are entered into by the awarding agency, recipients or subrecipients, and commercial (profit- making) and non-profit organizations. With the exception of a few justified sole-source situations, contracts are awarded via competitive processes to procure a good or service.
A vehicle for the procurement of property or services (e.g., drug development, R&D services, evaluation, training, etc.) with specific obligations for both sponsor and recipient. The terms of a contract are more restrictive than a grant and there is less flexibility.