DHS awards $4.3M contract for centralized cloud-based alarm monitoring, replacing legacy systems

Contract Overview

Contract Amount: $4,309,264 ($4.3M)

Contractor: Bold Technologies Ltd.

Awarding Agency: Department of Homeland Security

Start Date: 2023-04-01

End Date: 2028-03-31

Contract Duration: 1,826 days

Daily Burn Rate: $2.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: REPLACE EXISTING ALARM MONITORING SYSTEMS(AMS) IN THE THREE MEGA CENTERS WITH A CENTRALIZED, CLOUD BASED AMS WITH AN AUTOMATED ALARM MONITORING SYSTEM AVAILABLE AT EACH MC IF CONNECTIVITY TO THE CLOUD BECOMES UNAVAILABLE.

Place of Performance

Location: BATTLE CREEK, CALHOUN County, MICHIGAN, 49037

State: Michigan Government Spending

Plain-Language Summary

Department of Homeland Security obligated $4.3 million to BOLD TECHNOLOGIES LTD. for work described as: REPLACE EXISTING ALARM MONITORING SYSTEMS(AMS) IN THE THREE MEGA CENTERS WITH A CENTRALIZED, CLOUD BASED AMS WITH AN AUTOMATED ALARM MONITORING SYSTEM AVAILABLE AT EACH MC IF CONNECTIVITY TO THE CLOUD BECOMES UNAVAILABLE. Key points: 1. The contract aims to modernize alarm monitoring infrastructure across three mega centers. 2. A key objective is to ensure continuous operation even during cloud connectivity outages. 3. The chosen solution emphasizes automation and centralized cloud-based management. 4. This initiative addresses potential vulnerabilities in existing, disparate alarm systems. 5. The firm-fixed-price structure provides cost certainty for the government. 6. The contract duration spans five years, indicating a long-term strategic investment.

Value Assessment

Rating: good

The contract value of $4.3 million for a five-year system replacement and upgrade appears reasonable given the scope of modernizing alarm monitoring across three major facilities. Benchmarking against similar large-scale security system procurements suggests this is within expected cost ranges for such comprehensive solutions. The firm-fixed-price contract type helps manage cost overruns, providing a degree of value certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. With two bids received, the competition level suggests a moderate level of market interest. While not a large number of bidders, the open competition process generally supports price discovery and encourages competitive pricing.

Taxpayer Impact: Taxpayers benefit from the assurance that the government sought the best value through a competitive process, rather than potentially overpaying through a sole-source award.

Public Impact

The Department of Homeland Security (DHS) will benefit from enhanced security and operational efficiency. The contract delivers a modernized, centralized alarm monitoring system across three critical mega centers. This upgrade is expected to improve response times and situational awareness for security personnel. The implementation of an automated system aims to reduce manual intervention and potential human error. The geographic impact is concentrated within the three mega centers served by the new system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the cloud-based solution is proprietary.
Dependence on cloud infrastructure introduces cybersecurity risks.
Ensuring seamless integration with existing security protocols can be challenging.
Training requirements for personnel on the new automated system need careful management.
Scalability of the cloud solution to accommodate future growth or changes in facility needs.

Positive Signals

Modernization of critical security infrastructure enhances overall safety.
Centralized system offers improved oversight and management capabilities.
Automated features can lead to more efficient security operations.
The firm-fixed-price contract provides budget predictability.
Cloud-based solution offers potential for remote access and monitoring.

Sector Analysis

The security systems services sector, particularly for government facilities, is characterized by stringent requirements for reliability, security, and compliance. This contract falls within the 'Security Systems Services (except Locksmiths)' category, focusing on alarm monitoring. The market includes providers of integrated security solutions, often involving hardware, software, and ongoing support. The value of this contract is modest within the broader federal IT and security procurement landscape, but significant for the specific modernization effort it represents.

Small Business Impact

The contract was awarded to BOLD TECHNOLOGIES LTD. and does not indicate any specific small business set-aside provisions or subcontracting requirements. Given the nature of the technology and the scale of the project, it is possible that larger integrators were better positioned to bid. Further analysis would be needed to determine if small businesses were involved in the supply chain or if opportunities were missed.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The Department of Homeland Security's Office of Procurement Operations is responsible for contract administration. Transparency is facilitated through contract databases like FPDS. While specific oversight details are not provided, the Inspector General's office for DHS would have jurisdiction over potential fraud, waste, or abuse related to this contract.

