Some of the major administrative factors that will require attention by small colleges and universities as they develop policy and general procedures for the administration of research, grants, and contracts are considered. Management of research, grants, and contracts is a process that involves the review and approval of proposals; project coordination; the implementation matters of facilities and equipment, personnel, and overhead; and matters related to the monitoring and evaluation of contract obligations. Sponsored research includes all forms of organized inquiry that are separately budgeted with the financial accounting system of the institution. Faculty research grants are awards usually made and/or administered by an institution's research committee, and the intent is to serve as a stimulus for the development of a sponsored research proposal. Three prevalent forms of administrative organization for research, grants, and contracts are: separate foundation or corporation, decentralization, and centralized services. A list of suggested activities for an office of sponsored programs, and a list of matters that could be addressed in policy statements to guide research, grants, and contracts activities are presented. A checklist to aid in the preparation and planning of management process for grants/contracts administration is included, along with a list of factors to be considered in the review of proposals and/or for guidance in the negotiation of agreements. (SW)