Tankwagon/Transport Propane

The State of South Dakota is soliciting vendors through a formal competitive bidding process for tankwagon and transport propane deliveries to state locations throughout South Dakota, with proposals due by June 2, 2026. This procurement covers propane fuel supply to multiple state agencies including the Department of Transportation, South Dakota State University, Game, Fish and Parks, Highway Patrol, National Guard, and correctional facilities across 84 tankwagon load locations and 2 transport load locations statewide. Vendors must provide propane sourced from one of three designated terminals—Rapid City, Wolsey, or Yankton—with all deliveries shipped F.O.B. Destination within two business days of order placement. The pricing structure employs a two-component model utilizing daily-adjusted base prices derived from Data Transmission Network Corporation (DTN) "unbranded" average propane prices published in the FastRacks report, with bidders submitting only their fixed vendor margin above the base price. All propane must conform to Gas Processors Association Standard 2140, vehicles must be equipped with ticket printers to document sales, and vendors must submit invoices to state agencies at least monthly. A market protection clause permits state agencies to purchase from non-contract vendors if open market prices are $0.025 or more per gallon below the contract vendor's price, provided the vendor is first offered an opportunity to match. Estimated annual tankwagon gallonage exceeds 400,000 gallons with additional substantial transport load volumes for major institutional users such as the State Veterinary Home in Hot Springs (30,000 gallons) and Springfield State Prison (103,000 gallons).

The procurement documentation does not identify set-aside designations or restrictions limiting responses to specific enterprise types, nor does it list incumbent vendors or current contractors. Vendors must register with the electronic procurement system maintained by ESM Solutions to receive bid notifications and submit responses, and they must comply with corporate registration requirements of the South Dakota Secretary of State before contract award. All bidders must provide non-discrimination certifications, comply with Equal Employment Opportunity requirements, and maintain adequate insurance coverage as specified in the South Dakota Vendor Manual. Contract awards will be made to the lowest responsible and responsive bidder within forty-five days of bid opening, with payment required within forty-five days of receipt and written acceptance pursuant to the Prompt Payment Act; interest accrues at 1.5 percent per month on overdue invoices beginning on the thirtieth day. While specific budget ranges or award values are not provided in the solicitation materials, the substantial statewide propane supply requirement spanning multiple agencies and estimated volumes exceeding 400,000 gallons annually for tankwagon deliveries plus additional transport loads indicates a significant contract opportunity. Multiterm contracts may extend up to five years with renewal terms to be specified in the final contract documents.