### Question
How is the term covered contract defined?


### Answer
The term **covered contract** is defined in *41 U.S.C. § 256* as the following:

> a contract for an amount in excess of $500,000 that is entered into by an executive agency, except that such term does not include a fixed-price contract without cost incentives or any firm, fixed price contract for the purchase of commercial items

#### Citation:
  - *41 U.S.C. § 256*
  - Heading: **CHAPTER 4-PROCUREMENT PROCEDURES > SUBCHAPTER IV-PROCUREMENT PROVISIONS**

