### Question
What is the definition of covered contract?


### Answer
The definition of **covered contract** is as follows in *10 U.S.C. § 3741*:

> 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 products or commercial services

#### Citation:
  - *10 U.S.C. § 3741*
  - Heading: **Subtitle A-General Military Law > PART V-ACQUISITION > Subpart D-General Contracting Requirements > CHAPTER 273-ALLOWABLE COSTS > SUBCHAPTER I-GENERAL**

