FAR and DFARS › FAR Part 31: Contract Cost Principles and Procedures › Subpart 31.2
FAR 31.205-15 Fines, penalties, and mischarging costs.
The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.
In plain English
This section makes fines and penalties from legal violations generally unallowable, unless they result from following the contract's specific terms or written instructions from the contracting officer. It also makes costs related to mischarging on Government contracts unallowable, including costs to measure or correct the mischarging. Contractors cannot bill these costs to the Government.
Applies to: Government contractors seeking reimbursement of costs under a contract
Key terms: fines · penalties · mischarging · unallowable · contracting officer
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
(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.
Sections that refer to it
- 252.222-7002 Compliance with local labor laws (overseas).
← 31.205-14 Entertainment costs. · 31.205-16 Gains and losses on disposition or impairment of depreciable property or other capital assets. →
Rule changes for FAR Part 31
- Federal Acquisition Regulation; Technical Amendments ↗ · final rule 2024-04-22 · effective 2024-05-22
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.