DoD's $9.5M NASIC contract for intelligence analytics support awarded to Epsilon C5I Inc

Contract Overview

Contract Amount: $9,479,848 ($9.5M)

Contractor: Epsilon C5I Inc

Awarding Agency: Department of Defense

Start Date: 2024-02-02

End Date: 2027-02-01

Contract Duration: 1,095 days

Daily Burn Rate: $8.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: NOVASTAR, NATIONAL AIR AND SPACE INTELLIGENCE CENTER SCIENCE AND TECHNICAL INTELLIGENCE ANALYTIC CAPABILITY SUPPORT

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $9.5 million to EPSILON C5I INC for work described as: NOVASTAR, NATIONAL AIR AND SPACE INTELLIGENCE CENTER SCIENCE AND TECHNICAL INTELLIGENCE ANALYTIC CAPABILITY SUPPORT Key points: 1. Contract focuses on critical scientific and technical intelligence analysis. 2. Awarded under full and open competition, indicating a broad search for qualified vendors. 3. The contract duration of 1095 days suggests a need for sustained support. 4. The pricing structure (Cost Plus Fixed Fee) allows for flexibility but requires careful oversight. 5. This award falls within the R&D sector, specifically physical and engineering sciences. 6. The geographic location of the contractor in Ohio may have implications for local economic impact.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee contract is challenging without detailed cost breakdowns. However, the total award amount of $9.5 million over three years for specialized intelligence analysis appears within a reasonable range for such services. Comparisons to similar contracts for scientific and technical intelligence support would be necessary for a more definitive assessment of value for money. The fixed fee component provides some cost control, but the cost-plus nature necessitates robust oversight to ensure efficiency.

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,' which suggests that while the initial solicitation may have had some exclusions, the final award was made after a competitive process open to all eligible offerors. The presence of 4 offers indicates a moderate level of competition. This level of competition is generally positive for price discovery, suggesting that the government received multiple proposals and likely negotiated a competitive price.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely drove down costs compared to a sole-source procurement. The government had multiple options to choose from, increasing the likelihood of securing a fair price for the required intelligence analysis services.

Public Impact

The primary beneficiaries are the National Air and Space Intelligence Center (NASIC) and the Department of Defense, receiving enhanced scientific and technical intelligence analysis capabilities. The services delivered will support national security by providing critical insights into foreign technological advancements. The geographic impact is primarily national, supporting federal intelligence operations, with a specific contractor presence in Ohio. Workforce implications include the potential for skilled analysts and researchers to be employed by Epsilon C5I Inc. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
The 'after exclusion of sources' aspect of the competition warrants understanding the initial exclusions.
Reliance on a single contractor for critical intelligence analysis could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
The contract duration suggests a stable, long-term need for these specialized services.
The contractor, Epsilon C5I Inc., is likely experienced in providing similar technical support.

Sector Analysis

This contract falls within the Research and Development sector, specifically under NAICS code 541715, which covers Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology). This is a critical area for national security, involving the analysis of foreign technological capabilities. Spending in this sector is often characterized by long-term investments and specialized expertise. Comparable spending benchmarks would typically involve other contracts for scientific intelligence analysis, technical assessments, and R&D support services for defense agencies.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal, unless Epsilon C5I Inc. voluntarily engages small businesses for specialized support. The focus appears to be on securing the most capable provider through open competition.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the Department of the Air Force, with specific contract officers and technical representatives monitoring performance and costs. Accountability measures will be tied to the delivery of analytical products and adherence to contract terms. Transparency is generally limited for national security-related contracts, but reporting requirements will be defined within the contract.

Related Government Programs

Intelligence Analysis Support Services
Scientific and Technical Intelligence
Research and Development Contracts
Department of Defense Intelligence Agencies
Air Force Research and Development

Risk Flags

Cost Overrun Risk (CPFF)
Performance Dependency
Competition Level Analysis

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.5 million to EPSILON C5I INC. NOVASTAR, NATIONAL AIR AND SPACE INTELLIGENCE CENTER SCIENCE AND TECHNICAL INTELLIGENCE ANALYTIC CAPABILITY SUPPORT

Who is the contractor on this award?

