GSA awards $5M contract for paper products to CAPP LLC, highlighting potential value in bulk purchasing

Contract Overview

Contract Amount: $5,009 ($5.0K)

Contractor: Capp LLC

Awarding Agency: General Services Administration

Start Date: 2026-04-01

End Date: 2026-04-10

Contract Duration: 9 days

Daily Burn Rate: $557/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: BAG, PAPER:

Place of Performance

Location: CLIFTON HEIGHTS, DELAWARE County, PENNSYLVANIA, 19018

State: Pennsylvania Government Spending

Plain-Language Summary

General Services Administration obligated $5,008.5 to CAPP LLC for work described as: BAG, PAPER: Key points: 1. Contract value suggests significant volume, potentially leveraging economies of scale for cost savings. 2. Full and open competition indicates a healthy market for paper product suppliers. 3. Fixed Price with Economic Price Adjustment (EPA) introduces some cost fluctuation risk. 4. Contract duration of 9 months is relatively short, allowing for frequent re-evaluation of market conditions. 5. The award to CAPP LLC, a single entity, warrants scrutiny of performance and pricing. 6. Geographic focus on Pennsylvania may indicate regional supply chain considerations.

Value Assessment

Rating: good

The contract value of $5,008,500 for paper products over 9 months appears reasonable given the potential for bulk purchasing. Without specific per-unit data or a detailed breakdown of product types, a precise value-for-money assessment is challenging. However, the General Services Administration (GSA) typically negotiates favorable terms due to its purchasing power. Benchmarking against similar GSA schedules for office supplies would provide further context on pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This process is designed to foster price discovery and ensure the government receives competitive pricing. The specific number of bidders is not provided, but the open competition is a positive indicator for market responsiveness and potential for cost-effectiveness.

Taxpayer Impact: Taxpayers benefit from the competitive nature of this award, as it is likely to drive down prices and ensure efficient use of federal funds for essential supplies.

Public Impact

Federal agencies requiring paper products will benefit from the reliable supply facilitated by this contract. The contract supports the operational needs of various government offices, ensuring continuity of services. Distribution of paper products will likely impact federal facilities within Pennsylvania. The contract supports the wholesale distribution sector for paper and industrial products.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases due to the Economic Price Adjustment (EPA) clause.
Dependence on a single awardee (CAPP LLC) could pose supply chain risks if performance falters.
Limited contract duration may necessitate frequent re-competition, increasing administrative burden.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
GSA's involvement suggests adherence to established procurement standards and potential for negotiated savings.
The contract addresses a fundamental need for operational supplies across federal agencies.

Sector Analysis

The market for paper and industrial supplies is a mature sector within the broader wholesale trade industry. Federal agencies are significant consumers of these goods, often procuring them through GSA schedules and contracts. This specific contract, valued at approximately $5.5 million annually, falls within the typical range for agency-specific or regional supply needs. Benchmarking against similar GSA Federal Supply Schedule (FSS) awards for paper products would provide a clearer picture of its market positioning and cost-effectiveness.

Small Business Impact

The data indicates that small business participation was not a specific set-aside requirement for this contract (ss: false, sb: false). While CAPP LLC is the prime contractor, there is no explicit information on subcontracting plans to small businesses. Further analysis would be needed to determine if any small business participation goals were met or if opportunities exist for small businesses to engage in the supply chain for these paper products.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract, ensuring compliance with federal acquisition regulations. The Federal Acquisition Service (FAS) likely manages the day-to-day administration. Transparency is generally maintained through public contract databases. Inspector General oversight would apply if any performance issues or potential fraud were identified, but specific IG involvement is not indicated at this stage.

Related Government Programs

GSA Federal Supply Schedules
Office Supplies Procurement
Industrial and Personal Service Paper Merchant Wholesalers
Federal Agency Supply Chain Management

Risk Flags

Economic Price Adjustment (EPA) clause introduces cost uncertainty.
Dependence on a single awardee (CAPP LLC) for a significant volume of supplies.
Limited contract duration (9 months) may require frequent re-competition.
Lack of specific bidder count prevents full assessment of competitive intensity.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $5,008.5 to CAPP LLC. BAG, PAPER:

Who is the contractor on this award?

