In the second scenario, the report is for the direct use of the Federal Government. Some recipients may receive funds in the form of grants and contracts for seemingly similar purposes. An example is when contracts are awarded by a Federal agency to an organization for providing impact assessments of proposed legal or policy changes on grantee populations. The organization, however, might also receive grants to conduct demonstration projects. In the first instance, contracting for the impact assessments is appropriate since the Federal Government is acquiring the service for its own use.
Grants are a more appropriate funding vehicle in the latter instance.
Although the Federal agency should benefit somewhat from the insights gained through demonstration projects, the public is the primary beneficiary. Statutory Language and Instrument Selection. The statute authorizing a program or activity may sometimes specify use of an award instrument seemingly inconsistent with the FGCA or may include language indicating that a particular relationship is intended. In that case, the statutory language would prevail. The distinguishing feature between a grant and cooperative agreement is that, under a cooperative agreement, substantial involvement is anticipated between the awarding office and the recipient during performance of the funded activity.