Forest Service Spends $70.5M on Fire Retardant Services in 2021, Awarded Sole-Source

Contract Overview

Contract Amount: $70,507,438 ($70.5M)

Contractor: Perimeter Solutions LP

Awarding Agency: Department of Agriculture

Start Date: 2021-01-01

End Date: 2021-12-31

Contract Duration: 364 days

Daily Burn Rate: $193.7K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FAM RETARDANT - FULL SERVICE, 2021 IQ-NOCOMMIT

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63119

State: Missouri Government Spending

Plain-Language Summary

Department of Agriculture obligated $70.5 million to PERIMETER SOLUTIONS LP for work described as: FAM RETARDANT - FULL SERVICE, 2021 IQ-NOCOMMIT Key points: 1. Significant spending on a critical service for wildfire suppression. 2. Sole-source award raises questions about price discovery and competition. 3. Potential for higher costs due to lack of competitive bidding. 4. Sector context: Forestry and wildfire management services.

Value Assessment

Rating: questionable

The contract value of $70.5M for a single year of service is substantial. Without competitive bids, it's difficult to assess if this price is optimal compared to potential market rates for similar fire retardant services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, meaning no other vendors were considered. This limits price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: Taxpayers may be overpaying for fire retardant services due to the absence of a competitive bidding process.

Public Impact

Ensures availability of critical fire retardant resources for wildfire suppression. Potential for reduced effectiveness if cost savings lead to less frequent or lower-quality application. Impacts the budget allocated for wildfire management and prevention efforts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value

Positive Signals

Essential service for public safety
Ensures resource availability

Sector Analysis

The Department of Agriculture, specifically the Forest Service, relies on specialized services like fire retardant application to combat wildfires. Spending benchmarks for such services can vary widely based on geographic scope, duration, and specific retardant types, but a $70.5M single-year award is a significant investment.

Small Business Impact

This contract does not appear to involve small businesses, as it was awarded to a single, likely large, provider on a sole-source basis. Opportunities for small business participation in this specific contract appear limited.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government is receiving fair value and that competitive processes are only bypassed when truly justified.

Related Government Programs

Support Activities for Forestry
Department of Agriculture Contracting
Forest Service Programs

Risk Flags

Sole-source award lacks transparency.
Potential for inflated pricing.
Limited opportunity for market innovation.
Reduced accountability through competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $70.5 million to PERIMETER SOLUTIONS LP. FAM RETARDANT - FULL SERVICE, 2021 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 $70.5 million.

What is the period of performance?

Start: 2021-01-01. End: 2021-12-31.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available alternatives. Without specific documentation, it's impossible to confirm the exact reasoning, but it's crucial for ensuring the government isn't missing out on better pricing or innovation from a competitive market.

What is the benchmark cost per gallon or per application for fire retardant services?

Benchmarking the cost per unit for fire retardant services is complex due to variations in retardant type, delivery method (airtanker, ground crew), and geographic location. However, a lack of competition makes it difficult to establish a reliable benchmark for this $70.5M contract, suggesting potential overpayment.

How does the lack of competition impact the effectiveness of wildfire suppression efforts?

While the service itself is essential, a lack of competition could indirectly impact effectiveness if budget constraints, driven by higher per-unit costs, lead to reduced application frequency or coverage. This could potentially leave areas more vulnerable during critical wildfire seasons.

Industry Classification

NAICS: Agriculture, Forestry, Fishing and Hunting › Support Activities for Forestry › Support Activities for Forestry

Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCE CONSERVERVAT SVCS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 12024B18R9006

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3737 MARSHALL AVE, SAINT LOUIS, MO, 63119

Business Categories: Category Business, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations

Financial Breakdown

Contract Ceiling: $70,507,438

Exercised Options: $70,507,438

Current Obligation: $70,507,438

Actual Outlays: $70,507,438

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 12024B18D9025

IDV Type: IDC

Timeline