For example, the National Science Foundation uses cooperative agreements with organizations that manage national user facilities, such as astronomy observatories. The National Cancer Institute uses cooperative agreements to promote interaction among its own and outside basic researchers and investigators conducting clinical trials. Contracts are agreements between an institution and an awarding agency that generally involve creation of a tangible product or service. This may include testing or evaluation of a proprietary product, development of equipment, technical reports and evaluations, or consulting services. Cost Sharing .
Some funding agencies require universities to share in the costs of a project.
Funding may come from other, non-federal sources or from the university's own resources. Matching Funds . A granting agency may provide additional funding for a research project equal to private funds raised for the project. Cutting-edge research is capital intensive, requiring investment in buildings and instrumentation. The federal government has traditionally recognized this necessity and shared these expenses with universities by providing some infrastructure reimbursement as part of funding for a research grant.