Interior Department Awards $346K Contract for Propane Line Rehab at Badlands National Park

Contract Overview

Contract Amount: $346,000 ($346.0K)

Contractor: Lacreek Development Corp

Awarding Agency: Department of the Interior

Start Date: 2026-04-10

End Date: 2026-08-14

Contract Duration: 126 days

Daily Burn Rate: $2.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THIS CONTRACT IS FOR CONSTRUCTION SERVICES TO REHAB PROPANE DISTRIBUTION LINES AT BADLANDS NATIONAL PARK.

Place of Performance

Location: INTERIOR, JACKSON County, SOUTH DAKOTA, 57750

State: South Dakota Government Spending

Plain-Language Summary

Department of the Interior obligated $346,000 to LACREEK DEVELOPMENT CORP for work described as: THIS CONTRACT IS FOR CONSTRUCTION SERVICES TO REHAB PROPANE DISTRIBUTION LINES AT BADLANDS NATIONAL PARK. Key points: 1. Contract focuses on essential infrastructure repair at a national park. 2. Competition method suggests a deliberate decision to exclude specific sources. 3. Risk of project delays or cost overruns exists due to fixed-price nature. 4. Construction sector is subject to material and labor cost fluctuations.

Value Assessment

Rating: good

The contract value of $346,000 appears reasonable for specialized construction services at a national park. Benchmarking against similar pipeline repair contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a competitive process but with specific exclusions. This method may limit the pool of potential bidders and potentially impact price discovery.

Taxpayer Impact: Taxpayer funds are being used for essential infrastructure maintenance, ensuring the safe operation of park facilities.

Public Impact

Ensures continued safe operation of propane distribution at Badlands National Park. Supports local economy through construction services contract. Maintains park infrastructure for visitor and operational needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the construction sector, specifically related to oil and gas pipeline infrastructure. Spending benchmarks for similar park infrastructure projects vary widely based on scope and location.

Small Business Impact

The contract was awarded to LaCreek Development Corp. Further analysis is needed to determine if this is a small business and if subcontracting opportunities were prioritized.

Oversight & Accountability

The National Park Service is responsible for overseeing this contract. Accountability will be measured by the successful completion of the rehabilitation project within the specified timeline and budget.

Related Government Programs

Risk Flags

Tags

oil-and-gas-pipeline-and-related-structu, department-of-the-interior, sd, definitive-contract, 100k-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $346,000 to LACREEK DEVELOPMENT CORP. THIS CONTRACT IS FOR CONSTRUCTION SERVICES TO REHAB PROPANE DISTRIBUTION LINES AT BADLANDS NATIONAL PARK.

Who is the contractor on this award?

The obligated recipient is LACREEK DEVELOPMENT CORP.

Which agency awarded this contract?

Awarding agency: Department of the Interior (National Park Service).

What is the total obligated amount?

The obligated amount is $346,000.

What is the period of performance?

Start: 2026-04-10. End: 2026-08-14.

What specific criteria led to the exclusion of certain sources in the competition?

The exclusion of sources suggests that the National Park Service may have had specific technical requirements, past performance considerations, or geographic limitations in mind when defining the eligible bidder pool. Understanding these criteria is crucial for assessing the fairness and effectiveness of the competition process.

What are the potential risks associated with a firm fixed-price contract for this type of construction?

Firm fixed-price contracts offer cost certainty but can expose the contractor to significant risk if unforeseen issues arise, such as unexpected site conditions or material price escalations. This could lead to contractor claims for additional compensation or, in extreme cases, project delays or contractor default, potentially impacting the park's operations.

How does this contract contribute to the overall operational effectiveness of Badlands National Park?

Rehabilitating the propane distribution lines is critical for the safe and reliable delivery of propane, which is likely used for heating, cooking, and other essential services within the park. Ensuring the integrity of this infrastructure directly supports the park's ability to function effectively and provide necessary services to staff and visitors.

Industry Classification

NAICS: ConstructionUtility System ConstructionOil and Gas Pipeline and Related Structures Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTYMAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 140P6326B0003

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 21617 US HWY 18, MARTIN, SD, 57551

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $346,000

Exercised Options: $346,000

Current Obligation: $346,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2026-04-10

Current End Date: 2026-08-14

Potential End Date: 2026-08-14 00:00:00

Last Modified: 2026-04-13

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