Faculty & Staff

Funding Mechanisms

Columbia University’s international projects are funded by entities that use several funding mechanisms or instruments.

• Grants: A grant supports an activity in which the investigator and the University are the primary beneficiaries. The granting agency plays no active role managing or directing the project, and the investigator and institution have considerable discretionary powers with respect to both scientific direction and budgetary flexibility. This funding mechanism is the one most commonly used by agencies that fund biomedical research.
• Cooperative Agreements: The U.S. government (USG) sometimes awards funding in the form of a cooperative agreement, which is similar to a grant except that the degree of involvement by the awarding agency is greater. It is frequently used for government-sponsored, multi-center, clinical trials or for research areas where the government has funded multiple grants that require cooperative effort either to achieve programmatic goals or to avoid duplication. Administrative rules governing cooperative agreements are similar to those governing grants. However, program officials monitor progress more closely; can strongly suggest research direction; mandate interinstitutional cooperation; and/or adjust funding depending upon progress or programmatic needs. Currently, only the U.S. government uses this funding mechanism.
• Contracts: A contract is a legal document that specifies a task (or tasks) to be performed in conformance with the requirements set forth by the contractor or awarding agency. The investigator or contractee is required by law to fulfill the terms of the contract and is afforded no flexibility. Changes in scope, direction, or budget require the written approval of the contractor. (For USG agencies, approval is obtained from the Contracting Officer. This individual is usually different from the Project Officer who oversees the scientific conduct of the work.) The majority of contracts given to Columbia University Medical Center are for research and are “cost reimbursement” contracts. In this type of contract, the University and investigator are required to put forth their best efforts to meet the terms of the agreement. However, they are not required to complete the work if costs exceed the contracted amount. In a “fixed price” contract, the project must be completed even if part of the costs must be assumed by the investigator and the University.
• Fee-for-Service Contracts: A fee-for-service contract is an agreement that is similar to a service grant in that it is awarded to perform work in which there is limited intellectual or programmatic involvement. Examples are performing laboratory tests or hiring a firm to conduct interviews. A good rule of thumb in deciding if an agreement is a fee-for-service or research (sub)contract is to consider whether the individual performing the work would be named as an author on a paper resulting from the research.
• Subgrants and Subcontracts: A subgrant or subcontract is an award received by the University through a lead organization that has received an award from a funding agency. Known collectively as subawards, they describe the relationship that exists between the primary contractee or grantee and a secondary investigator and institution on a project. A subaward is used when substantive programmatic work and intellectual input will be provided by a secondary or cooperating institution. The structure of a subaward is similar to that of an award in the form of a grant or contract, except that the relationship is between the primary and secondary institutions and not between the primary institution and the awarding agency. In general, any restrictions or conditions applicable to the primary institution are “passed along” via the subgrant or subcontract to the secondary institution. Additional restrictions or conditions can also be imposed.

In this manual, the generic term “grants and contracts” refers to all the above types of funding mechanisms. In addition, the generic term “funding agencies” is used for all entities that fund or sponsor projects.

For information on subgrants and subcontracts that the University awards to a secondary investigator or institution, see Subaward Management.

Types of Application

Applications for grants and contracts can differ depending upon whether they are proposals for new funding, competing continuations of awards (or renewals), or non-competitive proposals. In all cases, specific University approvals are required prior to submission of an application for funding (see Institutional Review and Approval for new submissions and Award Amendments for amendments).