NAICS 23712 - Oil and Gas Pipeline and Related Structures Construction
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Related NAICS Codes for NAICS 23712
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| NAICS Code | Industry Title |
|---|---|
| 237120 | Oil and Gas Pipeline and Related Structures Construction |
What is NAICS 23712
NAICS code 23712 covers the specialized construction sector involved in the installation and construction of oil and gas pipelines and related structures. This includes the laying of pipelines for oil, natural gas, and other petroleum products, as well as constructing supporting infrastructure such as compressor stations, pumping stations, and metering facilities. Businesses operating in this sector typically range from small specialized contractors to large engineering and construction firms with expertise in pipeline technology, environmental compliance, and safety standards. Government agencies contract these services to support energy infrastructure development, ensure the secure transport of vital resources, and maintain critical energy supply chains necessary for national security and economic stability. The sector demands high technical skill, adherence to rigorous safety standards, and the ability to navigate complex regulatory environments, making qualified contractors essential.
Breakdown for NAICS 23712
- Covers construction of oil and gas pipelines and related infrastructure such as compressor and pumping stations.
- Includes installation, repair, replacement, and maintenance of pipeline systems.
- Project sizes range from small maintenance contracts to large-scale multi-million dollar pipeline installations.
- Requires adherence to strict safety, environmental, and regulatory compliance standards.
- Businesses must meet bonding and insurance requirements typical of government contracts.
- Government contracting involves both competitive bidding and negotiated procurements.
Included Activities for NAICS 23712
- Laying and welding of oil and gas pipelines.
- Construction of compressor and pumping stations associated with pipeline networks.
- Pipeline inspection and testing for compliance and safety.
- Environmental impact mitigation during pipeline installation.
- Maintenance and repair of existing pipeline infrastructure.
- Installation of metering and monitoring equipment on pipelines.
- Site preparation and right-of-way clearing for pipeline routes.
- Compliance with federal, state, and local environmental regulations.
Business Types for NAICS 23712
- Specialized pipeline construction contractors.
- Civil engineering and construction firms with pipeline expertise.
- Environmental consulting firms specializing in pipeline projects.
- Subcontractors providing welding, inspection, and maintenance services.
- Utility companies managing pipeline infrastructure.
- Small and disadvantaged businesses certified for government contracting.
Government Buyers for NAICS 23712
Federal, state, and local government agencies often procure oil and gas pipeline construction services to support public utilities, military installations, and energy infrastructure projects. Key buyers include the Department of Energy (DOE), the Department of Defense (DOD), and state public utility commissions. These agencies require reliable pipeline construction to ensure energy delivery, reduce environmental impact, and maintain strategic reserves. Additionally, agencies involved in land management, such as the Bureau of Land Management (BLM), may contract for pipeline projects crossing federal lands. Governments also invest in pipeline infrastructure upgrades to enhance energy security, meet regulatory requirements, and support economic development initiatives.
Contract Types & Procurement for NAICS 23712
Contracts for NAICS 23712 services typically include firm-fixed-price, cost-reimbursement, and indefinite delivery/indefinite quantity (IDIQ) contracts, depending on project complexity and risk. Competitive bidding is common, though negotiated procurements may be used for specialized projects requiring unique expertise. Contract values vary widely, from smaller repair and maintenance tasks valued under $1 million to large-scale pipeline installation projects reaching hundreds of millions of dollars. Government procurements often involve phased contracts with performance milestones, and contractors must comply with strict bonding, insurance, and safety requirements. Subcontracting opportunities abound for specialty trades, environmental compliance, and engineering services related to pipeline construction.
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