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
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
- Potential for scope creep impacting fixed-price contract.
- Weather-related delays could affect project timeline.
- Limited competition may have influenced final price.
Positive Signals
- Clear project objective for infrastructure repair.
- Defined contract duration and completion date.
- Firm fixed-price contract provides cost certainty.
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
- Oil and Gas Pipeline and Related Structures Construction
- Department of the Interior Contracting
- National Park Service Programs
Risk Flags
- Limited competition due to source exclusion.
- Potential for unforeseen site conditions impacting fixed-price contract.
- Weather-related risks inherent in outdoor construction.
- Dependence on propane supply chain stability.
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: Construction › Utility System Construction › Oil and Gas Pipeline and Related Structures Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, 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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