USDA Forest Service Awards $15M for National Retardant in 2025, Sole-Source Contract

Contract Overview

Contract Amount: $40,810,801 ($40.8M)

Contractor: Perimeter Solutions LP

Awarding Agency: Department of Agriculture

Start Date: 2025-01-01

End Date: 2025-12-31

Contract Duration: 364 days

Daily Burn Rate: $112.1K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NATIONAL RETARDANT - BULK 2025 INITIAL FUNDING - $15M

Place of Performance

Location: BOISE, ADA County, IDAHO, 83705

State: Idaho Government Spending

Plain-Language Summary

Department of Agriculture obligated $40.8 million to PERIMETER SOLUTIONS LP for work described as: NATIONAL RETARDANT - BULK 2025 INITIAL FUNDING - $15M Key points: 1. The contract is for bulk retardant, a critical resource for wildfire suppression. 2. Perimeter Solutions LP is the sole awardee, raising questions about competition. 3. The $15M initial funding is for a 12-month period. 4. The award is a delivery order under an unspecified contract vehicle.

Value Assessment

Rating: fair

The $15M initial funding for 12 months suggests a significant but potentially variable annual spend. Benchmarking against similar bulk chemical purchases would be necessary for a precise value assessment.

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 compared to a competitive process.

Taxpayer Impact: The lack of competition for a critical resource like fire retardant may result in taxpayers paying a premium.

Public Impact

Ensures availability of essential wildfire suppression materials. Potential for increased costs due to sole-source nature. Reliance on a single supplier for a critical national resource. Impacts the operational readiness of the Forest Service in combating wildfires.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Potential for overpayment due to lack of competitive bidding.
Dependence on a single supplier for a critical national asset.

Positive Signals

Ensures supply of a vital resource for wildfire management.
Clear funding allocation for the upcoming fiscal year.

Sector Analysis

The Forest Service's procurement of fire retardants falls within the broader chemical manufacturing sector, specifically for emergency response applications. Spending benchmarks for such specialized chemicals are difficult to establish without detailed specifications and market analysis.

Small Business Impact

There is no indication of small business participation in this sole-source award. Future procurements should explore opportunities for small businesses in the supply chain or related services.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and adequate performance. The Forest Service should document the justification for not competing this requirement.

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 competition
Potential for price inflation
Supply chain dependency
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $40.8 million to PERIMETER SOLUTIONS LP. NATIONAL RETARDANT - BULK 2025 INITIAL FUNDING - $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 $40.8 million.

What is the period of performance?

Start: 2025-01-01. End: 2025-12-31.

What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair pricing?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without specific details, it's difficult to assess. However, the agency should have robust internal controls and potentially engage independent cost estimators to validate pricing against market benchmarks and ensure the taxpayer receives fair value, even in a non-competitive scenario.

What are the risks associated with relying on a single supplier for a critical national resource like fire retardant?

The primary risks include supply chain disruptions due to the sole supplier's operational issues, price gouging due to lack of competition, and potential for reduced innovation. If the supplier faces production problems or goes out of business, the Forest Service could face critical shortages during peak wildfire seasons, jeopardizing public safety and increasing firefighting costs.

How does this sole-source award impact the Forest Service's long-term strategy for wildfire suppression resource acquisition?

A sole-source award for a significant portion of fire retardant needs suggests a potential gap in strategic sourcing or market analysis. It may indicate a lack of alternative suppliers or a deliberate decision to maintain a relationship with a specific provider. This approach could hinder the development of a more resilient and cost-effective supply chain in the future.

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

Solicitation ID: 1202SC24R2500

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: $40,810,801

Exercised Options: $40,810,801

Current Obligation: $40,810,801

Actual Outlays: $37,810,801

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SC24T2500

IDV Type: IDC

Timeline