USDA Awards $72.5M IT Support Services Contract to Epsilon Inc. for 10 Years

Contract Overview

Contract Amount: $72,470,861 ($72.5M)

Contractor: Epsilon Inc

Awarding Agency: Department of Agriculture

Start Date: 2022-10-01

End Date: 2032-03-31

Contract Duration: 3,469 days

Daily Burn Rate: $20.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DISC IT SUPPORT SERVICES

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64114

State: Missouri Government Spending

Plain-Language Summary

Department of Agriculture obligated $72.5 million to EPSILON INC for work described as: DISC IT SUPPORT SERVICES Key points: 1. Significant 10-year contract value of $72.5M for IT support. 2. Epsilon Inc. secured the contract under full and open competition. 3. Potential risk associated with long-term IT service contracts. 4. Spending falls within the Computer Systems Design Services sector.

Value Assessment

Rating: good

The contract value of $72.5M over 10 years suggests a moderate annual spend. Benchmarking against similar long-term IT support contracts would be necessary for a precise pricing assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, indicating a robust price discovery process. This method generally leads to competitive pricing.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, likely resulting in a fair market price for the IT support services.

Public Impact

Ensures continued IT support for the Department of Agriculture's Office of the Chief Financial Officer. Long-term nature of the contract provides stability for service delivery. Potential for innovation and service improvement over the contract's duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long-term commitment may reduce flexibility for future technology adoption.
Reliance on a single vendor for critical IT support.

Positive Signals

Competitive award process suggests value for money.
Clear contract duration and scope.

Sector Analysis

This contract falls under the Computer Systems Design Services (NAICS 541512) sector, which is crucial for government operations. Annual spending of approximately $7.25M is within typical ranges for IT support services of this scope.

Small Business Impact

The contract was awarded under full and open competition, but the data indicates the primary awardee is not a small business (sb: false). There is no explicit information on small business subcontracting.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Office of the Chief Financial Officer, suggesting internal oversight. Further details on specific oversight mechanisms and performance reviews would be beneficial.

Related Government Programs

Computer Systems Design Services
Department of Agriculture Contracting
Office of the Chief Financial Officer Programs

Risk Flags

Long contract duration (10 years) may lead to vendor lock-in.
Potential for scope creep or unmanaged changes over the contract life.
Dependence on a single vendor for critical IT functions.
Risk of technology obsolescence if not actively managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $72.5 million to EPSILON INC. DISC IT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is EPSILON INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $72.5 million.

What is the period of performance?

Start: 2022-10-01. End: 2032-03-31.

What is the specific scope of IT support services covered by this contract?

The contract is for 'Computer Systems Design Services' (NAICS 541512). While the exact deliverables are not detailed here, this typically includes services like IT consulting, systems integration, and IT infrastructure management to support the operational needs of the Office of the Chief Financial Officer.

What are the key performance indicators (KPIs) and service level agreements (SLAs) for this contract?

Key performance indicators and service level agreements are critical for ensuring the effectiveness of IT support services. These would typically be detailed in the contract's statement of work, outlining metrics for response times, system uptime, and user satisfaction to hold the contractor accountable.

How will the government ensure the contractor remains competitive and innovative throughout the 10-year period?

Ensuring long-term competitiveness and innovation often involves contract clauses that incentivize technological advancements, regular performance reviews, and potential for re-competition or modifications based on evolving needs. The government may also leverage market research throughout the contract term.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 12314422R0018

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 MONTICELLO VILLAGE DR, WEAVERVILLE, NC, 28787

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $330,897,564

Exercised Options: $76,191,878

Current Obligation: $72,470,861

Actual Outlays: $66,573,982

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCH18D0014

IDV Type: GWAC

Timeline