Tankwagon/Transport Propane

The State of South Dakota is soliciting vendors for tankwagon and transport propane deliveries to various state locations through a competitive procurement process. The contract will cover propane fuel requirements for multiple state agencies, including the Department of Transportation, Highway Patrol, state parks, research facilities, and state institutions like the Mike Durfee State Prison. The solicitation encompasses 84 tankwagon load locations and 2 transport load locations, with estimated annual gallon requirements ranging from 1,000 to 23,000 gallons per site, and two large transport loads of 25,000 and 103,000 gallons. Pricing will be determined using a daily adjusted base price method derived from the Data Transmission Network Corporation's daily "unbranded" average propane price, with vendors required to quote a margin price that includes transportation, handling, and delivery costs. Vendors must specify their fuel source terminal (Rapid City, Wolsey, or Yankton) and ensure deliveries are made within two business days of order, using vehicle-mounted metering systems equipped with ticket printers. The contract will run from July 1, 2025, through June 30, 2026, with the option to renew for up to four additional one-year periods. The due date for submissions is June 3, 2025.

The procurement opportunity appears to be open to all qualified vendors, with the State of South Dakota Vendor's Manual emphasizing open competition and fair procurement practices. While the documents do not explicitly mention specific set-aside designations, the manual does indicate preferences for resident businesses, minority-owned enterprises, and local suppliers when pricing and quality are substantially equal. The state reserves the right to purchase from alternative vendors if the contract price is significantly higher than the open market price. Vendors must comply with state and federal regulations, provide performance security, and maintain appropriate insurance. The total contract value is not explicitly stated, but the comprehensive coverage of 86 delivery locations suggests a potentially significant annual procurement. The state's procurement approach allows for flexibility, with the ability to adjust pricing daily and potential contract extensions, providing an attractive opportunity for propane suppliers capable of meeting the specified delivery and technical requirements.