In some cases, grantees or sponsors will have negotiated a Special Indirect Rate with a particular federal agency
for a particular segment of its work and activities. Sometimes a single indirect rate cannot adequately take into account factors
that may substantially affect indirect costs applicable to particular segments or types of work.
In this case, a Special Indirect Rate can be used for the segment or type of work for which the single indirect rate is not appropriate.
Special Indirect Rates are negotiated with the federal agency that is the largest source of an organization’s funds.
The organization with an approved Special Indirect Rate will have documentation detailing the application of this rate to its indirect costs.