What is the difference between a government contract and a government grant?

Government contracts and government grants are both ways that the government provides funds for projects or purchases, but there are some key differences between the two. A government contract is an agreement between the government and another organization, company, or individual for work, a product, or service. In exchange for the contracted services, the government pays a predetermined price. Generally, these contracts are for services that need to be done in order to fulfill a specified government purpose. On the other hand, a government grant is a form of financial assistance awarded to an organization, company, or individual. This type of funding is often given to organizations that serve the public interest, such as those that do research, provide services, or promote economic development. Unlike a government contract, the grantee does not have to provide services or products in exchange for the money, and the grantee does not need to repay the grant. In California, government contracts are subject to certain laws, such as the California Public Contract Code, while the Department of General Services has authority over government grants. While both contracts and grants are issued by the government, they are not the same and the difference between them must be taken into account when entering into agreements with the government.

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What is the difference between a government contract and a government grant?

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