Selling to the State Winning Grant Dollars

Selling to the State & Winning Grant Dollars Presenters: - Peggy Lane, Blue. Star - Jeff Webster, INPUT

Agenda • Blue. Star Overview • Government Program at Blue. Star • INPUT Government 101: Selling to the State and Winning Grant Dollars

Blue. Star Overview • • • Blue. Star is a “dba” for United Radio, Inc, a Kentucky Corporation Corporate Headquarters - Hebron, KY Founded 1929, Privately held 19 Offices serving the Americas 300 Plus Employees Primary Niche Markets - Retail/Hospitality/POS - AIDC/Mobility/RFID • Average Compound Growth of 28 % per annum since 1992

Blue. Star’s Services • FUSION – End-User Demand Generation Campaigns • Dedicated one-to-one sales rep for each customer • • • Online catalog and ordering at http: //www. bluestoreinc. com Same-day shipping Online order verification and tracking • Integration Services at Blue. Star Warehouses - Hardware & peripheral configuration and testing - Loading/flashing of all software - One master carton repacking - “Open Me First” documents • Unlimited Pre- & Post-Sale Support in English, French, and Spanish via Internet or 1 -800 support lines

Government at Blue. Star • Monthly Government ISV Webinars – Qualified and End-User validated ISVs showcase and demonstrate their solution to no less than 75 partner at each webinar – Verticals include e-citation & code enforcement, K-12 and higher Ed, Security Screening and Mobile Data Access, First Responder Accountability and Inspections and Maintenance • Dedicated Federal , S&L Business Development Resources – – Contract Vehicle Consulting and Bid Support/Lookup Bid Opportunities for all Federal, State and Local Partner Coaching on best solution/matchmaking Government and Grants 101 Webinar series • Solutions Demo Pool – Large Demo Pool available through Blue. Star – Motorola has a 70% Demo Program through Blue. Star for its partners • Marketing Support – Demand Gen webinars – Just signed contract with INPUT to efficiently search opportunities – Sales Books created detailing solutions offerings for qualified partners

Leasing Options Through Blue. Star • Our flexible and convenient leasing/financing solutions are designed to give our reseller’s end customers the ability to stay current with the most innovative technology solutions with no upfront costs. • A variety of custom leases can be structured for our resellers including but not limited to: – – – 0% Financing leases, with $0 down-Fair Market Value Purchase option* $1. 00 Buy Out Leases or 10% Purchase Options Leases with Seasonal Financing Deferred Payment Leases Operating and Capital Lease Structures *Subject to credit, documentation and equipment approvals. 30% soft cost allowance*

Visit Blue. Star at the Motorola Partner Expo! Motorola Partner Channel Expo Las Vegas, NV Aria Resort March 7 - 9

THANK YOU!

Government 101: Selling to the State and Winning Grant Dollars Jeff Webster Senior Analyst INPUT 15 March 2018 © 2010

Agenda State and Local Budget Process Governor’s Priorities Impact of the Federal Stimulus State and Local Procurement Process Selling to the Government State and Local Grant Process Best Practices and Tips for Applying/Using Grants Grant Forecast Market conclusions © 2010 11

State and Local Budget Process © 2010 12

Typical Budget Timeline Executive Branch JUL AUG SEP Legislative Branch OCT NOV DEC JAN FEB MAR APR MAY JUN Budget guidelines sent to agencies Agency requests submitted to governor Agency requests reviewed by budget office Governor finalizes budget recommendations Governor submits budget to legislature Legislature holds agency budget hearings Legislature adopts budget © 2010 13

Total State General Fund Deficits Closed, FY 2009 -15. 1% or higher AL ($1. 8 B), AZ ($3. 7 B), CA ($35. 9 B), FL ($5. 7 B), ID, IL ($6. 1 B), MA ($5. 2 B), NV ($1. 6 B), NJ ($6. 1 B), RI, SC ($1. 1 B) -10. 1% to -15. 0% CO ($1. 1 B), CT ($2. 1 B), DE, GA ($2. 4 B), NC ($3. 2 B), NY ($7. 4 B), PA ($3. 2 B), TN ($1. 5 B), UT, VA ($2. 3 B), WI ($1. 7 B) -5. 1% to -10. 0% AK, DC, HI, IN ($1. 2 B), IA, KY, ME, MD ($1. 5 B), MI ($2. 0 B), MN ($1. 6 B), MS, MO, NH, NM, OH ($2. 6 B), OR, WA ($1. 3 B), WY -2. 6% to -5. 0% KS, LA -0. 1% to -2. 5% AR, OK, SD No Deficit MT, NE, ND, TX, WV National average = 8. 2% Source: Center for Budget and Policy Priorities © 2010 14

