Forest Service awards $34M contract for aerial firefighting retardant, raising value-for-money questions

Contract Overview

Contract Amount: $34,000,000 ($34.0M)

Contractor: Perimeter Solutions LP

Awarding Agency: Department of Agriculture

Start Date: 2025-02-15

End Date: 2025-12-31

Contract Duration: 319 days

Daily Burn Rate: $106.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NATIONAL RETARDANT - DAILY RATE - OPERATIONS 2025 IQ COMMIT INITIAL FUNDING - $34M

Place of Performance

Location: BOISE, ADA County, IDAHO, 83705

State: Idaho Government Spending

Plain-Language Summary

Department of Agriculture obligated $34.0 million to PERIMETER SOLUTIONS LP for work described as: NATIONAL RETARDANT - DAILY RATE - OPERATIONS 2025 IQ COMMIT INITIAL FUNDING - $34M Key points: 1. The contract's value-for-money is questionable given the lack of competition and the high daily rate. 2. Competition dynamics are limited, with a sole-source award suggesting potential for inflated pricing. 3. Risk indicators include the sole-source nature and the absence of performance metrics in the provided data. 4. Performance context is difficult to assess without specific deliverables or service level agreements. 5. Sector positioning is within the critical area of wildland firefighting support, a vital government function.

Value Assessment

Rating: questionable

The daily rate of $106,583 for aerial firefighting retardant operations appears high, especially without a competitive bidding process to benchmark pricing. Comparing this to industry standards or previous contracts for similar services is crucial for assessing value. The absence of detailed performance metrics makes it difficult to determine if the government is receiving optimal service for the investment.

Cost Per Unit: $106,583 per day

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This limits the government's ability to explore various vendor offerings and potentially secure more favorable pricing. The lack of competition raises concerns about whether the selected vendor, PERIMETER SOLUTIONS LP, was truly the best option available in terms of both cost and capability.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the government's purchasing power and potentially diverts funds that could be used for other essential services.

Public Impact

The primary beneficiaries are federal agencies responsible for wildland fire suppression, ensuring critical resources are available. Services delivered include the provision of aerial firefighting retardant, essential for combating wildfires. Geographic impact is nationwide, supporting fire suppression efforts across various regions prone to wildfires. Workforce implications include support for the pilots, ground crews, and support personnel involved in aerial firefighting operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may result in overpayment.
Sole-source award limits transparency and potential for cost savings.
Absence of detailed performance metrics hinders accountability.
High daily rate warrants further scrutiny for value for money.

Positive Signals

Ensures availability of critical firefighting resources.
Supports national efforts to combat wildfires.
Contract awarded to a known entity in the sector.

Sector Analysis

The aerial firefighting sector is a specialized niche within the broader chemical manufacturing and emergency services industries. This contract falls under the essential services required for natural resource management and public safety. The market for specialized firefighting chemicals and delivery systems is often characterized by high barriers to entry and a limited number of qualified providers, which can influence competition dynamics.

Small Business Impact

The provided data indicates that small business participation was not a stated requirement or consideration for this contract (ss: false, sb: false). There is no indication of small business set-aside provisions or subcontracting plans. This suggests that the contract was not structured to specifically benefit small businesses, and their role in fulfilling this requirement is likely minimal or non-existent.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Forest Service contracting officers and potentially agency-level inspectors general. Accountability measures would be tied to the terms of the contract, including delivery schedules and adherence to specifications. Transparency is limited by the sole-source nature of the award and the lack of publicly available detailed performance reports.

Related Government Programs

Wildland Fire Management
Emergency Response Services
Chemical Manufacturing
Aviation Support Services

Risk Flags

Sole-source award
High daily rate
Lack of performance metrics
Limited competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $34.0 million to PERIMETER SOLUTIONS LP. NATIONAL RETARDANT - DAILY RATE - OPERATIONS 2025 IQ COMMIT INITIAL FUNDING - $34M

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 $34.0 million.

