Texas Tech University

Award Definition Types

Grant

A grant is the appropriate agreement to be used in a relationship between the federal government and a recipient whenever (1) the principle purpose of the relationship is the transfer of money, property, services, or anything of value to the state or local government or other recipient in order to accomplish a public purpose of support or stimulation authorized by a federal statute, rather than acquisition, by purchase, lease, or barter, or property or services for the direct benefit or use of the federal government; and (2) no substantial involvement is anticipated between the executive agency, acting for the federal government, and the state or local government or other recipient during performance of the contemplated activity.

Contract

A contract is the appropriate agreement to be used in a relationship between the federal government and a recipient whenever (1) the principle purpose of the instrument is the acquisition, by purchase, lease, or barter of property or services for the direct benefit or use of the federal government; or (2) an executive agency determines in a specific instance that the use of a type of procurement contract is appropriate.

Cooperative Agreement

A cooperative agreement is the appropriate agreement to be used in a relationship between the federal government and a recipient whenever (1) the principle purpose of the relationship is the transfer of money, property, services, or anything of value to the state or local government or other recipient in order to accomplish a public purpose of support or stimulation authorized by a federal statute, rather than acquisition, by purchase, lease, or barter, of property or services for the direct benefit or use of the federal government; and (2) substantial involvement is anticipated between the executive agency, acting for the federal government, and the state or local government or other recipient during performance of the contemplated activity.

Definitions of Grant, Contract, and Cooperative Agreement from O.L. 95-224 (1978)

  Grant Cooperative Agreement Contract
Basic Purpose Provide assistance with few restrictions Provide assistance with substantial involvement between parties Procure tangible goods and services
Solicitation Method Application kit or guidelines Request for Application Request for proposal or Request for quote
Award Instrument Short, may refer to general conditions Describes involvement, party relationships Detailed specs, clauses, regulations, and expected results and deliverables
Involvement by sponsor Generally none Substantial involvement May be extensive
Rebudgeting Flexible Usually flexible More restrictive
Equipment Grantee Varies Varies
Title      
Performance Period Specified in Grant Specified in Cooperative Agreement Specified in Contract
Patent Rights Usually favor recipient May be involved Provision in contract
Publications May ask to be informed May ask to be informed May require prior review/approval
Technical Reports Annual summary report Frequent reports Detailed, may be monthly

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