### Question
What does covered contract mean?


### Answer
**Covered contract** has the following meaning in *41 U.S.C. § 4301*:

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

#### Citation:
  - *41 U.S.C. § 4301*
  - Heading: **Subtitle I-Federal Procurement Policy > Division C-Procurement > CHAPTER 43-ALLOWABLE COSTS**

