The study examined the application for awards procedure for three institutes. The NIH process for reviewing and awarding extramural grants and contracts is apparently adequate to encourage participation by all responsible segments of the research community and to help ensure that high priority needs of the institutes are addressed. Expertise in the research area of the work proposal and, for contract applicants, association with one of the 20 organizations that received the largest amounts of NIH research funds in the preceding year were the most important predictors of who would receive funding. For other factors -- age, sex, experience on an NIH review panel, prior NIH funding, and type of doctoral degree -- there was less correlation with selection. Young researchers (those 40 and under) were funded at a slightly higher rate for both grants and contracts than those 41 and over. Appended descriptions of the contract and grants review and award processes and methodology for determining characteristics of principal investigators.