GSA awards $9.8M contract for industrial and personal service paper, with fixed-price adjustments

Contract Overview

Contract Amount: $9,855 ($9.9K)

Contractor: Capp LLC

Awarding Agency: General Services Administration

Start Date: 2026-04-08

End Date: 2026-04-17

Contract Duration: 9 days

Daily Burn Rate: $1.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: BAG, PLASTIC: - SEE ATTACHED DOCUMENT FOR DETAIL.

Place of Performance

Location: CLIFTON HEIGHTS, DELAWARE County, PENNSYLVANIA, 19018

State: Pennsylvania Government Spending

Plain-Language Summary

General Services Administration obligated $9,855 to CAPP LLC for work described as: BAG, PLASTIC: - SEE ATTACHED DOCUMENT FOR DETAIL. Key points: 1. Contract value of $9.8M over 9 months suggests a moderate scale of procurement. 2. Fixed Price with Economic Price Adjustment (FP-EPA) pricing structure introduces potential for cost fluctuations. 3. Full and Open Competition indicates a broad market solicitation, potentially leading to competitive pricing. 4. The contract is a BPA Call, implying it's part of a larger pre-negotiated agreement. 5. Awarded by the General Services Administration (GSA), a key federal procurement agency. 6. The North American Industry Classification System (NAICS) code 424130 points to wholesale distribution of paper products.

Value Assessment

Rating: fair

The contract value of $9.8 million for a 9-month duration, with an option to extend, appears to be within a typical range for wholesale paper distribution services. However, without specific details on the types and quantities of paper products, a precise value-for-money assessment is challenging. The Fixed Price with Economic Price Adjustment (FP-EPA) clause introduces a degree of uncertainty regarding the final cost, as it allows for adjustments based on economic factors. Benchmarking against similar GSA contracts for paper supplies would provide a clearer picture of its competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under Full and Open Competition, suggesting that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and terms for the government. The GSA's use of full and open competition for this type of supply contract is standard practice.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for receiving the best value through a wide range of offers, driving down costs and improving service quality.

Public Impact

Federal agencies requiring industrial and personal service paper supplies will benefit from this contract. The contract ensures the availability of essential paper products for various government operations. The geographic impact is primarily within Pennsylvania, where the contractor is located. The contract supports the wholesale paper distribution sector, contributing to the supply chain for government procurement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The FP-EPA clause introduces risk of cost escalation due to economic fluctuations.
Lack of specific details on paper types and quantities makes precise value assessment difficult.
BPA Call nature means this is a call-off from a larger agreement, potentially limiting direct comparison.

Positive Signals

Awarded under Full and Open Competition, indicating a competitive bidding process.
GSA's involvement suggests adherence to established procurement standards and oversight.
Contract duration of 9 months with options allows for flexibility and potential for longer-term supply.

Sector Analysis

The procurement falls within the broader industrial and personal service paper wholesale sector. This sector is characterized by distribution and logistics, supplying various types of paper products to commercial and government entities. The market size for federal paper procurement is substantial, with agencies relying on a consistent supply for administrative and operational needs. This contract represents a portion of that overall federal spending on paper goods, likely serving specific regional or agency requirements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for small businesses arising from this particular award. The primary contractor, CAPP LLC, is likely a larger entity capable of fulfilling the contract requirements under full and open competition.

Oversight & Accountability

The General Services Administration (GSA) typically employs robust oversight mechanisms for its contracts, including this BPA Call. Accountability is maintained through contract performance monitoring, adherence to the terms and conditions, and the FP-EPA clause which requires justification for price adjustments. Transparency is generally facilitated through public contract databases where award details are often available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

GSA Federal Supply Schedule Contracts
Office Supplies Procurement
Government Paper and Related Product Purchases

Risk Flags

Potential for cost escalation due to FP-EPA clause.
Lack of specific product details in summary data hinders full value assessment.
BPA Call structure means competition and pricing were primarily set at the BPA level.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $9,855 to CAPP LLC. BAG, PLASTIC: - SEE ATTACHED DOCUMENT FOR DETAIL.

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 $9,855.

What is the period of performance?

Start: 2026-04-08. End: 2026-04-17.

What specific types and quantities of paper products are included under this contract?

The provided data indicates 'BAG, PLASTIC: - SEE ATTACHED DOCUMENT FOR DETAIL.' This suggests the contract is for plastic bags and potentially other paper-related items, but the exact specifications, types (e.g., copier paper, specialty paper, different bag materials), and quantities are not detailed in the summary data. A full review of the attached document or contract details would be necessary to ascertain the precise scope of products covered. This lack of specificity in the summary makes it difficult to fully evaluate the value and appropriateness of the awarded price without further context.

How does the awarded price of $9.8 million compare to similar GSA contracts for paper products?

Benchmarking the $9.8 million award requires comparing it against contracts with similar scope, duration, and product types. Given this is a BPA Call, it's part of a larger agreement, making direct comparisons complex. However, for a 9-month period, this value suggests a significant volume of paper and plastic bag supplies. GSA's Federal Supply Schedules often have established pricing for common items. Without knowing the exact items and quantities, it's hard to definitively say if $9.8M is high or low. A detailed analysis would involve comparing unit prices for specific paper grades and bag types against historical GSA data or industry benchmarks for wholesale distribution.

What are the potential risks associated with the 'Fixed Price with Economic Price Adjustment' (FP-EPA) clause?

The FP-EPA clause introduces a risk of cost escalation for the government. While it allows the contractor to adjust prices based on specified economic factors (e.g., changes in raw material costs, labor, transportation), it can lead to the final contract cost exceeding the initial fixed price estimate. The government bears the risk of these price increases. Effective management of this clause requires clear definitions of the economic indicators used for adjustment, regular monitoring of these indicators, and a thorough review process for any proposed price changes to ensure they are justified and reasonable.

What is the significance of this contract being a 'BPA Call'?

A BPA Call signifies that this contract is an order placed against a previously established Blanket Purchase Agreement (BPA). BPAs are simplified acquisition methods used when a government agency anticipates repetitive needs for supplies or services. This means the terms, conditions, and often pricing have already been negotiated and agreed upon under the parent BPA. The 'Call' itself is the specific order detailing the quantity, delivery schedule, and price for a particular requirement. This approach streamlines the ordering process but means the competition and pricing were primarily established at the BPA level, not solely for this individual call.

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 summary data. To assess their reliability and past performance, one would need to consult federal procurement databases (like SAM.gov or FPDS) for their contract history, including past performance evaluations, any disputes, or contract terminations. A positive track record with similar GSA contracts would increase confidence in their ability to successfully execute this award.

How does the NAICS code 424130 (Industrial and Personal Service Paper Merchant Wholesalers) inform the nature of this contract?

The NAICS code 424130 clearly defines the primary business activity of the contractor and the nature of the goods being procured. It signifies that the contract is for the wholesale distribution of paper products, including those used for industrial purposes (like packaging materials, industrial wipes) and personal services (like paper towels, tissues). This classification helps in understanding the supply chain role – CAPP LLC is acting as an intermediary, likely sourcing these products from manufacturers and distributing them to federal agencies. It also aids in industry analysis and benchmarking against other wholesalers.

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: $9,855

Exercised Options: $9,855

Current Obligation: $9,855

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSEA21A0009

IDV Type: BPA

Timeline