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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.
After a government agency determines a. need, it conducts program management activities. and develops an acquisition strategy. Part of this. strategy involves determining which contract type. will best serve the governmentâs needs. Most government contracts over $150,000. are sent through a competitive bidding process. overseen by a contracting officer. This process. can be conducted through sealed bidding or.