Types of Award

The university received external funding through various types of awards and award instruments. Each award type defines and outlines the specific intent of the funder and the nature of the relationship with the recipient. The type of award determines the role of the parties and the expected outcome of the project.

Award Instruments

Grants: A grant is a financial award for a specific purpose, such as research or program development, where the sponsor's involvement is minimal. The recipient has a high degree of autonomy in carrying out the work and is given flexibility to adapt to project conditions.
- Competitive grants: Awarded based on the merits of a submitted proposal after a peer-review process.
- Formula grants: Distributed to predetermined recipients based on a formula, such as population or need. They are not awarded competitively.
- Continuation/renewal grants: Extend or renew existing funding for a successful project for additional budget periods.
- Challenge grants: Provide funds in response to money raised from other sources, often with a set matching formula and a financial cap.
Cooperative agreements: A cooperative agreement is a funding mechanism from a federal agency that is similar to a grant, but indicates a more collaborative relationship than with a grant, with the sponsor having substantial staff involvement during the project's execution
Contracts: A contract is a legally binding agreement in which the sponsor procures a specific service or product for its own benefit. The sponsor is actively involved, monitors the project's progress closely, and specifies the terms and deliverables.
Fixed-price contract: A fixed price contract (also known as firm-fixed price, firm-price or fee-for-service contract) commits the sponsor to pay a firm price for the agreed-upon work leading to a specified deliverable, regardless of the ultimate cost to complete the project. This poses a higher risk to the university as the proposed and awarded dollar amount for the service or research activity is fixed no matter whether the activity requires fewer or additional resources once the project begins. Fixed price subrecipient agreements must be pre-approved and cannot exceed $150,000. Fixed Price agreements are typically used in more service-related work. It is important that fixed price agreements have a detailed deliverable schedule with payments tied to multiple milestones and/or checkpoints. Sponsor pays the agreed price based on milestones and deliverables, not expenses, prescribed in the agreement. Invoicing may be required, but financial reporting is not.
Cost-reimbursable contract: A cost reimbursable contract commits the sponsor to reimburse the university’s actual allowable costs incurred in carrying out project activities. A cost reimbursable agreement requires a very detailed scope of work with an estimate of total costs for obligated funds and a ceiling for the recipient not to exceed without sponsor approval. The SOW and budget justification ensure ease of monitoring throughout the invoice approval process. Cost reimbursable awards are relatively low risk to the university since payment is not tied to deliverables and the university can recoup incurred costs throughout the project. Typically, Grants and Contracts Accounting Services (GCAS) must invoice the sponsor monthly or quarterly for costs incurred. A final financial report is required at award closeout.
Fee-for-service contract: Fee-for-service contract commits the sponsor to provide funds to the university in exchange for a good or service, which is available in a competitive market under normal business operations. A service provider contract is an agreement that clearly states the provisions and conditions of the work to be performed, or services provided by the university. A service provider contract may result from a Request for Proposal and will include a statement of work. It may contain provisions for progress reporting related to the schedule or the content of the work.

Other award instruments

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A Letter of Credit Award is an award mechanism from one of our major sponsors (i.e. NIH, NSF, Dept. of Education) which has a guarantee that the university will receive full reimbursement provided certain delivery conditions are met such as technical and financial reports. This type of award resembles a cost reimbursable award but has a guarantee of payment by a bank or third-party payment management entity. This is a mechanism used by a prime sponsor (often federal) to the university. This is not typically passed down by the university to its subrecipients.

Unlike grants or contracts, gifts are flexible, irrevocable awards with generally few or no contractual requirements. They are often used to support specific programs or for general use. Some gift awards or grant may have requirements, such as sponsor expectations, that would qualify as sponsored projects as defined in GW’s Categorization of External Funding Policy.

Funds are given to an individual for a specified purpose, such as research or professional development. These include external fellowships and Office of Graduate Student Assistantships and Fellowships (OGSAF) administered fellowships available to GW graduate students.

Used for short-term engagements where an independent contractor provides expert advice or services. In accordance with the GW Faculty Handbook, Faculty may provide these services in agreements where the university is the contracting party and under which faculty are obligated to provide specified services or “deliverables” that do not fall squarely within the traditional framework of research or teaching activities. If they have research or scholarly benefits, those are secondary to the primary purpose of the project activity. The terms “service agreement” or “consulting agreement” are intended to be descriptive; such agreements could have many different labels or titles.

The Office of the Vice Provost for Research (OVPR) sponsors various intramural funding competitions and incentive programs to support and encourage research and scholarship.

A Program Income Award refers to earned income that is directly generated by a sponsored activity or earned as a result of a cost sharing award. The university requires principal investigators to identify and document program income on projects from both federal and non-federal sponsors to be managed in line with the Managing Program Income Generated on Sponsored Projects Policy.

Some sponsors require a recipient to contribute their own resources to a project, either through cash or in-kind contributions (e.g., equipment, staff time).

Cooperative agreements: A cooperative agreement is a funding mechanism from a federal agency that is similar to a grant, but indicates a more collaborative relationship than with a grant, with the sponsor having substantial staff involvement during the project's execution
Fixed Price: Fixed price (also known as firm-fixed price, firm-price or fee-for-service contract) is an agreement where the contractor pays a firm price for the agreed-upon work, regardless of the ultimate cost to complete the project. The level of financial risk for the university is higher than that of a cost reimbursable contract because payments are typically received upon receipt of deliverables. Fixed price subrecipient agreements must be pre-approved and cannot exceed $150,000. Fixed Price agreements are typically used in more service-related work. It is important that fixed price agreements have a detailed deliverable schedule with payments tied to multiple milestones and/or checkpoints.
Cost Reimbursable: Cost reimbursable agreements provide for payment of allowable incurred costs, to the extent these costs are prescribed in the contract. These agreements establish an estimate of total costs for obligating funds and establishing a ceiling that the subrecipient may not exceed (except at its own risk) without the approval of the contracting officer. A Cost reimbursable agreement should have a very detailed scope of work and budget justification to ensure ease of monitoring throughout the invoice approval process.

Frequently Asked Questions

Who determines the type of award?: Sponsor provide the award type in NOFO.

Support

For research support team (RST) contact information, click here.
Office of Sponsored Project Teams