---
kind: "section"
citation: "2 C.F.R. § 180.220"
title: "2"
number: "180.220"
heading: "Are any procurement contracts included as covered transactions?"
url: "https://uscodex.org/cfr/2/180.220"
---

# §180.220. Are any procurement contracts included as covered transactions?

- (a) **Covered transactions under this part—**
  - (1) Do not include any procurement contracts awarded directly by a Federal agency; but
  - (2) **Do include some procurement contracts awarded under nonprocurement covered transactions.**
- (b) Specifically, a contract for goods or services is a covered transaction if any of the following applies:
  - (1) The contract is awarded by a participant in a nonprocurement transaction covered under [§ 180.210](/cfr/2/180.210.md), and the contract amount is expected to equal or exceed $25,000.
  - (2) **The contract requires the consent of an official of a Federal agency.** In that case, the contract is always a covered transaction regardless of the amount or who awarded it. For example, it could be a subcontract awarded by a contractor at a tier below a nonprocurement transaction, as shown in the Appendix to this part.
  - (3) **The contract is for Federally required audit services.**
- (c) **A subcontract also is a covered transaction if—**
  - (1) It is awarded by a participant in a procurement transaction under a nonprocurement transaction of a Federal agency that extends the coverage of [paragraph (b)(1)](#b-1) of this section to additional tiers of contracts (see the diagram in the Appendix to this part showing that optional lower tier coverage); and
  - (2) **The value of the subcontract is expected to equal or exceed $25,000.**

## Notes

### Authority

Authority: 31 U.S.C. 503; 31 U.S.C. 6102; 31 U.S.C. 6307; Pub. L. 103-355; Pub. L. 109-282; Pub. L. 110-252; Pub. L. 111-84; Pub. L. 113-101Pub. L. 115-232; Pub. L. 117-40; E.O. 12549; E.O. 12689.

### Source

Source: 89 FR 30115, Apr. 22, 2024, unless otherwise noted.