2011 government market outlook
TRANSCRIPT
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DISCUSSION TOPICS
2010 Year in Review
2011 State and Local Outlook
Information Technology Sector
Clean Energy Sector
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ABOUT ONVIA
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Primary marketsArchitecture/Design, Engineering, Construction (Infrastructure)
Operations & Maintenance
Energy/Environmental/Water
Information Technology/Telecommunications
Medical/Healthcare
Vehicles/Equipment
Professional Services
Leading provider of gBusiness solutions in US
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TRUSTED INFORMATION SOURCEAuthority on gBusiness marketplace
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2010 YEAR IN REVIEWTotal estimated gov’t spending of $5.5 trillion
Massive infusions of federal cash at state and local levels to try to stabilize economy
Second full year of trillion dollar stimulus efforts
Breakdown of non-security discretionary spending
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2010 ARRA SPENDING Majority of dollars still unspent
Investment portion of package has moved far more slowly than expected
Only 30% has reached the contractors and subcontractors that perform the work~$120B of stimulus remains unspent
Expect remaining funding to go to longer-term infrastructure and energy projects
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Government spending will continue at record levels– Remains largest purchaser of goods and services
State – Most forecasting more money to spend in 2011 (NCSL)– Washington 1 of 3 states expecting revenues to increase more
than 10%
Local– Struggling housing markets, slow consumer spending, and high
unemployment driving declines in revenues (NLC)– Will be slower to recover because of lag in property tax
assessments
2011 OUTLOOKStrengthening economy signals improved gov’t budgets
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ARRA WILL REMAIN CATALYST IN 2011 Long tail of expenditures through 2016
2010 dollars mostly went to public sector jobs and programs
Focus shift from “shovel ready” to “job ready”Creation of long term private sector jobs rather than temporary or public sector jobs
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2011 TECHNOLOGY INVESTMENT AREASContinued investment in industry
IT is a key driver of the next economy
Growing focus on healthcare IT
17.5% CAGR through 2014 (BCC Research)
State health information exchanges
Priority initiativesConsolidation/ Optimization (Virtualization, Cloud Computing)
Broadband access
Cybersecurity
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WASHINGTON - IT/TELECOM MARKET
Year-Over-Year (YOY) Growth
# o
f P
urc
has
ing
Eve
nts
2006 2007 2008 20092005
-6%
9%
IT Telecommunications
2010
+20%
+6% -15% +2%
Source: Onvia 2011
Onvia tracked 976 opportunities in 2010Expect similar level of activity in 2011
Significant opportunities at the state/local level
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WASHINGTON - IT/TELECOM MARKET
2010 Sub-Market Breakdown
Source: Onvia 2011
Submarket % Total Growth %
Computer Hardware 33% 3%
Computer Software 15% 3%
Wireless Communications 8% 28%
Information Systems Consulting 8% -12%
Telecommunications Systems and Hardware
6% -3%
Others 30% 1%
Total 100% 2%
Of 3 biggest sub-categories, wireless communications is a specific area of opportunity
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Project Agency Estimated Value
State of Washington Broadband Coalition Northwest Open Access Network $54,452,347
Enhance Broadband capabilities Pend Oreille County Public Utility District No. 1
$34,000,000
Extend FTTP Infrastructure to serve the remaining rural premises that are still without access to Broadband
Chelan County Public Hospital District No. 1
$25,000,000
High-performance computing cluster and the creation of a campus-based facility to consolidate and safeguard research data
Fred Hutchison Cancer Research Center
$10,100,000
Extend High-speed Broadband to 6,543 residents and businesses located in rural, unserved and underserved Okanogan county using a fiber backbone and 170 wireless access nodes
Okanogan County Public Utility District No. 1
$9,100,000
WASHINGTON – IT ARRA PROJECTSLargest are around broadband access
• Washington below national average for % of connections > 10 mbps• Broadband critical to creating economic development and jobs
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Top State/Local AgenciesCity of Tacoma City of SeattleChelan County Public Utilities
District #1King County University of Washington Pierce CountyPort of SeattleCity of SpokaneWashington State DOTWashington State University
WASHINGTON - IT/TELECOM MARKETTop Agencies and Vendors
Awarded VendorsMainline Information SystemsDellAvayaRight Star SystemsSiemens Enterprise CommunicationsIntegrity NetworksQwestAdvanced Media TechnologiesIKONASB/Ricoh
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CLEAN ENERGY MARKETContinued investments to advance clean energy in 2011
Clean energy was largest portion of ARRA directed towards infrastructure improvements
Continued deployment of smart-grid technologies from ARRA investments
Less capital intensive solutions will grow at faster rate – solar vs. wind
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Renewable energy– 80% of electrical power from
renewable sources by 2020– Goal of creating 25,000 jobs in clean
energy by 2020
Electric vehicle infrastructure– Recharging stations along I-5 corridor
ARRA– $2.6B in funding for selected DOE
projects– 175 DOE projects in WA
WASHINGTON - CLEAN ENERGY MARKETOnvia tracked 165 opportunities in 2010
ARRA Pillar Amount (in millions)
Energy Efficiency $250
Renewable Energy $11.5
Electric Grid $137.4
Transportation $41.6
Carbon capture & storage $21.6
Environmental cleanup $1,959.6
Science and Innovation $151.5
Total $2,567
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WASHINGTON - CLEAN ENERGY PROJECTS
Project Agency Est Value
Electric Vehicle Infrastructure City of Bellevue TBD
Electric Highway Washington State DOT $1,320,000
Long-term Supply of Renewable EnergyCity of Seattle
TBD
Efficiency and Renewable Energy Investments Thurston Regional Planning Council $2,159,021
Organic Waste to energy City of Tacoma TBD
Photovoltaic Power System MaintenanceUS Bureau of Land Management, Oregon/Washington State Office
TBD
Electrical Lighting Upgrades, Energy Efficiency King County TBD
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WASHINGTON - CLEAN ENERGYTop Agencies and Vendors
Top State/Local AgenciesCity of TacomaChelan County Public Utilities
District #1City of SeattleSnohomish County Public Utility
District #1Washington State Department of
General AdminIsland County Fire Protection
DistrictSeattle Public Schools
Bellingham School District 501
City of Bellevue
Awarded Vendors
NAES Power contractors
Quantum Engineering and
Development, Inc.
McKinstry Essention Inc.
Voith Hydro, Inc.
CMEC Arc Electric JV LLC
ABB
Siemens Industry & Energy Inc.
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Thank You
Henry ChouAVP Product
Onvia, Inc.509 Olive Way Suite 400
Seattle, WA [email protected]
www.onvia.comwww.recovery.org