The contract cannot, of course, stipulate the achievement of specific research results. Contracts are more likely than grants to contain provisions restricting the publication or other use of research data, or clauses affecting potential patent rights and licensing agreements. The sponsor pays the fixed amount regardless of whether the actual costs of the project activities involved turn out to be higher or lower than the contract price. Another type of contract is the cost-reimbursement contract. With this arrangement, the sponsor reimburses the University for the actual costs of the project activities undertaken, up to the amount originally awarded.
Sponsors making cost-reimbursement awards sometimes require audits of project expenses.
A hybrid sponsorship that combines elements of both the grant and the contract is known as a cooperative agreement . The cooperative agreement allows researchers from The University and another institution or organization to work jointly in an area of investigation. Both parties make available personnel to work on projects, and both parties formally participate in planning, coordinating, conducting, and evaluating activities carried out under the agreement.