Agriculture Forest Service Awards $30.7M for Fire Retardant in FY20

Contract Overview

Contract Amount: $30,718,887 ($30.7M)

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: $84.2K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FAM RETARDANT - ADDITIONAL TASK ORDER FOR FY20.

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $30.7 million to PERIMETER SOLUTIONS LP for work described as: FAM RETARDANT - ADDITIONAL TASK ORDER FOR FY20. Key points: 1. Significant award for critical wildfire suppression resource. 2. Sole-source award raises questions about price discovery. 3. Potential for higher costs due to lack of competition. 4. Focus on essential service delivery for public safety.

Value Assessment

Rating: questionable

The award of $30.7M for fire retardant is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates for similar products or services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was considered. This limits price discovery and may lead to less favorable pricing for the government.

Taxpayer Impact: The lack of competition could result in taxpayers paying more than necessary for this essential service.

Public Impact

Ensures availability of critical fire suppression resources during wildfire season. Supports efforts to protect lives, property, and natural resources from wildfires. Impacts communities and ecosystems vulnerable to fire damage.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpayment

Positive Signals

Essential service
Timely delivery

Sector Analysis

This contract falls within the 'Other' sector, specifically related to emergency response and public safety. Spending on wildfire suppression resources is critical, especially in regions prone to fires.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award, suggesting a missed opportunity for small business participation.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the government obtained fair value and that competition was appropriately waived.

Related Government Programs

Support Activities for Forestry
Department of Agriculture Contracting
Forest Service Programs

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing.
Lack of transparency in price negotiation.
Missed opportunity for small business engagement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $30.7 million to PERIMETER SOLUTIONS LP. FAM RETARDANT - ADDITIONAL TASK ORDER FOR FY20.

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 $30.7 million.

What is the period of performance?

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

What is the justification for the sole-source award, and was a market research conducted to confirm no other viable sources existed?

The justification for a sole-source award is crucial for understanding why competitive procedures were not utilized. Agencies typically conduct market research to determine if a sole source is truly the only viable option. Without this information, it's difficult to assess if the government adequately explored alternatives and obtained the best possible value.

How does the unit cost of this fire retardant compare to historically awarded contracts or publicly available pricing for similar products?

Benchmarking the unit cost is essential for evaluating value. If this contract's pricing is significantly higher than previous awards or market rates, it suggests potential overpayment due to the lack of competition. A detailed cost analysis against comparable contracts would reveal if taxpayers are receiving a fair deal.

What are the performance metrics and oversight mechanisms in place to ensure the effectiveness and timely delivery of the fire retardant?

Effective oversight is vital, especially for sole-source contracts. Clear performance metrics and robust monitoring are needed to ensure the contractor meets delivery schedules and quality standards. This helps mitigate risks associated with limited competition and ensures the critical resource is available when needed.

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: $30,718,887

Exercised Options: $30,718,887

Current Obligation: $30,718,887

Actual Outlays: $30,718,887

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 12024B18D9025

IDV Type: IDC

Timeline