Perimeter Solutions vs Fortress: Aerial Fire Retardant Competition

The pitch was that Perimeter Solutions has 100% of the market because they are the only ones who have successfully gotten on the QPL, the Qualified Products List. They have defended that position well. We understood federal acquisition regulations well enough to know that if we could get through the process, which would take a couple of years, and have a product on the QPL, the United States government is structured in such a way that they can't support a monopoly if someone gives them a reason not to. - Former Strategy and Finance at FortressFire

This was the founding pitch for FortressFire to enter the aerial fire retardant business. The founding premise was built around the fact that FAR 6.202 of the Federal Acquisition Regulations implies government agencies should establish and maintain alternative sources of supply to critical products. 

The USFS needs to establish or maintain alternative sources for their long-term retardant suppliers in order to, (A) increase or maintain competition, (B) ensure continuous availability of supplies and services, (C) satisfy project needs of high demand and (D) have multiple suppliers for national emergencies or industrial mobilization. And so further to that, you have all these interpretations around definitions. - Former Strategy and Finance at FortressFire

And it worked. In December 2022, Fortress was the first company in over 20 years to be approved in the U.S. Forest Service’s (USFS) Qualified Product List (QPL). This broke Perimeter’s monopoly. But, it worked only until it didn’t. Thirteen months later, the USFS removed Fortress’ product from the QPL after finding corrosion in the air tankers used to drop the retardant. As the 2024 QPL shows, Perimeter (PRM) has regained its monopoly.