### Question
Can you define what covered contract means?


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

> 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**

