603 - Distinctions Between Grants, Cooperative Agreements and Contracts

Congress enacted the Federal Grant and Cooperative Agreement Act of 1977 (Pub. L. 95-224, 41 U.S.C. 501 et seq.) to eliminate confusion over the use of federal procurement contracts and grants and cooperative agreements. The law made distinctions between procurement contracts and grant and cooperative agreements on the basis of the “principal purpose” of a transaction. If the principal purpose of a governmental action is “the acquisition, by purchase, lease or barter, of property or services for the direct benefit or use of the federal government,” a procurement contract is the appropriate legal instrument to be used. However, if the principal purpose is “the transfer of… Read More