What is the period of performance?

Start: 2025-02-15. End: 2025-12-31.

What is the historical spending pattern for aerial firefighting retardant with the Department of Agriculture, specifically the Forest Service?

Analyzing historical spending for aerial firefighting retardant by the Department of Agriculture, particularly the Forest Service, is crucial for context. While specific data for this contract is limited to $34 million for 2025, understanding previous years' expenditures, contract types (competed vs. sole-source), and average daily rates paid to various vendors would reveal trends. For instance, if previous contracts for similar services were competed and resulted in significantly lower daily rates, it would strengthen the argument that this sole-source award may not represent optimal value. Conversely, if historical data shows consistently high rates or a reliance on sole-source awards due to limited vendor availability, it might indicate systemic market conditions rather than a specific issue with this procurement. Without this historical data, it's challenging to definitively assess if the current $106,583 daily rate is an outlier or a market norm.

How does the daily rate of $106,583 compare to similar aerial firefighting contracts awarded by other federal agencies or state governments?

Benchmarking the daily rate of $106,583 against similar aerial firefighting contracts is essential for evaluating value for money. This comparison should ideally include contracts for similar aircraft types, retardant delivery systems, and operational periods. Agencies like the Bureau of Land Management (BLM), other Forest Service contracts, or even state-level firefighting agencies often procure similar services. If comparable contracts, especially those awarded through competitive processes, show significantly lower daily rates, it would indicate that this sole-source award might be overpriced. Conversely, if other agencies are paying similar rates, it could suggest that the market price for these specialized services is indeed high, potentially due to limited capacity, specialized equipment, and high operational costs. Accessing publicly available contract databases (like SAM.gov or state procurement portals) would be necessary for a comprehensive comparison.

What are the specific performance expectations and metrics associated with this $34 million contract?

The provided data does not include specific performance expectations or metrics for this $34 million contract. Typically, such contracts would outline key performance indicators (KPIs) related to retardant delivery, aircraft availability, response times, safety compliance, and operational efficiency. The absence of these details in the initial award information is a significant gap. Without defined metrics, it is difficult to objectively assess whether PERIMETER SOLUTIONS LP is meeting the government's needs effectively and efficiently. Robust performance metrics are crucial for ensuring accountability, identifying areas for improvement, and justifying the expenditure to taxpayers. Future contract actions or detailed award documents should clarify these performance requirements.

What is the track record of PERIMETER SOLUTIONS LP in fulfilling federal contracts for aerial firefighting services?

PERIMETER SOLUTIONS LP is a known entity in the aerial firefighting sector, often involved in providing retardant and related services. Their track record with federal contracts would need to be examined through databases like SAM.gov, which often contain past performance information and contract award histories. Key aspects to investigate include their history of on-time delivery, adherence to contract terms, any past performance issues or disputes, and their success in previous competitive bids. Understanding their past performance, particularly with the Forest Service or similar agencies, can provide insights into their reliability and capability. A strong, consistent track record might partially justify a sole-source award, although it does not negate the need for competitive pricing.

What is the justification for awarding this contract on a sole-source basis, and were alternative sources considered?

The justification for awarding this contract on a sole-source basis is not detailed in the provided data. Federal procurement regulations typically require agencies to justify sole-source awards, often citing reasons such as urgency, unique capabilities of a single provider, or lack of adequate competition. For this contract, the Forest Service would need to demonstrate why PERIMETER SOLUTIONS LP was the only responsible source capable of meeting the requirement. This might involve market research indicating a lack of other qualified vendors or a specific technological requirement only they can fulfill. Without this official justification, the sole-source nature raises concerns about whether the government adequately explored all available options to ensure the best value was obtained for taxpayer dollars.

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: $34,000,000

Exercised Options: $34,000,000

Current Obligation: $34,000,000

Actual Outlays: $33,829,019

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SC24T2500

IDV Type: IDC

Timeline