Literature citations/references are usually done as endnotes in a separate section. If the sponsor asks you to format your citations in a particular style (e.g., APA), then format them that way. Citations do not usually count against page limitations, but if the sponsor's submission guidelines don't say one way or another we will contact them for you and find out.
The University of Virginia Library System maintains resources on citation styles on their Style Manuals webpage.
last revised 2/22/2011; mbl