Projects are conceived by the sponsor and the sponsor exercises direction or control of the delivery. Under a contract, the sponsor closely monitors progress and funds are provided through a negotiated agreement signed by both parties. A cooperative agreement is a hybrid between a contract and a grant.
A cooperative agreement is another form of financial aid. The granting agency and the grantee work together to carry out the purpose of the award. Contracts are financial transactions.
Because no legal entity is created, generally one party cannot bind the other unless the agreement specifies otherwise.
A cooperative agreement is another form of financial aid. The granting agency and the grantee work together to carry out the purpose of the award. Contracts are financial transactions. Federal agencies buy property or services for their direct benefit or use from a service provider.
With contracts, USAID purchases goods and services from a contractor to implement an Activity as directed by the Agency. Contracts are announced through Requests for Proposals (RFPs). With grants and cooperative agreements, the Agency provides funds to a recipient for a public good and has limited direct involvement.