Summary

A previous GAO review of the swine flu program raised questions about total program cost, execution of contracts with vaccine manufacturers, and access to manufacturers' records by GAO.

Of the $135 million appropriated for the program, the Center for Disease Control set aside $100 million for the purchase of vaccine, $26 million for grants to States, and $9 million for administrative and other expenses. Since vaccine production ceased as of January 15, 1977, the Center had obligated only about $66 million for vaccine purchases as of February 15, 1977. Other funds set aside have been or will be expended. Some program costs were not paid for from the $135 million appropriated. As of February 14, 1977, none of the vaccine manufacturers had signed final contracts. Contract signing has been delayed pending an Internal Revenue Service ruling on whether insurance funds which are reimbursable to the Government are taxable. Additional delays have resulted from a dispute between Parke, Davis and Company and the Center concerning the cost of a vaccine developed for another type of influenza. Some manufacturers have denied access to records by GAO as provided in contracts and this matter is under litigation.