It is indeed a scam and it's good that you did not fall for it.
Many people fall prey because of the promise of "free money." Some are so desperate for money that they will try anything. Afterall, the premise that government seems to have so much money or the pitch that the government doesn't want you to know that it is giving away free money are very powerful enticement to these people
You may also want to read the warnings FTC has issued against these "grant" companies:
Here is also one of the warnings issued by the Better Business Bureau http://www.concord.bbb.org/tips_timeshar…
Government grants are free. And run away from those who tell you that they can get grants for you -- for a fee.
You can go to the Catalog of Federal Domestic Assistance (CFDA) http://www.cfda.gov
and Grants.gov http://www.grants.gov
- these are two FREE sites created by the federal government to provide transparency and information on grants. Browse through the listings and see if you can find any grant that would support your purposes.