Commerce Department's $3.36M contract for security systems awarded to Integrated Security Technologies, Inc

Contract Overview

Contract Amount: $3,362,924 ($3.4M)

Contractor: Integrated Security Technologies, Inc

Awarding Agency: Department of Commerce

Start Date: 2023-07-01

End Date: 2026-04-16

Contract Duration: 1,020 days

Daily Burn Rate: $3.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: PHYSICAL ACCESS CONTROL SYSTEMS (PACS), INTRUSION DETECTION SYSTEMS (IDS), AND VIDEO SURVEILLANCE SYSTEM (VSS)

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $3.4 million to INTEGRATED SECURITY TECHNOLOGIES, INC for work described as: PHYSICAL ACCESS CONTROL SYSTEMS (PACS), INTRUSION DETECTION SYSTEMS (IDS), AND VIDEO SURVEILLANCE SYSTEM (VSS) Key points: 1. Value for money appears fair given the 3-year duration and time-and-materials pricing structure. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Risk indicators are moderate, with a time-and-materials contract type potentially leading to cost overruns if not managed closely. 4. Performance context is for physical access control, intrusion detection, and video surveillance systems. 5. This contract fits within the broader IT and security services sector for federal agencies. 6. The award amount is relatively small compared to larger federal IT and security procurements.

Value Assessment

Rating: fair

The contract value of $3.36 million over approximately three years for security systems is within a reasonable range for federal procurements of this nature. The time-and-materials (T&M) pricing structure, while offering flexibility, necessitates careful oversight to ensure cost efficiency. Benchmarking against similar contracts for PACS, IDS, and VSS would provide a clearer picture of value, but initial assessment suggests a fair, albeit not exceptional, price point.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but the competitive nature of the award process generally supports price discovery and potentially more favorable pricing for the government. The agency's decision to use full and open competition suggests confidence in the market's ability to provide suitable solutions.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation, leading to better value for public funds.

Public Impact

The Department of Commerce, specifically the National Oceanic and Atmospheric Administration (NOAA), will benefit from enhanced security. Services delivered include the provision and maintenance of physical access control, intrusion detection, and video surveillance systems. The geographic impact is primarily within Maryland, where the contract is being performed. Workforce implications may include the need for specialized security technicians and system administrators for installation and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time-and-materials contract type carries inherent risk of cost escalation if not closely monitored.
Lack of specific performance metrics in the provided data makes it difficult to assess effectiveness.
The contract duration of nearly three years requires sustained oversight to ensure continued value.

Positive Signals

Awarded under full and open competition, suggesting a robust market response.
The contractor, Integrated Security Technologies, Inc., is a known entity in the security solutions space.
The contract addresses critical security infrastructure needs for a federal agency.

Sector Analysis

This contract falls within the broader Information Technology (IT) and Security Services sector, specifically focusing on physical security systems. The market for these systems is competitive, with numerous vendors offering solutions ranging from basic access control to sophisticated integrated surveillance. Federal spending in this area is substantial, driven by the need to protect sensitive government facilities and data. Comparable spending benchmarks would typically involve analyzing other federal contracts for similar security system installations and maintenance across various agencies.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no mention of a small business set-aside. This suggests the contract was not specifically targeted towards small businesses. Consequently, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The impact on the small business ecosystem is neutral in this instance, as it was not designed to foster small business involvement.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within NOAA. Accountability measures would be tied to the contract's performance work statement and delivery schedules. Transparency is facilitated by the contract's public availability through federal procurement databases. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Federal Protective Service Contracts
Physical Security Equipment Procurement
IT Infrastructure Modernization
Department of Commerce IT Spending
NOAA Facility Management

Risk Flags

Time and Materials Contract Type
Potential for Cost Overruns
Lack of Specific Performance Metrics Provided

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $3.4 million to INTEGRATED SECURITY TECHNOLOGIES, INC. PHYSICAL ACCESS CONTROL SYSTEMS (PACS), INTRUSION DETECTION SYSTEMS (IDS), AND VIDEO SURVEILLANCE SYSTEM (VSS)

Who is the contractor on this award?

