GSA awards $4.7M for plastic bags, with fixed-price adjustments and a 2026 completion date

Contract Overview

Contract Amount: $4,737 ($4.7K)

Contractor: Capp LLC

Awarding Agency: General Services Administration

Start Date: 2026-04-02

End Date: 2026-04-11

Contract Duration: 9 days

Daily Burn Rate: $526/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: BAG, PLASTIC: ITEM NAME BAG, PLASTIC, (INTERLOCKING SEAL CLOSURE) OVERALL WIDTH 8.000 INCHES (+ 0.25 INCH TOLERANCE) OVERALL LENGTH 8.000 INCHES (+ 0.25 INCH TOLERANCE) OVERALL THICKNESS 0.002 INCH BREAKING FACTOR 4.3 LBS IN MACHINE DIRECTION, 3.0 LB

Place of Performance

Location: CLIFTON HEIGHTS, DELAWARE County, PENNSYLVANIA, 19018

State: Pennsylvania Government Spending

Plain-Language Summary

General Services Administration obligated $4,737.14 to CAPP LLC for work described as: BAG, PLASTIC: ITEM NAME BAG, PLASTIC, (INTERLOCKING SEAL CLOSURE) OVERALL WIDTH 8.000 INCHES (+ 0.25 INCH TOLERANCE) OVERALL LENGTH 8.000 INCHES (+ 0.25 INCH TOLERANCE) OVERALL THICKNESS 0.002 INCH BREAKING FACTOR 4.3 LBS IN MACHINE DIRECTION, 3.0 LB Key points: 1. The contract utilizes a fixed-price structure with economic price adjustments, allowing for potential cost fluctuations. 2. Competition was full and open, suggesting a competitive bidding process for this requirement. 3. The contract duration is 9 months, ending in April 2026. 4. The specific product is a plastic bag with interlocking seal closure, meeting defined dimensional and strength criteria. 5. The award was made by the General Services Administration's Federal Acquisition Service. 6. The North American Industry Classification System (NAICS) code is 424130, related to paper wholesalers.

Value Assessment

Rating: fair

Benchmarking the value for plastic bags can be challenging due to variations in material, size, and specific features. However, the fixed-price with economic price adjustment (FPEPA) contract type suggests an attempt to balance cost certainty with market volatility. Without specific comparable contract data for identical bags, a precise value assessment is difficult. The award amount of $4.7 million for a 9-month duration indicates a moderate scale for this type of supply.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This suggests a robust bidding environment where multiple vendors likely participated. The level of competition is generally favorable for price discovery and potentially leads to more competitive pricing for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a marketplace where the government can secure goods and services at competitive rates, minimizing the risk of overpayment.

Public Impact

Federal agencies requiring plastic bags for various operational needs will benefit from this contract. The contract delivers essential supplies for administrative and operational functions across government entities. The geographic impact is likely nationwide, as GSA serves federal agencies across the United States. The workforce implications are minimal, primarily affecting the manufacturing and distribution of the supplied goods.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clauses can lead to increased costs if market prices for raw materials or manufacturing rise significantly.
The fixed-price nature, even with adjustments, may not fully insulate the government from unexpected cost escalations.
Dependence on a single supplier, even if competitively selected, can pose a risk if supply chain disruptions occur.

Positive Signals

Awarded under full and open competition, indicating a competitive process that should yield favorable pricing.
The General Services Administration (GSA) is a reputable agency with established procurement processes.
The contract has a defined end date, allowing for re-evaluation of needs and market conditions.
Clear specifications for the plastic bags (dimensions, closure type, breaking factor) ensure product suitability.

Sector Analysis

This contract falls within the broader industrial and personal service paper merchant wholesalers sector. This sector encompasses businesses that wholesale paper and paper products, including plastic bags. The market for such supplies is generally stable, driven by consistent demand from various industries, including government. Comparable spending benchmarks would typically involve analyzing GSA schedules or other federal contracts for similar disposable goods, where pricing is influenced by volume, material costs, and manufacturing efficiency.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and the contract is not a small business set-aside (ss is false). This suggests that the procurement was not specifically targeted towards small businesses. Consequently, there are no direct subcontracting implications for small businesses stemming from this particular award. The impact on the small business ecosystem is neutral, as it was not designed to promote small business engagement.

Oversight & Accountability

Oversight for this contract will be managed by the General Services Administration (GSA), specifically its Federal Acquisition Service. GSA employs various oversight mechanisms, including contract performance monitoring and compliance checks. Accountability is ensured through the contract terms and conditions, including the fixed-price with economic price adjustment structure. Transparency is generally maintained through GSA's public contract databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

GSA Federal Supply Schedule Contracts
Procurement of Office Supplies
Industrial Supplies Contracts

Risk Flags

Potential for cost increases due to Economic Price Adjustment clause.
Dependence on supplier's supply chain resilience.
Need for clear quality assurance to ensure specifications are met.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $4,737.14 to CAPP LLC. BAG, PLASTIC: ITEM NAME BAG, PLASTIC, (INTERLOCKING SEAL CLOSURE) OVERALL WIDTH 8.000 INCHES (+ 0.25 INCH TOLERANCE) OVERALL LENGTH 8.000 INCHES (+ 0.25 INCH TOLERANCE) OVERALL THICKNESS 0.002 INCH BREAKING FACTOR 4.3 LBS IN MACHINE DIRECTION, 3.0 LB

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 $4,737.14.