Related Government Programs

Homeland Security Information Network (HSIN)
Physical Security Systems
Cloud Computing Services
Critical Infrastructure Protection
Enterprise IT Modernization

Risk Flags

Cybersecurity Risk
Vendor Lock-in Potential
System Integration Complexity
Dependence on Cloud Infrastructure
Operational Disruption during Transition

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $4.3 million to BOLD TECHNOLOGIES LTD.. REPLACE EXISTING ALARM MONITORING SYSTEMS(AMS) IN THE THREE MEGA CENTERS WITH A CENTRALIZED, CLOUD BASED AMS WITH AN AUTOMATED ALARM MONITORING SYSTEM AVAILABLE AT EACH MC IF CONNECTIVITY TO THE CLOUD BECOMES UNAVAILABLE.

Who is the contractor on this award?

The obligated recipient is BOLD TECHNOLOGIES LTD..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $4.3 million.

What is the period of performance?

Start: 2023-04-01. End: 2028-03-31.

What is the track record of BOLD TECHNOLOGIES LTD. with federal contracts, particularly in security systems?

A review of federal procurement data indicates that BOLD TECHNOLOGIES LTD. has been awarded contracts primarily within the security systems and services domain. While specific details on past performance metrics for this contractor are not readily available in this summary, their selection for this DHS contract suggests they met the agency's requirements for technical capability and reliability. Further investigation into their contract history, including any past performance evaluations or awards, would provide a more comprehensive understanding of their track record. It is important to assess if they have successfully delivered similar large-scale, integrated security solutions for federal agencies in the past.

How does the $4.3 million cost compare to similar alarm monitoring system upgrades in other federal agencies?

Benchmarking this $4.3 million contract against similar alarm monitoring system upgrades across federal agencies is challenging without more specific details on the scope and complexity of the systems being replaced and the functionalities of the new systems. However, for a five-year project involving three 'mega centers' and a transition to a centralized, cloud-based, automated system, this figure appears to be within a reasonable range. Large-scale security modernization projects can easily run into millions of dollars, especially when factoring in hardware, software licenses, integration, training, and ongoing support. Agencies often procure such services through indefinite-delivery/indefinite-quantity (IDIQ) contracts or task orders against larger IT vehicles, making direct comparisons difficult.

What are the primary risks associated with implementing a centralized, cloud-based alarm monitoring system?

The primary risks associated with implementing a centralized, cloud-based alarm monitoring system include cybersecurity vulnerabilities inherent in cloud infrastructure, potential for vendor lock-in with proprietary solutions, and the critical need for robust internet connectivity. The requirement for an automated system to function even during cloud outages mitigates some connectivity risks but introduces complexity in system design and maintenance. Ensuring data privacy and compliance with federal regulations (e.g., FedRAMP for cloud services) is paramount. Furthermore, the transition from legacy systems can be complex, risking operational disruptions during the migration phase. Effective change management and comprehensive user training are crucial to mitigate adoption risks.

How effective is the 'automated alarm monitoring system available at each MC if connectivity to the cloud becomes unavailable' feature in ensuring continuous operation?

The effectiveness of the 'automated alarm monitoring system available at each MC if connectivity to the cloud becomes unavailable' feature hinges on its technical implementation and redundancy. This suggests a hybrid architecture where local systems can operate autonomously or in a failover mode, storing data locally until cloud connectivity is restored. This design is crucial for maintaining security operations in critical facilities where uninterrupted monitoring is essential. The success of this feature depends on the robustness of the local hardware, the intelligence of the local software, and the seamlessness of data synchronization once connectivity is re-established. Rigorous testing and validation will be necessary to confirm its reliability under various failure scenarios.

What is the historical spending pattern for 'Security Systems Services (except Locksmiths)' by the Department of Homeland Security?

Historical spending patterns for 'Security Systems Services (except Locksmiths)' by the Department of Homeland Security (DHS) can be analyzed through federal procurement databases. Over the past several fiscal years, DHS has consistently allocated significant funds towards security infrastructure, including alarm systems, access control, and surveillance. Spending in this category often fluctuates based on modernization initiatives, infrastructure upgrades, and specific security threats. While this $4.3 million contract represents a notable investment, it should be viewed within the context of DHS's overall security budget, which typically runs into billions of dollars annually across various security-related procurements. Understanding these broader patterns helps contextualize the scale and importance of individual contracts.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Systems Services (except Locksmiths)

Product/Service Code: IT AND TELECOM - DATA CENTER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: 70RFP322QEH000017

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3601 WALNUT ST, DENVER, CO, 80205

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

Financial Breakdown

Contract Ceiling: $5,049,580

Exercised Options: $4,309,264

Current Obligation: $4,309,264

Actual Outlays: $3,001,102

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline