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  5. ›Tankwagon/Transport Propane

South Dakota State Government·South Dakota

Tankwagon/Transport Propane

Closes 6/2/2026$800k – $1.5MInvitation for Bid
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Description

The State of South Dakota is seeking qualified vendors to supply unbranded liquid propane (LP‑gas) for both bulk tank‑wagon loads and smaller transport‑load deliveries to a wide range of state‑owned facilities throughout the state. Pricing will be based on a daily “unbranded” DTN base price plus a vendor‑quoted margin; deliveries are FOB destination with the vendor responsible for all freight, handling, and metering/ticketing. Orders must be placed within two business days of receipt, and invoices are submitted at least monthly. The solicitation includes a detailed bid sheet listing 82 tank‑wagon sites (≈ 317 k gal) and two transport loads (≈ 133 k gal), for a total estimated demand of roughly 450 k gal of propane. • Supply unbranded LP‑gas meeting GPA 2140 standards, sourced from Rapid City, Wolsey or Yankton terminals. • Pricing model: daily DTN base price + vendor margin (decimal format); adjustments posted immediately; market‑price clause triggers if local price is $0.025/gal lower. • Delivery obligations: FOB destination, 2‑business‑day lead time, vehicle‑mounted metering with ticket copy left for customer, monthly invoicing. • Volume commitment: ~450,000 gallons across state facilities (schools, parks, DOT sites, prisons, veterinary home, etc.).

Attached files

Key dates

Opened
5/12/2026
Questions due
5/12/2026
Closes
6/2/2026

Last updated

Details

Type
Invitation for Bid
Industry
Energy and Utilities
NAICS
424720
Solicitation №
26IFB19826

Budget estimate

$800,000 – $1,500,000

No contract value is disclosed. Based on the listed volume (~450,000 gallons) and an assumed average market price of $2.50 per gallon, total fuel cost would be about $1.125 million. Adding a modest vendor margin (≈ $0.05/gal) yields roughly $22,500 additional revenue, placing the contract’s gross value in the low‑to‑mid‑million range. Considering potential fluctuations in fuel price, delivery costs, and margin negotiations, a realistic earnings estimate for the vendor would fall between $0.8 million and $1.5 million over the contract period.

AI estimate from the solicitation

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