In legal terms, financial assistance and acquisition awards are types of contracts: a grant is a financial assistance grant whose primary purpose is to transfer an element of value from a federal agency to a recipient to achieve a public purpose of assistance or stimulus authorized by U.S. law (see 31 U.S.C. 6101(3)). A grant is different from a contract used to purchase real property or services for direct use or use by the federal government. There are occasions when an award is received that resembles a grant; However, due to federal conditions and/or negotiation requirements, a grant may be administered as a contract. If they wanted to develop a new type of drug or cure, they would spend a grant on research and development. Suppliers and recipients establish binding relationships with the government – and they must abide by the terms of the procurement contract or financial support. CU Boulder also receives grants from sponsors funded by federal agencies. Often, these subsidies contain conditions that do not require negotiation. In some cases, proponents add their own terms and conditions that require OCG grant or contract officers to negotiate. First, is there even a difference between federal grants and federal contracts? Yes, the Federal Grant and Cooperative Agreement Act of 1977 is designed to guide U.S. federal agencies in the use of funds, particularly by distinguishing between contracts, grants, and cooperation agreements. The government defines the difference in relatively easy-to-understand terms (for the government) on the grants.gov website: If the government were to buy drugs for a VA hospital, it would issue a contract to buy the drugs.
On the left side of the screen, you will find a number of search criteria for grants. If you fill in the appropriate fields, the results will be reduced to appropriate possibilities. Funding from an external entity, such as a government agency, corporation or private foundation, is recorded as grant and contract income (sometimes referred to as “sponsored” income) if it is an activity with a defined budget, performance period and scope of the university`s work and the outcome of which is expected to directly benefit the resource provider. The agreement with the external body may take the form of a contract, grant or cooperation agreement and is usually used to directly support the mission of the university. Here is an overview of who can receive federal grants: Discretion – These are competitive grants that the government awards on the basis of merit. The main difference between grant and contract revenues and contribution revenues (donations) is the benefit to the resource provider. Institutions such as foundations usually intend and may even require the recipient to consider the support as a gift. Sponsored agreements require the university to provide services such as prototypes, personal property, intellectual property rights, financial or other reports, audit rights, or other benefits to the funder`s mission or business. If the resource provider does not expect anything in return, or if the benefit provided by the university is primarily a public benefit rather than an exclusive benefit, then the transaction is a contribution.
In some cases, a lot of judgment is required. The revenue matrix contains the recommended detailed criteria used to assess whether a transaction represents a grant and contract, contribution, or educational and other revenues. Nonprofits, universities, and local governments tend to seek federal grants. Companies tend to look for contracts. The government uses grants and collaborative arrangements to help researchers develop research for the common good, while using contracts as a means of obtaining a service for the benefit of the government. Grants are much more flexible than contracts. Generally, no changes to the scope of work or budget can be made in federal contracts, whereas in the case of grants, these changes can generally be made with the consent of the university. Failure to deliver under a federal contract can have potential legal or financial consequences for all parties at the university, while in the case of a grant, a final report explaining the outcome is usually sufficient.
The distinction between grants and cooperation agreements revolves around the existence or absence of substantial participation. With respect to research activities, significant involvement is likely if a federal employee actively supports, leads, coordinates or participates in the project. This substantial involvement usually consists of either (1) managing the allocation of resources between sub-projects, sites or institutions, or (2) actively participating in the conduct of the research. Normal supervision and administration is not a significant involvement. Eligible institutions in the private and not-for-profit sectors submitted applications for funding, which were then reviewed and awarded by the granting agency. For the Cures Act, SAMHSA awarded 57 grants totaling $485 million for opioid state targeted response grants as part of HHS`s “comprehensive five-pronged strategy to address the opioid crisis” (HHS is providing states with a second tranche of grants to address the opioid crisis, HHS.gov).