The use of Green Tape’s Government R&D Funding term in the title of this copy includes Contracts, Grants and Other Transaction Agreements (OTAs) as small business R&D is commonly awarded in US Government prime agreement forms.
Green Tape will examine the following major types of agreements in following blogs and how they affect the contracting parties. We recognize there are other types of contracts, but these are the most popular.
- Cost-Reimbursement Contracts, Grants or OTA types)
- Cost-Plus-Fixed-Fee Contracts, Grants or OTA (OTAs can include fee and can be structured with incentive or award fee)
- Time and Materials (T&M) and Labor Hour (LH) Contracts (with a possible “Not to Exceed” clause)
- Fixed-Price Contracts and Grants
If your Company is are pursuing or already has Government Science & Technology (S&T) R&D, you may be asking yourself; “Why should I concern myself with my R&D award type?” Please consider the following as the form of agreement often determines:
- Risk, in all forms (INTERNAL items such as Technical, Schedule, Cost, etc. and EXTERNAL items such as R&D Funding Priorities, Competing technologies, etc.)
- Cost Allocation, requirements for detailed allowable and unallowable distribution
- Profit or Fee, availability by program / agreement form and method of earn-out
- Contractor Program Manager (PM) or Principal Investigator (PI) management and support that will be needed to complete the R&Don time and on schedule Payment terms and requirements