Cooperative Agreement Features
A cooperation agreement can be a highly specialized research award, in which federal staff are one of the few experts in this field. In this case, the award can be defined as a „cooperation agreement”, given that federal staff and the non-federal recipient conduct the research in one way or another. The main difference between a purchase contract and a cooperation agreement is that a cooperation agreement grants money to another institution to fulfill a public purpose with the participation of the Confederation. In a purchase contract, the federal government purchases a product or service from another company. On Grants.gov, of course, we have public subsidies, but you will also find many „cooperation agreements” if you are looking for means of financing. This is because cooperation agreements and subsidies are very similar, but with a big difference. Cooperation agreements differ from traditional purchase agreements and are therefore not subject to the Federal Procurement Regulation (FAR). Like other transaction authorities, this approach gives agencies greater freedom to design the terms of an agreement around new or innovative efforts. For example, the FDA uses this freedom to promote food safety with states by funding the implementation of food safety rules. As the federal contracting landscape becomes increasingly complex, cooperation agreements are an opportunity for some contractors to focus on a leaner federal funding mechanism.
If you are interested in more detailed information about grants and cooperation agreements, here you will find some other resources: (1 MB) Infographic: What is a cooperation agreement? 4. Yes – The participation proposed by USAID is considered an essential participation and, therefore, the appropriate implementation instrument is a cooperation agreement. A cooperation agreement is a legal agreement between the federal government and any other institution. A cooperation agreement is concluded when the Confederation pays a land government, municipality or private company a value, usually money, for public purposes. In a cooperation agreement, important interactions continue between the federal government and the other party. Important conclusions 1. Grants and cooperation agreements are very similar. 2. The differences lie in the details of implementation (i.e.: Cooperation agreements are concluded with „substantial participation” of the federal authority”.. .