The obligated recipient is EPSILON C5I INC.

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 $9.5 million.

What is the period of performance?

Start: 2024-02-02. End: 2027-02-01.

What is Epsilon C5I Inc.'s track record in supporting federal intelligence agencies, particularly with scientific and technical intelligence analysis?

Epsilon C5I Inc. has a history of providing C5I (Command, Control, Communications, Computers, and Intelligence) solutions and support to various government agencies, including defense and intelligence entities. While specific details on their scientific and technical intelligence analysis capabilities for NASIC would require a deeper dive into past performance reviews and contract history, their core business often involves complex systems integration and technical support. Their experience in related fields suggests a foundational capability, but the success of this specific contract will depend on their demonstrated expertise in the nuanced area of scientific and technical intelligence analysis as defined by NASIC's requirements. A review of their past performance on similar contracts, including any awards or commendations, would provide further insight.

How does the $9.5 million contract value compare to similar scientific and technical intelligence analysis contracts awarded by the DoD or other agencies?

The $9.5 million contract value for three years of scientific and technical intelligence analysis support is a moderate-sized award within the federal contracting landscape. To benchmark effectively, one would need to compare it against contracts with similar scopes of work, durations, and required expertise. For instance, contracts for intelligence analysis, R&D support, and technical consulting services for agencies like the Defense Intelligence Agency (DIA), National Security Agency (NSA), or even civilian intelligence components often range from a few million to tens or hundreds of millions of dollars. Given the specialized nature of NASIC's mission, which focuses on foreign aerospace technology, this award appears to be in line with the expected cost for acquiring such critical analytical capabilities. However, a precise comparison would necessitate access to detailed contract databases and analysis of specific service requirements.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for intelligence analysis, and how are they mitigated?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. If costs escalate beyond initial projections, the government may end up paying more than anticipated. Mitigation strategies include rigorous oversight by the government's contracting officer and technical team to ensure all costs are reasonable, allocable, and allowable. Detailed reporting requirements, regular audits, and performance metrics are crucial. The fixed fee provides some incentive for the contractor to control costs, as it does not increase with actual expenses. However, the effectiveness of mitigation heavily relies on the government's ability to actively manage and monitor the contract throughout its lifecycle.

What is the expected effectiveness of the services provided under this contract in enhancing NASIC's intelligence capabilities?

The effectiveness of the services provided under this contract is expected to be high, given the specialized nature of scientific and technical intelligence analysis required by NASIC. This contract aims to bolster NASIC's ability to understand and assess foreign aerospace technologies, which is critical for national security decision-making. The contractor, Epsilon C5I Inc., is expected to deliver in-depth analysis, technical assessments, and intelligence products that inform policymakers and military planners. The effectiveness will be measured by the quality, timeliness, and actionable insights within the delivered intelligence. A successful outcome means NASIC gains a clearer, more comprehensive understanding of adversary technological capabilities, enabling better strategic planning and threat mitigation.

How has federal spending in the R&D sector for intelligence analysis evolved, and where does this contract fit within historical patterns?

Federal spending in the R&D sector, particularly for intelligence analysis, has seen a consistent and often increasing trend, driven by evolving global threats and technological advancements. Agencies like the DoD, including NASIC, continually invest in acquiring cutting-edge intelligence capabilities. Historical patterns show a shift towards more specialized analytical support, often contracted out to firms with specific expertise. This $9.5 million contract fits within this pattern by representing a targeted investment in a crucial niche – scientific and technical intelligence related to aerospace. It reflects the ongoing need for external expertise to supplement internal government capabilities in complex, rapidly changing technological domains. Compared to broader R&D spending, intelligence analysis contracts are typically smaller in scale but possess high strategic importance.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

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

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Epsilon Systems Solutions, Inc.

Address: 9444 BALBOA AVE STE 100, SAN DIEGO, CA, 92123

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

Financial Breakdown

Contract Ceiling: $13,864,409

Exercised Options: $9,479,848

Current Obligation: $9,479,848

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA860422DB006

IDV Type: IDC

Timeline