Determine award type

The bottom line

Determine if your proposal will result in a gift, grant, contract, or cooperative agreement. Use the table below to see how you should proceed for each.

The 4 types of awards above all differ with regard to what the sponsor expects in return. For each type, the sponsor is more and more strict about how ASU handles the award.

The table below illustrates more differences between the various types of awards.

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Is it a gift?

A gift is money or goods given to ASU with "no strings attached". That is, the giver does not expect anything in return.

Gifts normally have the following characteristics:

• The statement of work allows the PI the freedom to change emphasis within the general area of work as the project progresses
  
• Few or no deliverables are involved
  
• Separate accounting procedures are not required
  
• Benefits of the project are to accrue to the nation and the world
• Sponsor has no audit rights
• No regulatory issues are involved (e.g., human subjects or animal care)

Harvard University has a very useful table to help you determine if it's a gift.

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Is it a grant?

A grant generally has few rules as to the direction of the project, except in accordance with the proposal submitted. Payment from the sponsor is generally cost-reimbursable and the university can expect:

• No limits on publication
• Ownership of intellectual property
• Usually, though not always, no confidentiality agreement is necessary.

Spending may be flexible. Oftentimes amounts budgeted on one expense line may move to another with little or no permission needed. Payment is usually without a requirement for deliverables, but may have stipulations, such as interim reports in multi-year projects.

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Is it a cooperative agreement?

The definition of a cooperative agreement lies somewhere between a grant and a contract. It requires more sponsor involvement and restrictions than a grant but allows more flexibility than a contract.

If you're not sure whether your proposal will result in a cooperative agreement, contact your SPO.

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Is it a contract?

A contract is legally binding and has three major elements:

• Offer: What is going to be done (that is, the statement of work).
• Acceptance: A formal acceptance, including specific names of responsible parties.
• Exchange: The amount agreed upon for the specific outcomes as defined in the SOW.

With contracts, the sponsor agrees to finance an investigator under written terms and conditions.

Freedom within the project will be constrained. The nature of the work may not be altered without permission. Spending must correspond to the agreed budget. Funds are often attached to a specific outcome and can be retracted for failure to deliver. Publication may be delayed for sponsor review.

You will often be required to sign a confidentiality agreement, especially if the sponsor is allowing you access to proprietary information. Ownership of intellectual property has to be negotiated.

Payment is usually on a fixed schedule and the acceptance of deliverables may be required – failure to meet the deliverables may result in legal action.

For more information about contracts, visit ORSPA's Contracts page.

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Is it fixed price or cost-reimbursable?

BOTTOM LINE: Grants are usually cost-reimbursable and contracts are usually fixed price. Cost-reimbursable is always preferred by ASU because it involves less risk.

Fixed price

In a fixed price agreement, the amount the sponsor agrees to pay is the exact amount you will receive. It does not change. If you do not spend the full amount, there will be money left over. If you spend more than this amount, you will be responsible for the difference.

Cost-reimbursable

In a cost-reimbursable agreement, the university is entitled to be reimbursed for each budget item as long as the total amount spent is not more than the total award.

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