Forest Service Obligates $15M for National Retardant in 2024, Sole-Sourced

Contract Overview

Contract Amount: $29,238,055 ($29.2M)

Contractor: Perimeter Solutions LP

Awarding Agency: Department of Agriculture

Start Date: 2024-03-23

End Date: 2024-12-31

Contract Duration: 283 days

Daily Burn Rate: $103.3K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NATIONAL RETARDANT - BULK 2024 INITIAL OBLIGATION - $15M

Place of Performance

Location: BOISE, ADA County, IDAHO, 83705

State: Idaho Government Spending

Plain-Language Summary

Department of Agriculture obligated $29.2 million to PERIMETER SOLUTIONS LP for work described as: NATIONAL RETARDANT - BULK 2024 INITIAL OBLIGATION - $15M Key points: 1. Significant 2024 obligation for essential wildfire suppression resource. 2. Sole-source award to Perimeter Solutions LP raises competition concerns. 3. High potential risk due to reliance on a single supplier for critical material. 4. Chemical manufacturing sector context is important for understanding supply chain.

Value Assessment

Rating: questionable

The initial obligation of $15M for bulk retardant in 2024 is a substantial amount. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts or industry benchmarks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there is no market pressure to offer competitive pricing.

Taxpayer Impact: The lack of competition for a critical resource like fire retardant could result in inflated prices, directly impacting taxpayer funds allocated for wildfire management.

Public Impact

Ensures availability of critical wildfire suppression resources for the upcoming season. Potential for increased costs due to lack of competitive bidding. Impacts the operational readiness of the Forest Service in combating wildfires. Highlights reliance on specific vendors for essential emergency supplies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for price inflation
Critical supply chain item

Positive Signals

Ensures availability of essential resource
Timely obligation for 2024 season

Sector Analysis

The Forest Service's procurement of fire retardant falls within the 'All Other Miscellaneous Chemical Product and Preparation Manufacturing' sector. Spending benchmarks for such specialized chemicals are difficult to ascertain without competitive data, but consistency in supply is paramount.

Small Business Impact

This contract does not appear to involve small businesses, as it is a sole-source award to a specific large supplier. Opportunities for small business participation in the supply chain for fire retardant are not evident in this award.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the price is reasonable and the delivery meets the Forest Service's critical needs. Accountability for performance and cost is essential.

Related Government Programs

All Other Miscellaneous Chemical Product and Preparation Manufacturing
Department of Agriculture Contracting
Forest Service Programs

Risk Flags

Sole-source award limits price competition.
Potential for inflated costs.
Reliance on a single supplier for a critical resource.
Lack of transparency in pricing due to no-bid process.
Limited opportunities for small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $29.2 million to PERIMETER SOLUTIONS LP. NATIONAL RETARDANT - BULK 2024 INITIAL OBLIGATION - $15M

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 $29.2 million.

What is the period of performance?

Start: 2024-03-23. End: 2024-12-31.

What is the justification for the sole-source award of the fire retardant contract?

The justification for a sole-source award typically involves a critical need, lack of available alternatives, or a unique capability held by the sole provider. For fire retardant, this could relate to specific formulations, existing infrastructure, or urgent operational requirements where competition is not feasible within the necessary timeframe.

What are the potential risks associated with a sole-source fire retardant contract?

The primary risks include higher costs due to the absence of competitive pricing, potential supply chain disruptions if the sole provider faces issues, and a lack of innovation or service improvements that competition might drive. Over-reliance on one vendor can create significant vulnerability for critical operations.

How does this sole-source award impact the Forest Service's ability to effectively manage wildfire suppression costs?

A sole-source award inherently limits the Forest Service's ability to leverage competitive market forces to secure the best possible price. This can lead to higher expenditures than might be achieved through a competitive process, potentially diverting funds from other critical suppression or prevention activities.

Industry Classification

NAICS: Manufacturing › Other Chemical Product and Preparation Manufacturing › All Other Miscellaneous Chemical Product and Preparation Manufacturing

Product/Service Code: CHEMICALS AND CHEMICAL PRODUCTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8000 MARYLAND AVE, SAINT LOUIS, MO, 63105

Business Categories: Category Business, Foreign-Owned and U.S.-Incorporated Business, Partnership or Limited Liability Partnership, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $29,238,055

Exercised Options: $29,238,055

Current Obligation: $29,238,055

Actual Outlays: $29,238,055

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SC24T2500

IDV Type: IDC

Timeline