CMS Awards $4.75M for Physical Security System Customization to Silotech Group Inc
Contract Overview
Contract Amount: $4,750,153 ($4.8M)
Contractor: Silotech Group Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2022-04-15
End Date: 2027-04-14
Contract Duration: 1,825 days
Daily Burn Rate: $2.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PHYSICAL SECURITY SYSTEM CUSTOMIZATION. CMS REQUIRES PERSONNEL AND SERVICES TO DEVELOP, ADMINISTER, MAINTAIN AND MONITOR THE DIVISION OF PHYSICAL SECURITY OPERATIONS (DPSO) PHYSICAL ACCESS MANAGEMENT
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78259
State: Texas Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $4.8 million to SILOTECH GROUP INC for work described as: PHYSICAL SECURITY SYSTEM CUSTOMIZATION. CMS REQUIRES PERSONNEL AND SERVICES TO DEVELOP, ADMINISTER, MAINTAIN AND MONITOR THE DIVISION OF PHYSICAL SECURITY OPERATIONS (DPSO) PHYSICAL ACCESS MANAGEMENT Key points: 1. Contract focuses on developing, administering, and monitoring physical access management for CMS's Division of Physical Security Operations. 2. The contract is a definitive contract with a firm fixed price, indicating clear cost expectations. 3. Awarded to Silotech Group Inc., the contract duration is five years, ending in 2027. 4. The NAICS code 541512 suggests services related to computer systems design, aligning with system customization and administration.
Value Assessment
Rating: fair
The contract value of $4.75M over five years is moderate. Without specific benchmarks for physical security system customization and administration services for a federal agency of CMS's size, a precise pricing assessment is difficult. However, the firm fixed price suggests an attempt to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is listed as 'NOT AVAILABLE FOR COMPETITION,' implying a limited competition approach. This could be due to specialized requirements or a sole-source justification not detailed here. Limited competition can sometimes lead to higher prices than fully competitive scenarios.
Taxpayer Impact: The taxpayer impact is tied to the efficiency and effectiveness of the security system implemented. A well-managed system could prevent security breaches, while an overpriced or poorly executed one represents a less efficient use of funds.
Public Impact
Ensures the security of sensitive data and physical access to CMS facilities. Supports the operational integrity of the Division of Physical Security Operations. Potential impact on employee and visitor safety within CMS premises. Contributes to the overall cybersecurity and physical security posture of a major federal health agency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises concerns about potential overpricing.
- Lack of detailed justification for 'NOT AVAILABLE FOR COMPETITION'.
Positive Signals
- Firm fixed price provides cost certainty.
- Long-term contract (5 years) allows for stable system development and maintenance.
Sector Analysis
This contract falls under IT services, specifically computer systems design and related services. Spending in this sector for federal agencies is substantial, covering a wide range of needs from software development to system integration and maintenance. Benchmarks vary widely based on scope and complexity.
Small Business Impact
The data indicates this contract was not awarded to a small business (ss: false, sb: false). Therefore, there is no direct benefit to small businesses from this specific award, and opportunities for subcontracting are not specified.
Oversight & Accountability
Oversight would typically involve regular performance reviews, milestone tracking, and financial audits by CMS to ensure Silotech Group Inc. meets contractual obligations and delivers the required physical security system services effectively and within budget.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Limited competition may result in higher costs.
- Lack of detailed justification for sole-source/limited competition.
- Potential for cost overruns if scope creep occurs.
- Dependence on a single vendor for critical security infrastructure.
Tags
computer-systems-design-services, department-of-health-and-human-services, tx, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $4.8 million to SILOTECH GROUP INC. PHYSICAL SECURITY SYSTEM CUSTOMIZATION. CMS REQUIRES PERSONNEL AND SERVICES TO DEVELOP, ADMINISTER, MAINTAIN AND MONITOR THE DIVISION OF PHYSICAL SECURITY OPERATIONS (DPSO) PHYSICAL ACCESS MANAGEMENT
Who is the contractor on this award?
The obligated recipient is SILOTECH GROUP INC.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).
What is the total obligated amount?
The obligated amount is $4.8 million.
What is the period of performance?
Start: 2022-04-15. End: 2027-04-14.
What specific factors led to the 'NOT AVAILABLE FOR COMPETITION' status, and were alternatives explored?
The specific factors leading to the limited competition status are not detailed in the provided data. Typically, such designations are based on unique capabilities, urgent needs, or the unavailability of other qualified sources. A thorough review would involve assessing if a broader competition was feasible or if specific technical requirements necessitated a limited approach, ensuring the best value for taxpayers.
How does the cost of this contract compare to similar physical security system customization projects for agencies of comparable size?
Without access to a database of comparable federal contracts for physical security system customization and administration, a direct cost comparison is challenging. The $4.75M over five years is a moderate value. A comprehensive analysis would require benchmarking against contracts with similar scopes of work, system complexity, and agency size to determine if the pricing is competitive.
What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure effectiveness?
Key performance indicators for this contract would likely include system uptime, response times for security alerts, successful access control management, and adherence to security protocols. Measurement would involve regular reporting from Silotech Group Inc., independent audits, and performance reviews by CMS personnel to ensure the physical security system effectively meets the DPSO's operational requirements and security standards.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Silotech Group, Inc
Address: 18918 RIDGEWOOD PKWY, SAN ANTONIO, TX, 78259
Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $4,819,908
Exercised Options: $4,750,153
Current Obligation: $4,750,153
Actual Outlays: $3,592,876
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-04-15
Current End Date: 2027-04-14
Potential End Date: 2027-04-14 00:00:00
Last Modified: 2026-03-30
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