[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR31.205-15]

[Page 595]
 
            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 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]