FAR 9.702—Contracting with pools.
Plain-English Summary
FAR 9.702 explains how contracting officers must handle offers and awards involving a "pool"—that is, a group of firms acting together as a single prospective or actual contractor. This section covers five main topics: the general rule that a pool is treated like any other contractor unless a specific exception applies; the requirement that the offer be submitted in the pool’s own name or by a member expressly acting for the pool; the duty to verify the pool’s approved status with the SBA District Office Director or other approving agency and document that verification in the contract file; the rule that SBA-approved pools receive the small business preferences and privileges under the Small Business Act, while Defense Production Act approval does not create those benefits; and the special documentation required before awarding to an unincorporated pool, including certified powers of attorney from each participating member and filing those documents with the contract. In practice, this section is meant to prevent unauthorized awards, confirm that a pool is properly approved, and ensure the Government has clear evidence of who can bind the pool and its members. It is especially important in set-aside and small business contexts, where eligibility and authority issues can affect award validity and protest risk.
Key Rules
Treat pools like contractors
A pool is generally treated the same as any other prospective or actual contractor unless a specific rule in this subpart says otherwise. This means the normal FAR rules apply unless the pool status changes how authority, eligibility, or documentation must be handled.
Offer must clearly come from the pool
The contracting officer may not award to a pool unless the offer is submitted in the pool’s own name or by an individual member who expressly states the offer is made on behalf of the pool. This prevents ambiguity about who is actually making the offer and who will be bound by the contract.
Verify approved pool status
When an offer is received from a group claiming to be a pool, the contracting officer must confirm the pool’s approved status with the SBA District Office Director or other approving agency. The file must show that this verification was made, creating a record that the pool was properly authorized.
SBA approval carries preferences
Pools approved by SBA under the Small Business Act are entitled to the preferences and privileges given to small business concerns. Approval under the Defense Production Act does not automatically provide those small business benefits.
Require powers of attorney for unincorporated pools
Before awarding to an unincorporated pool, the contracting officer must obtain a certified copy of a power of attorney from each participating member identifying the agent authorized to sign for that member. Copies of those powers of attorney must be attached to each signed copy of the contract kept by the Government.
Responsibilities
Contracting Officer
Ensure the pool is treated under the general FAR rule unless an exception applies; confirm the offer is submitted in the proper name or with express authority; verify approved pool status with the SBA District Office Director or other approving agency; document the verification in the contract file; determine whether SBA approval, not merely Defense Production Act approval, supports small business preferences; and obtain and file certified powers of attorney before awarding to an unincorporated pool.
Pool
Submit the offer in the pool’s own name or through a member expressly acting on the pool’s behalf; maintain approved status where required; and, if unincorporated, ensure each participating member provides the required authority documentation so the Government can confirm who may bind the pool.
Individual Pool Member
If submitting the offer on behalf of the pool, expressly state that the offer is made for the pool; and, for unincorporated pools, furnish a certified power of attorney identifying the agent authorized to sign the offer or contract on that member’s behalf.
SBA District Office Director or Other Approving Agency
Confirm or provide the approved status of the pool when the contracting officer seeks verification, so the contracting officer can document that the pool is properly approved.
Practical Implications
Contracting officers should not assume a group calling itself a pool is eligible or properly authorized; they must verify approval and authority before award.
A common pitfall is accepting an offer from a member without clear language that the member is acting on behalf of the pool; that can create questions about offer validity and contract enforceability.
Another frequent mistake is treating Defense Production Act approval as if it automatically gives small business preferences; FAR 9.702 says only SBA approval under the Small Business Act carries those benefits.
For unincorporated pools, missing or incomplete powers of attorney are a major risk because the Government needs proof that each member’s agent can bind that member.
The contract file should clearly show verification of pool status and the required authority documents, because missing documentation can create audit, protest, and award administration problems.
Official Regulatory Text
(a) Except as specified in this subpart, a pool shall be treated the same as any other prospective or actual contractor. (b) The contracting officer shall not award a contract to a pool unless the offer leading to the contract is submitted by the pool in its own name or by an individual pool member expressly stating that the offer is on behalf of the pool. (c) Upon receipt of an offer submitted by a group representing that it is a pool, the contracting officer shall verify its approved status with the SBA District Office Director or other approving agency and document the contract file that the verification was made. (d) Pools approved by the SBA under the Small Business Act are entitled to the preferences and privileges accorded to small business concerns. Approval under the Defense Production Act does not confer these preferences and privileges. (e) Before awarding a contract to an unincorporated pool, the contracting officer shall require each pool member participating in the contract to furnish a certified copy of a power of attorney identifying the agent authorized to sign the offer or contract on that member’s behalf. The contracting officer shall attach a copy of each power of attorney to each signed copy of the contract retained by the Government.