Interior Department awards $69.5M fire retardant contract to Perimeter Solutions LP for 2025 season

Contract Overview

Contract Amount: $69,500,000 ($69.5M)

Contractor: Perimeter Solutions LP

Awarding Agency: Department of the Interior

Start Date: 2025-05-05

End Date: 2025-12-31

Contract Duration: 240 days

Daily Burn Rate: $289.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 2025 NATIONAL FIRE RETARDANT CONTRACT

Place of Performance

Location: BOISE, ADA County, IDAHO, 83705

State: Idaho Government Spending

Plain-Language Summary

Department of the Interior obligated $69.5 million to PERIMETER SOLUTIONS LP for work described as: 2025 NATIONAL FIRE RETARDANT CONTRACT Key points: 1. Contract value represents a significant investment in wildfire suppression capabilities. 2. Sole-source award raises questions about potential cost efficiencies and market alternatives. 3. Short contract duration (8 months) may indicate a need for ongoing competitive reassessment. 4. Focus on chemical product manufacturing highlights a critical but specialized area of federal procurement. 5. Geographic focus on Idaho suggests targeted support for high-risk wildfire regions.

Value Assessment

Rating: fair

The contract value of $69.5 million for an 8-month period appears substantial. Without comparable sole-source contracts for similar retardant products, a direct value-for-money assessment is challenging. The fixed-price nature provides some cost certainty, but the lack of competition prevents benchmarking against market alternatives. The price per unit is not readily available for comparison, making it difficult to determine if this represents a competitive rate.

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 urgent situations. The lack of competition means there was no opportunity for price discovery through a bidding process, potentially leading to higher costs for the government compared to a competed contract.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. Without a competitive process, there is less pressure on the contractor to offer the lowest possible price.

Public Impact

The primary beneficiaries are federal agencies responsible for wildfire management, such as the Bureau of Land Management. The contract ensures the availability of essential fire retardant chemicals for aerial and ground firefighting efforts. Geographic impact is concentrated in regions prone to wildfires, with Idaho specifically mentioned. Workforce implications include support for the logistics and deployment of these critical suppression materials.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits opportunities for other qualified vendors and potentially increases costs.
Short contract duration may lead to frequent re-procurement efforts and associated administrative burdens.
Lack of transparency in the sole-source justification process could obscure potential inefficiencies.

Positive Signals

Ensures critical fire retardant supply for a specific, high-risk season.
Fixed-price contract provides budget predictability for the awarded amount.
Focus on a specialized chemical product suggests a deliberate procurement strategy for essential materials.

Sector Analysis

The chemical manufacturing sector is diverse, with specialized segments like fire retardants playing a crucial role in public safety and environmental management. Federal spending in this area is often driven by seasonal needs, such as wildfire seasons. While specific market size data for fire retardants is not provided, the chemical industry overall is a multi-billion dollar sector. This contract fits within the 'All Other Miscellaneous Chemical Product and Preparation Manufacturing' NAICS code, indicating a niche but vital product category.

Small Business Impact

This contract does not appear to include a small business set-aside. Given the specialized nature of fire retardant manufacturing and the sole-source award, it is unlikely that subcontracting opportunities for small businesses will be significant unless Perimeter Solutions LP voluntarily engages them. The absence of a set-aside means the primary contract is not directly aimed at fostering small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Bureau of Land Management's contracting officers and potentially the Department of the Interior's Office of Inspector General. Transparency is limited due to the sole-source nature, but contract performance, delivery schedules, and quality control would be subject to standard government oversight mechanisms. The fixed-price contract structure provides a degree of accountability for the contractor to deliver the specified product within the agreed budget.

Related Government Programs

Wildfire Management Programs
Aerial Firefighting Services
Chemical Procurement
Emergency Response Supplies

Risk Flags

Sole-source award lacks competitive pricing pressure.
Limited contract duration may indicate recurring procurement needs.
Potential for higher costs due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $69.5 million to PERIMETER SOLUTIONS LP. 2025 NATIONAL FIRE RETARDANT CONTRACT

Who is the contractor on this award?

The obligated recipient is PERIMETER SOLUTIONS LP.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Land Management).

What is the total obligated amount?

The obligated amount is $69.5 million.

What is the period of performance?

Start: 2025-05-05. End: 2025-12-31.

What is the historical spending pattern for fire retardants by the Department of the Interior?

Historical spending data for fire retardants by the Department of the Interior would reveal trends in procurement volume, contract values, and the prevalence of competitive versus sole-source awards. Analyzing past contracts can help identify if this $69.5 million award is an outlier or consistent with previous investments. It would also shed light on the typical duration of such contracts and the number of bidders involved in competed awards. Understanding historical spending can inform whether the current sole-source approach represents a deviation from standard practice or a continuation of a pattern for specific types of retardants or suppliers.

What are the specific types and quantities of fire retardant being procured under this contract?

The contract details, such as the specific chemical formulations and the quantities of each, are crucial for a comprehensive analysis. Fire retardants can vary in composition and effectiveness, impacting their suitability for different types of fires and delivery systems (e.g., aerial tankers vs. ground crews). Knowing the exact product and volume allows for a more precise assessment of the contract's necessity and value. Without this granular information, it's difficult to determine if the $69.5 million is commensurate with the actual materials being acquired and if alternative, potentially more cost-effective, retardants could meet the agency's operational needs.

Are there any known issues or performance concerns with Perimeter Solutions LP on previous contracts?

Assessing the contractor's track record is vital for understanding the risk associated with this award. A review of past performance, including any documented issues with delivery, quality, or compliance on previous federal contracts, would provide valuable context. If Perimeter Solutions LP has a history of performance problems, it could indicate a higher risk for this contract, potentially impacting wildfire suppression efforts. Conversely, a strong performance history would lend confidence to the award, even if it is sole-source. Information from sources like the Contractor Performance Assessment Reporting System (CPARS) would be instrumental here.

What is the justification for the sole-source award, and were alternatives considered?

The justification for a sole-source award is a critical piece of information that should be publicly available. Agencies must provide a rationale, such as the unavailability of other sources, urgent and compelling needs, or specific technical requirements that only one contractor can meet. Understanding this justification helps determine if the government adequately explored competitive options. If the justification is weak or if viable alternatives were overlooked, it raises concerns about the fairness and efficiency of the procurement process, potentially indicating a missed opportunity for better value.

How does the cost of this contract compare to similar fire retardant procurements by other federal or state agencies?

Benchmarking the cost of this $69.5 million contract against similar procurements by other entities is essential for evaluating value for money. Comparing the price per unit, contract duration, and overall value to awards made by agencies like the Forest Service or state-level fire management organizations can reveal whether the terms are competitive. If this contract's pricing appears significantly higher than comparable agreements, it would suggest potential overpayment or inefficiencies in the procurement. This comparison is particularly important given the sole-source nature of this award.

Industry Classification

NAICS: Manufacturing › Other Chemical Product and Preparation Manufacturing › All Other Miscellaneous Chemical Product and Preparation Manufacturing

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS

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: $69,500,000

Exercised Options: $69,500,000

Current Obligation: $69,500,000

Actual Outlays: $68,886,227

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SC24T2500

IDV Type: IDC

Timeline