When it is efficient, effective, and in the best interests of citizens, the state sometimes uses grants to achieve various objectives and programmatic responsibilities. The state procures services by means of contracts.
Grants are simply a specific type of contract.
The passing through of a federal grant which specifically identifies by name the contractor as grantee or beneficiary. A contract with a non-profit or governmental organization, the primary purpose of which is to grant funds to finance operations rather than to procure services. Currently, there is no central directory of state grants. To determine what state grants may be available, it is necessary to contact each state agency.