What is a contractor defined as in the context of grants management?

In the context of grants management, a contractor is defined as an entity that receives a contract. This role typically involves providing specific services or products as outlined in the contractual agreement. Contractors are distinct from subgrantees or recipients of grants, as they operate under a contractual relationship that stipulates the terms of service delivery, performance outcomes, and compensation.

This definition is essential because it helps clarify the relationship between the entity providing services and the federal or grant-making authority, which seeks to ensure accountability and adherence to regulations. Contractors often hold a distinct legal status, performing as businesses or organizations rather than individuals or non-profit entities that directly seek grants for specific project outcomes. By understanding this distinction, one can better navigate the complexities of federal regulations and grant compliance, ensuring that all parties fulfill their respective responsibilities within the funding framework.