A legal instrument (award) of financial assistance between a sponsor and a recipient. The purpose is to transfer something of value to carry out a public purpose and not to acquire property or services.
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.
Cooperative agreements will be legally binding agreements in document form. (4) Other requirements specified in the application.