Types (Mechanisms) of Agreements: Uniform Guidance
Grant Agreement
This means a legal instrument of financial assistance between a Federal awarding agency or pass-through entity and a non-federal entity that, consistent with 31 U.S.C. 6302, 6304:
- Is used to enter into a relationship the principal purpose of which is to transfer anything of value to carry out a public purpose authorized by a law of the United States (see 31 U.S.C. 6101(3)); not to acquire property or services for the federal awarding agency or pass-through entity's direct benefit or use;
- Is distinguished from a cooperative agreement in that it does not provide for substantial involvement of the federal awarding agency in carrying out the activity contemplated by the federal award.
- Does not include an agreement that provides only:
- Direct United States Government cash assistance to an individual;
- A subsidy;
- A loan;
- A loan guarantee; or
- Insurance.
A grant is a way the government funds your ideas and projects to provide public services and stimulate the economy. Grants support critical recovery initiatives, innovative research, and many other programs listed in the Catalog of Federal Domestic Assistance (CFDA).
Cooperative Agreements
This means a legal instrument of financial assistance between a Federal awarding agency and a recipient or a pass-through entity and a subrecipient that, consistent with 31 U.S.C. 6302-6305:
- Is used to enter into a relationship the principal purpose of which is to transfer anything of value to carry out a public purpose authorized by a law of the United States (see 31 U.S.C. 6101(3)); and not to acquire property or services for the federal government or pass-through entity's direct benefit or use;
- Is distinguished from a grant in that it provides for substantial involvement of the federal awarding agency in carrying out the activity contemplated by the federal award.
- The term does not include:
- A cooperative research and development agreement as defined in 15 U.S.C. 3710a; or
- An agreement that provides only:
- Direct United States Government cash assistance to an individual;
- A subsidy;
- A loan;
- A loan guarantee; or
- Insurance.
Contracts
Federal/State: means, for the purpose of federal financial assistance, a legal instrument by which a recipient or subrecipient purchases property or services needed to carry out the project or program under a Federal award. Contract negotiations with a government agency primarily focus on budget and scope of work issues. The terms and conditions of the award are usually fixed by law or regulation. However, it is important to make sure that the terms and conditions imposed by the agency are appropriate for the work proposed and applicable to UNO.
Industry Research: Agreements with private sponsors cover many activities including basic, applied, or developmental research, collaborative research, and various types of testing.
Fixed Price: A firm-fixed-price contract provides for a price that is not subject to any adjustment on the basis of the contractor’s cost experience in performing the contract. This contract type places upon the contractor maximum risk and full responsibility for all costs and resulting profit or loss.
It provides maximum incentive for the contractor to control costs and perform effectively and imposes a minimum administrative burden upon the contracting parties. The contracting officer may use a firm-fixed-price contract in conjunction with an award-fee incentive (see 16.404) and performance or delivery incentives (see 16.402-2 and 16.402-3) when the award fee or incentive is based solely on factors other than cost. The contract type remains firm-fixed-price when used with these incentives.