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48 CFR · Federal Acquisition Regulation and Defense supplement

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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.

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55 sections with “penal amount”: the first 40

  • FAR 28.102-2 Amount required.
    …cer determines that a lesser amount is adequate for the protection of the Government, the penal amount of performance bonds must equal— (i) 100 percent of the original contract price; and (ii) If the contract price increases, an additiona…
  • FAR 32.907 Interest penalties.
    (a) Late payment. The designated payment office will pay an interest penalty automatically, without request from the contractor, when all of the following conditions, if applicable, have been met: (1) The designated billing office received…
  • FAR 52.242-3 Penalties for Unallowable Costs.
    As prescribed in 42.709-7, use the following clause: Penalties for Unallowable Costs (DEC 2022) (a) Definition. Proposal, as used in this clause, means either— (1) A final indirect cost rate proposal submitted by the Contractor after the…
  • FAR 42.709-6 Waiver of the penalty.
    The cognizant contracting officer shall waive the penalties at 42.709-2(a) when— (a) The contractor withdraws the proposal before the Government formally initiates an audit of the proposal and the contractor submits a revised proposal (an …
  • FAR 28.203-1 Acceptability of individual sureties.
    …ed value of unencumbered assets pledged by the individual surety must equal or exceed the penal amount (i.e., face value) of each bond. (3) The individual surety shall execute the SF 28, Affidavit of Individual Surety, and provide a securi…
  • FAR 31.205-41 Taxes.
    …re paid or accrued in accordance with generally accepted accounting principles. Fines and penalties are not considered taxes. (2) Taxes otherwise allowable under subparagraph (a)(1) above, but upon which a claim of illegality or erroneous …
  • FAR 32.904 Determining payment due dates.
    …ctive date of the contract settlement. (B) For the sole purpose of computing an interest penalty that might be due the contractor— (1) Government acceptance is deemed to occur constructively on the 7th day after the contractor delivers su…
  • FAR 42.709-2 General.
    (a) The following penalties apply to contracts covered by this section: (1) If the indirect cost is expressly unallowable under a cost principle in the FAR, or an executive agency supplement to the FAR, that defines the allowability of spe…
  • FAR 52.228-15 Performance and Payment Bonds—Construction.
    …nds to the Contracting Officer as follows: (1) Performance bonds (Standard Form 25). The penal amount of performance bonds at the time of contract award shall be 100 percent of the original contract price. (2) Payment Bonds (Standard Form…
  • FAR 52.229-4 Federal, State, and Local Taxes (State and Local Adjustments).
    …f this contract that the Contractor is required to pay or bear, including any interest or penalty, if the Contractor states in writing that the contract price does not include any contingency for such tax and if liability for such tax, inte…
  • FAR 52.229-6 Taxes—Foreign Fixed-Price Contracts.
    …f this contract that the Contractor is required to pay or bear, including any interest or penalty, if the Contractor states in writing that the contract price does not include any contingency for such tax and if liability for such tax, inte…
  • FAR 52.232-25 Prompt payment.
    …. The Government will take into account untimely notification when computing any interest penalty owed the Contractor. (i) Name and address of the Contractor. (ii) Invoice date and invoice number. (The Contractor should date invoices as c…
  • FAR 52.232-26 Prompt Payment for Fixed-Price Architect-Engineer Contracts.
    …ter receipt, with the reasons why it is not a proper invoice. When computing any interest penalty owed the Contractor, the Government will take into account if the Government notifies the Contractor of an improper invoice in an untimely man…
  • FAR 52.232-27 Prompt Payment for Construction Contracts.
    …ter receipt, with the reasons why it is not a proper invoice. When computing any interest penalty owed the Contractor, the Government will take into account if the Government notifies the Contractor of an improper invoice in an untimely man…
  • FAR 2.101 Definitions.
    …rety is one person, as distinguished from a business entity, who is liable for the entire penal amount of the bond. (2) A corporate surety is licensed under various insurance laws and, under its charter, has legal power to act as surety fo…
  • FAR 15.407-1 Defective certified cost or pricing data.
    … of any overpayment plus interest on the overpayments. The Government is also entitled to penalty amounts on certain of these overpayments. Overpayment occurs only when payment is made for supplies or services accepted by the Government. Ov…
  • FAR 28.001 Definitions.
    …bond given in connection with a contract continues to apply to the contract as modified. Penal sum or penal amount means the amount of money specified in a bond (or a percentage of the bid price in a bid bond) as the maximum payment for wh…
  • FAR 28.202 Acceptability of corporate sureties.
    …as Acceptable Sureties on Federal Bonds and as Acceptable Reinsuring Companies.” (2) The penal amount of the bond should not exceed the surety's underwriting limit stated in the Treasury Department Circular 570. If the penal amount exceeds…
  • FAR 52.228-16 Performance and Payment Bonds—Other Than Construction.
    …vernment may secure the additional protection by directing the Contractor to increase the penal amount of the existing bonds or to obtain additional bonds. (e) The bonds shall be in the form of firm commitment, supported by corporate suret…
  • FAR 28.104 Annual performance bonds.