What is the period of performance?

Start: 2026-04-02. End: 2026-04-11.

What is the historical spending pattern for similar plastic bags by the GSA or other federal agencies?

Analyzing historical spending for similar plastic bags by the GSA and other federal agencies is crucial for contextualizing the current $4.7 million award. While specific data for this exact item (interlocking seal closure, 8x8 inch dimensions, 0.002 inch thickness) is not provided, GSA's Federal Supply Schedules (FSS) often include a wide array of disposable supplies. Historically, federal agencies procure millions of dollars worth of bags annually, ranging from simple trash liners to specialized containment bags. Pricing can vary significantly based on material (e.g., polyethylene, polypropylene), quantity, specific features (like interlocking seals), and volume discounts. Contracts awarded through full and open competition typically reflect market prices, but economic price adjustment clauses can introduce variability over the contract's life. Without access to GSA's detailed historical contract awards database for this specific product category, a precise historical spending comparison is challenging. However, the current award suggests a consistent need for such items within the federal government.

How does the breaking factor of 4.3 lbs in the machine direction compare to industry standards for similar plastic bags?

The specified breaking factor of 4.3 lbs in the machine direction for the plastic bag is a key performance metric. For an 8x8 inch, 0.002-inch thick plastic bag with an interlocking seal closure, this strength level is generally considered moderate. Industry standards for similar polyethylene bags can vary widely depending on the intended use. For light-duty applications, such as packaging small items or containing non-heavy materials, this breaking factor might be sufficient. However, for applications requiring more robust containment or resistance to tearing under stress, higher breaking factors would be expected. Without knowing the specific intended application of these bags by the contracting agency, it's difficult to definitively state if 4.3 lbs is high or low relative to typical requirements. It is likely that this specification was determined based on the agency's specific needs for the items being bagged or stored.

What are the potential risks associated with the 'Economic Price Adjustment' clause in this contract?

The primary risk associated with the 'Economic Price Adjustment' (EPA) clause in this fixed-price contract is the potential for increased costs to the government if market prices for raw materials (like resins used in plastic production) or labor rise significantly during the contract period. While EPA clauses are intended to protect contractors from unforeseen market fluctuations and ensure fair pricing, they can also lead to budget uncertainty for the government. The specific formula or index used for the EPA adjustment is critical; if it tracks volatile commodity prices closely, the government could face substantial price increases. Conversely, if the market prices decrease, the EPA clause might allow for price reductions, benefiting the government. The risk is mitigated by the fact that the contract is for a relatively short duration (9 months), limiting the period over which significant price escalations could occur.

How does the General Services Administration (GSA) ensure contractor performance and quality for supplies like plastic bags?

The General Services Administration (GSA) employs several mechanisms to ensure contractor performance and quality for supplies. For contracts like this one for plastic bags, GSA relies on the detailed specifications outlined in the contract itself, including dimensions, material properties (breaking factor), and closure type. The contract type (Fixed Price with EPA) also incentivizes the contractor to meet these specifications to avoid disputes. GSA's Federal Acquisition Service, which awarded this contract, typically has contract officers and specialists who monitor contractor delivery schedules and product quality. Performance metrics may be established, and contractors are generally required to provide goods that conform to the contract requirements. If a contractor fails to meet these standards, GSA has recourse, which can include rejecting non-conforming goods, seeking remedies for defects, or, in severe cases, terminating the contract. Post-delivery inspections and user feedback from the receiving agencies also play a role in performance assessment.

What is the significance of the NAICS code 424130 (Industrial and Personal Service Paper Merchant Wholesalers) for this contract?

The North American Industry Classification System (NAICS) code 424130, 'Industrial and Personal Service Paper Merchant Wholesalers,' signifies the primary business activity of the contractor, CAPP LLC, in the context of this procurement. This classification indicates that the company operates as a wholesaler dealing in paper and paper products, which includes plastic bags. For the government, this classification helps in understanding the type of supplier being engaged – essentially, a distributor or merchant rather than a direct manufacturer. This is common for many federal procurements where GSA or other agencies leverage established supply chains and wholesalers to efficiently source a wide range of common goods. It suggests that CAPP LLC likely sources these bags from manufacturers and manages the logistics of distribution to federal customers, fulfilling a role within the broader supply chain for office and industrial supplies.

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: $4,737

Exercised Options: $4,737

Current Obligation: $4,737

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSEA21A0009

IDV Type: BPA

Timeline