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


### Answer
The term **covered contract** is defined in *10 U.S.C. § 2324* as the following:

> a contract for an amount in excess of $500,000 that is entered into by the head of an 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:
  - *10 U.S.C. § 2324*
  - Heading: **Subtitle A-General Military Law     > PART IV-SERVICE, SUPPLY, AND PROCUREMENT   > CHAPTER 137-PROCUREMENT GENERALLY**

