Forest Service Awards $70.5M for Fire Retardant Services Amidst Limited Competition

Contract Overview

Contract Amount: $70,513,537 ($70.5M)

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: $249.2K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FAM RETARDANT - FULL SERVICE, 2024 IQ-NOCOMMIT

Place of Performance

Location: BOISE, ADA County, IDAHO, 83705

State: Idaho Government Spending

Plain-Language Summary

Department of Agriculture obligated $70.5 million to PERIMETER SOLUTIONS LP for work described as: FAM RETARDANT - FULL SERVICE, 2024 IQ-NOCOMMIT Key points: 1. Significant contract value for essential wildfire suppression resources. 2. Sole-source award raises questions about competitive pricing and market alternatives. 3. Potential risk of overpayment due to lack of competitive bidding. 4. Chemical manufacturing sector supports critical environmental and safety needs.

Value Assessment

Rating: questionable

The contract value of $70.5M for fire retardant services is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market rates for similar services.

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 may result in higher costs for taxpayers as there was no opportunity for vendors to bid against each other.

Taxpayer Impact: The lack of competition could lead to inefficient use of taxpayer funds if the price is not benchmarked against market alternatives.

Public Impact

Ensures availability of critical fire retardant for wildfire suppression efforts. Supports national efforts to combat increasingly severe wildfire seasons. Impacts communities and ecosystems vulnerable to wildfires.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for inflated pricing
Limited vendor options

Positive Signals

Essential service provision
Timely delivery for fire season

Sector Analysis

This contract falls within the chemical manufacturing sector, specifically for preparations used in wildfire suppression. Spending benchmarks for such specialized services are difficult to establish without competitive data, but the scale suggests a critical need.

Small Business Impact

The data indicates that small businesses were not involved in this specific contract award, as it was awarded to a single, likely larger, entity. Further analysis would be needed to determine if small businesses are excluded from the broader fire retardant supply chain.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the price paid is fair and reasonable, and that future procurements explore competitive options where feasible.

Related Government Programs

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

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for price gouging
Limited market transparency
Dependency on a single supplier

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $70.5 million to PERIMETER SOLUTIONS LP. FAM RETARDANT - FULL SERVICE, 2024 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 $70.5 million.

What is the period of performance?

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

What is the justification for the sole-source award, and what steps are being taken to ensure fair pricing?

The justification for a sole-source award typically involves unique capabilities or urgent needs. Oversight agencies should verify the validity of this justification and ensure rigorous price analysis was conducted. Future solicitations should aim for full and open competition to leverage market forces and achieve better value for taxpayer dollars.

What are the risks associated with relying on a single provider for critical fire retardant services?

Relying on a single provider creates significant supply chain risk. Disruptions due to the provider's operational issues, geopolitical factors, or unforeseen events could severely impact wildfire response capabilities. This also reduces leverage for the government in price negotiations and contract modifications.

How does this spending align with the Forest Service's overall wildfire management strategy and budget?

This $70.5M expenditure represents a substantial investment in a key component of wildfire management. Its alignment depends on the strategic importance placed on aerial retardant delivery versus other suppression methods and prevention efforts. A comprehensive review of the agency's budget allocation across all wildfire management activities is necessary for full context.

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: $70,513,537

Exercised Options: $70,513,537

Current Obligation: $70,513,537

Actual Outlays: $70,513,537

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SC24T2500

IDV Type: IDC

Timeline