[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR31.205-15]



[Page 616-617]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 1--FEDERAL ACQUISITION REGULATION

 

PART 31_CONTRACT COST PRINCIPLES AND PROCEDURES--Table of Contents

 

          Subpart 31.2_Contracts With Commercial Organizations

 

Sec. 31.205-15  Fines, penalties, and mischarging costs.



    (a) Costs of fines and penalties resulting from violations of, or 

failure of the contractor to comply with, Federal, State, local, or 

foreign laws and regulations, are unallowable except when incurred as a 

result of compliance with specific terms and conditions of the contract 

or written instructions from the contracting officer.

    (b) Costs incurred in connection with, or related to, the 

mischarging of costs



[[Page 617]]



on Government contracts are unallowable when the costs are caused by, or 

result from, alteration or destruction of records, or other false or 

improper charging or recording of costs. Such costs include those 

incurred to measure or otherwise determine the magnitude of the improper 

charging, and costs incurred to remedy or correct the mischarging, such 

as costs to rescreen and reconstruct records.



[51 FR 12301, Apr. 9, 1986, as amended at 54 FR 13024, Mar. 29, 1989; 55 

FR 52793, Dec. 21, 1990]