Senator Marshall Joins Bipartisan Call for DOJ Investigation into Fire Department Market Consolidation

Washington - On Monday, U.S. Senator Roger Marshall, M.D. (R-Kansas), joined a letter to the Department of Justice (DOJ), led by Senator Amy Klobuchar (D-Minnesota) calling for an investigation into growing consolidation in markets that provide critical products and services to fire departments and other public safety agencies nationwide.

Recent reports indicate that a single private equity-backed company now controls software used by roughly two-thirds of the nation's fire departments, following a series of acquisitions that have sharply reduced competition. As consolidation has increased, fire departments, particularly small, rural, and volunteer departments, have reported dramatic price hikes and the elimination of lower-cost options they previously relied on.

In the letter to the DOJ, the Senators wrote:

"Dear Assistant Attorney General Slater and Chair Ferguson:

We write to express our concern about the growing consolidation of critical services and products that public safety departments nationwide depend on, including incident reporting and data management software solutions used by fire departments.

Recent reports document that one company, ESO Solutions, backed by private equity firm Vista Equity Partners, has acquired multiple fire service software businesses and now controls the software used by approximately 20,000 of the nation's 30,000 fire departments. As the company has consolidated its market position, some fire departments have reported steep price increases, from $795 per year to more than $5,000 Reports also note that ESO has removed some of the most cost-effective options previously used by small and volunteer fire departments, effectively pushing fire departments to adopt more expensive, albeit more modern, software.

More broadly, fire departments, and other public safety agencies across the nation, have experienced cost increases as markets consolidate, affecting everything from fire engine manufacturing and emergency radios to fire retardants and other essential equipment.

These companies appear to be taking advantage of the fact that communities depend on specialized products and services that are essential to first responders' ability to do their jobs. This market dependence has allowed companies to increase prices without the risk of losing business, especially in communities and local governments that lack alternatives. Smaller emergency agencies, including the thousands of volunteer fire departments across the United States, should not be forced to purchase more expensive products that they neither need nor want simply because consolidation has reduced choice and competition.

We urge you to investigate consolidation in the markets for products and services relied on by public safety agencies to ensure that local communities, and the first responders that protect them, are not victims of anticompetitive conduct and consolidation."

Click HERE to read the full letter.

###

Contact: