Review of Contract No. VA549-P-0027 Between the Department of Veterans Affairs and The University of Texas Southwestern Medical Center at Dallas (UTSWMC) for Gulf War Illness Research

At the request of the former Secretary of Veterans Affairs, we conducted a review of the contract between the Department of Veterans Affairs and The University of Texas Southwestern Medical Center at Dallas (UTSWMC). The contract was awarded for the purpose of conducting research into Gulf War Illness. We concluded that VA was not required by Public Law 109-114 to enter into a contract with UTSWMC nor did VA satisfy the direction provided in Conference Report 109-305. The Public Law simply required VA to spend not less than $15 million for Gulf War Illness research and the Conference Report directed VA to enter into a pilot study involving collaborative research with UTSWMC. Our review determined that no pilot study was conducted and there is no collaborative research under the contract. Our review of the contract found that UTSWMC had the responsibility to identify, conduct, and manage all research projects with no input from VA. The contract with UTSWMC was merely a funding mechanism to support UTSWMC’s research program, and as such, should have been administered as a grant. However, VA managers decided not to seek grant authority and awarded a contract which inappropriately cited 38 U.S.C. § 8153 as the authority to award a contract to UTSWMC on a sole source basis. The use of § 8153 contracting authority was inappropriate because VA had no defined need for the services and the use of a contract (rather than a grant) created numerous management and contract administration issues for both VA and UTSWMC. The most significant issue is UTSWMC’s refusal to comply with the terms and conditions of the contract related to the ownership of the data. UTSWMC unilaterally, and without notice, changed the informed consent form to prohibit VA access to certain data obtained by UTSWMC in conducting the research. VA has issued a cure notice to UTSWMC; however, UTSWMC states that they will not cure the data rights issues contained in the notice and has refused to discontinue use of the revised form and to use the consent form that was agreed to by the parties at contract award. We believe UTSWMC’s continued refusal to comply with the terms and conditions set forth in the contract gives VA no option but to terminate the contract for default.