South Dakota Department of Transportation Request for Proposal

Title: South Dakota State Rail Plan Update and Napa-Platte Railway Feasibility Study

Problem Description

To be eligible for federal assistance for local rail projects, each state must develop, maintain, and administer a federally approved state rail plan, as guided by 49 USC Chapter 227 and 49 CFR Part 266. In addition to meeting the federal state rail plan requirements, the South Dakota Department of Transportation (SDDOT) seeks to support sound investment and management decisions for the state-owned Napa-Platte Railway (NPRW). The State of South Dakota has owned the NPRW since the early 1980’s and since its time of ownership the NPRW has experienced a steady decline in railway businesses, resulting in elimination of any common carrier service and filing of railbank status with the Surface Transportation Board. The state has access to federal and state grants and loans for maintenance and capital improvements, and prior to any future funding being appropriated to the NPRW, decision-makers must ensure that the NPRW receives a professional, thorough assessment regarding the feasibility of allocating any public investments on this line to ensure that appropriate returns to the state’s citizens, producers, shippers, and carriers can be realized.

Objectives:

1) Update the South Dakota State Rail Plan. The proposer should complete the State Rail Plan requirements using the Federal Rail Administration (FRA) guidelines.

2) Conduct a feasibility study on the NPRW, as a potential candidate for phased restoration and investment. The study shall evaluate how this corridor's ownership, condition, market potential, and phasing options fit within South Dakota's overall rail investment, funding, and asset-management framework. The NPRW feasibility study shall be a standalone document that is explicitly connected to and integrated with the State Rail Plan.

Importance: This rail plan is needed to satisfy eligibility requirements for the state to receive federal funding. The NPRW feasibility study is needed to ensure that the NPRW receives a professional and thorough assessment on the feasibility of allocating any public investments towards the railroad line such that appropriate returns can be realized.

Tasks

1. Meet with the project’s technical panel to review the project scope, work plan, expectations for the State Rail Plan update, and specific objectives for the NPRW feasibility study. The work plan shall reflect that the NPRW feasibility study will be completed first, within 12 months of contract execution, and the State Rail Plan update completed by month 20.

2. Interview select SDDOT staff, railroad operators, shippers, local officials, and other stakeholders regarding the status, needs, and opportunities for rail transportation in South Dakota, with emphasis on the NPRW corridor.

3. Compile and analyze information available from SDDOT and other sources regarding the State’s rail system, including ownership, condition, traffic, and funding, and identify data gaps relevant to the NPRW feasibility study.

4. Conduct focused engagement with grain elevator cooperatives, agricultural shippers, livestock and agricultural associations, mining businesses and other potential industrial users along the NPRW to assess interest in rail service and the potential for multi-year volume commitments and private investment.

Additionally, this engagement should capture a baseline of data needs these businesses require to enable them to make rail shipping investment decisions.

Final engagement list will need to be approved by the technical panel.

5. Create a clear strategy that identifies which NPRW segments and other State rail projects should be positioned for federal rail grants, mapping anticipated Notice of Funding Opportunity timelines against State decision-making and approval processes, including a list of specific prerequisite steps that must be completed before the State authorizes a grant application to upgrade any assets on the

NPRW.

6. Complete a feasibility assessment of the NPRW, including status by segment, market potential, shipper and operator commitments, and phasing options for restoration and investment, using existing SDDOT documents and supplemental field and market investigations as needed.

7. Provide a clear recommendation on whether the State should pursue phased restoration of the NPRW corridor, including documentation of defined volume and investment thresholds; documentation of private cost share and shipper commitments; expectations for short line operator arrangements; and a funding approach that combines federal grants, state match, and private contributions.

8. Prepare, submit, and present for approval of the project’s technical panel a technical memorandum documenting the results of Tasks 2–7, including NPRW findings and preliminary grant and phasing recommendations.

9. Make an executive presentation to the South Dakota Railroad Board on the preliminary NPRW recommendations and proposed grant and construction phasing strategies. This preliminary briefing shall occur early enough for the consultant to incorporate Board feedback into the feasibility study. Upon completion of the NPRW feasibility study (at month 12) make a final presentation to the Board summarizing the study’s final conclusions and recommendations.

10. Conduct the FRA approved stakeholder outreach program and summarize findings for incorporation into the State Rail Plan and NPRW subsection. Integrate with the State Freight Plan Update for additional stakeholder engagement opportunities.

11. Prepare an outline of the updated State Rail Plan, including a dedicated subsection on the NPRW feasibility study.

12. Prepare, submit, and present for approval of the project’s technical panel a technical memorandum documenting the results of Tasks 9–11.

