GSA awards $4.9M contract for plastic bags, highlighting industrial supply needs

Contract Overview

Contract Amount: $4,926 ($4.9K)

Contractor: Capp LLC

Awarding Agency: General Services Administration

Start Date: 2026-04-07

End Date: 2026-04-16

Contract Duration: 9 days

Daily Burn Rate: $547/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: PLASTIC BAGS

Place of Performance

Location: CLIFTON HEIGHTS, DELAWARE County, PENNSYLVANIA, 19018

State: Pennsylvania Government Spending

Plain-Language Summary

General Services Administration obligated $4,925.7 to CAPP LLC for work described as: PLASTIC BAGS Key points: 1. Contract value of $4.9M indicates significant demand for essential supplies. 2. Full and open competition suggests a healthy market for this product category. 3. Fixed Price with Economic Price Adjustment (EPA) terms introduce potential cost volatility. 4. The contract duration of 9 months is relatively short, suggesting frequent re-evaluation of needs. 5. Awarded by the Federal Acquisition Service, indicating a focus on centralized procurement. 6. The North American Industry Classification System (NAICS) code 424130 points to wholesale distribution of industrial supplies.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific product details and volume. However, the $4.9M award for plastic bags over a 9-month period suggests a substantial quantity is being procured. The use of Fixed Price with Economic Price Adjustment (EPA) introduces a degree of risk for the government, as costs could increase due to market fluctuations. Without comparable contract data for similar quantities and specifications, a definitive value-for-money assessment is difficult, but the competitive nature of the award is a positive indicator.

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 bids. This approach generally fosters a competitive environment, encouraging multiple bidders to offer their best pricing and terms. The specific number of bidders is not provided, but the designation implies a robust bidding process that should lead to fair market pricing.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces, ensuring the government obtains goods and services at competitive rates.

Public Impact

Federal agencies requiring plastic bags for various operational needs will be the primary beneficiaries. The contract ensures a consistent supply of essential packaging materials for government operations. The geographic impact is likely nationwide, as the General Services Administration serves all federal agencies. Workforce implications are minimal, primarily related to the distribution and logistics of the supplied goods.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases due to Economic Price Adjustment (EPA) clauses.
Lack of specific product details makes it difficult to assess true value for money.
Short contract duration may lead to frequent re-procurement efforts and administrative overhead.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Procurement by GSA indicates adherence to established federal acquisition processes.
The contract ensures availability of a necessary supply item for government operations.

Sector Analysis

This contract falls within the broader industrial and personal service paper merchant wholesalers sector, specifically dealing with the distribution of plastic bags. This sector is characterized by a large number of distributors and manufacturers, with competition often driven by price, delivery speed, and product availability. The General Services Administration (GSA) plays a significant role in consolidating federal purchasing power for such common supplies, aiming to achieve economies of scale. Comparable spending benchmarks for industrial supplies can vary widely based on specific product types and volumes, but GSA contracts often represent significant portions of agency budgets for these items.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, small businesses may have participated in the full and open competition, but there is no explicit provision to ensure their direct involvement or a specific subcontracting target. The impact on the small business ecosystem would depend on whether small businesses were among the bidders or potential subcontractors, which is not detailed here.

Oversight & Accountability

The General Services Administration (GSA) typically has robust oversight mechanisms for its contracts, including performance monitoring and compliance checks. As this is a BPA Call, it likely falls under the broader oversight of the Federal Acquisition Service. Transparency is generally maintained through public contract databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

GSA Schedule Contracts
Federal Supply Schedules
Office Supplies Procurement
Government Packaging Supplies

Risk Flags

Economic Price Adjustment clause introduces cost uncertainty.
Lack of specific product details hinders comprehensive value assessment.
Short contract duration may limit long-term cost optimization.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $4,925.7 to CAPP LLC. PLASTIC BAGS

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 $4,925.7.

What is the period of performance?

Start: 2026-04-07. End: 2026-04-16.

What specific types and quantities of plastic bags are covered under this contract?

The provided data does not specify the exact types or quantities of plastic bags procured under this contract. The NAICS code 424130 (Industrial and Personal Service Paper Merchant Wholesalers) and the description 'PLASTIC BAGS' are broad. To understand the specifics, one would need to review the detailed contract award documents, which would outline product specifications (e.g., size, material, thickness, intended use like trash liners, food storage, or industrial packaging) and the estimated or guaranteed quantities. Without this information, it's difficult to assess if the $4.9 million value represents a large volume of basic bags or a smaller quantity of specialized, high-performance plastic films.

How does the pricing structure (Fixed Price with Economic Price Adjustment) typically impact cost certainty for the government?

A Fixed Price with Economic Price Adjustment (EPA) contract aims to provide a stable base price while allowing for adjustments based on fluctuations in specific economic indicators, such as material costs or labor indices. For the government, this means the initial price is fixed, but there's a risk of cost increases if the specified economic factors rise significantly. While EPA clauses are intended to protect both parties from unforeseen market volatility and ensure fair pricing over the contract's life, they introduce an element of uncertainty compared to a firm fixed price. The government's ability to manage this risk depends on the specific indices used, the frequency of adjustments, and the caps or limitations placed on those adjustments within the contract terms.

What is the typical market size and competitive landscape for industrial plastic bag suppliers to the federal government?

The market for industrial plastic bags supplied to the federal government is substantial, driven by the diverse needs of agencies for packaging, waste management, and operational support. The competitive landscape typically includes a mix of large manufacturers and specialized distributors, many of whom hold positions on GSA Schedules or compete in open procurements. Full and open competition, as indicated for this contract, suggests a healthy number of capable suppliers exist. Pricing is often a key differentiator, alongside product quality, delivery reliability, and the ability to meet specific government requirements (e.g., environmental standards, strength). The market is dynamic, influenced by raw material costs (like polyethylene) and overall economic conditions.

What are the potential risks associated with a 9-month contract duration for a commodity like plastic bags?

A 9-month contract duration for a commodity like plastic bags, especially one awarded as a BPA Call, suggests a short-term need or a strategy for frequent re-evaluation of requirements and market pricing. The primary risk for the government is potential discontinuity of supply if a follow-on contract is not awarded promptly, although this is less likely for such a common item. Administratively, frequent short-term contracts can increase procurement workload and associated costs. From a pricing perspective, shorter durations might limit the ability to negotiate deeper volume discounts that could be available with longer-term commitments. However, it also allows the government to adapt more quickly to changing market prices or evolving product needs.

How does the General Services Administration (GSA) typically ensure value for money in its procurement of common supplies?

The GSA employs several strategies to ensure value for money in procuring common supplies. Firstly, it leverages its significant purchasing power to negotiate favorable pricing through large-scale contracts, such as GSA Schedules and other Indefinite Delivery/Indefinite Quantity (IDIQ) vehicles. Secondly, it emphasizes competition, often requiring full and open competition for its solicitations to drive down prices. Thirdly, GSA provides tools and data to contracting officers and agencies to benchmark pricing and assess fair and reasonable costs. Finally, it establishes standardized requirements and specifications where possible, simplifying the procurement process and facilitating comparisons across vendors. For contracts like this BPA Call, the underlying GSA Schedule or competitive solicitation process is designed to incorporate these value-for-money principles.

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: $4,926

Exercised Options: $4,926

Current Obligation: $4,926

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSEA21A0009

IDV Type: BPA

Timeline