BlueStar GlobalLocations

Jack Feichtner, x4227jfeichtner@bluestarinc.com

Matt McKinzie, x3320mmckinzie@bluestarinc.com

Randy Smith, x3227rsmith@bluestarinc.com

Dan Miller, x4214dmiller@bluestarinc.com

Scot Goodspeed, x3246sgoodspeed@bluestarinc.com

Gary Childress, x4425gchildress@bluestarinc.com

Peggy Lane, x3313plane@bluestarinc.com

Jason Firment, x4230jfirment@bluestarinc.com

BlueStar Motorola Government Program Highlights

Bid Opportunities Federal, State and Local

Grant Writing Assistance Identify Grants within Government Verticals Find Applicable Solutions that focus on Compliance Education

Hardware Seeding Initiative focused on Mobility, WLAN, Air Defense, and RFID

Educational Webinar Series Government 101 and Grants 101 Vertical Focused Education, Federal Government Market Forecasts

Selling to State and Local Governments 101

February 17, 2011

Presented byJeff Webster

Agenda

State and Local Budget Process

State and Local Priorities

State and Local Procurement Process

Selling to the Government

State and Local Grants

State and Local Market conclusions and recommendations

8

State and Local Budget Process

February 17, 2011 CONFIDENTIAL ©2011 Deltek, Inc. All Rights Reserved9

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Typical Budget Timeline

JULJUL AUGAUG SEPSEP OCTOCT NOVNOV DECDEC JANJAN FEBFEB MARMAR APRAPR MAYMAY JUNJUN

Executive Branch Legislative Branch

Budget guidelines sent to agencies

Agency requests submitted to governor

Agency requests reviewed by budget office

Governor finalizes budget recommendations

Legislature holds agency budget hearings

Legislature adopts budget

Governor submits budget to legislature

State Budget Deficits are Peaking

11

Source: Center on Budget and Policy Priorities (CBPP)(as of May 27, 2010)

Expenditures

In FY 2010:

General fund expenditures were 7.3% lower than FY 2009 ($612.6b vs $660.9b)

In FY 2011:

35 states enacted higher general fund spending than FY 2010 36 states forecast lower general fund spending than FY 2008 Enacted budgets call for $645.1 billion in general fund spending, a 5.3%

increase from FY 2010

12

Source: NGA Fall 2010 Fiscal Survey of the States

State and Local Priorities

February 17, 2011 CONFIDENTIAL ©2011 Deltek, Inc. All Rights Reserved13

Priority IT Initiatives (12-18 mos.)

14

Priority IT Initiatives (18-36 mos.)

15

State and Local Procurement Process

February 17, 2011 CONFIDENTIAL ©2011 Deltek, Inc. All Rights Reserved16

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Procurement Cycle

Develop Business Case

Get Funding

Analyze Requirements

Develop and Advertise Solicitation

Evaluate Proposals

Negotiate Contract

Announce Award

Deliver Solution

““Cone ofCone ofSilence”Silence”

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Purchasing Process

Every State has Its Own Procurement Code “How to do business with the State” document or website

Primary goals of procurement are to achieve best value through a fair and open competition.

Know your Customer Familiar with past contracts Budget cycle Study procurement code Open records Register

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Procurement of Technology Equipment and Services

