Forest Service awards $18.3M on-demand wildfire retardant BPA, with $2M added for FY25

Contract Overview

Contract Amount: $18,326,978 ($18.3M)

Contractor: Perimeter Solutions LP

Awarding Agency: Department of Agriculture

Start Date: 2025-01-01

End Date: 2026-04-01

Contract Duration: 455 days

Daily Burn Rate: $40.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RETARDANT ON-DEMAND BPA PERIMETER FY25 ADD $2M

Place of Performance

Location: BOISE, ADA County, IDAHO, 83705

State: Idaho Government Spending

Plain-Language Summary

Department of Agriculture obligated $18.3 million to PERIMETER SOLUTIONS LP for work described as: RETARDANT ON-DEMAND BPA PERIMETER FY25 ADD $2M Key points: 1. The contract provides a critical resource for wildfire suppression, ensuring timely access to retardant. 2. The BPA structure allows for flexibility in ordering as needs arise, potentially optimizing resource allocation. 3. The addition of $2M for FY25 indicates an anticipated increase in wildfire activity or strategic stock-piling. 4. The firm-fixed-price contract type shifts cost risk to the contractor, providing budget predictability. 5. The contract is awarded to a single vendor, raising questions about potential price efficiencies from broader competition. 6. The geographic scope is focused on Idaho, suggesting a regional approach to wildfire management.

Value Assessment

Rating: fair

The contract's value is difficult to assess without comparable BPA pricing for wildfire retardant. The $18.3M total award ceiling over its period of performance, with an additional $2M for FY25, represents a significant investment in wildfire suppression capabilities. The firm-fixed-price structure provides cost certainty for the agency. However, the lack of competitive bidding history for this specific BPA makes a direct value-for-money comparison challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which suggests a competitive process was initially intended but may have been narrowed or had specific criteria that limited the pool of bidders. The specific details of this exclusion are not provided, making it difficult to fully assess the breadth of competition. A limited competition can sometimes lead to higher prices compared to full and open competition.

Taxpayer Impact: Taxpayers may not be receiving the most cost-effective pricing due to the limited nature of the competition, potentially leading to higher overall spending on wildfire suppression resources.

Public Impact

The primary beneficiaries are the U.S. Forest Service and other federal/state agencies involved in wildfire suppression, ensuring access to essential retardant. The service delivered is the on-demand provision of wildfire retardant, a critical component in combating large-scale fires. The geographic impact is focused on the state of Idaho, a region prone to significant wildfire activity. Workforce implications include support for firefighters and aviation crews who rely on timely retardant delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may result in suboptimal pricing for taxpayers.
Reliance on a single vendor for a critical resource could pose supply chain risks.
The specific reasons for excluding sources in the competition are not detailed, hindering transparency.

Positive Signals

The firm-fixed-price contract provides cost certainty for the agency.
The BPA structure allows for flexibility in ordering based on real-time needs.
The contract ensures a critical resource is available for wildfire suppression efforts.

Sector Analysis

The wildfire suppression industry is a specialized sector within the broader chemical manufacturing and logistics industries. This contract fits within the government's ongoing efforts to manage and mitigate wildfire risks, particularly in Western states. Spending on wildfire suppression is often subject to significant fluctuations based on seasonal conditions and the severity of fire seasons. Comparable spending benchmarks would typically involve analyzing other large-scale retardant supply contracts or overall agency budgets allocated to firefighting resources.

Small Business Impact

This contract does not appear to have a small business set-aside. There is no indication of subcontracting plans specifically targeting small businesses within the provided data. The focus on a specialized product like wildfire retardant may limit opportunities for broad small business participation unless they are direct suppliers or specialized logistics providers.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Forest Service's contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver specified goods. Transparency is partially addressed through contract award data, but further details on the competitive process and performance metrics would enhance oversight.

Related Government Programs

Wildfire Suppression Services
Aviation Support Services
Chemical Manufacturing Contracts
Emergency Response Procurement

Risk Flags

Limited Competition
Single Source Reliance
Potential for Price Inefficiency
Supply Chain Vulnerability

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $18.3 million to PERIMETER SOLUTIONS LP. RETARDANT ON-DEMAND BPA PERIMETER FY25 ADD $2M

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 $18.3 million.

What is the period of performance?

