Forest Service awards $31M for daily retardant operations, raising questions on value and competition

Contract Overview

Contract Amount: $30,068,271 ($30.1M)

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: $106.2K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NATIONAL RETARDANT - DAILY RATE - OPERATIONS 2024 IQ COMMIT INITIAL FUNDING - $31M

Place of Performance

Location: BOISE, ADA County, IDAHO, 83705

State: Idaho Government Spending

Plain-Language Summary

Department of Agriculture obligated $30.1 million to PERIMETER SOLUTIONS LP for work described as: NATIONAL RETARDANT - DAILY RATE - OPERATIONS 2024 IQ COMMIT INITIAL FUNDING - $31M Key points: 1. The contract's value proposition is unclear without benchmarks for daily retardant operations. 2. The sole-source award limits price discovery and potentially inflates costs. 3. A high number of delivery orders suggests potential scope creep or evolving needs. 4. The contract duration of 283 days is significant for critical wildfire response. 5. The award falls within the 'All Other Miscellaneous Chemical Product and Preparation Manufacturing' sector.

Value Assessment

Rating: questionable

The contract value of $31 million for daily retardant operations lacks clear justification without comparative data. Benchmarking against similar contracts for aerial firefighting support or chemical supply is essential to assess value for money. The absence of competitive bidding raises concerns that the pricing may not reflect market rates, potentially leading to overpayment by taxpayers. Further analysis is needed to determine if the awarded price is reasonable for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, PERIMETER SOLUTIONS LP, was considered. This approach bypasses the standard competitive bidding process, which typically involves soliciting proposals from multiple qualified suppliers. Without competition, there is no direct mechanism to ensure the government is receiving the best possible price or terms. The justification for a sole-source award, if any, is not provided here and would be critical to understanding the procurement strategy.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government does not benefit from the price reductions typically achieved through competitive bidding. This limits the government's ability to secure the most cost-effective solution.

Public Impact

The contract directly supports critical wildfire suppression efforts across the nation. It ensures the availability of essential retardant materials for aerial firefighting operations. The services provided are crucial for protecting lives, property, and natural resources from wildfires. The contract's impact is national, with potential application in any region experiencing wildfires.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Sole-source award raises concerns about transparency and fairness.
Potential for cost overruns if needs evolve without competitive re-evaluation.

Positive Signals

Ensures critical wildfire suppression resources are available.
Supports national efforts to combat wildfires.
Awarded to a known entity in the retardant supply chain.

Sector Analysis

This contract falls under the 'All Other Miscellaneous Chemical Product and Preparation Manufacturing' sector, specifically related to the production and supply of fire retardants. The market for wildfire suppression materials is specialized, often involving a limited number of key suppliers due to the unique requirements and safety regulations. The Forest Service is a major consumer of these products, and spending in this area can fluctuate significantly based on wildfire activity and seasonal needs. Benchmarking would ideally compare this contract to other government or large-scale private sector procurements of similar chemical agents for emergency response.

Small Business Impact

The contract was not awarded to a small business, nor does it appear to include specific small business set-aside provisions. There is no information provided regarding subcontracting opportunities for small businesses. This suggests that the primary focus of this procurement was on securing the specialized product and service directly from the awarded vendor, rather than leveraging it as a vehicle to promote small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Forest Service contracting officers and program managers. Accountability measures would include performance monitoring against the contract terms, delivery schedules, and quality standards for the retardant. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Wildfire Suppression Support Contracts
Aerial Firefighting Services
Chemical Product Procurement
Department of Agriculture Operational Support

Risk Flags

Sole-source award lacks competitive justification.
Potential for unbenchmarked pricing.
Limited transparency in procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $30.1 million to PERIMETER SOLUTIONS LP. NATIONAL RETARDANT - DAILY RATE - OPERATIONS 2024 IQ COMMIT INITIAL FUNDING - $31M

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 $30.1 million.

What is the period of performance?

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

What is the historical spending pattern for daily retardant operations by the Forest Service?

Analyzing historical spending for daily retardant operations is crucial for context. Without specific data on past contracts for similar services, it's difficult to ascertain if the current $31 million award represents an increase, decrease, or stable expenditure. Trends in wildfire frequency and severity, as well as changes in retardant technology and pricing, can influence these patterns. A review of the last 5-10 years of Forest Service budgets and contract awards related to fire suppression materials would reveal whether this award is an anomaly or part of a consistent spending strategy. Understanding historical costs helps in evaluating the reasonableness of the current award and identifying potential areas for cost savings in future procurements.

What are the specific performance metrics and deliverables for this contract?

The contract specifies 'NATIONAL RETARDANT - DAILY RATE - OPERATIONS 2024 IQ COMMIT INITIAL FUNDING'. While this indicates the purpose is to fund daily operations for retardant, the precise performance metrics and deliverables are not detailed in the provided data. Key performance indicators (KPIs) would typically include the quantity of retardant to be supplied, delivery timelines to specific locations, quality control standards for the retardant, and potentially response times for operational deployment. The 'daily rate' suggests an ongoing service, but the exact scope of 'operations' needs further clarification. Effective oversight requires clearly defined and measurable deliverables against which PERIMETER SOLUTIONS LP's performance can be assessed to ensure value for money and mission accomplishment.

Are there any known issues or past performance concerns with PERIMETER SOLUTIONS LP regarding similar contracts?

Assessing the past performance of PERIMETER SOLUTIONS LP is vital, especially given the sole-source nature of this award. Information regarding previous contracts, including their duration, value, and adherence to terms, would provide insight into the contractor's reliability and capability. Any history of performance issues, such as delivery delays, quality problems, or cost overruns on similar government contracts, would be a significant risk indicator. Conversely, a strong track record of successful performance would lend more confidence to the current award. A thorough review of past performance evaluations and any associated corrective actions or disputes would be necessary for a comprehensive risk assessment.

What is the market size and competitive landscape for fire retardant supply to federal agencies?

The market for fire retardant supply to federal agencies like the Forest Service is specialized and likely characterized by a limited number of qualified manufacturers and distributors. Key players often possess specific certifications, production capacities, and logistical networks necessary to meet the stringent demands of aerial firefighting. The market size can be influenced by factors such as the severity of wildfire seasons, government funding allocations for firefighting, and technological advancements in retardant formulations. Understanding this landscape helps contextualize the sole-source award; if there are genuinely only one or two viable suppliers capable of meeting the government's needs, the justification for limited competition becomes clearer, though still requires rigorous vetting.

How does the 'All Other Miscellaneous Chemical Product and Preparation Manufacturing' classification align with the specific services provided?

The classification 'All Other Miscellaneous Chemical Product and Preparation Manufacturing' (NAICS code 325998) is a broad category that encompasses the production of various chemical products not specified elsewhere. Fire retardants, being chemical preparations designed for a specific application (fire suppression), fit within this general classification. However, the 'miscellaneous' and 'other' aspects suggest it's a catch-all for chemical manufacturing activities that don't fall into more specific sub-sectors like basic chemicals or pharmaceuticals. For analytical purposes, it's important to recognize that while the classification is technically correct, it doesn't provide granular detail about the specialized nature of fire retardant production, which involves unique safety, efficacy, and environmental considerations.

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: $30,068,271

Exercised Options: $30,068,271

Current Obligation: $30,068,271

Actual Outlays: $30,068,271

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SC24T2500

IDV Type: IDC

Timeline