**Comparison Chart\
Grants vs. Contracts**

 

+-----------------+--------------------------+-------------------------+
|                 | Grant                    | Contract                |
+-----------------+--------------------------+-------------------------+
| Types of        | Grant - Principal        | Contract -- The         |
| Instruments and | purpose of this          | principal purpose of    |
| the             | relationship is the      | this relationship is to |
| Relationships   | transfer of money,       | purchase, lease, or     |
| between Federal | property, services, or   | barter property or      |
| Agencies and    | anything of value to the | services for the        |
| Funding         | recipient in order to    | [direct benefit of the  |
| Recipients.     | [accomplish a public     | g                       |
|                 | purpose of               | overnment]{.underline}. |
|                 | support]{.underline}     | For example, a contract |
|                 | with no substantial      | is used to obtain       |
|                 | involvement between the  | goods, such as supplies |
|                 | federal agency and the   | and equipment, in       |
|                 | recipient during         | return for a previously |
|                 | performance activity.    | agreed upon cash amount |
|                 | The purpose of the grant |                         |
|                 | is to [benefit some      |                         |
|                 | identified               |                         |
|                 | segment]{.underline} of  |                         |
|                 | the public, rather than  |                         |
|                 | the government.          |                         |
|                 |                          |                         |
|                 |                          |                         |
|                 |                          |                         |
|                 | Cooperative Agreement -- |                         |
|                 | Same as a grant but with |                         |
|                 | substantial programmatic |                         |
|                 | involvement between the  |                         |
|                 | federal agency and the   |                         |
|                 | recipient during         |                         |
|                 | performance of the       |                         |
|                 | activity                 |                         |
+-----------------+--------------------------+-------------------------+
| Review          | -   -          Standing  | -   -          No       |
|                 |     review committees    |     standing review     |
|                 |     formed: Special      |     committees; ad hoc  |
|                 |     emphasis panels      |     committees formed   |
|                 |     established as       |     per project         |
|                 |     needed               |                         |
|                 |                          |                         |
|                 | -   -          Peer      |                         |
|                 |     review group cannot  | -   -          Peer     |
|                 |     be composed of more  |     review group cannot |
|                 |     than 25% federal     |     be composed of more |
|                 |     employees            |     than 25% federal    |
|                 |                          |     employees           |
|                 | -   -          Reviewer  |                         |
|                 |     must recuse          | -   -          Reviewer |
|                 |     him/herself if a     |     must review all     |
|                 |     conflict of interest |     proposals and       |
|                 |     exists between       |     cannot recuse       |
|                 |     him/herself and      |     him/herself from    |
|                 |     application being    |     review. If a        |
|                 |     reviewed             |     conflict of         |
|                 |                          |     interest exists,    |
|                 | -   -          Names of  |     then a potential    |
|                 |     reviewers are        |     reviewer cannot be  |
|                 |     available to the     |     invited to review   |
|                 |     public               |                         |
|                 |                          | -   -          Names of |
|                 | -   -          Review    |     reviewers are not   |
|                 |     meeting closed to    |     available to the    |
|                 |     the public           |     public              |
|                 |                          |                         |
|                 | -   -          ORREP     | -   -          Review   |
|                 |     coordinates the      |     meeting closed      |
|                 |     review               |                         |
|                 |                          | -   -          CO and   |
|                 | -   -          SRA       |     Project Officer     |
|                 |     conducts the review, |     (PO) coordinate the |
|                 |     grants management    |     review              |
|                 |     specialist and PO    |                         |
|                 |     may attend           | -   -          PO       |
|                 |                          |     conducts review and |
|                 | -   -          PI gets   |     CO maintains        |
|                 |     Summary Statement    |     control over the    |
|                 |     and priority score   |     review              |
|                 |     prior to award       |                         |
|                 |     negotiations         | -   -          Summary  |
|                 |                          |     Statement and       |
|                 |                          |     review scores not   |
|                 |                          |     available unless    |
|                 |                          |     requested by        |
|                 |                          |     competing offeror   |
|                 |                          |     [after]{.underline} |
|                 |                          |     the award decision  |
|                 |                          |     has been made       |
+-----------------+--------------------------+-------------------------+
| Funding         | -   Program makes        | -   There is no funding |
|                 |     recommendations for  |     meeting nor any     |
|                 |     funding applications |     paylist generated.  |
|                 |     at a funding         |     The CO determines   |
|                 |     meeting; decisions   |     the competitive     |
|                 |     from the funding     |     range based on the  |
|                 |     meeting are          |     outcome of the peer |
|                 |     finalized and        |     review and          |
|                 |     documented in a      |     budgetary factors.  |
|                 |     paylist signed by    |     The CO, with input  |
|                 |     the AHRQ Director    |     from program staff, |
|                 |                          |     makes the funding   |
|                 |                          |     decision.           |