Start: 2025-01-01. End: 2026-04-01.

What is the historical spending pattern for wildfire retardant under similar contracts by the Forest Service?

Analyzing historical spending on wildfire retardant requires examining past contracts, including Basic Ordering Agreements (BOAs) and Indefinite Delivery/Indefinite Quantity (IDIQ) contracts, awarded by the Forest Service and other relevant agencies. Data from previous fiscal years would reveal trends in annual expenditures, average contract values, and the number of vendors utilized. For instance, if past spending has consistently been in the multi-million dollar range for similar geographic areas or operational needs, the current $18.3M BPA with a $2M addition for FY25 might align with established patterns. However, significant deviations could indicate changes in wildfire frequency, suppression strategies, or market pricing. Without access to specific historical contract data, it's challenging to provide precise figures, but the trend generally shows substantial and often increasing investment due to climate change impacts on wildfire seasons.

How does the pricing of this contract compare to market rates for wildfire retardant?

Benchmarking the pricing of this contract against market rates for wildfire retardant is challenging without specific per-unit cost data or access to competitor pricing. The contract is a firm-fixed-price BPA, meaning the price per unit of retardant is established. However, the provided data does not include these unit prices. To perform a comparison, one would need to identify the specific type and quantity of retardant being procured and then research published price lists from manufacturers or data from similar government contracts awarded through full and open competition. Factors influencing market rates include the cost of raw materials, manufacturing processes, transportation, and regulatory compliance. A limited competition, as indicated, can sometimes lead to prices that are not as competitive as those achieved through broader bidding processes.

What are the specific risks associated with relying on a single vendor for on-demand wildfire retardant?

Relying on a single vendor for a critical resource like on-demand wildfire retardant introduces several significant risks. Firstly, there's a supply chain risk: if the sole contractor experiences production issues, logistical failures, or faces unforeseen events (e.g., natural disasters affecting their facilities), the availability of retardant could be severely impacted, potentially hindering wildfire suppression efforts. Secondly, there's a pricing risk; without ongoing competition, the government may not be achieving the most cost-effective pricing over the life of the contract, as the vendor faces less pressure to offer competitive rates. Thirdly, there's a performance risk; while the contract is firm-fixed-price, the contractor's ability to meet demand promptly and consistently is crucial. A single vendor might struggle to scale up rapidly during peak wildfire seasons, leading to delays. Finally, the 'exclusion of sources' in the competition process itself suggests a potential limitation on the vendor pool, which could exacerbate these risks.

What is the track record of Perimeter Solutions LP in providing wildfire retardant to government agencies?

Perimeter Solutions LP is a known entity in the wildfire suppression industry, often involved in the manufacturing and supply of fire retardants. Their track record with government agencies, including the Forest Service, would typically involve reviewing past contract awards, performance evaluations, and any reported issues or successes. Companies in this sector often have established relationships with agencies due to the specialized nature of the products and services. A thorough assessment would involve looking at the duration and value of previous contracts, whether they were consistently awarded sole-source or competitively, and any documented instances of performance failures or exceptional service. Without direct access to a performance database or detailed contract history for Perimeter Solutions, a definitive statement on their track record is limited, but their presence as a supplier suggests a level of established capability.

How does the $2M addition for FY25 impact the overall value proposition of this contract?

The $2M addition for FY25 to the existing $18.3M BPA ceiling suggests an anticipated increase in the need for wildfire retardant during that fiscal year. From a value proposition standpoint, this addition could be viewed in a few ways. If it reflects a proactive measure to ensure sufficient supply for an expected severe fire season, it enhances the contract's value by guaranteeing availability and potentially avoiding higher emergency procurement costs later. However, if the $2M represents an unplanned increase or is not fully utilized, it could diminish the value proposition by increasing overall spending without a commensurate increase in essential services. The value hinges on whether this additional funding is a strategic allocation based on reliable forecasting or a reactive measure. The firm-fixed-price nature means the cost is set, but the utilization and necessity of the full amount are key to its 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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8000 MARYLAND AVE, SAINT LOUIS, MO, 63105

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

Financial Breakdown

Contract Ceiling: $18,326,978

Exercised Options: $18,326,978

Current Obligation: $18,326,978

Actual Outlays: $16,520,032

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SC22T2602

IDV Type: IDC

Timeline