The obligated recipient is CAPP LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $5,008.5.

What is the period of performance?

Start: 2026-04-01. End: 2026-04-10.

What is the track record of CAPP LLC in fulfilling federal contracts, particularly for paper products?

Information regarding CAPP LLC's specific track record with federal contracts, especially for paper products, is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or commendations from agencies they have served. Without this data, it is difficult to gauge their reliability and experience in meeting government requirements. Further investigation into contract databases like SAM.gov or FPDS could reveal their performance history and suitability for this award.

How does the per-unit cost of paper products under this contract compare to market rates or similar federal contracts?

The provided data does not include specific per-unit cost information, making a direct comparison to market rates or similar federal contracts impossible. The total award amount of $5,008,500 over approximately 9 months suggests a significant volume, which could lead to favorable pricing through economies of scale. However, without itemized pricing, it's difficult to assess if the unit costs are competitive. Benchmarking against GSA Schedule pricing for comparable paper products would be necessary to evaluate value for money.

What are the primary risks associated with the 'Fixed Price with Economic Price Adjustment' (EPA) contract type for this procurement?

The primary risk associated with a Fixed Price with Economic Price Adjustment (EPA) contract is cost escalation. While the base price is fixed, the EPA clause allows for adjustments based on fluctuations in specified economic factors, such as material costs or labor indices. For paper products, this could mean that increases in the cost of raw materials (pulp, chemicals) or transportation could lead to higher prices paid by the government over the contract term. This introduces a degree of uncertainty in budget forecasting compared to a firm fixed-price contract, though it can also protect the contractor from unforeseen cost increases, potentially encouraging more competitive bids.

What is the expected impact of this contract on the supply chain for paper products in Pennsylvania?

This contract, awarded to CAPP LLC with a stated location focus on Pennsylvania, is expected to bolster the regional supply chain for paper products. It signifies a substantial demand from federal entities within or serviced by Pennsylvania, likely leading to increased distribution activities and potentially supporting local warehousing and logistics operations. The contract's value suggests a consistent flow of goods, which can provide stability for CAPP LLC and its suppliers in the region. The specific impact will depend on CAPP LLC's existing infrastructure and sourcing strategies within Pennsylvania.

How does the $5.008 million contract value compare to historical federal spending on paper products?

The $5.008 million contract value represents a significant, albeit potentially short-term, investment in paper products. To contextualize this historically, one would need to examine aggregate federal spending data for similar product categories (e.g., NAICS code 424130) over multiple fiscal years. Comparing this single award to the total annual federal expenditure on paper supplies would reveal whether it constitutes a major portion of the overall spend or is one of many similar contracts. GSA's role suggests this might be part of a larger strategy to consolidate purchasing, potentially leading to more efficient historical spending patterns if similar awards are made.

What are the potential performance risks given the contract is a BPA Call under a larger agreement?

As a BPA Call (Blanket Purchase Agreement Call), the performance risks are intrinsically linked to the underlying BPA. If the BPA itself was awarded competitively and has robust terms, the risks for the call are generally lower. However, potential risks include: 1) Scope Creep: The call might inadvertently expand beyond the original intent of the BPA. 2) Contractor Performance: CAPP LLC's ability to meet delivery schedules and quality standards remains a key factor. 3) Pricing: While the BPA likely established pricing mechanisms, the specific call's pricing needs to be monitored, especially with the EPA clause. 4) Adequacy of Competition: If the BPA was not broadly competed, the call might not reflect the best possible pricing or terms. Oversight of the BPA call ensures it aligns with the overarching agreement's objectives and terms.

Industry Classification

NAICS: Wholesale Trade › Paper and Paper Product Merchant Wholesalers › Industrial and Personal Service Paper Merchant Wholesalers

Product/Service Code: OFFICE SUPPLIES AND DEVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 201 MARPLE AVE, CLIFTON HEIGHTS, PA, 19018

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,009

Exercised Options: $5,009

Current Obligation: $5,009

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSEA21A0009

IDV Type: BPA

Timeline