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DCCONRU? FUSUSNE11
05214 - [B0525430]
Need To Improve Administration of a Carcinogen Testing and
Carcinogenesis Research Contract. UR!-78-q4; 9-164031(2).
February 10, 1978. Released February 21r 1978. 51 pp. + 5
appendices (20 pp.).
Report to Rep. David R. Obey; by Bluer B. Staats, Comptroller
General.
I- sue Area: Federal Procurement of Goods and Services (1200);
thaIth Programs (1900).
Contact: Human Resources Div.
Budget Function: Health: Health Research and Iducatioa (552).
organization Concerned: Department of Health, Education* and
IIlfare; aticnal Institutes of Health: National Cancer
Inst.; Ouiversity of Nebraska: Eppley Inst.
Congressional Relevance: Rep. David N. Obey.
Authority: National Cancer Act (42 U.S.C. 286d). F.P.R. 1-3.210.
In may 1973 the National Cancer Institute INCI)
renewed, for 18 months, a sole-source contract with the Eppley
Institute foy: cancer research. Since the $3. million renewalg
the contract has been modifi~d sevaral tines so that, as of
November 1977, 36 months and $9.4 million have been added to the
contract period and cost. MCI awarded a 1-yearo S3.6 million
extension to the contract in November 1977.
Findings/Conclusions: In renewing the contract, MCI used an ad
hoc group to make technical reviews of the proposai rather than
the standing coamittees chartered for this parpose.
RecoEmendations were apparently disregard d in negotiating the
scope and 4nount of tbe contract, and Justification for
noncompetitive procurement sas not based totally on facts.
Problems ilentified in contract admisistration and performance
were: contract monitoring was ineffective; the contractor did
not fulfill reporting obligations; Eppley officials carried out
and financed 11 projects with contract funds without obtaining
initial formal approval; Eppley made charges to coutract funds
for personnel, laboratory animals, supplies and equipment which
were not used for contract work or were not adequately
controlled; and Eppley received apprcval to refurbish its
breeding facility which vas breeding more animals than were
needed for research. Eppley has taken some action to reimburse
the contract for noccontract costs. a review of the contract by
the Department of Health, Education# azd kelfare (HE) Audit
Agency is under way. Recommendations: The Secretary of 229
should: require that the audit of the Appley contract cover
matters relmting to improper use of Federal funds aYd equipment
and obtain appropriate corrective actions; require that MCI
officials obtain and analyze data on the need for research
animals at Eppley before approval is given to refurbish the
aninal fare; provide for necessary inventcry controls and ue of
equipment and personnel under contract funds; require that](ViewImageLocal?handle=hein.gao/gaobaawuf0001&div=1&collection=&method=preview&ext=.png&size=3)