The supply manager for a community college is contacted by the college's chief financial officer...

The issue of apparent authority is most likely to be a problem in this situation. Apparent authority arises when a third party (Supplier X) reasonably believes that an individual (the CFO) has the authority to act on behalf of the organization (the college) based on the individual’s actions or statements. The CFO’s conversation with Supplier X may have led the supplier to believe that they would have an opportunity to submit a proposal, even though the proper procurement process was not followed. This misunderstanding can result in legal disputes and claims of unfair practices.

References:

ISM (Institute for Supply Management). (2020). ISM Glossary of Key Supply Management Terms.

CIPS (Chartered Institute of Procurement and Supply). (2021). Procurement and Supply Chain Management.