Understand the Legal Obligations for Grant or Contract
Funds
The legal obligations that are imposed on a recipient of grant
as opposed to contract funds are very different, as is the mechanism
by which the obligations are made part of the agreement. In practical
terms, the difference between grants and contracts is this: the
bulk of the government’s requirements for accepting
grant funds are obliquely incorporated by reference into the award instrument
and attach on withdrawal of funds. Contract conditions, on the other hand, are
explicitly—if at times confusingly—set out in the document
the client executes.
If a client accepts a subgrant (called a “subaward”) or a subcontract,
particularly if it is its first, it is very important to explain what the client
is agreeing to, because the consequences of noncompliance can have lasting and
costly effects. The failure to comply with the terms and conditions of funding
can result in more stringent monitoring of your client’s
activities, the loss of funding, debarment (which results in a
bar to receiving any federal funds), and even criminal charges.
More information about the book Biotechnology
and the Law
|
Excerpted from Biotechnology
and the Law
Edited by Robert Copple, Eileen Smith Ewing, Erika King Lietzan, and Hugh B.
Wellons
“Federal Regulation of Research through Funding” by Melissa Ince
and Jenny Kim
ABA Section of Science and Technology |
|
