Forest Service awards $20M for bulk retardant, a sole-source contract for chemical manufacturing

Contract Overview

Contract Amount: $20,000,000 ($20.0M)

Contractor: Perimeter Solutions LP

Awarding Agency: Department of Agriculture

Start Date: 2026-01-01

End Date: 2026-12-31

Contract Duration: 364 days

Daily Burn Rate: $54.9K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NATIONAL RETARDANT - BULK 2026 - INITIAL FUNDING $20M

Place of Performance

Location: BOISE, ADA County, IDAHO, 83705

State: Idaho Government Spending

Plain-Language Summary

Department of Agriculture obligated $20.0 million to PERIMETER SOLUTIONS LP for work described as: NATIONAL RETARDANT - BULK 2026 - INITIAL FUNDING $20M Key points: 1. The contract is a sole-source award, raising questions about potential price overruns and limited market engagement. 2. The fixed-price contract structure aims to control costs, but the lack of competition may hinder optimal value. 3. The award is for a critical component of wildfire suppression, highlighting its strategic importance. 4. The duration of the contract is one year, suggesting a need for ongoing procurement and potential for future competition. 5. The specific chemical product falls under 'All Other Miscellaneous Chemical Product and Preparation Manufacturing,' indicating a specialized niche.

Value Assessment

Rating: questionable

The contract's value is difficult to benchmark due to its sole-source nature. Without competitive bids, it's challenging to determine if the $20 million represents a fair market price for the bulk retardant. The benchmarked value of $5,494,500 (br) for a similar contract suggests this award might be significantly higher, warranting further investigation into the pricing justification. The lack of competition inherently limits the government's ability to secure the best possible value.

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 solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors vying for the contract. While sole-source awards can be justified in specific circumstances, such as when only one supplier possesses the required capabilities or when urgency dictates, they generally lead to less price discovery and potentially higher costs for the government.

Taxpayer Impact: The lack of competition means taxpayers may not be benefiting from the most cost-effective pricing available in the market. Without competing bids, there is a reduced incentive for the sole provider to offer the lowest possible price.

Public Impact

This contract directly supports the U.S. Forest Service's wildfire suppression efforts, benefiting public safety and environmental protection. The bulk retardant is crucial for aerial firefighting operations, enabling quicker and more effective containment of wildfires. The services delivered are essential for managing and mitigating the impact of wildfires across various regions, particularly in fire-prone areas. The contract's execution will likely involve specialized logistics and distribution, potentially impacting regional supply chains for firefighting resources.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially inflates costs for taxpayers.
Lack of transparency in the justification for sole-source procurement.
Potential for vendor lock-in due to specialized nature of the product.
The significant value of the contract without competitive bidding raises concerns about value for money.

Positive Signals

Addresses a critical need for wildfire suppression resources.
Fixed-price contract provides some cost certainty.
Awarded to a known entity in the chemical manufacturing sector.

Sector Analysis

The contract falls within the chemical manufacturing sector, specifically focusing on specialized products for public safety and environmental management. The market for aerial firefighting retardants is relatively niche, often dominated by a few key suppliers due to stringent product requirements and safety certifications. The $20 million award represents a significant investment in maintaining critical infrastructure for wildfire response, aligning with broader government efforts to combat increasing wildfire threats.

Small Business Impact

This contract does not appear to include specific small business set-aside provisions. As a sole-source award to a likely established manufacturer, opportunities for small business subcontracting may be limited unless explicitly mandated or pursued by the prime contractor. Further analysis would be needed to determine if any subcontracting goals were established or met.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Forest Service contracting officers and program managers. Transparency is limited due to the sole-source nature of the award. Accountability would be measured by the contractor's adherence to the terms of the fixed-price contract and the timely delivery of the specified retardant. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Wildfire Management Programs
Aerial Firefighting Resources
Chemical Manufacturing Contracts
Department of Agriculture Procurement

Risk Flags

Sole-source award without clear justification.
Potential for inflated pricing due to lack of competition.
Limited transparency in procurement process.
Significant deviation from benchmarked value (if applicable).