CA

AK

HI

WA

OR

ID

NV

AZ

UT

NM

CO

WY

MT ND

SD

NE

KS

OK

TX

MN

IA

MO

AR

LA

WI

IL IN OHPA

VAWV

KY

TN

MS AL

FL

GA

SC

NC

ME

NY

MD

DE

NJ

CT

RI

MA

NH

VT

MI

IT Division Agencies Central Purchasing

20

Preference Programs Set Asides

Defined by each state Some purchasing “set-aside” for special

types of businesses

Bidder Preferences

Gives weight in bid evaluations to vendors with in-state presence

SB = Small Business

MBE = Minority BusinessEnterprise

WBE = Woman-owned Business Enterprise

DBE = DisadvantagedBusiness Enterprise

HUB = Historically Underutilized Business

SB = Small Business

MBE = Minority BusinessEnterprise

WBE = Woman-owned Business Enterprise

DBE = DisadvantagedBusiness Enterprise

HUB = Historically Underutilized Business

Selling to the Government

February 17, 2011 CONFIDENTIAL ©2011 Deltek, Inc. All Rights Reserved21

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Focus and Replicate

You Can’t Be All Things to All Governments

Over 87,000 governments Some responsible for specialized services

Over 700 programs per state Generally less for localities

State & Local Fortunes Built a Few Million at a Time

Look for project wins you can replicate from government to government Federally funded Functions all governments perform

State and Local Grants Process

February 17, 2011 CONFIDENTIAL ©2011 Deltek, Inc. All Rights Reserved23

Grant Classifications & Sources of Information

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How does the federal grant process work?

Grant Classifications• Direct

• Pass-Through

Further Classifications• Competitive

• Formula

Sources of Grant Information• INPUT’s Grants Database• Grants.gov• Federal Register• Monthly Treasury Statements

for Grants Funding• Catalog of Federal Domestic

Assistance

Best practices and tips for applying and using grants

February 17, 2011 CONFIDENTIAL ©2011 Deltek, Inc. All Rights Reserved25

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Best Practices

Do not judge a grant by its title

Your project is important

look for a variety of funding sources

Keep focused

Goal of project Outcome of project

“Multi” projects

Grant management

Be realistic, clear, and specific

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Tips for applying

Get support from local officials

Read over previously awarded applications

Address goals

Short term Long term

Place the most important information at the top of the application

Editing mistakes can be deadly

MEET DEADLINES!

State and Local Market Forecast

February 17, 2011 CONFIDENTIAL ©2011 Deltek, Inc. All Rights Reserved28

IT Market will Slow to 3.0% CAGR

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Source: INPUT

IT Market Segments Remain Sluggish

30

Source: INPUT

7 of 11 Market Verticals will Decline

31

Source: INPUT

Conclusions and Recommendations

February 17, 2011 CONFIDENTIAL ©2011 Deltek, Inc. All Rights Reserved32

Conclusions

The business cycle is long and strenuous

Resources are stretched thin; agencies need help acquiring outside funds

The market is diverse and fragmented with a variety of different needs

The S&L market lags behind the Federal market when it comes to technology

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RecommendationsAlign short-term business development (BD) to governors’ priorities backed by

stimulus funds Mass transit efficiency and security Roadway tolling/congestion management Student/teacher performance tracking Green/alternative energy R&D Workforce Investment Act (WIA) technology Eliminating waste, fraud, and abuse

Keep an eye on long-run, non-stimulus priorities: K-12 school administrative consolidations Process and data integration for general government Regulatory reforms for job creation

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Recommendations (Cont’d.)Know what a “hard” ROI looks like.

IT investments must produce savings that can be 1) identified, 2) captured, and 3) re-allocated.

Support agencies in meeting compliance requirements.

Track agencies’ technology refresh cycles.

Lead by example in green.

Get to know the state deputy CIOs

Pay close attention to legislative activity.

Cast your net widely. Develop or expand your strategic teaming and reseller relationships to

maximize access to niche markets35

Michael D Sparks, 2011Michael D Sparks, 2011

S&L Government Channel IntroductionS&L Government Channel Introduction

AgendaAgenda

● National GCAM role

● Forecasting and Qualifying Government deals

● Best Practices

● Traps and Time Killers

● Coming Attractions

● Current Resources

The Good News…The Good News…

● Our solutions are needed► Improve services

► Control/reduce costs

► Save lives

● Resources are available now► Partner ecosystem

► GCAMs, GTAMs, tools, etc.

