Grants and Agreements

Definitions: Grants and Agreements

• A grant is money awarded to finance a particular activity or group.  Public Laws are passed to set aside funds to assist Government Agencies. 
• An agreement is a written instrument   of understanding, negotiated between an agency or contracting activity and   a contractor, that (1) contains contract clauses applying to future contracts   between the parties during its term and (2) contemplates separate future contracts  that will incorporate by reference or attachment the required and applicable   clauses agreed upon in the basic agreement. A basic agreement is not a contract.

Limitation:

• The legislation that sets aside funds for a grant identifies the purpose in which the funds must be used and the group or individuals eligible to receive the grant.