GSA awards $5M contract for paper products to CAPP LLC, highlighting potential for price adjustments

Contract Overview

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

Contractor: Capp LLC

Awarding Agency: General Services Administration

Start Date: 2026-04-10

End Date: 2026-04-19

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 of $5M over 9 months suggests significant demand for paper products. 2. Full and open competition indicates a potentially competitive bidding process. 3. The contract type, Fixed Price with Economic Price Adjustment, introduces risk of cost escalation. 4. Awarded by the General Services Administration, a key federal procurement agency. 5. The specific product category, Industrial and Personal Service Paper Merchant Wholesalers, is broad. 6. Performance is concentrated in Pennsylvania, suggesting regional focus.

Value Assessment

Rating: fair

The contract value of $5M for a 9-month period, averaging over $550K per month, appears substantial for paper products. Without specific unit details or historical benchmarks for similar GSA schedules, a precise value-for-money assessment is challenging. The inclusion of economic price adjustment clauses introduces a variable that could increase the final cost beyond initial projections, warranting close monitoring.

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 were eligible to bid. This typically fosters a more competitive environment, potentially leading to better pricing for the government. The number of bidders is not specified, which limits a deeper analysis of the competition's intensity and its direct impact on price discovery.

Taxpayer Impact: A competitive bidding process generally benefits taxpayers by driving down costs and ensuring fair market pricing for the goods procured.

Public Impact

Federal agencies across various departments will benefit from a reliable supply of paper products. The contract ensures the availability of essential office and industrial paper supplies. Geographic impact is primarily focused on Pennsylvania, where the contractor is located and performance is expected. Workforce implications are likely minimal, as this contract focuses on the supply of goods rather than services requiring significant labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause could lead to costs exceeding initial estimates.
Lack of specific unit pricing makes detailed value analysis difficult.
Concentration of performance in Pennsylvania may limit broader geographic access to these specific products under this award.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Contract awarded by GSA, a reputable agency with established procurement processes.
Contract duration of 9 months allows for flexibility and potential re-competition.

Sector Analysis

The market for paper and related wholesale distribution is a mature sector within the broader industrial supply chain. Federal agencies are significant consumers of paper products, making contracts like this essential for daily operations. Spending benchmarks for paper products can vary widely based on type, volume, and specific vendor agreements, but GSA schedules aim to provide competitive pricing through pre-negotiated terms.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the direct impact on small businesses is likely limited to potential subcontracting opportunities, which are not detailed here. The primary awardee, CAPP LLC, is not specified as a small business, suggesting this was likely awarded to a larger entity.

Oversight & Accountability

Oversight for this contract would fall under the General Services Administration's Federal Acquisition Service. Accountability measures are embedded in the contract terms, including performance expectations and the fixed-price with economic price adjustment structure. Transparency is facilitated through federal procurement databases where contract awards are published. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

GSA Schedule 75 - Office, Entertainment, and Publication Supplies, Equipment and Services
Federal Supply Schedule (FSS) contracts
Procurement of Office Supplies
Industrial Supplies Contracts

Risk Flags

Economic Price Adjustment Clause
Limited Transparency on Bidder Numbers
Concentrated Geographic Performance

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: 2026-04-10. End: 2026-04-19.

What is the historical spending pattern for paper products under GSA schedules?

Historical spending on paper products through GSA schedules is substantial, reflecting the continuous need across federal agencies. While specific figures for 'Industrial and Personal Service Paper Merchant Wholesalers' are not readily available without deeper database queries, GSA Schedule 75, which often encompasses such items, has historically seen billions in obligations. This indicates a mature and consistently utilized procurement channel. Factors influencing historical spending include changes in office technology (e.g., move towards digital documents), agency budget allocations, and the introduction of new product categories or sustainability requirements. The trend generally shows a steady demand, albeit with potential shifts in product mix over time.

How does CAPP LLC's track record compare for similar contracts?

Information regarding CAPP LLC's specific track record for similar federal contracts, particularly those involving large volumes of paper products or under GSA schedules, is not detailed in the provided data. A comprehensive assessment would require examining past performance evaluations, contract history, and any reported issues or successes with previous government awards. Without this context, it's difficult to benchmark their performance or reliability against industry peers. Federal procurement databases and contract award histories would be the primary sources for such an analysis.

What are the primary risks associated with the 'Fixed Price with Economic Price Adjustment' contract type for paper products?

The primary risk associated with a 'Fixed Price with Economic Price Adjustment' (FP-EPA) contract for paper products is cost escalation. While the fixed price component provides a baseline, the economic price adjustment allows for increases based on specified economic factors, such as inflation, raw material costs (pulp, energy), or transportation expenses. For paper products, fluctuations in commodity prices and energy costs can significantly impact the supplier's expenses. This means the final cost to the government could be higher than initially budgeted if these economic indicators rise substantially during the contract period. This risk necessitates careful monitoring of the adjustment indices and potentially limits the predictability of the total contract expenditure.

How does the $5M award value compare to typical GSA Schedule awards for paper products?

The $5M award value for a 9-month contract for paper products is a significant sum, suggesting a substantial volume requirement or a broad range of products being procured. Typical GSA Schedule awards can range widely, from small, agency-specific orders to multi-million dollar blanket purchase agreements (BPAs) or calls. Without knowing the specific GSA Schedule number or the exact product mix, direct comparison is challenging. However, awards of this magnitude often indicate a primary supplier for a large agency or a consolidated purchasing effort across multiple entities within a region. It suggests CAPP LLC is a key provider for the services covered under this specific BPA call.

What is the potential impact of this contract on the broader paper supply market?

This $5M contract, awarded through full and open competition, signifies a notable portion of federal demand for paper products being met by CAPP LLC. Its impact on the broader paper supply market depends on the size of CAPP LLC relative to the overall market and the number of competitors involved. If CAPP LLC is a major distributor, this award could strengthen its market position. Conversely, if the competition was intense with many bidders, it suggests a healthy, competitive market. The contract's regional focus on Pennsylvania might also influence local distribution dynamics. Ultimately, its impact is tied to the specific market share it represents and the competitive landscape it emerged from.

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