Forest Service awards $42.5M for fire retardant services, raising concerns over lack of competition

Contract Overview

Contract Amount: $42,482,909 ($42.5M)

Contractor: Perimeter Solutions LP

Awarding Agency: Department of Agriculture

Start Date: 2020-01-01

End Date: 2020-12-31

Contract Duration: 365 days

Daily Burn Rate: $116.4K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FAM RETARDANT - FULL SERVICE, IQ-NOCOMMIT

Place of Performance

Location: RANCHO CUCAMONGA, SAN BERNARDINO County, CALIFORNIA, 91730

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $42.5 million to PERIMETER SOLUTIONS LP for work described as: FAM RETARDANT - FULL SERVICE, IQ-NOCOMMIT Key points: 1. Significant contract value of $42.5 million for essential fire suppression resources. 2. Sole-source award limits competitive pricing and potentially increases costs. 3. Lack of competition raises questions about value for taxpayer money. 4. Focus on critical wildfire response highlights sector importance.

Value Assessment

Rating: questionable

The contract value of $42.5 million for fire retardant services is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts for retardant supply and delivery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning no other vendors were considered. This significantly limits price discovery and may lead to higher costs for the government and taxpayers.

Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may not be receiving the best possible price for these critical fire suppression services.

Public Impact

Ensures availability of critical fire retardant for wildfire suppression efforts. Potential for increased costs due to sole-source award impacts budget allocation. Highlights reliance on specific vendors for essential government services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpayment

Positive Signals

Essential service provided
Supports critical wildfire response

Sector Analysis

The Forest Service's spending on fire suppression is crucial for managing natural resources and protecting communities. This contract falls within the broader category of emergency response and environmental services, where specialized equipment and services are often required.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if opportunities were missed for small business participation in this procurement.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the Forest Service obtained the best value and that the vendor's pricing is justified. Robust justification for the sole-source decision is essential for accountability.

Related Government Programs

Support Activities for Forestry
Department of Agriculture Contracting
Forest Service Programs

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for inflated pricing
Limited vendor options
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $42.5 million to PERIMETER SOLUTIONS LP. FAM RETARDANT - FULL SERVICE, IQ-NOCOMMIT

Who is the contractor on this award?

The obligated recipient is PERIMETER SOLUTIONS LP.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $42.5 million.

What is the period of performance?

Start: 2020-01-01. End: 2020-12-31.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available alternatives. For this fire retardant contract, the Forest Service would need to demonstrate why Perimeter Solutions LP was the only viable option, potentially due to proprietary technology, specific logistical requirements, or a critical, time-sensitive need that precluded a competitive process.

How does the lack of competition impact the overall cost-effectiveness of wildfire suppression efforts?

A sole-source award inherently removes the pressure of competition, which usually drives down prices. This means the Forest Service may be paying a premium for the fire retardant and related services. Over time, this can lead to significant overspending, diverting funds that could be used for other critical wildfire prevention or suppression activities, ultimately reducing the cost-effectiveness of the agency's operations.

What are the risks associated with relying on a single vendor for essential fire retardant services?

Relying on a single vendor creates significant supply chain risk. Any disruption in the vendor's operations, such as production issues, logistical failures, or even financial instability, could directly impact the Forest Service's ability to respond to wildfires. This dependency also limits the agency's leverage in negotiations, potentially leading to less favorable terms and higher prices in the long run.

Industry Classification

NAICS: Agriculture, Forestry, Fishing and Hunting › Support Activities for Forestry › Support Activities for Forestry

Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCE CONSERVERVAT SVCS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 12024B18R9006

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3737 MARSHALL AVE, SAINT LOUIS, MO, 63119

Business Categories: Category Business, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations

Financial Breakdown

Contract Ceiling: $42,482,909

Exercised Options: $42,482,909

Current Obligation: $42,482,909

Actual Outlays: $42,482,309

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 12024B18D9025

IDV Type: IDC

Timeline