Written by Justo Torres, Director for Contracts and Grants.
Are all contracts or grants the same, regardless of what they are called? The short answer is no.
NC State receives multiple types of funding awards under many different names. For purposes of this article, we will focus on the differences and distinctions of the three most common types: contracts, grants and cooperative agreements.
Grants
A grant is an award for the benefit of increased scientific knowledge. It is typically a project conceived by an investigator where the investigator defines details and retains scientific freedom. The sponsor’s support in the form of assistance and funds are provided through a unilateral award (un-negotiated).
ContractsÂ
A contract is typically related to a sponsor acquiring a good or service. Projects are conceived by the sponsor and the sponsor exercises direction or control of the delivery. Under a contract, the sponsor closely monitors progress and funds are provided through a negotiated agreement signed by both parties.
Cooperative Agreements
A cooperative agreement is a hybrid between a contract and a grant. While its purpose is typically similar to a grant in that it focuses on increased scientific knowledge, the sponsor takes a more active role as a partner to the research, rather than just a funder.
Learning to identify these differences is critical to successful research administration, as the purpose of the award dictates how best to manage them and what outcomes a sponsor is expecting.