GEOList Summary: Working with Outside Evaluators

Our foundation has a relationship with an outside evaluation firm that is also a nonprofit organization. They have a contract with us to oversee the long- term, macro-level evaluation of one of our grant initiatives. We are considering whether or not to make a grant for these evaluation services instead of entering into a contract. We are wondering how other foundations handle paying for evaluation services. The contract is in excess of $150,000 annually, so it would be a significant grant. Has anyone had experience with grant v.s contract? Are there pros /con of one over the other? Are there any special considerations we need to address if we go with a grant instead of a contract?