The following information describes the differences among grants, cooperative agreements and contracts.
For additional information, view the outgoing agreement guide (pdf) from Research and Sponsored Programs (RSP).
Grant
Characteristics: Award is typically short with general conditions
Funding announcement: For unsolicited proposals (PA, FOA, RFA)
Award purpose: Transfer of money, property, services or anything of value to recipient in order to accomplish a public purpose
Sponsor’s role: No substantial involvement is anticipated between government and recipient during the performance of activity
Revenue management: Federal demonstration partnership (FDP) or FDP-like award management
Cooperative agreements
Characteristics: Award describes involvement, party relationships
Funding announcement: For unsolicited proposals (PA, FOA, RFA)
Award purpose: Transfer of money, property, services or anything of value to recipient in order to accomplish a public purpose
Sponsor’s role: Substantial involvement is anticipated between government and recipient during the performance of activity
Revenue management:
- Cost reimbursement = total estimate cost; not to exceed amt; invoicing based on expenditures, FAR clauses
- Fixed price = total price, invoicing based on milestones or deliverables, FAR clauses. Generally, PO’s are fixed price.
Contract
Characteristics: Award is long, detailed specs, clauses, regulations and expected result
Funding announcement: For solicited proposals (RFP, RFQ, RFB, BAA)
Award purpose: Principal purpose is to acquire property or services for direct benefit or use of the federal government
Sponsor’s role: Government determines that procurement contract is appropriate (which can be very restrictive and have high demands)
Revenue management:
- Cost reimbursement = total estimate cost; not to exceed amt; invoicing based on expenditures, FAR clauses
- Fixed price = total price, invoicing based on milestones or deliverables, FAR clauses. Generally, PO’s are fixed price.