The United States Department of Agriculture (USDA) signed a five-year contract with Perimeter Solutions for fire retardant that will save taxpayers $153 million, according to a USDA official statement. Agriculture Secretary Brooke Rollins announced the deal, which supports aerial wildfire suppression programs run by the Forest Service and Interior Department. The contract locks in lower prices while requiring all manufacturing to happen in the United States. The savings come from direct price cuts and moves toward full-service bases and powder retardant by 2030.
Fire retardant dropped from aircraft has become a key tool for fighting wildfires across the American West. The red-colored chemical slows fire spread and gives ground crews time to build containment lines. Demand has grown as wildfire seasons get longer and more intense due to drought and climate change.
“This contract is a tremendous win for America’s taxpayers, our rural communities, and the brave men and women who fight wildfires every day,” Rollins said. The agreement includes negotiated price reductions and operational changes that will cut costs over the contract term. USDA says it secured the lowest available price in the global market while keeping production domestic. The deal also transitions operations to more efficient full-service bases.
The contract requires Perimeter Solutions to manufacture 100% of fire retardant in the United States. This keeps the entire supply chain on American soil, from production to delivery. The company will also shift toward powder-based retardant, which costs less to transport and store than liquid versions.
The new contract comes as federal agencies prepare for another active wildfire season across drought-stricken western states where millions of acres burn annually.
