GRANT CONTRACTS VS. GRANT CONTRACTS VS. PROCUREMENT CONTRACTSPROCUREMENT CONTRACTS

Many primary grantees call their awarding instruments "contracts." Regardless of the format or terminology employed, an awarding instrument is to be classified as the following when…

GRANT OR SUBGRANT CONTRACT For reporting purposes if in substance it creates a Federal assistance relationship between parties. One Party (the awarding agency) provides resources to the other (the grantee or subgrantee) for the purpose of carrying out a project or program in accordance with rules set by the Awarding agency.

A “TRUE” CONTRACT

Creates a procurement relationship in which one party purchases goods orservices for its own use in carrying out a project or program.

REPORTING REQUIREMENTS

Reporting requirements apply to grant contracts but typically do not extend to procurement contracts awarded by Primary grantees using Federal grant funds.

COMPETITION

Grant Contracts typically use theinformal competitive process through the Request for Application (RFA); whereas,

Procurement contracts typically use the formal competitive process such as the Request for Proposal (RFP) or Invitation for Bid (IFB).