13. Prepare a draft State Rail Plan that meets FRA requirements, including the subsection for the NPRW feasibility study.

14. Revise the draft State Rail Plan in response to comments received from the project’s technical panel.

15. In conformance with Guidelines for Performing Research for the South Dakota Department of Transportation, prepare a final report summarizing the methodology, findings, conclusions, and recommendations, including the NPRW feasibility study.

16. Make an executive presentation to the South Dakota Railroad Board at the conclusion of the entire project, summarizing the completed State Rail Plan and how the NPRW feasibility study informs final statewide rail recommendations.

Potential Implementation

If successful, this project will produce an FRA approved state rail plan that the State Railroad Board and the South Dakota Department of Transportation can adopt and use to guide rail investment, funding and financing policies, procedures, and decisions in the future. It will also produce an NPRW feasibility study that synthesizes information on corridor status, market conditions, stakeholder input, project costs and benefits, risks, alternatives analysis, grant strategy and investment needs. This subsection shall provide a clear recommendation on whether, and under what pre conditions, the State should pursue phased restoration of this corridor, with particular attention to shipper volume commitments, private elevator and industrial investments, and short line operator arrangements as prerequisites for public funding and for pursuing federal grant opportunities.

Sponsor Involvement

SDDOT will provide access to available records and data and will participate in interviews and meetings needed to support the study.

Technical Panel

The winning proposer will be required to work with the SDDOT and a technical panel that will provide guidance, review, and feedback throughout the development of the plan.

The panel members will be announced to the winning proposer after contract negotiation.

Project Details

Available Funding: $350,000

Anticipated Start Date: June 30, 2026

Funding Source: State Rail Fund

Duration: 20 months

Terms of Payment

Payment for this project will be made upon SDDOT's acceptance of key project deliverables. Percentages of total project cost will be paid upon satisfactory completion of the following tasks:

Task / Deliverable Percentage of Total Cost

Technical memorandum documenting results of Tasks 1-9 and presentation to the SD Railroad Board on the NPRW feasibility study

25%

Technical memorandum documenting results of Tasks 10–12 (including outreach findings and annotated outline) 20%

Revised draft State Rail Plan and NPRW subsection following technical panel review (Task 12-13) 30%

Final report and executive presentation to the South Dakota Railroad Board (Tasks 14–16) 25%

Total 100%

General Information

The South Dakota Department of Transportation solicits proposals from research institutes, foundations, consultants, federal, state, and local agencies, and others with demonstrated capability and experience in the subject area.

The South Dakota Department of Transportation provides services without regard to race, color, gender, religion, national origin, age or disability, according to the provisions contained in South Dakota Codified Law (SDCL) 20-13, Title VI of the Civil Rights Act of 1964, the Rehabilitation Act of 1973, as amended, the Americans With Disabilities Act of 1990 and Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations, 1994. Any person who has questions concerning this policy or who believes he or she has been discriminated against should contact the Department's Civil Rights Office at (605) 773-3540.

Proposals must remain valid for at least 120 days after the submission deadline. All submitted proposals become the property of the South Dakota Department of Transportation. SDDOT has the right to use all information presented in any proposal, unless it is specifically annotated as being proprietary. SDDOT considers all information contained in proposals to be privileged and reserves the right to maintain its confidentiality. South Dakota state statute requires the winning proposal, with proprietary information redacted, to be posted online along with the corresponding contractual agreement.

SDDOT reserves the right to reject any and all proposals submitted. SDDOT may negotiate with a selected proposer to address specific weaknesses in the selected proposal prior to contract award.

SDDOT is not responsible for any costs, including proposal preparation, incurred by researchers prior to execution of a contract.

Proposal Submission

Proposal Deadline: Proposals are due to the SDDOT Office of Air, Rail and Transit by 2:00 PM on Thursday, June 4th, 2026. This deadline is firm. Extensions will not be granted.

Proposers must submit the proposal via email to: Jack.Dokken@state.sd.us and Rocky.Matson@state.sd.us

Proposal Guidelines: Proposals must fulfill the requirements listed in the document attached entitled RESEARCH PROPOSAL PREPARATION, SUBMISSION, AND EVALUATION dated October 24th, 2025.

Proposal Evaluation: Proposals will be evaluated by SDDOT Railroad staff and a technical panel knowledgeable in the problem area. Selection will be made in consideration of criteria listed in RESEARCH PROPOSAL PREPARATION, SUBMISSION, AND EVALUATION.

Proposers will be notified of the results of the selection no later than June 19th, 2026.

Project Management: Jack Dokken is responsible for management of this project and can be reached at (605) 773-7045 or jack.dokken@state.sd.us to answer inquiries.