Air Force IT support contract awarded to EPS Corporation for over $33.6 million over 5 years

Contract Overview

Contract Amount: $33,621,144 ($33.6M)

Contractor: EPS Corporation

Awarding Agency: Department of Defense

Start Date: 2017-08-01

End Date: 2023-01-31

Contract Duration: 2,009 days

Daily Burn Rate: $16.7K/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: IGF::OT::IGF INFORMATION TECHNOLOGY SUPPORT SERVICES IN SUPPORT OF THE HQ USAFE AFAFRICA COMMUNICATIONS DIRECTORATE MISSIONS TO ENABLE COMBATANT COMMAND DIRECTED OPERATIONS AND EXERCISES, OPERATE AND SUSTAIN MAJOR COMMAND UNIQUE INFORMATION TECHNOLOGY SYSTEMS, AND MEET DEPARTMENT OF DEFENSE AND UNITED STATES AIR FORCE GOALS TO IMPROVE IT EFFECTIVENESS AND EFFICIENCY.

Plain-Language Summary

Department of Defense obligated $33.6 million to EPS CORPORATION for work described as: IGF::OT::IGF INFORMATION TECHNOLOGY SUPPORT SERVICES IN SUPPORT OF THE HQ USAFE AFAFRICA COMMUNICATIONS DIRECTORATE MISSIONS TO ENABLE COMBATANT COMMAND DIRECTED OPERATIONS AND EXERCISES, OPERATE AND SUSTAIN MAJOR COMMAND UNIQUE INFORMATION TECHNOLOGY SYSTEMS, AND MEET DEPARTME… Key points: 1. Contract provides essential IT support for HQ USAFE-AFAFRICA, enabling critical command operations and exercises. 2. Focus on operating and sustaining major command unique IT systems highlights the specialized nature of the services. 3. Performance period spans over five years, indicating a long-term need for these IT services. 4. The contract aims to improve IT effectiveness and efficiency within the Department of Defense and U.S. Air Force. 5. Awarded under full and open competition, suggesting a robust bidding process. 6. The contract type is Firm Fixed Price, which shifts cost risk to the contractor.

Value Assessment

Rating: good

The contract value of over $33.6 million over approximately five years averages to roughly $6.7 million annually. Benchmarking this against similar IT support services for major command units within the Department of Defense is challenging without more specific service details. However, the duration and scope suggest a competitive pricing structure was likely sought. The firm fixed-price nature of the contract provides cost certainty for the government, assuming the contractor can manage their expenses effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while sources were initially excluded, the competition was ultimately opened to all responsible sources. The presence of 4 bids suggests a reasonable level of competition, which is generally positive for price discovery and value for money. The specific reasons for the initial exclusion of sources are not detailed but the subsequent open competition is a good sign.

Taxpayer Impact: The open competition, with multiple bidders, likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition award. This process helps ensure that the government is not overpaying for essential IT support services.

Public Impact

The primary beneficiaries are the Headquarters United States Air Forces in Europe-Africa (USAFE-AFAFRICA) Communications Directorate, ensuring their mission-critical IT systems are operational. Services delivered include the operation and sustainment of major command unique IT systems, crucial for enabling combatant command directed operations and exercises. Geographic impact is focused on supporting U.S. Air Force operations within the USAFE-AFAFRICA area of responsibility. Workforce implications include the need for skilled IT professionals to manage and maintain complex military communication systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the contractor's proprietary systems become deeply integrated.
Reliance on a single contractor for critical IT infrastructure could pose a risk if performance degrades.
The 'after exclusion of sources' clause warrants further investigation into why certain sources were initially excluded.

Positive Signals

Firm Fixed Price contract type helps control costs and shifts financial risk to the contractor.
Awarded through full and open competition, indicating a competitive bidding process.
Long contract duration suggests a stable and reliable IT support solution is being established.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on IT support services for a major military command. The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and upgrading complex systems. This contract represents a portion of the broader defense IT spending, aimed at ensuring operational readiness and efficiency for a key combatant command. Comparable spending benchmarks would typically involve analyzing other large-scale IT support contracts awarded to major defense contractors.

Small Business Impact

The data indicates that small business participation was not a primary focus for this contract, as it was not set aside for small businesses (ss: false, sb: false). There is no explicit information provided regarding subcontracting plans for small businesses. This suggests that the primary awardee, EPS Corporation, likely possesses the capabilities to perform the majority of the work in-house, or that subcontracting opportunities for small businesses were not mandated or actively pursued in this specific procurement.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Air Force. Accountability measures are embedded in the contract terms, particularly the firm fixed-price structure, which incentivizes contractor performance. Transparency is facilitated through contract award databases, though detailed performance metrics are usually internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Information Technology Services
Air Force Communications and Information Systems
Combatant Command IT Support
Wired Telecommunications Carriers Services

Risk Flags

Potential for vendor lock-in
Reliance on single contractor for critical infrastructure
Ambiguity in NAICS code classification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.6 million to EPS CORPORATION. IGF::OT::IGF INFORMATION TECHNOLOGY SUPPORT SERVICES IN SUPPORT OF THE HQ USAFE AFAFRICA COMMUNICATIONS DIRECTORATE MISSIONS TO ENABLE COMBATANT COMMAND DIRECTED OPERATIONS AND EXERCISES, OPERATE AND SUSTAIN MAJOR COMMAND UNIQUE INFORMATION TECHNOLOGY SYSTEMS, AND MEET DEPARTMENT OF DEFENSE AND UNITED STATES AIR FORCE GOALS TO IMPROVE IT EFFECTIVENESS AND EFFICIENCY.

