Grant
Contract
Cooperative Agreement
Fixed Price and Cost Reimbursable
Grant
Contract
Cooperative Agreement
Fixed Price and Cost Reimbursable
A grant is the appropriate agreement to be used in a relationship between the Federal government and a recipient whenever (1) the principal 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 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) 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.
A contract is the appropriate agreement to be used in a relationship between the Federal government and a recipient whenever (1) the principal 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.
A cooperative agreement is the appropriate agreement to be used in a relationship between the Federal government and a recipient whenever (1) the principal 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 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.
All grant and contract agreements are either fixed price or cost reimbursable agreements.
Fixed Price agreement means that the award you receive at the time your proposal is accepted is the amount the University is entitled to collect at the end of the project or during its performance. The only condition to receiving this full amount is that the project is completed by the University and is accepted by the sponsoring agency.
The price that is agreed to is the amount that will be paid regardless of whether the full amount is expended. If the full amount is not expended then a residual of funds is the result.
If a residual results then University policy dictates that only 5% up to $1,000.00 of the total award can be retained by the department. Any funds in excess of this amount should be transferred to the Associate Provost for Research and Graduate Study. Only the Office of Associate Provost for Research and Graduate Study can authorize the generating department use of the excess funds over the 5% or $1,000.00. This needs to be requested in writing and receive approval from the Office of Associate Provost for Research and Graduate Study.
If expense exceeds the total award then the difference will need to be covered by the departmental account.
Cost reimbursable agreement means that the University can recover only what is expended, but once an expense is incurred the University is entitled to receive payment as long as total expenditures do not exceed the total award and are within the prescribed budget allowances.
Definitions of Grant, Contract, and Cooperative Agreement from P.L. 950224 (1978).
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