the united states department of health and human services (hhs) acts as the most extensive grant funding agency in the country. while several grants are delivered to non-government agencies, the majority of hhs federal grants are administered to states, territories, and tribes. beneficiaries of federal funds are prohibited from lobbying government officials for legislative influence or additional funding. hhs and the national institutes of health, are accountable to congress for conducting research that is amenable to both federal and state regulatory policies and a cost-effective budget. hhs uses grants to finance and encourage government research interests. additionally, hhs routinely sets fixed price and cost reimbursement contracts with private companies in order to obtain products and services for government operations. hhs aims to issue these contracts with adherence to federal contract laws, hhs acquisition policies, and local operating procedures.