What is the difference between a Federal Grant and a Federal Contract?
Federal Grants and Federal Contracts have significant differences. To assist in the differentiation of the two, we have developed a Federal Grant vs. Federal Contract Guidance document and a quick reference table on our website.
The government uses grants and cooperative agreements as a means of assisting researchers in developing research for the public good, whereas it uses contracts as a means of procuring a service for the benefit of the government. Grants are much more flexible than contracts. Typically in Federal Contracts, changes cannot be made to the scope of work or budget, whereas in grants these changes can usually be made with the University’s approval. Failure to deliver under a Federal Contract can have potential legal or financial consequences to all parties at the University, whereas in the case of a grant typically a final report explaining the outcome is sufficient.
Further questions regarding Federal Contracts can be directed to orfedcon@pitt.edu.