Governors’ Priorities © 2010 15

Vertical Popularity Percentage, 2007 -09 Source: INPUT © 2010 16

Impact of Federal Stimulus © 2010 17

Highlights of ARRA Impact on S&L IT $205 billion in funding with allowable (not guaranteed) S&L technology spending • INPUT estimate: $5. 7 billion in ARRA-driven S&L IT spending FY 09: $0. 9 billion FY 10: $2. 25 billion FY 11: $1. 25 billion FY 12 and later: $1. 3 billion • Funding for technology, science and research, infrastructure improvements, education, energy, healthcare, and training Mostly distributed via long-standing S&L grant programs © 2010 18

2008 S&L Spending vs. ARRA of 2009 “ARRA” = American Recovery & Reinvestment Act The stimulus represents about 10%-15% of one year of state and local spending, and its impact is spread out over 2 to 5 years, depending on the particular funding stream within the stimulus. Source: U. S. Bureau of Economic Analysis, Recovery. gov, and INPUT © 2010 19

Estimated ARRA Spending by INPUT Vertical Source: CBO, INPUT © 2010 20

State and Local Procurement Process © 2010 21

Procurement Cycle Develop Business Case Get Funding Analyze Requirements Develop and Advertise Solicitation Evaluate Proposals “Cone of Silence” Negotiate Contract Announce Award Deliver Solution © 2010 22

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 © 2010 23

Procurement of Technology Equipment and Services WA VT MT ND MN OR ID NY WY IA NE UT CO CA AZ IL KS NM OH IN NJ WV MO OK CT PA KY VA NC TN AR DE MD SC MS AK RI MI NV NH MA WI SD ME AL GA TX LA FL HI IT Division Agencies Central Purchasing © 2010 24

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 © 2010 SB = Small Business MBE = Minority Business Enterprise WBE = Woman-owned Business Enterprise DBE = Disadvantaged Business Enterprise HUB = Historically Underutilized Business 25

Selling to the government © 2010 26

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 © 2010 27

State and Local Grants Process © 2010 28

Grant Classifications & Sources of Information How does the federal grant process work? Congress authorizes the funds Granting federal agency issues a Request for Applications (RFA) or Program Announcement Grant Classifications • • Direct Pass-Through Further Classifications • Competitive • Formula Potential Recipients assure eligibility and submit applications Awarding Agency Reviews and Score Applications Federal Agency appropriates funds to award recipient. Sources of Grant Information • INPUT’s Grants Database Grants. gov • Federal Register • Monthly Treasury Statements for Grants Funding Catalog of Federal Domestic Assistance • • © 2010 29

Best Practices and Tips for Applying and Using Grants © 2010 30

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 © 2010 31

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! © 2010 32

Forecast © 2010 33

Federal Grants to State & Local Government The Obama Administration projects that spending on federal grants to state and local governments will decrease to $638 b in FY 2014 from $652 b in FY 2010. Spending will spike and peak in FY 2010 due to stimulus funding. Source: INPUT and Budget of the U. S. Government, FY 2010 © 2010 34

Grants to State & Local Governments by Functional Area Source: INPUT Budget of the U. S. Government, FY 2010 © 2010 35

S&L Market Conclusions © 2010 36

S&L Market 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 © 2010 37

Questions? Peggy Lane 800 -354 -9776 x 3313 plane@bluestarinc. com Tom Goldsmith 800 -354 -9776 x 4217 tgoldsmith@bluestarinc. com Kelly Luken 800 -354 -9776 x 3293 kluken@bluestarinc. com Matt Mc. Kinzie 800 -354 -9776 x 3242 mmckinzie@bluestarinc. com