The Federal Grant and Cooperative Agreement Act of 1977 (P.L. 95-224, 31 USC 6301 et seq.) makes the fundamental distinctions between purchase contracts, grants, and cooperation agreements. At the same time, development cooperation should not be a business. Focusing solely on results and blaming organisations for possible failures does not see the essence of development cooperation as anything other than a business. Entering into a contract is much riskier than accepting a grant and therefore excludes many small organizations that do not have the safety net of this type of business. There are two types of funded research prizes: the research grant and the research contract. The difference between a contract and a grant relates to the legal notion of default and the researcher`s legal obligation to obtain results or not. In most of our articles on this page, we talk about how you can write a grant application. However, over the past decade, some bilateral donors have moved away from grants. They are increasingly providing assistance in the form of contracts. But what does this really mean and what are the differences between a grant and a contract? In this article, you will discover everything you need to know.
I hope these two examples illustrate that a federal authority uses a contract to purchase goods or services (in this case a grant application system) for the work for which it is responsible. While a federal authority uses grants to gather research and innovative ideas from non-federal organizations, to leverage its expertise, to promote a public purpose (in this case treatment of opioids by Länder governments). Eligible organizations in the private and not-for-profit sector submitted grant applications that were then reviewed and awarded by the granting agency. With respect to the Cures Act, SAMHSA awarded 57 grants totalling $485 million to the Opioid State Targeted Response Grants as part of HHS` “Comprehensive Five-Way Strategy to Address the Opioid Crisis” (HHS makes available to states the second tranche of grants to address the opioid crisis, HHS.gov). There are many differences between purchase contracts and subsidies. The following table contains a number of them, and it can help define the instrument you want to apply for. A grant is based on similar premises, but it goes without saying that the organization executing the project or program cannot guarantee success. .