In terms of the "single office" question, most grants must be signed by an
authorized legal representative of the institution.  On our campus those
individuals are the President, the VPs and the Comptroller.  They are the
only ones that can enter into a legal agreeement, which is exactly what a
grant is.
An individual faculty member cannot execute such an agreement.  In addition,
in most cases, grants are awraded to the institution -- not the individual
project director -- making the institution legally responsible for the
administration of the award.  Furthermore, if there is a commitment of
university resources, such a commitment must receive the usual approvals
before becoming part of a grant proposal.  Hence, most of the rationale for
a "central office" review requirement rests on legal/fiscal considerations.

It would help if you could provide more context for your inquiry.  I could,
for instance read into it a suggestion that there may be an academic freedom
issue triggering the question and/or a problem with different people
submitting proposals to the same funding source (who may have a limit on the
number of proposals accepted from a single institution...another good reason
to have some central office for coordinating purposes).  Please elaborate.
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Live long and prosper.   >:-I

Nancy Kay Peterson
Director of Grants
Somsen Hall, Room 202-C
Winona State University
Winona, MN  55987
Phone:  507/457-5519
FAX:    507/457-5586
e-mail: xxxxxx@VAX2.winona.msus.edu