Through contracts, a sponsor stipulates its needs, and the recipient and the sponsor come to an agreement. The process sometimes involves bidding and competitive negotiations. Strictly speaking, contracts do not have a principal investigator. Instead, a proposer describes a work plan and the costs needed to produce a product or service. Contract negotiation is more likely to involve discussion of proposed provisions restricting the publication or other use of research data, or clauses affecting potential patent rights and licensing agreements than is grant negotiation.
Contracts also can require frequent and detailed reporting.
In a contract arrangement, the sponsor is actively involved in overseeing the progress and direction of the project. It is recommended that applicants attend a bidder s meeting with government representatives before writing a government contract proposal. Contracted Corporate Support Contracted corporate research or services are somewhat different from that for grants. Most contracted corporate research is the result of independent faculty contact with colleagues and former students in industry. Several aspects of corporate contracting are different from the Government grants program.