Excerpt from Report of the Secretary's Advisory Committee on the Management of National Institutes of Health Research Contracts and Grants: March 1966

The Secretary of Health, Education, and Welfare, when he formed this committee late in 1965, stated that:

"The committee will be reviewing the following problems:

"1. The distinction between the nature and use of the grant in aid versus contract as instruments of NIH and Department action.

"2. The nature of the necessary administrative arrangements and management controls to assure proper use of grants and contracts in the conduct of NIH programs.

"3. The particular circumstances surrounding the use of contracts within the National Cancer Institute, and the other Institutes at NIH, as appropriate, and the arrangements utilized by the Institute in the development, review, execution, and evaluation of such contract activity."

At its first meeting the committee was asked by the Assistant Secretary for Health and Scientific. Affairs to give special attention to the statutory and functional role of National Advisory Councils in the administration of programs for the support and conduct of research. Within the Congress, he said, there had been recent discussion as to whether each individual research contract of the National Cancer Institute should be reviewed and approved by the National Advisory Cancer Council as is required by statute for grants. On this question the Secretary had written in a letter of October 20, 1965, to Representative John E. Fogarty:

"Review and approval of each individual contract by the Advisory Council to the National Cancer Institute introduces such a fundamental change in policy that I would be extremely reluctant to see it introduced without a thorough study. I assure you that I will initiate such a study immediately and will report back to the congressional appropriations committees early next year."

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