1. GRANT CONTRACTS VS. PROCUREMENT CONTRACTS Many primary grantees call their awarding instruments "contracts." Regardless of the format or terminology employed, an awarding instrument is to be classified as the following when…

2. GRANT OR SUBGRANT CONTRACT For reporting purposes if in substance it creates a Federal assistance relationship between parties. One Party (the awarding agency) provides resources to the other (the grantee or subgrantee) for the purpose of carrying out a project or program in accordance with rules set by the Awarding agency.

3. A “TRUE” CONTRACT Creates a procurement relationship in which one party purchases goods or services for its own use in carrying out a project or program.

4. REPORTING REQUIREMENTS Reporting requirements apply to grant contracts but typically do not extend to procurement contracts awarded by Primary grantees using Federal grant funds.

5. COMPETITION Grant Contracts typically use the informal competitive process through the Request for Application (RFA); whereas, Procurement contracts typically use the formal competitive process such as the Request for Proposal (RFP) or Invitation for Bid (IFB).