    …al performance bonds only apply to non-construction contracts. They shall provide a gross penal sum applicable to the total amount of all covered contracts. (b) When the penal sums obligated by contracts are approximately equal to or excee…
  • FAR 28.106-6 Furnishing information.
    … the following: (1) Name and address of the surety or sureties on the payment bond. (2) Penal amount of the payment bond. (3) Copy of the payment bond. The contracting officer may impose reasonable fees to cover the cost of copying and p…
  • FAR 52.203-12 Limitation on Payments to Influence Certain Federal Transactions.
    …ontracting Officer within 30 days an updated disclosure using OMB Standard Form LLL. (e) Penalties. (1) Any person who makes an expenditure prohibited under paragraph (b) of this clause or who fails to file or amend the disclosure to be fi…
  • FAR 3.502-2 Subcontractor kickbacks.
    … contract price charged by a prime contractor to the United States. (b) Imposes criminal penalties on any person who knowingly and willfully engages in the prohibited conduct addressed in paragraph (a) of this section. (c) Provides for th…
  • FAR 22.302 Liquidated damages and overtime pay.
    …thout paying overtime wages required by the statute. In accordance with the Federal Civil Penalties Inflation Adjustment Act of 1990 (28 U.S.C. 2461 Note), the Department of Labor adjusts this civil monetary penalty for inflation no later t…
  • FAR 31.201-6 Accounting for unallowable costs.
    …it verification. (3) For any indirect cost in the selected sample that is subject to the penalty provisions at 42.709, the amount projected to the sampling universe from that sampled cost is also subject to the same penalty provisions. (4…
  • FAR 31.205-47 Costs related to legal and other proceedings.
    …the False Claims Act, 31 U.S.C., sections 3729-3731, or 41 U.S.C. chapter 87, Kickbacks. Penalty does not include restitution, reimbursement, or compensatory damages. Proceeding includes an investigation. (b) Costs incurred in connection…
  • FAR 52.212-3 Offeror Representations and Certifications—Commercial Products and Commercial Services.
    …work or service— (1) Exacted from any person under the age of 18 under the menace of any penalty for its nonperformance and for which the worker does not offer himself voluntarily; or (2) Performed by any person under the age of 18 pursua…
  • FAR 52.222-4 Contract Work Hours and Safety Standards—Overtime Compensation.
    …y Standards statute (found at 40 U.S.C. chapter 37). In accordance with the Federal Civil Penalties Inflation Adjustment Act of 1990 (28 U.S.C. 2461 Note), the Department of Labor adjusts this civil monetary penalty for inflation no later t…
  • FAR 3.704 Policy.
    …fense, then the head of the contracting activity shall consider, in addition to any other penalty prescribed by law or regulation— (1) Declaring void and rescinding contracts, as appropriate, and recovering the amounts expended under the c…
  • FAR 7.503 Policy.
    …private attorney collection services), but not including— (i) Collection of fees, fines, penalties, costs, or other charges from visitors to or patrons of mess halls, post or base exchange concessions, national parks, and similar entities …
  • FAR 13.005 List of laws inapplicable to contracts and subcontracts at or below the simplified acquisition threshold.
    …ragraph (b) of this section do not apply to laws that— (1) Provide for criminal or civil penalties; or (2) Specifically state that notwithstanding the language of 41 U.S.C. 1905, the enactment will be applicable to contracts or subcontrac…
  • FAR 28.101-2 Solicitation provision or contract clause.
    …t shall be at least 20 percent of the bid price but shall not exceed $3 million. When the penal sum is expressed as a percentage, a maximum dollar limitation may be stated.
  • FAR 28.204-1 United States bonds or notes.
    …ositing certain United States bonds or notes in an amount equal at their par value to the penal sum of the bond (the Act of February 24, 1919 (31 U.S.C. 9303) and Treasury Department Circular No. 154 (31 CFR part 225)). In addition, a duly …
  • FAR 28.204-2 Certified or cashiers checks, bank drafts, money orders, or currency.
    …hier's check, bank draft, Post Office money order, or currency, in an amount equal to the penal sum of the bond, instead of furnishing surety or sureties on the bonds. Those furnishing checks, drafts, or money orders shall draw them to the …
  • FAR 28.204-3 Irrevocable letter of credit.
    …furnish a bond secured by an irrevocable letter of credit (ILC) in an amount equal to the penal sum required to be secured (see 28.204). A separate ILC is required for each bond. (b) The ILC shall be irrevocable, require presentation of no…
  • FAR 31.603 Requirements.
    …imilar proceeding (including filing of a false certification). (4) Payments of fines and penalties resulting from violations of, or failure to comply with, Federal, state, local, or foreign laws and regulations, except when incurred as a r…
  • FAR 32.001 Definitions.
    …ontract financing payments for prompt payment purposes (i.e., not subject to the interest penalty provisions of the Prompt Payment Act in accordance with subpart 32.9). A commercial interim payment is given to the contractor after some work…
  • FAR 32.604 Demand for payment.
    …ified in the demand for payment. (3) The basis for and amount of any accrued interest or penalty. (4)(i) For debts resulting from specific contract terms (e.g., debts resulting from incentive clause provisions, Quarterly Limitation on Pay…
  • FAR 32.608-2 Interest credits.
    …at some time during the period to which the interest charge applied, provided an interest penalty was not paid for such late payment. (b) Any appropriate interest credits shall be computed under the following procedures: (1) Interest at t…
  • FAR 32.704 Limitation of cost or funds.
    …Statutes Section 3679 (31 U.S.C. 1341) that may subject the violator to civil or criminal penalties.

FAR (chapter 1)

DFARS (chapter 2, Defense)

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Rule changes in progress: FAR, DFARS. Terms: glossary.