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4.0 Distinction Between a Procurement, Grant and Subgrant

Procurement means obtaining by contract property, supplies, or services (including construction) by or for the District through purchase or lease, whether the supplier or services are already in existence or must be created, developed, demonstrated, or evaluated, and includes the establishment of Agency needs, solicitation of sources, award of contracts, contract financing, contract performance, contract administration and those technical and management functions related to the process of fulfilling Agency needs pursuant to contract.

A grant is the award of financial assistance to a recipient to support or stimulate the accomplishment of a public purpose as defined by the Federal or District law that authorizes the grant.  For purposes of this Sourcebook, a subgrant is the award of grant funds received by the District to a sub-recipient to accomplish the same public purpose. 
In determining whether a procurement or a grant or subgrant is the proper mechanism for a District Agency to award funds to a private organization, Agencies shall apply the following criteria: 

(a) Is there a statute that authorizes the District Agency to support or stimulate the activity of the recipient and authorizes the grant/subgrant?

(b) Is the principal purpose of the relationship the transfer of money, property, services, or anything of value to the subgrantee to accomplish a public purpose of support and stimulation authorized by statute, rather than an acquisition of goods or services for the direct benefit of the District government?  

(c) Does the applicant, not the District, define the specific services, the service levels, and the program approach for carrying out the subgrant?

If the answers to (a), (b) and (c) are “yes,” a grant or subgrant is appropriate.  In all other cases, the “award” shall be deemed a procurement subject to all the requirements applicable thereto.