+-----------------+--------------------------+-------------------------+
| Independent     | -   DGM is responsible   | -   DCM is responsible  |
| Objective       |     for evaluating the   |     for evaluating the  |
| review          |     business management  |     business management |
|                 |     capability of        |     capability of       |
| Cost Analysis   |     applicants based on  |     offerors based on   |
|                 |     information          |     information         |
| Negotiations    |     contained in the     |     contained in the    |
|                 |     application,         |     proposal,           |
| Award           |     additional           |     additional          |
|                 |     information as       |     information as      |
| Postaward       |     requested and a      |     requested and a     |
|                 |     review of prior      |     review of prior     |
|                 |     performance as a     |     performance as a    |
|                 |     recipient. If        |     government          |
|                 |     necessary, a         |     contractor. If      |
|                 |     pre-award business   |     necessary, a        |
|                 |     management review is |     pre-award business  |
|                 |     conducted            |     management review   |
|                 |                          |     is conducted        |
+-----------------+--------------------------+-------------------------+
|                 | -   DGM performs         | -   DCM performs        |
|                 |     detailed cost        |     detailed cost       |
|                 |     analysis of the      |     analysis of the     |
|                 |     proposed budget to   |     proposed budget to  |
|                 |     determine if costs   |     determine if costs  |
|                 |     are allowable,       |     are allowable,      |
|                 |     allocable and        |     allocable and       |
|                 |     reasonable. Overlap  |     reasonable; formal  |
|                 |     is identified. The   |     audit is usually    |
|                 |     recommended budget   |     required for new    |
|                 |     level is adjusted as |     contractors either  |
|                 |     needed               |     by in-house staff   |
|                 |                          |     or outside          |
|                 |                          |     contractor          |
+-----------------+--------------------------+-------------------------+
|                 | DGM represents the       | DCM is responsible for  |
|                 | government in all        | representing the        |
|                 | negotiations with        | government in all       |
|                 | recipients. Negotiations | negotiations with       |
|                 | may be minimal or        | offerors. Negotiations  |
|                 | involve a comprehensive  | may be minimal or       |
|                 | negotiation of all       | involve a comprehensive |
|                 | aspects of the grant     | negotiation of all      |
|                 | award with the           | aspects of the proposal |
|                 | applicant. PO sometimes  | with the offeror. These |
|                 | discusses technical      | negotiations occur      |
|                 | comments from the peer   | within legal            |
|                 | review with potential    | constraints, e.g., the  |
|                 | recipients prior to the  | same information is     |
|                 | funding meeting          | provided to all         |
|                 |                          | offerors within the     |
|                 |                          | competitive range and   |
|                 |                          | no auctioneering        |
|                 |                          | techniques are allowed. |
|                 |                          | The confidentiality of  |
|                 |                          | other offerors within   |
|                 |                          | the competitive range   |
|                 |                          | must be maintained      |
+-----------------+--------------------------+-------------------------+
|                 | -   -          Award is  | -   -          Award is |
|                 |     based upon technical |     based upon the      |
|                 |     merit as determined  |     outcome of the peer |
|                 |     by peer review and   |     review, cost        |
|                 |     recommendation of    |     analysis and upon   |
|                 |     program staff        |     the best value to   |
|                 |                          |     the government      |
|                 | -   -          Award is  |                         |
|                 |     discretionary;       | -   -          The      |
|                 |     however the decision |     award decision is   |
|                 |     to fund out of score |     not discretionary   |
|                 |     order requires       |     and is heavily      |
|                 |     documentation        |     documented in       |
|                 |                          |     accordance with     |
|                 | -   -          DGM       |     strict guidelines   |
|                 |     prepares the Notice  |     and regulations     |
|                 |     of Grant Award for   |                         |
|                 |     GMO's signature      | -   -          DCM      |
|                 |     which officially     |     prepares the        |
|                 |     obligates funds for  |     contract for the    |
|                 |     the grant            |     contractor's and    |
|                 |                          |     CO's signature      |
|                 | -   -          GMO's     |     (bilateral          |
|                 |     signature certifies  |     agreement)          |
|                 |     that the award       |                         |
|                 |     complies with all    | -   -          The CO's |
|                 |     legal, regulatory,   |     signature fully     |
|                 |     and internal policy  |     executes the award  |
|                 |     requirements. The    |     and certifies that  |
|                 |     grant is fully       |     it complies with    |
|                 |     executed when the    |     all legal,          |
|                 |     grantee makes its    |     regulatory, and     |
|                 |     first draw for funds |     internal policy     |
|                 |                          |     requirements and    |
|                 | -   -          Award     |     that it is a sound  |
|                 |     decision is not      |     business agreement  |
|                 |     appealable           |     into which the      |
|                 |                          |     Department should   |
|                 | -   -          Award     |     enter.              |
|                 |     timeframe is 5 -- 10 |                         |
|                 |     months               | -   -          Award    |
|                 |                          |     decision is always  |
|                 | -   -          The       |     protestable and the |
|                 |     Notice of Grant      |     protest can stop    |
