next economy government market outlook

The Next Economy:2010 Government Market Outlook

January 19, 2010

www.onvia.comAgenda

• Introductions and Background • Methodology and Survey Overview• The Next Economy• Infrastructure Sector – Highways, Roads, Bridges, Construction• Energy Sector • Information Technology / Healthcare IT Sector • ARRA and Jobs for Main Street • Onvia’s New Products• 2010 Strategic Considerations • Q&A

www.onvia.comAbout Onvia

Onvia is the leading provider of gBusiness solutions in the United States.

• 8,500 clients who sell to government, subcontract or supply• Identify and qualify actionable business development opportunities• DemandStar eProcurement Platform - 6,000 government users• Largest public sector procurement database• Primary markets served:

Architecture/Design, Engineering, Construction (Infrastructure) Information Technology/Telecommunications Energy/Environmental/Water Medical/Healthcare Vehicles/Equipment Professional Services Operations & Maintenance

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4© Onvia, Inc. 2009 Confidential and Proprietary Information

89,000 Agencies

Public Notices

Newspapers

Official Meetings

Agency Contributed

Web Searching

Comprehensive National Coverage

InformationSpending AuthorizationsPre-RFP noticesBids/RFPsPlanholdersBid TabulationsContract AwardsSubcontractsMarket ResearchCustom Mktg Lists

Target MarketsFederalStateLocalEducationalHealthcareEnergy/WaterPublic SafetyTransportation

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Onvia Services

Daily Notification

Searchable Database

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Trusted Data Source

www.onvia.comThe Next Economy

The Federal, State and Municipal Market

www.onvia.comMethodology and Survey Overview

• Surveyed thousands of government officials at all levels• Captured annual benchmarks and opinions• Matched unique Onvia ARRA data with REMI model• Focus areas: Infrastructure, Energy & Technology• Emerging trends

– Transparency is here to stay– Growing competition in government marketplace– Technology is a critical underpinning

www.onvia.comThe Next Economy (cont’d)

Government Spending is almost 50% of GDP

www.onvia.comThe Next Economy (cont’d)

Businesses are Turning to Government Revenue

www.onvia.comThe Next Economy (cont’d)

Businesses are Preparing for ‘gBusiness’ Arena

www.onvia.comgBusiness Best Practices

• The government market is dynamic• Target your marketing efforts to support sales and business development• Your web efforts requires a government page or separate web site

• You need selective event participation.• Build a presence in a single agency before expanding• Start local• Social media reaches government decision makers• Differentiate your company – define your niche.

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Infrastructure

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www.onvia.com2010 Infrastructure

• Market expected to grow 8%+ fueled by unspent recovery funds

• Over 23,000 ARRA projects in the 2010 pipeline • Another 9,500 in the wings• Jobs for Main Street will push out transportation

spending bill• Materials costs will begin to rise• Continued strong competition for projects

www.onvia.com2010 Infrastructure (con’t)

23,000 Projects In The Pipeline

Feb Mar April May June July August September October November December0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

Allocated Advertised Awarded

www.onvia.com2010 Infrastructure (con’t)

Program Projects Value

Highways 12,500 $41B

Transit 2,300 $3.8B

Environment 750 $2.6B

Water 2,600 $6B

Facilities 4,500 $30B

$76B In Project Value

www.onvia.com2010 Infrastructure (con’t)

Advance Notice

www.onvia.com2010 Infrastructure (con’t)

Competition will continue to keep margins low

Materials prices have bottomed out and will begin to rise in 2010

Lower Overall Cost of Projects

www.onvia.com2010 Infrastructure (con’t)

900,000 Infrastructure Generated Jobs

640,000 Construction Industry Jobs

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Energy

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www.onvia.com2010 Energy

• Majority of $40B from ARRA must be spent in next two years

• Over 2,700 ARRA projects in the 2010 pipeline • Focus is on energy efficiency, renewable energy, and

upgrades to electricity transmission • Innovation will drive the green economy

www.onvia.com2010 Energy (con’t)

Energy Programs Ramp in 2010

Feb Mar April May June July August September October November December0

500

1000

1500

2000

2500

Allocated

Advertised

Awarded

www.onvia.com2010 Energy (con’t)

100,000 Energy Generated Jobs

www.onvia.com2010 Energy (cont’d)

Smart Grid Projects Lead

www.onvia.com2010 Energy (con’t)

RFP/ITB

www.onvia.com2010 Energy (cont’d)

Wide Ranging Product & Service Needs

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Information Technology

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www.onvia.com2010 Information Technology

• Technology is a key driver of the Next Economy– Over $20B in healthcare IT– Over $80B in energy technology– Intelligent transportation

• Federal IT spend will grow 4% to $75B• eGovernment is growing

www.onvia.com2010 Information Technology (con’t)

Contract Awards

www.onvia.com2010 Healthcare IT

2010 Is eHealth Foundation Year

Billions to be spent on expanding broadband to rural areas, upgrading healthcare information systems and computers

• Grants will flow in second half of 2010• Standards will enable interoperability• Expanded broadband is critical

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Recovery: Recap and Look Ahead

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www.onvia.comARRA and Jobs for Main Street

Recap

• Tracking 48,000 projects valued at $150B• Majority of ARRA funds to reach businesses in 2010• Jobs for Main Street will add velocity to ARRA

www.onvia.comARRA and Jobs for Main Street

2010 ARRA Recovery Projects

www.onvia.comARRA and Jobs for Main Street (cont’d)

Jobs for Main Street Will Expedite Spending

www.onvia.comARRA and Jobs for Main Street (cont’d)

Private Sector Job Creation in 2010

www.onvia.comStrategic Considerations for 2010

• Competition/pricing pressure will vary in major metros vs. outlying areas

• Higher volume of smaller dollar projects• Local preference changes• Importance of getting registered• Many stimulus jobs going to firms with existing contracts• Differentiate rather than just quoting at lower margins• Partner with minority-owned businesses• Businesses must engage with government or be left

behind the Next Economy

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www.onvia.com2010 Government Market Outlook

• Available after this web cast– Look for an email with download details

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Questions

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www.onvia.comThank You

Michael Balsam

Chief Solutions Officer

Onvia, Inc.

MBalsam@Onvia.com

Mark Amtower

Federal News Radio

www.federaldirect.com

Markamtower@gmail.com