Perimeter Solutions LP (B-423321; B-423321.2)

You should not care.

Category: Sole source

Date: 6 May 2025

URL: https://www.gao.gov/products/B-423321

Perimeter Solutions LP protested Forest Service's intended sole-source award to Fortress North America, LLC, for the supply of Qela, an aerial long-term fire retardant (LTFR). Perimeter, the incumbent supplier of LTFR, challenged the agency's justification for the noncompetitive award, arguing the proposed quantity for testing Qela was excessive, the procurement of ancillary services was unreasonable, the agency failed to consider Perimeter's alternative product, and the award would create an unfair competitive advantage for Fortress.

The Forest Service requires LTFR products to undergo a qualification process, including laboratory evaluations and potentially an operational field evaluation (OFE), to be placed on the qualified products list (QPL). Fortress's product, Qela, was deemed "conditionally qualified" and required an OFE to address potential corrosion issues, particularly after previous products from Fortress caused aircraft corrosion. The agency issued a notice of intent for a sole-source award to Fortress to procure Qela for this OFE, stating it was the only product eligible. Perimeter claimed it also had a "conditionally qualified" product. However, the Forest Service explained it was revising its testing specifications to include a new galvanic corrosion test, which Qela had completed, but Perimeter’s product had not.

GAO dismissed the protest, finding Perimeter was not an interested party. An interested party must be an actual or prospective offeror whose direct economic interest would be affected by the contract award. GAO determined that even if the sole-source award to Fortress were improper, Perimeter would not be eligible for award because its product had not yet passed the new galvanic corrosion testing requirement deemed necessary by the agency before an OFE could proceed. The agency has discretion to determine its needs and testing requirements, and GAO found the new test to be reasonably justified to ensure product safety and maintain a fair qualification process.

Digest

Protest is dismissed where the protester is not an interested party to challenge the agency's intended award of a contract on a sole-source basis because the firm does not similarly offer a "conditionally qualified" product.