1. The Next Economy: 2010 Government Market Outlook January 19, 2010

2. Agenda Introductions and Background Methodology and Survey Overview The Next Economy Infrastructure Sector – Highways, Roads, Bridges, Construction Energy Sector Information Technology / Healthcare IT Sector ARRA and Jobs for Main Street Onvia’s New Products 2010 Strategic Considerations Q&A

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

15. 5 © Onvia, Inc. 2009 Confidential and Proprietary Information Onvia Services Daily Notification Searchable Database

16. Trusted Data Source

17. The Next Economy The Federal, State and Municipal Market

18. Methodology and Survey Overview Surveyed thousands of government officials at all levels Captured annual benchmarks and opinions Matched unique Onvia ARRA data with REMI model Focus areas: Infrastructure, Energy & Technology Emerging trends Transparency is here to stay Growing competition in government marketplace Technology 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. Infrastructure 13 © Onvia, Inc. 2009 Confidential and Proprietary Information

24. 2010 Infrastructure Market expected to grow 8%+ fueled by unspent recovery funds Over 23,000 ARRA projects in the 2010 pipeline Another 9,500 in the wings Jobs for Main Street will push out transportation spending bill Materials costs will begin to rise Continued 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 Projects Competition will continue to keep margins low Materials prices have bottomed out and will begin to rise in 2010

29. 2010 Infrastructure (con’t) 900,000 Infrastructure Generated Jobs 640,000 Construction Industry Jobs

30. Energy 20 © Onvia, Inc. 2009 Confidential and Proprietary Information

31. 2010 Energy Majority of $40B from ARRA must be spent in next two years Over 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 Technology 27 © Onvia, Inc. 2009 Confidential and Proprietary Information

38. 2010 Information Technology Technology is a key driver of the Next Economy Over $20B in healthcare IT Over $80B in energy technology Intelligent transportation Federal IT spend will grow 4% to $75B eGovernment is growing

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

40. 2010 Healthcare IT 2010 Is eHealth Foundation Year Grants will flow in second half of 2010 Standards will enable interoperability Expanded broadband is critical Billions to be spent on expanding broadband to rural areas, upgrading healthcare information systems and computers

41. Recovery: Recap and Look Ahead 31 © Onvia, Inc. 2009 Confidential and Proprietary Information

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

43. ARRA and Jobs for Main Street 2010 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 areas Higher volume of smaller dollar projects Local preference changes Importance of getting registered Many stimulus jobs going to firms with existing contracts Differentiate rather than just quoting at lower margins Partner with minority-owned businesses Businesses must engage with government or be left behind the Next Economy 36 © Onvia, Inc. 2009 Confidential and Proprietary Information

48. Thank You Michael Balsam Chief Solutions Officer Onvia, Inc. MBalsam@Onvia.com Mark Amtower Federal News Radio www.federaldirect.com Markamtower@gmail.com