Unused funds are not returnable to the Client. Cost is based on a rate structure that can include administrative costs, indirect costs and profit. The customer does not fund equipment purchase costs. Technical progress reports or detailed financial reports are required. Results of the project are reported to the sponsor according to the terms of the agreement.
Time frame is specified.
Terms of the award generally require special oversight including audit provisions. Unused funds may have to be returned to the sponsor. Sponsor imposes requirements and limitations on the conduct of the activity and the use of funds. Line item budget of direct and indirect costs are presented and negotiated with the sponsor. Profits are not included.