Overview
FAR 9.701 defines a "pool" as a formal association of business concerns established to jointly seek and execute defense production or research and development (R&D) contracts. To be recognized under this subpart, the group must have a structured governing agreement that has been officially approved by the Small Business Administration (SBA) or a designated official under the Defense Production Act.
Key Rules
- Purpose-Driven Association: The group must be formed specifically for the joint performance of defense production or research and development contracts.
- Formal Governance: The concerns must enter into a written agreement that explicitly dictates their organization, internal relationships, and operational procedures.
- Mandatory Federal Approval: A pool is not legally recognized under this FAR subpart unless the agreement is approved by:
- The SBA (under the Small Business Act); or
- A designated official under Executive Order 10480 and the Defense Production Act of 1950.
- Regulatory Cross-Reference: The definition of "concerns" within the pool is tied to the standards established in FAR 19.001.
Practical Implications
- Enhanced Competitiveness: This provision allows smaller or specialized firms to aggregate their technical and financial resources to compete for large-scale defense and R&D projects that they would otherwise be unable to perform individually.
- Administrative Oversight: Contractors cannot simply self-declare as a pool for defense contracts; they must navigate a formal administrative approval process through the SBA or Executive branch to ensure their joint organization meets federal antitrust and production standards.