|                 |     Award (NGA) is the   |     the award           |
|                 |     award document       |                         |
|                 |                          | -   -          Award    |
|                 | -   -          Award     |     timeframe is 4 --   |
|                 |     contains only a few  |     12 months           |
|                 |     explicit terms and   |                         |
|                 |     conditions but makes | -   -          The      |
|                 |     reference to the     |     Contract is the     |
|                 |     various authorities, |     award document      |
|                 |     statutes and         |                         |
|                 |     regulations by which | -   -          Award    |
|                 |     a grantee is bound   |     usually explicitly  |
|                 |                          |     spells out numerous |
|                 | -   -          Award has |     terms, conditions   |
|                 |     5 year limitation    |     and clauses by      |
|                 |     for each competing   |     which a contractor  |
|                 |     segment, generally   |     is bound            |
|                 |     funded in 1 year     |                         |
|                 |     increments           | -   -          Most     |
|                 |                          |     awards limited to 5 |
|                 | -          No multi-year |     years               |
|                 | funding                  |                         |
|                 |                          |                         |
|                 |                          |                         |
|                 |                          | -          Can do       |
|                 |                          | multi-year,             |
|                 |                          | incremental, or full    |
|                 |                          | project funding         |
+-----------------+--------------------------+-------------------------+
|                 | -   -          Annual    | -   -          Monthly  |
|                 |     grantee financial    |     financial reviews   |
|                 |     reviews performed by |     performed by        |
|                 |     grants specialist.   |     contract specialist |
|                 |     No invoices involved |     and PO through      |
|                 |                          |     review of           |
|                 | -   -          If        |     invoices/vouchers   |
|                 |     grantee fails to     |                         |
|                 |     perform              | -   -          If       |
|                 |     satisfactorily, the  |     contractor fails to |
|                 |     grant may be         |     deliver/perform     |
|                 |     terminated           |     satisfactorily, the |
|                 |                          |     contract may be     |
|                 | -   -                    |     terminated          |
|                 |     Performance reviews  |                         |
|                 |     conducted annually   | -   -                   |
|                 |     by means of grant    |     Performance reviews |
|                 |     specialist and PO    |     conducted           |
|                 |     review of progress   |     throughout          |
|                 |     reports and review   |     performance period  |
|                 |     of final report      |     and at end of       |
|                 |                          |     contract by means   |
|                 | -   -          Some      |     of a deliverable;   |
|                 |     grant changes        |     generally a final   |
|                 |     allowable w/o prior  |     report or data to   |
|                 |     approval (e.g.,      |     AHRQ                |
|                 |     expanded             |                         |
|                 |     authorities)         | -   -          All      |
|                 |                          |     changes must be     |
|                 | -   -          Payment   |     effected in writing |
|                 |     Mechanism: NGA       |     by means of a       |
|                 |     awards 12 month      |     modification        |
|                 |     amount to grantees   |                         |
|                 |     up front; grantee    | -   -          Payment  |
|                 |     draws funds          |     Mechanism:          |
|                 |     electronically on an |     Contractor          |
|                 |     as needed basis      |     generally           |
|                 |                          |     reimbursed after    |
|                 | -   -          DGM       |     costs have been     |
|                 |     ensures that         |     incurred and after  |
|                 |     recipients comply    |     CO and PO review    |
|                 |     with audit           |     monthly vouchers.   |
|                 |     requirements and     |                         |
|                 |     documents actions    | -   -          N/A      |
|                 |     needed to resolve    |                         |
|                 |     audit findings. DGM  |                         |
|                 |     ensures that         |                         |
|                 |     recipients complete  |                         |
|                 |     follow-up actions    |                         |
|                 |                          | \- Some post award      |
|                 | -          Some post     | activities appealable   |
|                 | award activities         |                         |
|                 | appealable               |                         |
+-----------------+--------------------------+-------------------------+
| Closeout        | Closeout Requirements:   | DCM conducts final      |
|                 | final progress report,   | business review of      |
|                 | final financial status   | completed contracts;    |
|                 | and final invention      | ensures final reports   |
|                 | statement. DGM conducts  | deliverables, vouchers  |
|                 | final business review of | are submitted and       |
|                 | completed grants;        | approved; completes     |
|                 | ensures final reports    | cost audit and makes    |
|                 | are submitted and        | adjustments,            |
|                 | approved; makes          | disallowances, or other |
|                 | adjustments,             | action as appropriate;  |
|                 | disallowances, or other  | officially closes the   |
|                 | action as appropriate;   | contract                |
|                 | officially closes the    |                         |
|                 | grant                    |                         |
+-----------------+--------------------------+-------------------------+
|                 |                          |                         |
+-----------------+--------------------------+-------------------------+
|                 |                          |                         |
+-----------------+--------------------------+-------------------------+
|                 |                          |                         |
+-----------------+--------------------------+-------------------------+