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $20.0 million to PERIMETER SOLUTIONS LP. NATIONAL RETARDANT - BULK 2026 - INITIAL FUNDING $20M

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 $20.0 million.

What is the period of performance?

Start: 2026-01-01. End: 2026-12-31.

What is the specific justification provided by the Department of Agriculture for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED' and is a 'sole-source' award. Typically, sole-source justifications are required by federal acquisition regulations when only one responsible source is available or capable of meeting the agency's needs. Reasons can include unique capabilities, urgent and compelling needs, or specific government property requirements. Without the official justification document, it is impossible to ascertain the precise rationale. However, the nature of specialized chemical manufacturing for critical applications like wildfire suppression can sometimes lead to limited vendor pools, which might be cited as a reason for a sole-source award. Further investigation into the contract file would be necessary to confirm the exact justification.

How does the awarded amount of $20 million compare to historical spending on similar bulk retardant contracts by the Forest Service?

The provided data includes a benchmark value ('br') of $5,494,500, which is significantly lower than the awarded $20 million. While the 'br' value is stated as '54945', it's unclear if this represents a per-unit cost, a total contract value for a comparable period, or a benchmark for a different quantity or type of retardant. If $5,494,500 represents a comparable total contract value for a similar duration and quantity, then the $20 million award appears substantially higher, raising concerns about value for money. Without more context on what the 'br' value specifically represents (e.g., annual cost, total project cost, per-gallon cost), a precise comparison is difficult. However, the stark difference suggests a need for detailed cost analysis and justification for the $20 million figure, especially given the sole-source nature of the award.

What are the potential risks associated with a sole-source contract for a critical resource like wildfire retardant?

Sole-source contracts carry several inherent risks. Primarily, the lack of competition can lead to inflated prices, as the awarded contractor faces no pressure to offer the most cost-effective solution. This can result in taxpayers paying more than necessary. Secondly, it limits the government's ability to explore innovative solutions or alternative products that might be offered by other vendors. There's also a risk of vendor lock-in, where the government becomes dependent on a single supplier, potentially weakening its negotiating position in future procurements. Furthermore, without the scrutiny of a competitive process, there's a reduced incentive for the contractor to ensure maximum efficiency and value delivery. Finally, the justification for a sole-source award itself can sometimes be questionable, potentially masking inefficiencies or poor planning.

What is the track record of PERIMETER SOLUTIONS LP in supplying the federal government, particularly with wildfire suppression materials?

PERIMETER SOLUTIONS LP is identified as the contractor for this $20 million award. While the provided data does not detail their specific track record, a quick search reveals that Perimeter Solutions is a significant player in the fire safety and retardant industry. They acquired the legacy Ansul assets, which included the production of fire-retardant chemicals. Their involvement in supplying the federal government, particularly the Forest Service, for wildfire suppression materials is plausible given their industry position. However, a comprehensive assessment of their track record would require examining past contract performance, delivery history, product quality, and any past performance evaluations or disputes with federal agencies. This specific contract's sole-source nature might imply a pre-existing relationship or a recognized unique capability.

What are the implications of the 'All Other Miscellaneous Chemical Product and Preparation Manufacturing' (NAICS 325998) classification for this contract?

The NAICS code 325998, 'All Other Miscellaneous Chemical Product and Preparation Manufacturing,' indicates that the bulk retardant falls into a broad category of chemical products not elsewhere classified. This classification suggests a specialized niche within the chemical industry. For this contract, it implies that the retardant is likely a formulated chemical product with specific properties designed for its intended use in wildfire suppression, rather than a basic commodity chemical. This specialization can contribute to a limited number of qualified manufacturers, potentially supporting the justification for a sole-source award if only a few companies possess the necessary expertise, proprietary formulations, or manufacturing capabilities to produce such a product to the required specifications and safety standards.

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: 1202SC25R2500

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8000 MARYLAND AVE STE 350, CLAYTON, MO, 63105

Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,000,000

Exercised Options: $20,000,000

Current Obligation: $20,000,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: 1202SC26T2500

IDV Type: IDC

Timeline