewals of sole-source contracts awarded by the District government.

The issues of home rule and the ability of the D.C. Council to oversee properly the administration of the D.C. government notwithstanding, I question Rep. Regula's interpretation of the procurement act in this area. The act clearly states that it is the policy of the D.C. government that competitive sealed bidding is the preferred method for awarding District contracts. The law also severely limits the approval of sole-source contracts to very specific situations and requires that a written determination be made by the director of the Department of Administrative Services prior to the awarding of any sole-source contract.

While Rep. Regula correctly states that the law does not specifically mention the renewal of contracts, including sole-source contracts, it is my belief that the act intends all renewals of contracts to be considered the same as new contracts and therefore subject to the policy and the procedures of the act.

Additionally, while Rep. Regula correctly states that the proposed regulations do not mention the issue of the renewal of sole-source contracts, it is important to note that these regulations are not final and will not be final until they are considered by the council. The Procurement Practices Act provides that the final regulations are to be submitted to the council for a 60-working-day period of review and that the council has the authority to approve or disapprove the rules in whole or part.

As chairman of the Committee on Government Operations, the committee that will have the primary responsibility for the review of these regulations, I can assure Rep. Regula that the regulations, which are due to be submitted to the council shortly, will either be detailed enough to allow for the proper administration of the act or they will not be approved by the council.

Finally, contrary to the opinion of Rep. Regula, the council is very much concerned about the integrity of the contracting process and that of the D.C. government as a whole. The Committee on Government Operations has just conducted two days of hearings on the implementation of the Procurement Practices Act in an effort to ensure that the act is being lawfully carried out. As I stated at the beginning of the hearings, it is vitally important that the District's contracting for goods and services be done fairly, ethically and, above all, legally.

I am confident that under the new director of the Department of Administrative Services the contracting process will be cleaned up and that businesses wishing to do business with the D.C. government will once again feel confident in bidding for that business. The council stands ready to offer whatever assistance is necessary, including changing the procurement law, to ensure that the procurement process is a fair process. District residents deserve no less.

BETTY ANN KANE Councilmember At-Large Washington