Business Grants And Loans: Federal Grants

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Federal Grants & Contracts

A review of the federal grants objectives and use restrictions sections of a particular agencies description can point out which programs might provide funding for an idea.

Do not overlook the federal grants related programs as potential resources. The applicant and the grantor agency should have the same interests, intentions, and needs if a proposal is to be considered acceptable for funding.

Our online Federal Grants and Funding Directory outlines the specific details surrounding the application process to the federal government. Some of the potential items to look into are as follows...

Unsolicited proposals are initiated by an organization and sent to a specific federal agency for consideration. This might be designated "submission on speculation" unless your network has learned that the federal agency is looking for projects along the line of the one you have proposed. Unsolicited proposals should be submitted as soon as possible after July 1, or in early June, just before the end of the government's fiscal year..

Request for Proposals (RFP). Can be seen advertised in your news papers business daily section. In some cases, the advertisement lists the qualifications desired in the bidders and asks for statements of qualifications of those wishing to be placed on the bidder's list to receive the RFP. Usually, the agency maintains the bidder's list, requesting annual updates of the information, and also sends subsequent RFPs to the bidders. Bidders do not necessarily submit proposals in response to all RFPs they receive..

Sole-Source Contracts. Occasionally, a federal agency wants to award a contract to a particular contractor, despite government regulations that require work to be made available on a competitive basis to the lowest bidder. This is where the "sole-source" designation comes in. This practice is disappearing because some of the federal agencies that used this procurement technique have been frequently accused of favoritism. To get around this charge, some agencies will advertise an RFP in the business daily, even though they have already determined whom they will award the contract..

Purchase of service contract is a cost sharing type of procurement in which the private agency provides 25 percent of the cost, while the federal grants funds provide 75 percent..

Purchase Orders - Most federal grants agencies are allowed to purchase services from a private source, up to a limit of $2,500.00 by issuing a simple purchase order. These do not require the usual review process accorded a grant or contract.


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