Forest Service Awards $51.5M for Fire Retardant Services, Sole-Source Contract Raises Concerns

Contract Overview

Contract Amount: $51,542,267 ($51.5M)

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: $141.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FAM RETARDANT - FULL SERVICE, 2025 IQ-NOCOMMIT

Place of Performance

Location: BOISE, ADA County, IDAHO, 83705

State: Idaho Government Spending

Plain-Language Summary

Department of Agriculture obligated $51.5 million to PERIMETER SOLUTIONS LP for work described as: FAM RETARDANT - FULL SERVICE, 2025 IQ-NOCOMMIT Key points: 1. Significant contract value of $51.5 million for essential fire retardant services. 2. Sole-source award limits competition and potentially impacts price discovery. 3. Risk of overpayment due to lack of competitive bidding. 4. Sector context: Critical for wildfire suppression and environmental protection.

Value Assessment

Rating: questionable

The contract's value of $51.5 million is substantial. Without competitive bidding, it's difficult to assess if this price is fair compared to market rates for similar fire retardant services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning no other vendors were considered. This significantly limits price discovery and competition, potentially leading to higher costs for taxpayers.

Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying more than necessary for critical fire retardant services.

Public Impact

Ensures availability of vital fire retardant for the upcoming wildfire season. Potential for increased costs to taxpayers due to non-competitive award. Impacts the operational readiness of the Forest Service in wildfire suppression efforts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for inflated pricing

Positive Signals

Essential service for wildfire prevention
Ensures operational capability

Sector Analysis

This contract falls within the chemical manufacturing sector, specifically for fire retardants crucial for the Forest Service's wildfire suppression efforts. Benchmarks for similar large-scale, sole-source chemical supply contracts are difficult to establish without competitive data.

Small Business Impact

The data does not indicate any specific provisions or considerations for small businesses in this sole-source award. The prime contractor is a large entity, suggesting limited direct opportunity for small businesses on this particular contract.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the price is reasonable and the service meets all requirements. Accountability for the justification of the sole-source decision is crucial.

Related Government Programs

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

Risk Flags

Sole-source award limits competition.
Potential for price inflation.
Lack of transparency in price determination.
Dependency on a single supplier for a critical resource.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $51.5 million to PERIMETER SOLUTIONS LP. FAM RETARDANT - FULL SERVICE, 2025 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 $51.5 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 were taken to ensure the price is fair and reasonable?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of available alternatives. Without this specific justification, it's impossible to assess the fairness of the price. Agencies should provide detailed documentation for sole-source awards, including market research and price analysis, to ensure taxpayer funds are used efficiently and effectively.

What are the risks associated with relying on a single provider for a critical service like fire retardant, especially during peak wildfire season?

Relying on a single provider creates significant risk. Disruptions in the provider's supply chain, production issues, or unforeseen logistical problems could lead to shortages of critical fire retardant. This could directly impact the Forest Service's ability to combat wildfires effectively, potentially leading to larger, more destructive fires and increased damage to natural resources and property.

How will the Forest Service monitor the performance and cost-effectiveness of this sole-source contract to ensure value for taxpayer money?

The Forest Service should implement robust contract monitoring, including regular performance reviews, quality checks, and potentially independent cost analyses if feasible. Establishing clear performance metrics and delivery schedules is essential. Given the sole-source nature, proactive communication with the contractor and a thorough review of invoicing and delivery records will be critical to ensuring accountability and value.

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: $51,542,267

Exercised Options: $51,542,267

Current Obligation: $51,542,267

Actual Outlays: $46,542,267

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SC24T2500

IDV Type: IDC

Timeline