Regulations last checked for updates: Feb 11, 2026

Title 48 - Federal Acquisition Regulations System last revised: Jan 28, 2026
31.205-3 - 31.205-3 Bad debts.

Bad debts, including actual or estimated losses arising from uncollectible accounts receivable due from customers and other claims, and any directly associated costs such as collection costs, and legal costs are unallowable.

authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113.
source: 48 FR 42301, Sept. 19, 1983, unless otherwise noted.
cite as: 48 CFR 31.205-3