The obligated recipient is INTEGRATED SECURITY TECHNOLOGIES, INC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $3.4 million.

What is the period of performance?

Start: 2023-07-01. End: 2026-04-16.

What is the track record of Integrated Security Technologies, Inc. with federal contracts, particularly for security systems?

Integrated Security Technologies, Inc. has a history of performing federal contracts, though specific details on their track record for Physical Access Control Systems (PACS), Intrusion Detection Systems (IDS), and Video Surveillance Systems (VSS) require deeper analysis of their contract history. Examining past performance evaluations, contract modifications, and any past performance issues would provide a clearer picture of their reliability and expertise in delivering similar security solutions. A review of their award history within the Department of Commerce or other agencies for comparable services would be beneficial to assess their capacity and success rate in meeting federal requirements and timelines.

How does the awarded amount of $3.36 million compare to similar federal contracts for security systems?

The $3.36 million award for security systems over approximately three years is a moderate-sized federal contract. To benchmark its value, one would need to compare it against other contracts for PACS, IDS, and VSS awarded by agencies like the Department of Homeland Security, GSA, or other departments with similar security needs. Factors such as the scope of work (e.g., number of facilities, system complexity, integration requirements), contract type (e.g., fixed-price vs. T&M), and geographic location influence pricing. Without specific comparable contract data, it's difficult to definitively state if this represents excellent or questionable value, but it appears within a typical range for such services.

What are the primary risks associated with a Time and Materials (T&M) contract for security systems?

The primary risk associated with a Time and Materials (T&M) contract for security systems is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual labor hours and material costs incurred. If not managed diligently with strict oversight, ceilings, and performance metrics, contractors may not be incentivized to control costs or complete work efficiently. This can lead to the government paying more than anticipated. For security systems, risks also include potential delays in deployment or integration if labor resources are not consistently available or if material procurement is inefficient, impacting the overall security posture.

How effective are intrusion detection and video surveillance systems in enhancing federal facility security?

Intrusion detection systems (IDS) and video surveillance systems (VSS) are critical components of a layered security approach for federal facilities. IDS provide early warning of unauthorized entry by detecting breaches through sensors on doors, windows, or motion detectors, allowing security personnel to respond proactively. VSS offer real-time monitoring, recording, and evidence gathering, which aids in deterring criminal activity, investigating incidents, and identifying threats. When integrated with access control systems (PACS), they create a comprehensive security ecosystem that significantly enhances a facility's ability to prevent, detect, and respond to security threats, thereby improving overall safety and operational continuity.

What is the historical spending trend for security systems by the Department of Commerce?

Analyzing the historical spending trend for security systems by the Department of Commerce would require access to historical procurement data over several fiscal years. This would involve querying federal spending databases (like USASpending.gov) for contracts related to PACS, IDS, VSS, and general physical security services awarded by the Department of Commerce and its sub-agencies, such as NOAA. Understanding this trend would reveal whether spending has been consistent, increasing, or decreasing, and identify any major shifts in procurement strategies or technology adoption. It could also highlight key contractors and the types of security solutions most frequently procured.

What are the implications of awarding a delivery order under a larger contract vehicle for security systems?

A delivery order (DO) is a task order issued under a basic ordering agreement (BOA) or indefinite-delivery, indefinite-quantity (IDIQ) contract. In this case, the award is a 'Delivery Order' for $3.36M, suggesting it's a specific task or project under a broader contract vehicle. The implications are that the foundational terms, conditions, and pricing structures were likely established during the initial award of the larger vehicle, which itself would have undergone a competitive process. This specific DO represents a defined scope of work, quantity, and delivery schedule for the security systems. It allows for flexibility and efficiency in procuring specific needs without re-competing the entire requirement each time.

Industry Classification

NAICS: Manufacturing › Apparel Accessories and Other Apparel Manufacturing › Other Apparel Accessories and Other Apparel Manufacturing

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1305M423QNAAJ0029

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 520 HERNDON PKWY STE C, HERNDON, VA, 20170

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,105,774

Exercised Options: $3,985,731

Current Obligation: $3,362,924

Actual Outlays: $1,989,058

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS07F9158S

IDV Type: FSS

Timeline