This is because to be eligible for a grant, you need to be certified to comply with the federal rules. In most cases, this is done by the university getting the

This is because to be eligible for a grant, you need to be certified to comply with the federal rules. In most cases, this is done by the university getting the grant, but there are companies that will do this for you for a fee, and even examples where independent researchers have started an "institute" that has been certified. The advantage of the latter alternatives is of course that the administrative overhead is a small fraction of what a large research university charges.