Fines and penalties include all costs incurred as the result of violations of, or failure to comply with, federal, State, and local laws and regulations. Fines and penalties are unallowable costs unless incurred as a direct result of compliance with specific provisions of the contract.

Authority: State Finance and Procurement Article, §§12-101 and 13-213, Annotated Code of Maryland

Effective date: July 1, 1981 (8:13 Md. R. II-5)

Regulations .01, .02, .14C, .18, and .23 amended effective January 9, 1989 (15:27 Md. R. 3138)