I think that is a decent deal if the rest of the package (wheelset, cranks, bb) matches up. If not, have them upgrade this and that for you included in the price. That pricing is comparable to mail order bikes that come with no LBS service attached (assuming they will give you free tuneups, etc.) or to Fuji clearance pricing on similar groupos. I don't know anything about Felts, but they seem to have a pretty good rep. Maybe look at some reviews? I have an LBS that carries them and the guys there are super cool, so there is some cred right there as far as I'm concerned. Good luck and post back on what you decide.
I kinda unofficially decided not to buy the bike, mostly because I didn't go in looking for that bike (or any cross bike for that matter) I've always kinda wanted a cross bike but I'm afraid if I drop $1000 on this one, I am still going to wish for a new road bike. If I keep buying bikes, I'm going to have trouble at the homestead! If my mind changes, I'll be back with some sort of review.