You are by no means obligated to work in a laboratory in order to enter science fairs like the one you hope to enter. That being said, many students do work in labs, though this does not prevent you from winning with a "home-made" project (I personally have seen many projects win without any laboratory involvement). After going to ISEF a couple years ago, I think that in order to do extremely well at your regional fair and beyond, you will need to offer more substantial analysis. Usually, these online tools can be extremely helpful in helping you to verify how aligned certain sequences are, and typically do not make up the data section for the entire project. For more info, you can check out another thread in which I posted about using these online tools - viewtopic.php?f=28&t=7258&hilit=+blast
Hope this helps, and best of luck!
"There is a single light of science, and to brighten it anywhere is to brighten it everywhere." -Isaac Asimov