Types of Award Instruments
PSU's award acceptance process varies with the type of proposal submission and instrument used by the sponsor to award the funds. Awards for sponsored projects are typically issued in the form of a grant or contract but funds can also be provided under various types of agreements that do not fit neatly into either category. Labels used on award documents vary and may not necessarily clearly represent the nature of the award. Attention should be paid to the substance of the award document rather than its label. The following are general definitions of common award instruments and the associated PSU procedure for processing them.
Notice of Grant Award
A legally binding document in the form of a letter, email or other written correspondence that serves as a notification to the recipient and others that a grant award has been made based on the approval of a grant application. The notice contains or references all terms of the award and documents the obligation of funds including amount and period of performance
Grants are flexible award instruments used by sponsors to provide funding in hope of achieving a particular aim. The Principal Investigator uses reasonably diligent efforts to complete the research and achieve the desired aim and the sponsor is not substantially involved with the recipient during the performance of the activities.
Contract
A contract is a legally binding document in which the contractor promises to deliver a product or service in exchange for consideration (usually money). Contracts are used by sponsors to acquire property or services for the sponsor's direct benefit including performance of specific activities for scientific inquiries in particular areas of research and development needed by the sponsor. Contract performance is monitored closely by the sponsor to ensure accomplishment of the research goals.
Cooperative Agreement
A cooperative agreement is similar to a grant in that their purpose is to provide funding in support of a particular aim. What distinguishes cooperative agreements from grants is anticipated substantial involvement between the sponsor and the recipient during performance of the contemplated activity.