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Next Economy Government Market Outlook


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Next Economy Government Market Outlook

  1. 1. The Next Economy:<br />2010 Government Market Outlook<br />January 19, 2010<br />
  2. 2. Agenda<br />Introductions and Background <br />Methodology and Survey Overview<br />The Next Economy<br />Infrastructure Sector – Highways, Roads, Bridges, Construction<br />Energy Sector <br />Information Technology / Healthcare IT Sector <br />ARRA and Jobs for Main Street <br />Onvia’s New Products<br />2010 Strategic Considerations <br />Q&A <br />
  3. 3. About Onvia<br /> Onvia is the leading provider of gBusiness solutions in the United States.<br /><ul><li>8,500 clients who sell to government, subcontract or supply
  4. 4. Identify and qualify actionable business development opportunities
  5. 5. DemandStar eProcurement Platform - 6,000 government users
  6. 6. Largest public sector procurement database
  7. 7. Primary markets served:
  8. 8. Architecture/Design, Engineering, Construction (Infrastructure)
  9. 9. Information Technology/Telecommunications
  10. 10. Energy/Environmental/Water
  11. 11. Medical/Healthcare
  12. 12. Vehicles/Equipment
  13. 13. Professional Services
  14. 14. Operations & Maintenance</li></li></ul><li>89,000 Agencies<br />4<br />© Onvia, Inc. 2009 Confidential and Proprietary Information<br />Comprehensive National Coverage<br />Information<br />Spending Authorizations<br />Pre-RFP notices<br />Bids/RFPs<br />Planholders<br />Bid Tabulations<br />Contract Awards<br />Subcontracts<br />Market Research<br />Custom Mktg Lists<br />Target Markets<br />Federal<br />State<br />Local<br />Educational<br />Healthcare<br />Energy/Water<br />Public Safety<br />Transportation<br />
  15. 15. 5<br />© Onvia, Inc. 2009 Confidential and Proprietary Information<br />Onvia Services<br />Daily Notification<br />Searchable Database<br />
  16. 16. Trusted Data Source<br />
  17. 17. The Next Economy<br />The Federal, State and Municipal Market<br />
  18. 18. Methodology and Survey Overview<br />Surveyed thousands of government officials at all levels<br />Captured annual benchmarks and opinions<br />Matched unique Onvia ARRA data with REMI model<br />Focus areas: Infrastructure, Energy & Technology<br />Emerging trends<br />Transparency is here to stay<br />Growing competition in government marketplace<br />Technology is a critical underpinning<br />
  19. 19. The Next Economy (cont’d)<br />Government Spending is almost 50% ofGDP<br />
  20. 20. The Next Economy (cont’d)<br />Businesses are Turning to Government Revenue<br />
  21. 21. The Next Economy (cont’d)<br />Businesses are Preparing for ‘gBusiness’ Arena<br />
  22. 22. gBusiness Best Practices<br /> • 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<br /> • 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.<br />
  23. 23. Infrastructure<br />13<br />© Onvia, Inc. 2009 Confidential and Proprietary Information<br />
  24. 24. 2010 Infrastructure<br />Market expected to grow 8%+ fueled by unspent recovery funds<br />Over 23,000 ARRA projects in the 2010 pipeline <br />Another 9,500 in the wings<br />Jobs for Main Street will push out transportation spending bill<br />Materials costs will begin to rise<br />Continued strong competition for projects<br />
  25. 25. 2010 Infrastructure (con’t)<br />23,000 Projects In The Pipeline<br />
  26. 26. 2010 Infrastructure (con’t)<br />$76B In Project Value<br />
  27. 27. 2010 Infrastructure (con’t)<br />Advance Notice<br />
  28. 28. 2010 Infrastructure (con’t)<br />Lower Overall Cost of Projects<br />Competition will continue to keep margins low<br />Materials prices have bottomed out and will begin to rise in 2010 <br />
  29. 29. 2010 Infrastructure (con’t)<br />900,000 Infrastructure Generated Jobs<br />640,000 Construction Industry Jobs<br />
  30. 30. Energy<br />20<br />© Onvia, Inc. 2009 Confidential and Proprietary Information<br />
  31. 31. 2010 Energy<br />Majority of $40B from ARRA must be spent in next two years<br />Over 2,700 ARRA projects in the 2010 pipeline <br />Focus is on energy efficiency, renewable energy, and upgrades to electricity transmission <br />Innovation will drive the green economy<br />
  32. 32. 2010 Energy (con’t)<br />Energy Programs Ramp in 2010<br />
  33. 33. 2010 Energy (con’t)<br />100,000 Energy Generated Jobs<br />
  34. 34. 2010 Energy (cont’d)<br />Smart Grid Projects Lead<br />
  35. 35. 2010 Energy (con’t)<br />RFP/ITB<br />
  36. 36. 2010 Energy (cont’d)<br />Wide Ranging Product & Service Needs<br />
  37. 37. Information Technology<br />27<br />© Onvia, Inc. 2009 Confidential and Proprietary Information<br />
  38. 38. 2010 Information Technology<br />Technology is a key driver of the Next Economy<br />Over $20B in healthcare IT<br />Over $80B in energy technology<br />Intelligent transportation<br />Federal IT spend will grow 4% to $75B<br />eGovernment is growing<br />
  39. 39. 2010 Information Technology (con’t)<br />Contract Awards<br />
  40. 40. 2010 Healthcare IT<br />2010 Is eHealth Foundation Year<br />Grants will flow in second half of 2010<br />Standards will enable interoperability<br />Expanded broadband is critical<br />Billions to be spent on expanding broadband to rural areas, upgrading healthcare information systems and computers<br />
  41. 41. Recovery: Recap and Look Ahead<br />31<br />© Onvia, Inc. 2009 Confidential and Proprietary Information<br />
  42. 42. ARRA and Jobs for Main Street<br />Recap<br />Tracking 48,000 projects valued at $150B<br />Majority of ARRA funds to reach businesses in 2010<br />Jobs for Main Street will add velocity to ARRA <br />
  43. 43. ARRA and Jobs for Main Street<br />2010 ARRA Recovery Projects<br />
  44. 44. ARRA and Jobs for Main Street (cont’d)<br />Jobs for Main Street Will Expedite Spending<br />
  45. 45. ARRA and Jobs for Main Street (cont’d)<br />Private Sector Job Creation in 2010<br />
  46. 46. Strategic Considerations for 2010 <br />Competition/pricing pressure will vary in major metros vs. outlying areas<br />Higher volume of smaller dollar projects<br />Local preference changes<br />Importance of getting registered<br />Many stimulus jobs going to firms with existing contracts<br />Differentiate rather than just quoting at lower margins<br />Partner with minority-owned businesses<br />Businesses must engage with government or be left behind the Next Economy<br />36<br />© Onvia, Inc. 2009 Confidential and Proprietary Information<br />
  47. 47. 2010 Government Market Outlook<br />How to get your copy: <br />Available after this web cast<br />Look for an email with download details<br />Special offer: <br /><ul><li>Subscribe to Onvia within the next thirty days and receive a free month of service</li></li></ul><li>Questions<br />38<br />© Onvia, Inc. 2009 Confidential and Proprietary Information<br />
  48. 48. Thank You<br />Michael Balsam<br />Chief Solutions Officer<br />Onvia, Inc. <br /><br />Mark Amtower<br />Federal News Radio<br /><br /><br />