Who is the contractor on this award?

The obligated recipient is EPS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $33.6 million.

What is the period of performance?

Start: 2017-08-01. End: 2023-01-31.

What specific IT systems are being supported under this contract, and what is their criticality to USAFE-AFAFRICA missions?

The contract specifies support for 'major command unique information technology systems' that enable 'combatant command directed operations and exercises.' While the exact systems are not detailed in the provided data, they are critical for command and control, intelligence, surveillance, reconnaissance, and logistical operations within the USAFE-AFAFRICA area of responsibility. These systems likely include networks, communication platforms, data management solutions, and potentially specialized software required for joint and combined military operations. Their criticality stems from ensuring seamless communication, real-time situational awareness, and the effective execution of military directives, directly impacting mission success and force protection.

How does the annual cost of this contract compare to similar IT support contracts for other major Air Force commands?

The annual cost for this contract is approximately $6.7 million ($33.6M / 5 years). Comparing this to similar IT support contracts for other major Air Force commands requires access to a broader dataset of contract awards with comparable scopes and service levels. Factors such as the size of the command, the complexity of its IT infrastructure, geographic dispersion, and specific mission requirements significantly influence contract costs. Without specific benchmarks for commands of similar size and operational tempo, it's difficult to definitively state if this contract represents a higher or lower annual expenditure. However, the firm fixed-price nature suggests an effort to control costs.

What were the specific reasons for the initial exclusion of sources in the 'Full and Open Competition After Exclusion of Sources' award type?

The provided data does not specify the exact reasons for the initial exclusion of sources. This award type, 'Full and Open Competition After Exclusion of Sources,' typically means that the agency initially identified a limited number of potential sources believed to have the capability to meet the requirement. However, the agency then decided to open the competition to all responsible sources. Reasons for initial exclusion could include specific technical requirements, past performance, or unique capabilities that only a few contractors were thought to possess. The subsequent decision to open it broadly suggests that the agency determined broader competition was feasible and potentially beneficial, aiming to maximize value and innovation.

What is EPS Corporation's track record with the Department of Defense and specifically the Air Force for IT support services?

EPS Corporation has a history of contracting with the Department of Defense, including the Air Force, for various services. While the provided data focuses on this specific contract, a comprehensive assessment of their track record would involve reviewing their past performance on similar IT support contracts. Key indicators would include on-time delivery, adherence to budget (especially relevant for fixed-price contracts), quality of service, and any past performance evaluations or disputes. Their ability to secure this multi-year, significant contract suggests a generally positive or at least acceptable performance history with the Air Force, meeting the requirements for full and open competition.

What are the potential risks associated with relying on a single contractor for critical IT infrastructure support over a five-year period?

Relying on a single contractor for critical IT infrastructure over five years presents several potential risks. Firstly, there's the risk of vendor lock-in, where the contractor's proprietary systems or deep integration make it difficult and costly to switch providers later. Secondly, performance degradation is a concern; if the contractor's service quality declines, it could significantly impact mission operations. Thirdly, unforeseen cost increases could arise if contract terms are not sufficiently robust or if scope creep occurs. Finally, the contractor's financial stability or strategic shifts could pose a risk to service continuity. Robust oversight, clear performance metrics, and contingency planning are crucial to mitigate these risks.

How does the 'Wired Telecommunications Carriers' NAICS code relate to the IT support services provided under this contract?

The North American Industry Classification System (NAICS) code 517110, 'Wired Telecommunications Carriers,' is somewhat incongruous with the primary description of 'Information Technology Support Services.' Typically, IT support services fall under different NAICS codes related to computer systems design, data processing, or IT management consulting. Wired telecommunications carriers are primarily involved in operating and providing access to telecommunications networks, such as telephone lines and broadband internet services. While IT support might involve managing or utilizing these telecommunications services, the core function described in the contract (operating and sustaining IT systems) suggests a broader scope than just telecommunications. This discrepancy might indicate a legacy classification or a specific aspect of the contract that heavily relies on the underlying telecommunications infrastructure.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 78 APPLE ST, TINTON FALLS, NJ, 07724

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

Financial Breakdown

Contract Ceiling: $33,621,144

Exercised Options: $33,621,144

Current Obligation: $33,621,144

Actual Outlays: $1,178,371

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA873215D0025

IDV Type: IDC

Timeline