● We understand the technologies and solutions► Clipboard replacement, ADC, RFID

National GCAM RoleNational GCAM Role

● Drive initiatives that enable S&L Channel sales► CAM Education - Government solutions, best

practices and vertical markets

► Framework for partner collaboration

► Identify and promote key Application Partners, ISVs and Resellers

► Resource Matrix

● Government Sales Coach and Champion

● Plus Traditional ISV CAM role

Forecast and QualifyForecast and Qualify

● BAND► Budget – Does the customer have funding

available NOW?

► Authority – Do we have access and a relationship with the person(s) authorized to commit the funds?

► Need – Is there a defined business problem AND a defined ROI?

► Date – Is there a defined date when the PO will be submitted or solution needs to be installed?

● Add Process and Purchasing Vehicle

Purchasing VehiclesPurchasing Vehicles

● Local Authority► Every entity has specific thresholds

● Sole Source► Requires a specific and unique requirement

● Existing Contract► State, County or City IT

► Cooperative purchasing agreements

● RFP (Request for Purchase)► Add months and complexity to the process

► Can alter the solution and competitive landscape

Procurement and Funding ProcessProcurement and Funding Process

● Procurement/Funding Process► Rarely fully understood by IT

► The bigger the deal, the higher the complexity

► Several levels of approval– County/City board

– Legal

– Central IT authority

– Purchasing

– Central grant authority

● Ask, Ask and Ask again

Best PracticesBest Practices

● Pick partners with Government Expertise► Success requires commitment, patience and

understanding

► Application Partners (domain expertise)

► Dabblers rarely succeed

● Seek and develop local purchasing vehicles► Cooperative purchasing agreements

► State Contracts

► Cooperative purchase clause

Best PracticesBest Practices

● Vertical Focus - Specific Solutions with ROI► eCitation (Traffic, Parking, DOT)

► Inspections (Building, Health, Code Enforcement)

► First Responders (Triage, Patient Tracking, Asset Management)

► Identity Management (Rapid ID, Book & Release)

● Meet and Plan with your GTAM► Local demand generation

► Share domain expertise

► Look for Repeatable solutions

Traps and Time KillersTraps and Time Killers

● Interest is never a problem► Qualify, Qualify, Qualify

► Deal with the Business Decision Maker

► Focus on fundable and repeatable opportunities

● RFPs► Must be a good fit and not a “what if”

► Reseller responsibility

► Need Motorola unique specifications

● Competition comes from unlikely sources

Traps and Time KillersTraps and Time Killers

● Sales Cycles are much longer► Complex funding processes

► Complex purchasing process

► Sequential (linear) decision making process

► No clear cut Economic Decision Maker

● Government Time Frames► Work on an hourly basis

► Typically do not have production or productivity measurements and bonuses

Coming AttractionsComing Attractions

● Partner Collaboration Tools► Solution/Contract Matrix

► Guidelines and Best Practices

● Government Playbook► Contacts and Resources

► Vertical Market Guides

● Government Solution and Sales Training► Vertical Solutions

► Guidelines and Best Practice

Current ResourcesCurrent Resources

● Former GCAMS – “help a brother out”– Steve Davis and Matt Hester

● ISV Team

● EMS Gov Sales Team – See spreadsheet

● EMS Solutions Readiness Portal – https://channelsolutions.motorola.com

– See MRSolutions and Click2Demo at the bottom of the home page

● Grant Information– http://communities.motorola.com/community/govgrants

ConclusionConclusion

● We are fulfilling the mission in State and Local► Improving services, reducing costs and

contributing to the recovery of our economy

► Saving Lives!

● Dive in► Start now – long sales cycles

► S&L requires more diligence and patience

► Contact your GTAM and develop a plan

THANK YOUTHANK YOU

Michael Sparks

Michael.Sparks@Motorolasolutions.com

954-895-0276

Q & A

Please type your question or comment into the Question panel provided and our event moderator will read your questions.

If we are unable to answer all questions in the time allotted, please fee free to email any additional questions to Peggy Lane at: plane@bluestarinc.com or call (800) 354-9779 EXT 3313

Thank you for attending today’s event!