Why not use a string instead? You could put a very large number of characters in the database (use VARCHAR and not NVARCHAR since you control the input).
Using your example, if you had "11111", you could skip bitwise operations and just do things like this:
string myBits = "11111";
bool failedPosition0 = myBits[0] == '1';
bool failedPosition1 = myBits[1] == '1';
bool failedPosition2 = myBits[2] == '1';
bool failedPosition3 = myBits[3] == '1';
bool failedPosition4 = myBits[4] == '1';