Advice for an Open Source Development Grant?

IgD asks: "My colleagues and I are developing an open source medical records system. A senior supervisor approached us and let us know a third party is offering a decent amount of money in the form of a grant for any legitimate medical research project. We were all but promised the money if we could come up with a proposal. Has anyone in the Slashdot community received a grant for open source software development? Are there any good examples of such a grant available? How could one measure the results of open source development for publication?"