At 11:37 AM 2/10/99 -0800, Rochelle Athey wrote:
>Can anyone point me toward a document that outlines the differences
>between a grant and a contract?  Definitions of both would be handy.
>
>Thanks,
>
>Rochelle Athey
>Sponsored Programs Director
>Cal Poly State University Foundation
>xxxxxx@calpoly.edu
>

PL 95-224.
This defines a FEDERAL grant or cooperative agreement as "Assistance", and
a contract as "Procurement".  These differences mean that federal grants
follow completely different rules (A-110) than federal contracts (FAR).  We
consider ourselves lucky that the cost principles (A-121 and FAR 31.3,
respectively, are identical.

I describe this difference to my faculty as:
In a grant you plan to get to F by way of A,B,C,D, and E, -- but if things
dont work out, you may have to go via B1 and C2, and in fact, may find that
the only destination that is viable is F3.
In a contract you commit to get to F only by way of A,B,C,D, and E, -- and
if things don't work out, STOP WORK AND RENEGOTIATE!

Don't forget that the Comptroler of the Currency, back in the 1940's
stated, "A grant is a contract," the point being that the terms of a
federal grant can be enforced at law as a contract.

Beyond that, there's little guidance.  The central research administrator
MUST look at each as an "agreement" -- that's my general term, and using it
works.  On the whole, if it is called a "grant", the PI has more
flexibility than if it is called a "contract", and there is folk myth among
faculty members that somehow, a grant is better than a contract.  On the
other hand, lots of agreements use both "grant" (sometimes "grant-in-aid")
and "contract" internally, referring to the agreement at hand.  (Lots of my
state agencies do that -- VERY confuising to the faculty member.)

As a central administrator, remember that your job is to make sure the
agreement meets the needs at hand, and that its language can be enforced in
court.

Chuck

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