Forest Service awards $54.8M contract for fire retardant services to Perimeter Solutions LP

Contract Overview

Contract Amount: $54,787,111 ($54.8M)

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: $193.6K/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 $54.8 million to PERIMETER SOLUTIONS LP for work described as: FAM RETARDANT - FULL SERVICE, 2024 IQ-NOCOMMIT Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price overruns. 2. The contract duration of 283 days suggests a focused, short-term need for services. 3. The fixed-price contract type aims to control costs, but the lack of competition limits price discovery. 4. This award represents a significant portion of the agency's spending in the 'All Other Miscellaneous Chemical Product and Preparation Manufacturing' category. 5. The contract is for delivery orders, indicating a need for on-demand services rather than a large upfront purchase. 6. The absence of small business set-aside flags suggests this contract was not specifically targeted to small businesses.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the sole-source nature and lack of publicly available comparable contract data. The fixed-price structure is a positive indicator for cost control, but without competitive bidding, it's difficult to ascertain if the price reflects fair market value. The total award amount of $54.8 million for a 283-day period warrants scrutiny to ensure efficient use of taxpayer funds. Further analysis would require access to historical pricing for similar services or detailed cost breakdowns from the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in emergency situations. The lack of competition means that the Forest Service did not benefit from the price discovery and innovation that typically occurs in a competitive bidding process. This can potentially lead to higher prices and less favorable terms for the government.

Taxpayer Impact: Taxpayers may be paying a premium for these services due to the absence of competitive pressure. Without multiple bids, there is less incentive for the contractor to offer the lowest possible price.

Public Impact

This contract directly supports the U.S. Forest Service's mission to protect national forests and grasslands from wildfires. The services provided are critical for aerial firefighting efforts, aiding in the containment and suppression of wildfires. The geographic impact is likely nationwide, as the Forest Service operates across various regions prone to wildfires. The contract ensures the availability of essential fire retardant resources, contributing to the safety of communities and ecosystems. This award supports the operational readiness of firefighting crews during critical wildfire seasons.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
Lack of transparency in the sole-source justification process.
Potential for vendor lock-in if this is a recurring sole-source award.
Limited visibility into the specific performance metrics and quality control measures for the retardant services.

Positive Signals

Fixed-price contract type helps to establish a ceiling on costs.
The contract is for delivery orders, allowing for flexibility in service provision based on immediate needs.
The award supports a critical government function: wildfire suppression.

Sector Analysis

The market for fire retardants and related aerial firefighting services is specialized, often dominated by a few key manufacturers and service providers. This contract falls within the broader chemical manufacturing and support services sector. Given the critical nature of wildfire suppression, government contracts in this area are essential for ensuring public safety and environmental protection. Comparable spending benchmarks would typically involve analyzing other large-scale contracts for similar chemical supplies or aerial support services awarded by federal or state agencies.

Small Business Impact

The contract data indicates that this was not a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned. This suggests that the primary contractor, Perimeter Solutions LP, is likely a larger entity. The absence of explicit small business provisions means that opportunities for small businesses to participate in this specific contract are limited, unless they are direct suppliers or subcontractors to the prime. Further investigation into subcontracting plans would be needed to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Department of Agriculture's Forest Service contracting officers and program managers. Accountability measures are typically embedded within the contract terms, including performance standards and delivery schedules. Transparency is limited due to the sole-source nature of the award, making it difficult for the public to scrutinize the procurement process. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise related to the contract's execution.

Related Government Programs

Wildfire Suppression Services
Aerial Firefighting Equipment
Chemical Manufacturing Contracts
Department of Agriculture Procurement
Forest Service Operations

Risk Flags

Sole-source award
Lack of competition
Potential for price inflation

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $54.8 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 $54.8 million.

What is the period of performance?

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

What is the track record of Perimeter Solutions LP in fulfilling similar federal contracts, particularly regarding performance and adherence to delivery schedules?

Perimeter Solutions LP has a history of providing fire retardant products and services. Analyzing their past performance on federal contracts, specifically with agencies like the Forest Service or other land management agencies, would be crucial. This involves reviewing contract performance reports (CPARs), any past disputes or contract modifications, and on-time delivery rates. A review of their financial stability and capacity to meet large-scale demands is also important. Without specific CPARs or detailed historical data for this exact service, a comprehensive assessment of their track record is limited. However, their established presence in the industry suggests a degree of operational capability.

How does the per-unit cost or overall pricing of this $54.8 million contract compare to similar fire retardant contracts awarded by other federal or state agencies?

Direct comparison of the per-unit cost is difficult without knowing the exact quantities and specifications of the fire retardant and services procured under this $54.8 million contract. However, the fact that it is a sole-source award raises concerns about whether the pricing is competitive. Typically, sole-source contracts may command higher prices due to the lack of competitive bidding. To benchmark effectively, one would need to identify comparable contracts for fire retardant supply and delivery, ideally those awarded through full and open competition. Analyzing the price per gallon of retardant, or the cost of delivery and application services, against market rates and other government contracts would reveal potential value-for-money issues.

What are the specific risks associated with a sole-source award for critical wildfire suppression resources, and how are these risks being mitigated?

The primary risk of a sole-source award for critical resources like fire retardant is the potential for inflated pricing due to the absence of competition. This can lead to inefficient use of taxpayer funds. Another risk is a lack of innovation or incentive for the sole provider to improve services or reduce costs over time. Furthermore, reliance on a single source can create supply chain vulnerabilities. Mitigation strategies might include rigorous negotiation of terms and pricing, establishing clear performance metrics and penalties, and potentially conducting market research to identify future competitive opportunities. The Forest Service would need to have strong justification for the sole-source determination, such as a documented emergency or unique capability.

What is the expected effectiveness of the fire retardant services provided under this contract in terms of wildfire containment and reduction of damage?

The effectiveness of fire retardant services is a critical component of wildfire management. Fire retardants, typically applied from aircraft, work by reducing the flammability of vegetation, creating barriers that slow or stop the spread of fire. The specific effectiveness depends on factors such as the type of retardant used, the accuracy and timing of application, weather conditions, fuel types, and the intensity of the wildfire. This contract likely specifies the type and quantity of retardant, as well as delivery methods. While retardants are a vital tool, they are part of a broader strategy that includes prevention, early detection, and ground-based firefighting efforts. Data on historical wildfire suppression success rates where retardants were used would provide context for expected effectiveness.

How does the total spending on fire retardant and related services by the Forest Service compare year-over-year, and what trends are evident?

Analyzing year-over-year spending on fire retardant and related services by the Forest Service is essential for understanding budget allocation and identifying trends. This would involve examining historical contract awards for similar services over several fiscal years. Trends might indicate increasing or decreasing reliance on these services, potentially influenced by factors such as climate change, wildfire frequency and severity, and shifts in agency strategy or funding. A significant increase in spending could signal a heightened threat level or a change in procurement approach, while a decrease might suggest improved efficiency or reduced need. This $54.8 million award should be viewed within this broader historical spending 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: $54,787,111

Exercised Options: $54,787,111

Current Obligation: $54,787,111

Actual Outlays: $47,324,645

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SC24T2500

IDV Type: IDC

Timeline