---
kind: "section"
citation: "2 C.F.R. § 1600.220"
title: "2"
number: "1600.220"
heading: "What contracts and subcontracts are covered transactions?"
url: "https://uscodex.org/cfr/2/1600.220"
---

# §1600.220. What contracts and subcontracts are covered transactions?


First-tier procurements (i.e., primary contracts) under a covered nonprocurement transaction are covered transactions. Although the OMB guidance at [2 CFR 180.220(c)](/cfr/2/180.220.md?p=c) allows a Federal agency to do so (see also optional lower tier coverage in the figure in the appendix to [2 CFR part 180](/cfr/2/part180.md)), DFC does not extend coverage of nonprocurement suspension and debarment requirements beyond first-tier procurement under a covered nonprocurement transaction. Moreover, for purposes of determining whether a procurement contract is included as a covered transaction, the threshold in [2 CFR 180.220(b)](/cfr/2/180.220.md?p=b) is increased from $25,000 to the “simplified acquisition threshold” as defined in [48 CFR 2.101](/cfr/48/2.101.md).


## Notes

### Authority

Authority: Sec. 2455, Pub. L. 103-355, 108 Stat. 3327 (31 U.S.C. 6101 note); E.O. 12549, 51 FR 6370, 3 CFR, 1986 Comp., p. 189; E.O. 12689, 54 FR 34131, 3 CFR, 1989 Comp., p. 235.

### Source

Source: 89 FR 34953, May 1, 2024, unless otherwise noted.