The document provides an overview and outlook of the US government market in 2010. It summarizes that government spending is expected to grow significantly, fueled by remaining funds from the American Recovery and Reinvestment Act (ARRA). Specifically, over 23,000 infrastructure projects and 2,700 energy projects are slated to move forward in 2010. The technology sector also is poised to grow as broadband expansion and healthcare IT see major investments. The outlook expects competition to remain intense while opportunities increase across infrastructure, energy, and information technology areas.

1. The Next Economy:2010 Government Market OutlookJanuary 19, 2010

2. AgendaIntroductions and Background Methodology and Survey OverviewThe Next EconomyInfrastructure Sector – Highways, Roads, Bridges, ConstructionEnergy Sector Information Technology / Healthcare IT Sector ARRA and Jobs for Main Street Onvia’s New Products2010 Strategic Considerations Q&A

3. About Onvia Onvia is the leading provider of gBusiness solutions in the United States.8,500 clients who sell to government, subcontract or supply

4. Identify and qualify actionable business development opportunities

5. DemandStar eProcurement Platform - 6,000 government users

6. Largest public sector procurement database

7. Primary markets served:

8. Architecture/Design, Engineering, Construction (Infrastructure)

9. Information Technology/Telecommunications

10. Energy/Environmental/Water

11. Medical/Healthcare

12. Vehicles/Equipment

13. Professional Services

14. Operations & Maintenance89,000 Agencies4© Onvia, Inc. 2009 Confidential and Proprietary InformationComprehensive National CoverageInformationSpending AuthorizationsPre-RFP noticesBids/RFPsPlanholdersBid TabulationsContract AwardsSubcontractsMarket ResearchCustom Mktg ListsTarget MarketsFederalStateLocalEducationalHealthcareEnergy/WaterPublic SafetyTransportation

15. 5© Onvia, Inc. 2009 Confidential and Proprietary InformationOnvia ServicesDaily NotificationSearchable Database

16. Trusted Data Source

17. The Next EconomyThe Federal, State and Municipal Market

18. Methodology and Survey OverviewSurveyed thousands of government officials at all levelsCaptured annual benchmarks and opinionsMatched unique Onvia ARRA data with REMI modelFocus areas: Infrastructure, Energy & TechnologyEmerging trendsTransparency is here to stayGrowing competition in government marketplaceTechnology is a critical underpinning

19. The Next Economy (cont’d)Government Spending is almost 50% ofGDP

20. The Next Economy (cont’d)Businesses are Turning to Government Revenue

21. The Next Economy (cont’d)Businesses are Preparing for ‘gBusiness’ Arena

22. gBusiness 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.

23. Infrastructure13© Onvia, Inc. 2009 Confidential and Proprietary Information

24. 2010 InfrastructureMarket expected to grow 8%+ fueled by unspent recovery fundsOver 23,000 ARRA projects in the 2010 pipeline Another 9,500 in the wingsJobs for Main Street will push out transportation spending billMaterials costs will begin to riseContinued strong competition for projects

25. 2010 Infrastructure (con’t)23,000 Projects In The Pipeline

26. 2010 Infrastructure (con’t)$76B In Project Value

27. 2010 Infrastructure (con’t)Advance Notice

28. 2010 Infrastructure (con’t)Lower Overall Cost of ProjectsCompetition will continue to keep margins lowMaterials prices have bottomed out and will begin to rise in 2010

29. 2010 Infrastructure (con’t)900,000 Infrastructure Generated Jobs640,000 Construction Industry Jobs

30. Energy20© Onvia, Inc. 2009 Confidential and Proprietary Information

31. 2010 EnergyMajority of $40B from ARRA must be spent in next two yearsOver 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

32. 2010 Energy (con’t)Energy Programs Ramp in 2010

33. 2010 Energy (con’t)100,000 Energy Generated Jobs

34. 2010 Energy (cont’d)Smart Grid Projects Lead

35. 2010 Energy (con’t)RFP/ITB

36. 2010 Energy (cont’d)Wide Ranging Product & Service Needs

37. Information Technology27© Onvia, Inc. 2009 Confidential and Proprietary Information

38. 2010 Information TechnologyTechnology is a key driver of the Next EconomyOver $20B in healthcare ITOver $80B in energy technologyIntelligent transportationFederal IT spend will grow 4% to $75BeGovernment is growing

39. 2010 Information Technology (con’t)Contract Awards

40. 2010 Healthcare IT2010 Is eHealth Foundation YearGrants will flow in second half of 2010Standards will enable interoperabilityExpanded broadband is criticalBillions to be spent on expanding broadband to rural areas, upgrading healthcare information systems and computers

41. Recovery: Recap and Look Ahead31© Onvia, Inc. 2009 Confidential and Proprietary Information

42. ARRA and Jobs for Main StreetRecapTracking 48,000 projects valued at $150BMajority of ARRA funds to reach businesses in 2010Jobs for Main Street will add velocity to ARRA

43. ARRA and Jobs for Main Street2010 ARRA Recovery Projects

44. ARRA and Jobs for Main Street (cont’d)Jobs for Main Street Will Expedite Spending

45. ARRA and Jobs for Main Street (cont’d)Private Sector Job Creation in 2010

46. Strategic Considerations for 2010 Competition/pricing pressure will vary in major metros vs. outlying areasHigher volume of smaller dollar projectsLocal preference changesImportance of getting registeredMany stimulus jobs going to firms with existing contractsDifferentiate rather than just quoting at lower marginsPartner with minority-owned businessesBusinesses must engage with government or be left behind the Next Economy36© Onvia, Inc. 2009 Confidential and Proprietary Information

47. 2010 Government Market OutlookHow to get your copy: Available after this web castLook for an email with download detailsSpecial offer: Subscribe to Onvia within the next thirty days and receive a free month of serviceQuestions38© Onvia, Inc. 2009 Confidential and Proprietary Information

48. Thank YouMichael BalsamChief Solutions OfficerOnvia, Inc. MBalsam@Onvia.comMark AmtowerFederal News Radiowww.federaldirect.comMarkamtower@gmail.com