GSA's $3M Contract for Plastic Bag Waste Management with CAPP LLC Faces Scrutiny Over Competition and Pricing

Contract Overview

Contract Amount: $2,999 ($3.0K)

Contractor: Capp LLC

Awarding Agency: General Services Administration

Start Date: 2026-04-03

End Date: 2026-04-12

Contract Duration: 9 days

Daily Burn Rate: $333/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: PLASTIC BAG WASTE

Place of Performance

Location: CLIFTON HEIGHTS, DELAWARE County, PENNSYLVANIA, 19018

State: Pennsylvania Government Spending

Plain-Language Summary

General Services Administration obligated $2,998.8 to CAPP LLC for work described as: PLASTIC BAG WASTE Key points: 1. The contract awarded to CAPP LLC for plastic bag waste management is valued at $2,998,800. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Potential risks include the fixed-price with economic price adjustment structure, which could lead to cost overruns. 4. The sector appears to be related to industrial services and waste management.

Value Assessment

Rating: fair

The contract's fixed-price with economic price adjustment (FPEPA) structure warrants careful monitoring. While FPEPA can account for market fluctuations, it introduces a risk of price increases not fully captured by the initial benchmark. Further analysis of historical price adjustments is needed to assess true value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which typically fosters competitive pricing. However, the specific nature of plastic bag waste management services and the potential for specialized providers could influence the degree of price discovery achieved.

Taxpayer Impact: The use of FPEPA introduces a risk to taxpayers if economic adjustments lead to significantly higher costs than initially anticipated under a fixed-price contract.

Public Impact

Environmental impact of plastic bag waste management is a key public concern. Government contracts for waste management services can influence recycling rates and sustainable practices. Transparency in pricing for such services is crucial for public trust and efficient use of taxpayer funds.

Waste & Efficiency Indicators

Waste Risk Score: 100 / 10

Warning Flags

Economic price adjustment clause may increase costs.
Limited detail on specific waste management services provided.
Small business participation not indicated.

Positive Signals

Awarded under full and open competition.
Clear contract end date provides a defined period.
Contract value is relatively modest for a multi-year federal agreement.

Sector Analysis

This contract falls within the industrial and personal service merchant wholesalers sector, specifically related to waste management. Benchmarking spending in this niche requires comparison with similar waste disposal and recycling contracts, considering the specialized nature of plastic bag waste.

Small Business Impact

The provided data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation is needed to determine the extent of small business participation.

Oversight & Accountability

The General Services Administration (GSA) is responsible for this contract. Oversight should focus on the execution of the economic price adjustment clause and the contractor's performance in managing plastic bag waste effectively and sustainably.

Related Government Programs

Industrial and Personal Service Paper Merchant Wholesalers
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Potential for cost escalation due to economic price adjustment.
Lack of clarity on specific waste management and recycling methodologies.
Uncertainty regarding small business participation.
Dependence on contractor performance for environmental compliance.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $2,998.8 to CAPP LLC. PLASTIC BAG WASTE

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 $2,998.8.

What is the period of performance?

Start: 2026-04-03. End: 2026-04-12.

What specific metrics are used to evaluate the effectiveness of CAPP LLC's plastic bag waste management services?

Effectiveness is likely measured by adherence to contractually defined service levels, such as timely collection, proper disposal or recycling rates, and compliance with environmental regulations. Performance metrics might include tonnage processed, diversion rates from landfills, and incident reports related to service failures. A review of the contract's performance work statement (PWS) would provide specific details on these evaluation criteria.

How does the economic price adjustment clause in this contract mitigate or exacerbate risks associated with fluctuating material or labor costs?

The economic price adjustment (EPA) clause aims to protect both the government and the contractor from unforeseen cost increases due to market volatility. It allows for price adjustments based on specified economic indicators. However, if these indicators rise significantly, the government could end up paying more than initially budgeted, thus increasing financial risk. Conversely, it prevents contractors from defaulting due to uncontrollable cost hikes, ensuring service continuity.

What is the anticipated environmental benefit or impact of this contract, considering it addresses plastic bag waste?

The primary goal is to manage plastic bag waste responsibly, which could involve recycling, proper disposal, or alternative processing methods. The environmental benefit depends heavily on the contractor's methods. Ideally, the contract promotes diversion from landfills and reduces pollution. However, without specific details on the waste management processes employed by CAPP LLC, the net environmental impact remains uncertain and requires further scrutiny.

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: $2,999

Exercised Options: $2,999

Current Obligation: $2,999

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSEA21A0009

IDV Type: BPA

Timeline